Friday, 8 September 2023

Navigating the Markets changing landscape -Quantum Mutual Fund holds Path to Partnership for MFDs


Mumbai 07 Sept 2023 : Quantum AMC recently held the ‘Path to Partnership’ event in Mumbai to share insights on how Mutual Fund Distributors can thrive in the dynamic mutual fund industry and serve the interests of the investors. Mr. I.V. Subramaniam, Managing Director & Group Head -Equities, Quantum Advisors and Mr. Chirag Mehta, Chief Investment Officer were the keynote speakers of the event which saw participation of around 100 MFDs.

The event emphasized how financial inclusion has seen growth propelled by Government initiatives such as Jan Dhan Yojana, which has been successful in bringing millions of unbanked and underbanked individuals into the formal banking sector. Likewise, Equity mutual funds as a percentage of Household financial services have seen growth of 14% in 2021-22 as per data from RBI. Much of this can be attributed to the positive sentiment driven by the bull run in the Equity markets.

The speakers highlighted that though equity markets can go through fluctuations in the short run, over a longer duration, one will be able to assess return expectations. The speakers presented how historically, India has exhibited close to 6-6.5% real GDP growth and is expected to continue its growth trajectory in the long run.  Much of the market rally is backed by FII flows that have made a comeback in CY 2023 and are near their peak moving above Rs.15000 crores.

The speakers observed that though India’s valuations have been at a premium compared to emerging markets, it has been backed by robust earnings growth. Relatively low input costs have led to a rise in corporate earnings. The cyclical economic uptick has lifted growth rates of sectors certain sectors such as automobiles. Quantum MF believes that corporate profitability is likely to remain strong over the next few years as the economic upcycle continues.

Some of the additional points discussed were that in the financial year 2022-23, the government's capex increased by 33% to ₹10 trillion. The private sector capex is also expected to grow in the coming years, driven by factors such as rising capacity utilization and availability of cheap credit. The real estate sector is a major driver of economic growth in India and its revival will support aggregate household income in India.

The event was concluded by a Q&A session pertaining to the market expectations, AUM of Quantum Mutual Fund, details about Quantum products such as Liquid, Value and ESG Mutual Funds, revised commission structure and many more.

Disclaimer, Statutory Details & Risk Factors:

The views expressed here in this article / video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of this article should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments.

Mutual fund investments are subject to market risks read all scheme related documents carefully.

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