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Are Hybrid Funds an option to FDs? Things to consider...

What are the different types of hybrid funds and do they stay true to label, or are they biased towards equities? Through this presentation, find details about a mutual fund that diversifies across asset classes of equity, debt and gold and manages market ups & downs.<br><br>www.Quantumamc.com

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Are Hybrid Funds an option to FDs? Things to consider...

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  1. Are Hybrid Funds an option to FDs? Things to Consider... Speaker: Chirag Mehta, Senior Fund Manager, Alternative Investments August 13, 2021

  2. 2 Are Low & Falling FD Rates hurting your Savings? 14 FD interest FD interest rates rates Bank Bank SBI 1 year FD rate 12 SBI 2.90% - 5.40% 10 HDFC 2.50% - 5.50% 8 ICICI 2.50% - 5.50% 6 Axis 2.50% - 5.75% Kotak 2.50% - 5.30% 4 Data as of August 5 Data as of August 5th th2021 2021 2 Source: Source: FD Interest Rates | Compare Fixed Deposit Interest Rate Today (myloancare.in) Bloomberg, SBI, Data as of July 2021 Bloomberg, SBI, Data as of July 2021

  3. 3 Despite Low Returns, bulk of Money still in FDs 53% of household savings are kept in Bank deposits Source: Quarterly Estimates of Households Source: Quarterly Estimates of Households’ ’ Financial Assets and Liabilities, RBI, June Financial Assets and Liabilities, RBI, June 2020 2020

  4. 4 How Efficient is India’s Preferred Saving Instrument? Bank Fixed Deposit Pros: •Assured returns •Deposit Insurance •Loan against FD Bank Fixed Deposit Cons: •Low returns / low real returns •Insured upto 5 lacs •Liquidity – penalty on premature withdrawal •Taxation as per tax slab

  5. FD is a Long-term Losing Proposition 1990* 1990* 2000 2000 2010 2010 2015 2015 2020 2020 CAGR CAGR Consumer Basket Consumer Basket TOTAL SPENDING PER ANNUM 23,759 68,923 151,279 280,064 427,619 10.1% Price of gold, INR/10 grams 3,409 4,528 18,268 26,335 50,104 9.4% Units ( Grams) of gold to consume my basket 70 152 83 106 85 BSE SENSEX 730 4,659 15,585 26,557 47,751 14.9% Units of BSE-30 Index to consume my basket 33 15 10 11 9 Fixed Deposit Basket Index Value (Value of initial investment Jan 1, 1990 =1000) (SBI 1 Year Deposit Rate)* 1,064 2,220 3,550 4,628 5,814 6.0% Units of FD Basket to consume my basket 22 31 43 61 73 Past performance may or may not sustained in future Past performance may or may not sustained in future Quarterly compounding and Tax rate on Fixed Deposit assumed to be 30% Quarterly compounding and Tax rate on Fixed Deposit assumed to be 30%

  6. Other Assets have Better Return Options, should you opt for them?

  7. Asset Class Outlook: Equity

  8. Consensus Earnings Upgrades After Many Years of Flat Growth Source: Bloomberg Source: Bloomberg As on As on 31 31st stJuly July 2021. Past Performance may or may not sustained in future 2021. Past Performance may or may not sustained in future

  9. Spiking PER Overstates Valuation Given The Prior Quarter’s Gap Down Source: Bloomberg Source: Bloomberg Data as on Data as on 31 31st stJuly July 2021. Past Performance may or may not sustained in future 2021. Past Performance may or may not sustained in future

  10. Foreign Investors Return as New Covid Cases Decline; Third Wave if any, Could Again Lead to Outflows Change in S&P BSE-30 TRI in that period (% ) ( % USD) +86.5% +20.5% +40.2% +51.6% +67.0% -60.8% +90.3% +24.2% -35.7% +24.1% -1.9% +29.2% -8.1% +0.9% +37.8% -2.0% +13.1% +14.5% +9.0% +0.2% +1218.9% Net Foreign Activity (USD bn) Net Local Activity (USD bn) Total Activity (USD bn) Period CY 2003 CY 2004 CY 2005 CY 2006 CY 2007 CY 2008 CY 2009 CY 2010 CY 2011 CY 2012 CY 2013 CY 2014 CY 2015 CY 2016 CY 2017 CY 2018 CY 2019 CY 2020 YTD 2021 July 2021 Cumulative 6.6 8.7 10.7 8.1 17.7 -12.0 17.5 29.4 -0.4 24.4 20.1 16.1 3.2 3.2 7.8 -4.4 14.4 23.0 6.8 -1.5 200.9 0.1 -0.3 3.0 3.4 1.7 3.3 -1.2 -6.1 1.3 -3.9 -3.7 3.9 11.1 7.1 18.4 17.6 7.6 -7.5 0.6 2.6 56.5 6.7 8.4 13.7 11.5 19.4 -8.7 16.3 23.3 0.9 20.5 16.4 20.0 14.3 10.3 26.2 13.2 22.0 15.5 7.4 1.1 257.3 Past Performance may or may not sustained in Past Performance may or may not sustained in future future Source Source: Sebi.gov.in, NDSL, : Sebi.gov.in, NDSL, as as of of 31 31st stJuly, July, 2021 2021

  11. Asset Class Outlook: Fixed Income Asset Class Outlook: Fixed Income

  12. Interest Rates at Historic Lows 10 year Gsec 1 year Gsec 10.0% 8.0% 6.0% 4.0% 2.0% Source Source – – Bloomberg; Quantum Research, Data as of Bloomberg; Quantum Research, Data as of 31 Past performance may or may not sustained in Past performance may or may not sustained in future 31st stJuly July 2021 future 2021

  13. Government Borrowing to Remain Elevated Gross borrowings Net market borrowing 14000 Borrowing Amount in INR Billion 12000 Govt Borrowings jumped after 10000 8000 6000 4000 2000 0 FY15 FY16 FY17 FY18 FY19 FY20 2021 2022 BE Source Source – – CMIE, Indiabudget.gov.in, Quantum Research CMIE, Indiabudget.gov.in, Quantum Research

  14. ‘Das PUT’ in Action RBI's Bond Buying 5.0 4.0 Amount in Rs. Trillion 3.0 2.0 1.0 0.0 -1.0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022* Gross Purchase Net OMO * FY22 data is from 1 * FY22 data is from 1st Source Source – – RBI, Quantum Research, data as of 26 RBI, Quantum Research, data as of 26th stApril 2021 till 26 April 2021 till 26th thJuly 2021 only July 2021 only thJuly 2021 July 2021

  15. Inflation breached the 6% ‘Laxman Rekha’ CPI-Headline Core-CPI 8.0% 6.0% 4.0% 2.0% 0.0% Jun-18 Jun-15 Jun-16 Jun-17 Jun-19 Jun-20 Jun-21 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Dec-15 Mar-16 Dec-16 Mar-17 Dec-17 Mar-18 Dec-18 Mar-19 Dec-19 Mar-20 Dec-20 Mar-21 Source Source – – MOSPI, Quantum Research, data as of MOSPI, Quantum Research, data as of July July 2021 2021

  16. Asset Class Outlook: Gold Asset Class Outlook: Gold

  17. Gold is a Monetary Asset – Gold has kept up with money supply growth 1600 1400 US Money Supply - M2 Gold Prices 1200 1000 800 600 400 200 Rebased = 100 0 1974 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013 2017 2021 Data as of June 2021 Source: fred.stlouisfed.org Data as of June 2021 Source: fred.stlouisfed.org Past performance may or may not sustained in future Past performance may or may not sustained in future

  18. 18 Headwind: Change in Fed stance  With inflation raging, the Fed has to show awareness…  The US central bank signaled it will raise rates earlier than planned in 2023. Percent change in US Consumer Price Index from a year prior Data as of Data as of May May 2021. 2021. Source: Statista.com Source: Statista.com Data as of 23 July 2021. Data as of 23 July 2021. Source: fred.stlouisfed.org Source: fred.stlouisfed.org Premature tightening could throw economic recovery off track Premature tightening could throw economic recovery off track

  19. 19 Gold’s fundamentals remain supportive  Accommodative Central banks  Interest rates set to remain low until 2023 and possibly beyond  Interest rate hike by central banks to lag inflation – Real interest rates to remain low to negative  Central banks continue to fund deficits / asset purchases Central Bank balance sheet – Total Assets  Economies will need Government support in form of higher spending  US to soon unveil a massive infra spending  A weaker dollar Real interest rates will continue to be under pressure $ Trillion 2250 12 10 2000 10 9 1750 8 8 1500 6 7 6 1250 4 USD % 5 1000 2 4 750 0 3 500 -2 2 250 -4 1 0 -6 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 US -FED JAPAN - BOJ EU -ECB CHINA - PBOC Gold price US Real interest rate Data as of July 2021. Data as of July 2021. Source: Source: Bloomberg Bloomberg Data as of July 2021. Data as of July 2021. Source: Source: Bloomberg Bloomberg

  20. Equities or Fixed Income or Gold? Equities or Fixed Income or Gold? How do you pick the winning asset class? How do you pick the winning asset class?

  21. 21 It is a Challenge to Consistently Pick Winners amidst Unpredictability & Volatility There have been years when equity markets had a brilliant run, years when only bonds were dependable, and years when gold shined the brightest, and these periods did not typically overlap 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 2021* 2021* Sense Sense x 49% x 49% Sense Sense x 49% x 49% Gold Gold 26% 26% Sense Sense x 83% x 83% Gold Gold 23% 23% Gold Gold 32% 32% Sense Sense x 28% x 28% Sense Sense x 11% x 11% Sense Sense x 32% x 32% Bonds Bonds 9% 9% Bonds Bonds 13% 13% Sense Sense x 30% x 30% Gold Gold 8% 8% Gold Gold 16% 16% Gold Gold 28% 28% Sensex Sensex 11% 11% Gold Gold 20% 20% Gold Gold 16% 16% Bonds Bonds 9% 9% Gold Gold 24% 24% Sense Sense x 19% x 19% Bonds Bonds 7% 7% Gold Gold 12% 12% Bonds Bonds 4% 4% Bonds Bonds 14% 14% Sensex Sensex - -4% 4% Gold Gold 11% 11% Gold Gold 5% 5% Sensex Sensex 7% 7% Sensex Sensex 14% 14% Sensex Sensex 17% 17% Bonds Bonds 1% 1% Sense Sense x x - -52% 52% Sense Sense x x - -24% 24% Bonds Bonds 4% 4% Bonds Bonds 7% 7% Bonds Bonds 4% 4% Bonds Bonds 5% 5% Bonds Bonds 9% 9% Gold Gold - -5% 5% Gold Gold - -8% 8% Gold Gold - -7% 7% Sense Sense x 3% x 3% Bonds Bonds 5% 5% Bonds Bonds 6% 6% Bonds Bonds 11% 11% Bonds Bonds 12% 12% Gold Gold - -3% 3% Past performance may or may not sustained in future Past performance may or may not sustained in future calendar year from top to bottom The chart ranks the best to worst performing indexes per The chart ranks the best to worst performing indexes per calendar year from top to bottom *Data as of July 2021 *Data as of July 2021 Past performance may or may not be sustained in future. Past performance may or may not be sustained in future. Based on S&P BSE Sensex; Domestic Gold prices and Based on S&P BSE Sensex; Domestic Gold prices and CRISIL Composite Bond Fund Index CRISIL Composite Bond Fund Index Imagine someone holding an all equity portfolio in 2008, or holding none in the equity rally that followed? Source: Bloomberg Source: Bloomberg

  22. 22 Each Asset Serves a Role in a Portfolio Context GOLD Diversifies against macro events and a store of value FIXED INCOME Regular income and stability EQUITY Long term growth

  23. 23 Combine Asset Classes for better Risk Adjusted Returns One asset’s down cycle is balanced by another asset’s up cycle Risk Risk- -Return Return Equity +Debt Equity +Debt +Gold * +Gold * Equity + Debt ** Equity + Debt ** Equity Equity Debt Debt Gold Gold CAGR 11.13% 11.13% 11.13% 11.13% 12.80% 12.80% 7.18% 7.18% 11.45% 11.45% Annualized SD 9.37% 9.37% 13.45% 13.45% 22.02% 22.02% 3.27% 3.27% 17.34% 17.34% Maximum Drawdown 0.21 0.21 0.36 0.36 0.56 0.56 0.06 0.06 0.25 0.25 Sharpe Ratio 0.524 0.524 0.365 0.365 0.299 0.299 0.293 0.293 0.302 0.302 Time frame is November 2004 to July 2021. The period is taken from 2004 since the asset allocation weights are calculated based on normalizing the historical monthly equity and debt indicators. Given the normalization time frame used in the strategy, data availability for certain parameters beyond the time frame analyzed was a constraint. Compiled by Quantum AMC *Equity-Debt-Gold in ratio of 40-40-20. **Equity-Debt allocated in 60-40 range Based on Sensex Index, Crisil Composite Bond Fund Index, and Domestic Gold Prices Note: Past performance may or may not be sustained in the future Note: Past performance may or may not be sustained in the future The most diversified strategy yields similar returns with the lower volatility, compared to a pure equity strategy

  24. Hybrid Funds – Perception vs Reality

  25. Hybrid Fund Mandates Vary Widely Investors need to reconcile what suits their Risk – Return profile Allocation to fixed Allocation to fixed income income Type Type Allocation to Equity Allocation to Equity Allocation to gold Allocation to gold Aggressive hybrid funds 65-80 20-35 0 Balanced hybrid funds 40-60 40-60 0 Conservative hybrid funds 10-25 75-90 0 Dynamic Asset allocation/Balanced Advantage funds 0-100 0-100 0 Multi Asset allocation Multi Asset allocation funds funds 10 10- -80 80 10 10- -80 80 10 10- -80 80

  26. The Missing Element .. Gold! Gold is an effective portfolio diversifier Allocation to Allocation to Equity Equity Allocation to Allocation to fixed income fixed income Allocation to Allocation to gold gold Equity + Debt Equity + Debt ** ** Type Type Risk Risk- -Return Return Equity +Debt Equity +Debt +Gold * +Gold * Aggressive hybrid funds Balanced hybrid funds Conservative hybrid funds Dynamic Asset allocation/Bal anced Advantage funds Multi Asset Multi Asset allocation allocation funds funds CAGR 11.13% 11.13% 11.13% 11.13% Annualized SD 9.37% 9.37% 13.45% 13.45% Maximum Drawdown 0.21 0.21% % 0.36 0.36% % Sharpe Ratio 0.524 0.524 0.365 0.365 Time frame is November 2004 to July 2021. The period is taken from 2004 since the asset allocation weights are calculated based on normalizing the historical monthly equity and debt indicators. Given the normalization time frame used in the strategy, data availability for certain parameters beyond the time frame analyzed was a constraint. Compiled by Quantum AMC *Equity-Debt-Gold in ratio of 40-40-20. **Equity-Debt allocated in 60-40 range. Based on Sensex Index, Crisil Composite Bond Fund Index, and Domestic Gold Prices Note: Past performance may or may not be sustained in the Note: Past performance may or may not be sustained in the future future

  27. Investors’ favorite Aggressive hybrid funds (erstwhile Balanced funds) are not as balanced as perceived Higher returns are accompanied with higher risks CRISIL Hybrid 35+65 - Aggressive Index 12% 75% -41% 17% S&P BSE 30 TRI Average annual return Best year Worst year % of years with a loss 14% 118% -58% 23% Source: CRISIL, S&P Source: CRISIL, S&P stJuly 2007 to 31 July 2007 to 31st Time frame of data is 31 Time frame of data is 31st stJuly 2021 July 2021 There has been a big divergence in investor’s perception of these funds and reality With minimum 65% allocation to equities, investing in these funds is as good as investing in a pure equity fund! Unsuitable for conservative investors looking to move out of FDs • • •

  28. The Aggressive Hybrid category took on higher risks, comparable to the Large The Aggressive Hybrid category took on higher risks, comparable to the Large cap equity category, and failed to minimize downside. On the other hand, the cap equity category, and failed to minimize downside. On the other hand, the Multi Asset category of funds gave better risk adjusted returns and minimized the Multi Asset category of funds gave better risk adjusted returns and minimized the downside downside Average category performance 200.00 150.00 100.00 50.00 0.00 -50.00 -100.00 03-Jan-05 To 10-May- 06 10-May-06 To 14-Jun- 06 14-Jun-06 To 08-Jan- 08 08-Jan-08 To 09-Mar- 09 09-Mar-09 To 05-Nov- 10 05-Nov-10 To 20-Dec- 11 20-Dec-11 To 03-Mar- 15 03-Mar-15 To 25-Feb- 16 25-Feb-16 To 14-Jan- 20 14-Jan-20 To 23-Mar- 20 23-Mar-20 To 06-Aug- 21 Aggressive Hybrid Fund Balanced Advantage Multi Asset Allocation Large Cap Fund Source: Ace MF Source: Ace MF Past performance may or may not be sustained in the Past performance may or may not be sustained in the future of Equity bias of most MAA Equity bias of most MAA funds future funds Note: Off late, performance divergence between MAA category and other Hybrid/Large cap category has been reducing on account Note: Off late, performance divergence between MAA category and other Hybrid/Large cap category has been reducing on account of

  29. Most Multi Asset Funds are also biased towards Equities - Does that match your risk appetite? Equity allocation in benchmark 60 Multi Asset Category Average 70 Multi Asset Category Maximum 40 Multi Asset Category Minimum Quantum Multi Asset Fund of Funds 40

  30. Asset allocation should be Unbiased, Dynamic & Agile

  31. QMAFOF: Unbiased Asset Allocation… Not biased to any particular asset class.. QMAFOF invests across Asset Classes : Equity, Debt and Gold Diversification across asset classes and within asset classes by investments is done through schemes of Quantum Mutual Fund Asset class Range of Exposure Fund Quantum Long Term Equity Value Fund, Quantum Nifty ETF, Quantum India ESG Equity Fund Quantum Liquid Fund, Quantum Dynamic Bond Fund Equity 25-65% Debt 25-65% Quantum Gold Fund (ETF) Gold 10-20%

  32. QMAFOF: Dynamic Asset Allocation.. Research backed process & discipline Ideal asset allocation is not static Asset Class Equity Fixed Income Gold Cash (Net) Allocation (% of net Assets) 25.99% 55.64% 14.60% 3.77% Asset allocation needs to change depending on an asset class’s relative performance vis-à-vis other asset class. Portfolio allocation between the units of equity, debt/ money markets and gold schemes broadly depends on the relative valuations between the asset classes Allocation (% of net Assets) Scheme Relative valuations are determined by evaluation of various influencing factors: Quantum Long Term Equity Value Fund Quantum Nifty Fund (ETF) Quantum Liquid Fund 12.13% 10.98% 42.37% Price/Earnings Ratio relative to historical averages; • Quantum Dynamic Bond Fund 13.27% The relationship between Earnings Yield to Bond Yield relative to historical averages; • Quantum Gold Fund (ETF) 14.60% Quantum India Esg Equity Fund 2.88% Macroeconomic factors prevailing globally, and within India • Data as of July 2021 Data as of July 2021

  33. QMAFOF: Agile Asset Allocation.. Equity allocation Sensex TRI 65.00% 90000 60.00% 75000 55.00% 60000 50.00% 45.00% 45000 40.00% 30000 35.00% 15000 30.00% 25.00% 0 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Apr-13 Jun-13 Apr-14 Jun-14 Apr-15 Jun-15 Apr-16 Jun-16 Apr-17 Jun-17 Apr-18 Jun-18 Apr-19 Jun-19 Apr-20 Jun-20 Apr-21 Jun-21 Aug-12 Feb-13 Aug-13 Feb-14 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21 Data as of July 2021; Source: Quantum MF Data as of July 2021; Source: Quantum MF Note: Past performance may or may not be sustained in future Note: Past performance may or may not be sustained in future

  34. 34 90% of the time, you would have been better off than a FD Quantum Multi Asset Fund of Funds Total Days: 3307 Down Days vs SBI FD : 336 260 250 SBI 1 year deposit 240 CRISIL Composite Bond Fund Index (20%) + S&P BSE Total Return Index (40%) + CRISIL Liquid Index(25%) + Domestic price of Gold (15%) 230 Returns since inception: 9.63% Standard Deviation : 5.93% 220 210 200 190 N N A A V V 180 170 160 150 140 130 120 110 ( (Base = Base = 100 100, , as on as on 11 11th July th July 2012 2012) ) 100 90 11-Jul-12 31-Jul-21 Period Period Past performance may or may not be sustained in future. Past performance may or may not be sustained in future. Data as on 31 scheme provided on slide number scheme provided on slide number 36. 36. The invest. Investments in Quantum Multi Asset Fund of Funds / mutual funds should not be construed as a promise, guarantee on or invest. Investments in Quantum Multi Asset Fund of Funds / mutual funds should not be construed as a promise, guarantee on or a Unlike fixed deposit with Banks there is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fu Unlike fixed deposit with Banks there is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fund Investment in Quantum Multi Asset Fund of Funds as compared to Fixed Deposits carry moderately high risk, different tax treat Investment in Quantum Multi Asset Fund of Funds as compared to Fixed Deposits carry moderately high risk, different tax treatmen investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor. Source investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor. Source – – Bloomberg, Quantum stJuly, 2021. July, 2021. This graph should be reviewed in conjunction with detailed performance of the This graph should be reviewed in conjunction with detailed performance of the The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to Data as on 31st a forecast of any minimum returns. forecast of any minimum returns. nd of Funds / mutual funds investment. of Funds / mutual funds investment. ment and subject to market risk and any t and subject to market risk and any Bloomberg, Quantum AMC AMC

  35. 35 86% of the time, you would have been better off on a 3-Year Rolling Basis QMAFOF 3 years rolling returns Total Days : 2212 Down Days vs SBI FB : 306 Down Days % : 14 16% SBI FD 3 years rolling returns 14% CRISIL Composite Bond Fund Index (20%) + S&P BSE Total Return Index (40%) + CRISIL Liquid Index(25%) + Domestic price of Gold (15%) 3 years rolling returns 12% 10% 8% 6% 4% 2% 0% September,… November,… September,… November,… September,… November,… September,… November,… September,… November,… September,… November,… December,… December,… December,… December,… December,… December,… June, 16 June, 17 June, 18 June, 19 June, 20 June, 21 March, 16 March, 17 March, 18 March, 19 March, 20 March, 21 April, 16 April, 17 April, 18 April, 19 April, 20 April, 21 January, 16 January, 17 January, 18 January, 19 January, 20 January, 21 October, 15 May, 16 October, 16 May, 17 October, 17 May, 18 October, 18 May, 19 October, 19 May, 20 October, 20 May, 21 July, 15 July, 16 July, 17 July, 18 July, 19 July, 20 July, 21 August, 15 August, 16 August, 17 August, 18 August, 19 August, 20 February, 16 February, 17 February, 18 February, 19 February, 20 February, 21 Past performance may or may not be sustained in future. Past performance may or may not be sustained in future. This graph should be reviewed in conjunction with detailed performance of the scheme provided on slide number 36. This graph should be reviewed in conjunction with detailed performance of the scheme provided on slide number 36. The The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to i comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to invest. Investments in Quantum Multi Asset Fund of Funds / mutual funds should not be construed as a promise, guarantee on or a forecast of any minimum returns. Unlike Fund of Funds / mutual funds should not be construed as a promise, guarantee on or a forecast of any minimum returns. Unlike fix protection guarantee or assurance of any return in Quantum Multi Asset Fund of Funds / mutual funds investment. Investment in protection guarantee or assurance of any return in Quantum Multi Asset Fund of Funds / mutual funds investment. Investment in Qu compared to Fixed Deposits carry moderately high risk, different tax treatment and subject to market risk and any investment compared to Fixed Deposits carry moderately high risk, different tax treatment and subject to market risk and any investment dec nvest. Investments in Quantum Multi Asset fixed deposit with Banks there is no capital ed deposit with Banks there is no capital Quantum Multi Asset Fund of Funds as antum Multi Asset Fund of Funds as decision needs to be taken only after consulting ision needs to be taken only after consulting Bloomberg, Quantum AMC the Tax Consultant or Financial Advisor. Source the Tax Consultant or Financial Advisor. Source – – Bloomberg, Quantum AMC

  36. Performance of Quantum Multi Asset Fund of Funds Direct Plan – Growth Option The Scheme is co-managed by Mr. Chirag Mehta and Mr. Nilesh Shetty since July 11, 2012. Current Value of 10,000 Current Value of 10,000 Invested Invested at the beginning of a given at the beginning of a given period period Period Period Benchmark Benchmark Returns Returns (%)# (%)# Benchmark Benchmark ( (Rs Rs)# S&P BSE S&P BSE Sensex TRI Sensex TRI ( (Rs Rs.) .) Scheme Scheme Returns (%) Returns (%) 0 0 S&P BSE S&P BSE Sensex TRI Sensex TRI Returns (%) Returns (%) Scheme Scheme ( (Rs Rs) ) )# 1 year 12.78% 15.59% 41.55% 11,274 11,555 14,141 3 years 9.61% 11.95% 13.14% 13,167 14,031 14,484 5 years 8.66% 10.80% 14.73% 15,157 16,708 19,896 7 years 8.68% 10.03% 12.05% 17,909 19,526 22,180 Since Inception (11th July 2012) 9.63% 10.63% 14.45% 23,000 24,979 33,974 Past performance may or may not be sustained in the future Past performance may or may not be sustained in the future. Load is not taken into consideration in scheme returns calculation. Data are calculated on the basis of Compounded Annualized Growth Rate (CAGR). # Indicates CRISIL Composite Bond Fund Index (20%) + S&P BSE SENSEX Total Return Index (40%) + CRISIL Liquid Index(25%) + Domestic price of Gold (15%). It is a customized index and it is rebalanced daily. For performance of other Schemes Managed by Mr. Chirag Mehta please see slide number 44 and 45 and for performance of other Schemes Managed by Mr. Nilesh Shetty please see slide Data as of as of 31st July 2021. 31st July 2021. Returns number 43.

  37. 37 Based on Rolling Returns, There isn’t a single 3-year period since QMAFOF’s inception when it posted a negative return QMAF 3 year QMAF 3 year Rolling Rolling R Returns eturns as of July 2021 as of July 2021 Minimum Minimum Return Return Maximum Maximum Return Return 1.54% 13.63% Average Average Return Return 8.79% Past performance may or may not be sustained in future. Past performance may or may not be sustained in future. This 36. 36. The The comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to inv comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to inves Multi Asset Fund of Funds / mutual funds should not be construed as a promise, guarantee on or a forecast of any minimum retu Multi Asset Fund of Funds / mutual funds should not be construed as a promise, guarantee on or a forecast of any minimum returns is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fund of Funds / mutual funds investment. is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fund of Funds / mutual funds investment. In of Funds as compared to Fixed Deposits carry moderately high risk, different tax treatment and subject to market risk and any of Funds as compared to Fixed Deposits carry moderately high risk, different tax treatment and subject to market risk and any in This table table should be reviewed in conjunction with detailed performance of the scheme provided on slide number should be reviewed in conjunction with detailed performance of the scheme provided on slide number est. Investments in Quantum t. Investments in Quantum rns. Unlike fixed deposit with Banks there . Unlike fixed deposit with Banks there Investment in Quantum Multi Asset Fund vestment in Quantum Multi Asset Fund investment decision needs to be taken only vestment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor. Source after consulting the Tax Consultant or Financial Advisor. Source – – Quantum AMC Quantum AMC

  38. Asset Class Performance & QMAFOF Quantum Multi Quantum Multi Asset Asset Fund of Funds Fund of Funds Quantum Multi Asset Fund of Funds 400 CRISIL Composite Bond Fund Index (20%) + S&P BSE Total Return Index (40%) + CRISIL Liquid Index(25%) + Domestic price of Gold (15%) S&P BSE Sensex Total Return Index 350 Crisil Composite Bond Fund Index 300 Crisil Liquid Total Return Index N N A A V V Domestic price of Gold 250 200 150 100 ( (Base = Base = 100 100, , as on as on 11 11th July th July 2012 2012) ) 50 11-Jul-12 31-Jul-21 Period Period The performance shown in the graph should be reviewed in conjunction with detailed performance of the scheme provided on slid The performance shown in the graph should be reviewed in conjunction with detailed performance of the scheme provided on slide n e number umber 36, 36, Time Period: July Time Period: July 11,2012 to July 30 11,2012 to July 30 2021 2021. . Note: Past performance may or may not be sustained in future Note: Past performance may or may not be sustained in future

  39. QMAFOF has not changed course - may give less returns than other hybrid funds in bull markets but importantly has protected downsides better Average category returns vs QMAFOF 100.00 80.00 60.00 40.00 20.00 0.00 -20.00 -40.00 03-Mar-15 To 25-Feb-16 25-Feb-16 To 14-Jan-20 14-Jan-20 To 23-Mar-20 23-Mar-20 To 06-Aug-21 Bear Phase Bull Phase Bear Phase Bull Phase Aggressive Hybrid Fund Balanced Advantage Multi Asset Allocation Quantum Multi Asset FOF Source: Source: ACE MF ACE MF future Past performance may or may not be sustained in Past performance may or may not be sustained in future

  40. 40 Options to FDs – What are we looking for? Market linked Returns Lower Volatility Better Predictability Lower Downside

  41. 41 Consider an option of QMAFOF before you book your next FD Diversifies across asset classes – which mitigates risk inherent of a particular asset class and provides risk adjusted long term returns Reduces dependency on a single asset class to generate returns No need to time markets. Invest in peace – the Fund manager strategically positions the portfolio to generate optimal returns while watching risks Follows regular rebalancing approach within each asset class which allows investors to “buy-low sell-high” Better and a more tax efficient option for investors who park their money in long term FDs (3 years and above) Aims at reducing volatility of returns Note: Unlike Fixed Deposit with Banks there is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fund. Investments in Quantum Multi Asset Fund as compared to Fixed Deposit carry “moderately” high risk and is subject to market risk

  42. 42 Make a prudent choice! It’s time you reconsider your FD which may be a losing proportion in terms of inflation and make way for a multi asset allocation strategy option which has the potential to provide a boost of long-term risk adjusted returns with measured equity allocations while minimizing downside risk from the debt and gold allocations..

  43. Other Schemes managed by Nilesh Shetty Quantum Long Term Equity Value Fund Quantum Long Term Equity Value Fund Mr. Sorbh Gupta effective from December 1, 2020.Co-managing with Mr. Nilesh Shetty effective from March 28, 2011 Period Period 1 year 3 years 5 years Benchmark Returns (%) # Scheme Returns (%) Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Long Term Equity Value Fund–Direct Plan (Gr) Quantum Long Term Equity Value Fund–Regular Plan (Gr) 55.45% 49.77% 11.21% 13.60% 10.94% 14.66% 54.67% 49.77% 10.72% 13.60% NA NA Past performance may or may not be sustained in the future. Past performance may or may not be sustained in the future. Load is not taken into consideration in Scheme Return Calculation. Data #BSE 200 TRI. Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Sorbh Gupta & Mr. Data as of as of 31 31st stJuly July , ,2021 2021 Nilesh Shetty manages 2 schemes of Quantum Mutual Fund.

  44. Other Schemes managed by Mr. Chirag Mehta Quantum Gold Fund Quantum Gold Fund Mr. Chirag Mehta is managing the scheme effective from May 1, 2009. Ms. Ghazal Jain is co-managing the scheme effective from June 2, 2020 Period Period 1 year Benchmark Returns (%) # 3 years 5 years Scheme Returns (%) Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum Gold Fund (Gr) -10.23% -9.59% 16.62% 17.72% 7.49% 8.53% Past performance may or may not be sustained in the future. Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data Data as as of of 31st July 31st July , ,2021 2021 Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Ghazal Jain manages 2 Schemes of the Quantum Mutual Fund. The Scheme being Exchange Traded Fund has one plan to invest through stock exchange and having a single expense structure Quantum Gold Savings Fund Quantum Gold Savings Fund Mr. Chirag Mehta is managing the scheme effective from May 19, 2011. Ms. Ghazal Jain is co-managing the scheme effective from June 2, 2020 Period Period 1 year 3 years 5 years Benchmark Returns (%) # Benchmark Returns (%) # Scheme Returns (%) Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Quantum Gold Savings Fund– Direct Plan (Gr) Quantum Gold Savings Fund– Regular Plan (Gr) -11.24% -9.59% 16.21% 17.72% 8.23% 8.53% -11.33% -9.59% 16.08% 17.72% NA NA Past performance may or may not be sustained in the future. Past performance may or may not be sustained in the future. # Domestic Price of Gold. Data Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Ghazal Jain manages 2 Schemes of the Quantum Mutual Fund. Data as as of of 31st July 2021 31st July 2021

  45. Other Schemes managed by Mr. Chirag Mehta Quantum India ESG Equity Fund Quantum India ESG Equity Fund Mr. Chirag Mehta effective from July 12, 2019.Co-managing with Ms. Sneha Joshi effective from July 12, 2019 Period Period 1 year 3 years 5 years Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Benchmark Returns (%) # Quantum India ESG Equity Fund – Direct Plan (Gr) Quantum India ESG Equity Fund – Regular Plan (Gr) 56.41% 50.36% NA NA NA NA 55.13% 50.36% NA NA NA NA Past performance may or may not be sustained in the future. Data as on of of 31st July 31st July , ,2021 2021 Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 Schemes and Ms. Sneha Joshi 1 Schemes of the Quantum Mutual Fund. # NIFTY 100 ESG TRI. Quantum Equity Fund of Funds Quantum Equity Fund of Funds Mr. Chirag Mehta is the Fund Manager effective from November 01, 2013. Period Period 1 year 3 years 5 years Benchmark Returns (%) # Benchmark Returns (%) # Scheme Returns (%) Scheme Returns (%) Benchmark Returns (%) # Scheme Returns (%) Quantum Equity Fund of Funds – Direct Plan (Gr) Quantum Equity Fund of Funds – Regular Plan (Gr) 50.18% 49.77% 12.76% 13.60% 13.04% 14.66% 49.81% 49.77% 12.52% 13.60% NA NA Past performance may or may not be sustained in the future. Data as on of of 31 31st July st July , ,2021 2021. Load is not taken into consideration in Scheme Return Calculation. #BSE 200 TRI Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Mr. Chirag Mehta manages 5 schemes of the Quantum Mutual Fund.

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  50. Disclaimer The The comparison with Fixed Deposits has been given for the purpose of the general information only and not a comparison with Fixed Deposits has been given for the purpose of the general information only and not a recommendation to invest. Investments in Quantum Multi Asset Fund of Funds / mutual funds should not be recommendation to invest. Investments in Quantum Multi Asset Fund of Funds / mutual funds should not be construed as a promise, guarantee on or a forecast of any minimum returns. Unlike fixed deposit with Banks there construed as a promise, guarantee on or a forecast of any minimum returns. Unlike fixed deposit with Banks there is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fund of Funds / mutual funds is no capital protection guarantee or assurance of any return in Quantum Multi Asset Fund of Funds / mutual funds investment. Investment in Quantum Multi Asset Fund of Funds as compared to Fixed Deposits carry moderately investment. Investment in Quantum Multi Asset Fund of Funds as compared to Fixed Deposits carry moderately high risk, different tax treatment and subject to market risk and any investment decision needs to be taken only high risk, different tax treatment and subject to market risk and any investment decision needs to be taken only after consulting the Tax Consultant or Financial Advisor after consulting the Tax Consultant or Financial Advisor. .

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