Quantum Small Cap Fund

The Quantum Small Cap Fund has delivered a 1-year XIRR of 8.35%, which is significantly below the category average of 21.59% for the same period. Over the 1-year horizon, the fund's CAGR of 11.48% outperformed the Nifty Smallcap 250 benchmark's 8.7%, but over longer periods (3Y, 5Y, 7Y, 10Y, 12Y, 15Y), the fund's CAGR has lagged the benchmark, with negative alpha from 5 years onward.

The fund exhibits a maximum drawdown of -18.21% with a recovery period of 98 days, indicating moderate downside risk. The Calmar ratio of 0.47 for 1 year suggests modest risk-adjusted returns. The fund's beta of 0.85 (1Y) and 0.69 (longer periods) indicates lower volatility than the benchmark, and its downside capture of 79.35% (1Y) shows it falls less than the index in down markets, but upside capture of 83.96% (1Y) also limits participation in rallies.

The fund holds 57 stocks with a top-10 concentration of 25.98% of NAV, indicating moderate diversification. The largest holding is Supriya Lifescience at 3.64%, followed by Karur Vysya Bank at 2.94%. Sector-wise, Banks (13.6%) and Auto Components (12.8%) dominate, with other sectors like Industrial Products and Consumer Durables each around 7.4%, providing some sector spread.

The fund's 1-year XIRR of 8.35% is substantially below the category average of 21.59%, placing it in the lower quartile of small-cap funds. Calendar year returns show inconsistency, with 2024 delivering 16.82% but 2023 only 5.5% and 2025 4.58%, indicating a lack of consistent outperformance. The fund has underperformed the benchmark over most long-term periods, with negative alpha from 5 years onward, suggesting it has not kept pace with peers or the index.

This fund is suitable for investors with a high risk tolerance and a long-term horizon (7+ years) who seek exposure to small-cap stocks but prefer lower volatility than the broader small-cap index. However, given its significant underperformance versus the category and benchmark over multiple periods, it may not be ideal for investors seeking competitive returns. Investors should be prepared for potential underperformance and focus on the fund's lower drawdown characteristics if they prioritize capital preservation.

• Lower volatility than the benchmark, with a beta of 0.69-0.85, reducing portfolio swings.
• Lower downside capture (79.35% in 1Y) means the fund loses less than the index during market declines.
• Moderate diversification with 57 holdings and no single stock exceeding 3.64% of NAV, reducing single-stock risk.

• Significant underperformance versus category average, with 1Y XIRR of 8.35% vs 21.59% category average.
• Negative alpha over 5Y, 7Y, 10Y, 12Y, and 15Y periods, indicating the fund has consistently lagged the benchmark on a risk-adjusted basis.