Imagine a group of friends in their early thirties talking about investing in mutual funds to build long-term wealth. Now imagine the same conversation two decades ago. Small savings schemes, fixed bank deposits and traditional endowment policies would have dominated the scene.

The ease of investing periodically, with an investment as low as Rs 500 per month, has allowed mutual funds to successfully reach investors of all income groups. According to SEBI data cited by the Ministry of Finance in Lok Sabha, there are about 1.85 crore mutual fund investors in the country. Majority of them have an annual income of less than Rs 5 lakh.

Investments in mutual funds, particularly through the Systematic Investment Plan (SIP), have created a sense of confidence and acceptance among investors for equities as an asset class, until here associated with high risk and volatility. SIPs in mutual funds can help you overcome market volatility and provide above-average returns over a long period of time. Investing in mutual funds can be relatively less risky and helps protect you against inflation risk.

Mutual funds are skillfully administered investment funds that pool the capital of many investors to purchase securities. MFS allow investors to reserve capital with common investment objectives. However, choosing the right mutual fund from hundreds of options can be overwhelming. There are over 350 equity funds to choose from, which makes the world of mutual funds complex for many investors. Different types of funds are available to suit everyone’s risk appetite, objectives, investment period and liquidity needs.

With fund of funds (FOF), also known as multi-manager investing, you can invest in a single fund, which in turn will choose which stock funds to invest your hard-earned money in. FOF is a type of mutual fund that invests in other mutual fund schemes.

Advantages of investing in FOFs

• Funds of funds can be both active and passive. However, FOFs can be a great way for investors to transition into passive investing to gain some sort of beta exposure in the portfolio.
• Since FOFs invest in different types of funds, they help investors diversify and spread their assets with minimal risk.
• FOF offers benefits such as diversification, exposure to ETFs and index funds as well.
• FOFs offer geographic diversification through investments in domestic and international funds, which is an added advantage at present.
• FOFs provide investors with the opportunity to invest in top-performing mutual funds, simplifying the investment process and providing greater benefits such as ease of investing through SIPs, liquidity and freedom from Demat account constraint, making it a smarter choice.
• FOFs help with portfolio management – ​​holding a portfolio of other investment capital rather than investing directly in stocks, bonds or other securities.

Response to the simplification of equity investment in 2022


Quantum Equity Funds of Funds (QEFOF) includes a well-researched diversified investment portfolio of other equity mutual funds. QEFOF automatically invests your money in appropriate diversified equity funds, so you don’t have to worry about which fund to invest in for equity exposure. If you are an existing investor, the fund helps you rebalance our portfolio appropriately, providing you with the suite of best equity funds in India.

Advantages of investing with QEFOF

QEFOF currently includes 9 carefully selected equity mutual funds from other fund companies based on various internal research metrics and with a proven track record. Here are some of the benefits:

1. Diversification: Invests in 5-10 multi-equity third-party mutual fund programs finalized after in-depth analysis. The FOF not only invests in stocks, but also in diversified equity funds that minimize the risk of investing in stocks.
2. Research: The portfolio is pre-selected based on in-depth quantitative and qualitative aspects and a proven track record of more than 5 years.
3. Review: Regular fund review ensures the portfolio is suited to take advantage of market cycles.
4. Investor-first approach: The investment method is Easy to help you reach your financial goals.
5. Tax efficiency with indexation: The fund is taxed as a debt fund. Over the period of 3 years and more, the redemption is taxed at 20% with indexation, reducing the taxable income.
6. Ease of tracking a single folio with a single NAV: Reduces the hassle of owning and tracking multiple investments with one fund. The minimum investment is only Rs 500/month and you also have the option of keeping the units in Demat mode.

Fund selection process

You can construct your portfolio using the 12:20:20 asset allocation rule which incorporates the building blocks of all three asset classes – Stocks, Debt and Gold. The fund offers the opportunity to help minimize risk decline while helping to achieve long-term goals.

Under this strategy, you can invest a larger proportion (70% of your equity portfolio) in the Quantum Equity Fund of Funds. The higher weighting gives your portfolio a mix of different equity funds with different underlying investment styles and market capitalizations. Over a longer duration of 7 to 10 years, this fund has the potential for better risk-adjusted performance.

With stock markets experiencing high periods of volatility, it is important to select a diversified equity mutual fund that can capture market opportunities while minimizing downside risk.

Fund performance

##S&P BSE 200 TRI, ##S&P BSE Sensex TRI.


Data as of January 31, 2022.


Past performance may or may not be sustained in the future.


The load is not taken into account in the calculation of the yields of the scheme. Different plans will have a different expense structure. Returns are net of total expenses and are calculated based on compound annualized growth rate (CAGR). The fund has been managed by Mr. Chirag Mehta since November 1, 2013. Mr. Chirag Mehta manages 5 Schemes of Quantum Mutual Fund.


For other plans managed by him, please

Warning: The opinions expressed here in this article/video are for general information and reading purposes only and do not constitute any guidelines or recommendations on a course of action for the reader to follow. Quantum AMC / Quantum Mutual Fund does not guarantee/offer/disclose any indicative return on investments made in the programme(s). The Opinions are not intended to be professional guidance / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund shares for the reader. The article/video has been prepared based on publicly available information, internally developed data and other sources believed to be reliable. Although no action has been sought on the basis of the information provided here, every precaution has been taken to ensure that the facts are correct and that the opinions expressed are fair and reasonable at this time. Readers of the article/video should rely on information/data from their own investigations and advised to seek independent professional advice and make an informed decision before making any investment. None of the Quantum Advisors, Quantum AMC, Quantum Trustee or Quantum Mutual Fund, their affiliates or representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary loss or damage, including lost profits arising in any way whether on account of any action taken based on the data/information/views provided in the article/video.


Investments in mutual funds are subject to market risk. Carefully read all program materials.