Quant Commodities Fund

The Quant Commodities Fund has delivered a 1-year XIRR of 6.16%, which is significantly below the category average of 14.1% for the same period. Over longer horizons, the fund's CAGR has consistently outperformed the NIFTY 50 benchmark, with a 3-year CAGR of 15.05% versus 3.59% for the benchmark, and a 5-year CAGR of 8.78% versus 2.14%. However, the fund's 1-year performance is notably weak, and it has underperformed its category peers over the past year.

The fund exhibits high volatility with a beta of 1.169 against the NIFTY 50, indicating it amplifies market movements. It has experienced a maximum drawdown of -25.93%, with an average drawdown of -9.19% and three drawdown events exceeding 10%, suggesting significant downside risk. The Calmar ratio of 0.2044 for the 1-year period indicates low risk-adjusted returns relative to the drawdown experienced.

The fund is highly concentrated with only 10 holdings, with the top 10 positions accounting for nearly 100% of the portfolio. The largest sector exposure is Power at 23.1%, followed by Minerals & Mining (11.2%) and Industrial Products (9.9%). The portfolio includes significant positions in Adani Group companies (Adani Green, Adani Energy, Adani Enterprises, Adani Power) which together represent over 30% of the NAV, indicating a high level of sector and group concentration.

The fund's 1-year XIRR of 6.16% is substantially below the category average of 14.1%, placing it in the lower quartile of its peer group. While the fund has historically delivered strong absolute returns (e.g., 38.72% in 2024), its performance has been inconsistent, with negative returns in 2025 (-2.11%) and a modest 0.08% in 2023. The fund's long-term CAGR outperformance over the benchmark is notable, but its recent underperformance against category peers raises concerns about consistency.

This fund is suitable for aggressive investors with a high risk tolerance and a long-term investment horizon of at least 5-7 years, given its high volatility and concentration risk. It is not appropriate for conservative investors or those seeking stable income, as the fund can experience significant drawdowns and has underperformed its category recently. Investors should be prepared for sharp fluctuations and should consider this as a satellite allocation within a diversified portfolio.

• Consistent long-term outperformance over the NIFTY 50 benchmark, with a 3-year CAGR of 15.05% versus 3.59% for the benchmark.
• Strong upside capture ratio of 129.15% over 1 year, indicating the fund participates more than proportionally in market upswings.
• Positive alpha generation across all time horizons, with a 1-year alpha of 21.35% and a 3-year alpha of 11.94%.

• Significant underperformance relative to the category average, with a 1-year XIRR of 6.16% versus 14.1% for peers.
• High concentration risk with only 10 holdings and over 30% exposure to Adani Group companies, which could lead to substantial losses if these stocks decline.