Wednesday, July 1, 2009

Quantum offers maiden fund of funds

Quantum Mutual Fund launched its first fund of funds on Friday in a bid to lure clients finding it tough to chose from hundrends of equity funds.
The fund will invest in 5-10 diversified equity funds with a track record of at least three years, the firm said in a statement. It will, however, not invest in Quantum funds.
"Choosing the correct equity fund is difficult due to the plethora of schemes available. Quantum Equity Fund of Funds will make it simple for investors," Ajit Dayal, president of Quantum Asset Management, said.
Number of equity funds in India has doubled to more than 300 in the last five years, according to data from the Association of Mutual Funds in India (AMFI), creating a problem of plenty for mutual fund investors.
This has lured firms such as ING Asset Management to offer fund of funds, though the category is yet to attract any significant investments.
Fund of funds managed just over 7 billion rupees in India's 6-trillion-rupees-plus mutual funds industry in May, AMFI data showed.

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