Quant Mid Cap Fund

Quant Mid Cap Fund has delivered strong long-term SIP returns, with 5Y XIRR of 24.01% and 10Y XIRR of 22.11%, consistently ahead of category averages of 20.45% and 19.32% respectively. However, recent performance has lagged: the 1Y XIRR of 11.84% trails the category average of 16.01%, and the 3Y alpha versus NIFTY MIDCAP 150 is negative at -2.783% (Fund CAGR 9.54% vs benchmark 12.97%). Over longer horizons the fund has outperformed the benchmark meaningfully, with 7Y alpha of 4.91% and 10Y alpha of 3.85%.

The fund exhibits a defensive tilt relative to the benchmark, with beta below 1 across all periods (0.73 to 0.95) and downside capture consistently below upside capture — for example, 10Y upside capture of 87.32% versus downside capture of 82.72%. Seven drawdown events exceeding 10% indicate meaningful interim volatility typical of mid-cap funds, though the Calmar ratio remains stable around 0.53-0.59 across horizons. This pattern of asymmetric capture suggests the fund protects capital relatively well in declines while still participating in most of the upside.

The portfolio is concentrated, holding only 23 stocks with the top 10 accounting for roughly 62% of NAV, led by Aurobindo Pharma (10.71%), Lloyds Metals and Energy (9.04%), and Tata Communications (8.49%). Sector exposure is concentrated in Pharmaceuticals & Biotechnology (19.8%) and Telecom - Services (14.5%), which together form over a third of the portfolio. This high-conviction, concentrated approach can amplify both outperformance and underperformance relative to the mid-cap universe.

The fund has beaten category average SIP XIRR across 3Y, 5Y, 7Y, 10Y, and 12Y horizons, with the widest margins at 5Y (24.01% vs 20.45%) and 10Y (22.11% vs 19.32%). Its only shortfall is the 1Y XIRR of 11.84% against the category's 16.01%, indicating recent relative weakness. Long-term calendar year returns show strong consistency in good years, including 52.05% in 2021 and 44.34% in 2020, though it has also posted small negative years such as -5.11% in 2025.

This fund suits investors with a high risk tolerance and a long time horizon of 7 years or more, given that its outperformance versus both benchmark and category emerges over longer periods. The concentrated 23-stock portfolio and mid-cap exposure mean investors should be prepared for drawdowns exceeding 10% during market stress. It works well as a satellite mid-cap allocation for investors who value a defensive, downside-aware style rather than full benchmark participation.

• Long-term SIP XIRR consistently above category averages, including 24.01% over 5Y versus 20.45% for the category
• Favorable asymmetry with downside capture below upside capture across most periods, such as 82.72% downside versus 87.32% upside over 10Y
• Strong positive alpha over longer horizons, including 4.91% over 7Y and 3.85% over 10Y versus NIFTY MIDCAP 150

• Recent underperformance with negative 3Y alpha of -2.783% and 1Y XIRR of 11.84% below the category average of 16.01%
• High portfolio concentration with only 23 holdings and the top two sectors comprising 34.3% of NAV, increasing single-stock and sector risk