Quant Small Cap Fund Direct Growth

The Quant Small Cap Fund Growth Option Direct Plan boasts a substantial Assets Under Management (AUM) of ₹22,832.42 Crores, ranking it 4th in the small-cap category. This fund primarily focuses on small-cap stocks, with 63.23% of its investments in this segment, offering high growth potential. Additionally, it allocates 25.75% to large-cap stocks and a smaller portion to mid-cap stocks, ensuring a diversified market cap exposure.

The fund exhibits a well-diversified sector allocation, with significant investments in energy (20.07%), financial (17.39%), cyclical (15.73%), and health (14.94%) sectors. This strategic diversification helps mitigate sector-specific risks and positions the fund to capitalize on various economic cycles. The fund's allocation strategy reflects a balanced approach to capturing growth opportunities across different sectors.

With an expense ratio of 0.68%, the Quant Small Cap Fund Growth Option Direct Plan is relatively cost-effective, ranking 14th in its category. This low expense ratio makes it an attractive option for investors seeking small-cap exposure without incurring high costs. The fund's competitive pricing enhances its appeal to cost-conscious investors looking for efficient growth opportunities.

The fund's risk measures indicate a balanced approach to managing volatility and performance. With a 1-year beta of 0.79, the fund exhibits lower volatility compared to the market. Its 5-year alpha of 14.1 suggests strong performance relative to the benchmark. However, the 1-year alpha of -4.83 indicates recent challenges. The fund's Sharpe Ratio of 1.23 over five years highlights its ability to deliver risk-adjusted returns.

The Quant Small Cap Fund Growth Option Direct Plan maintains a high equity exposure of 93.40%, aligning with its growth-oriented strategy. This significant equity allocation positions the fund for potential capital appreciation, though it also subjects it to market volatility. The absence of debt allocation underscores the fund's commitment to equity markets, appealing to investors seeking aggressive growth.

The fund holds a small cash position of 6.59%, providing liquidity and flexibility to capitalize on market opportunities. This cash reserve allows the fund to swiftly adjust its portfolio in response to market conditions, enhancing its ability to manage risk and seize investment opportunities as they arise. The strategic cash allocation supports the fund's dynamic investment approach.