Quant Small Cap Fund: 5 key things you should know before investing | Mint

As small cap mutual funds continue to attract interest amid rapidly evolving global outlook and a growing risk appetite among retail investors in the country, the Quant Small Cap Fund clearly stands out for its aggressive investment strategy and lucrative long term returns.

What is the investment thesis behind the Quant Small Cap Fund?

Quant’s philosophy revolves around capitalising on market cycles through a well-defined predictive and behavioural framework.

In the words of its founder, Sandeep Tandon, “I have always believed that the flip side of any crisis is opportunity, as bubbles and busts are natural occurrences. To grow wealth, it is imperative to participate in the periodic bubbles but only equipped with a predictive framework and behavioral strength that allows the right exit.” This ideology is reflected in the fund’s approach, which combines aggressive positioning with disciplined risk management to tap into evolving opportunities.

Still, is this the right fund for you? To take a call on this you need first take a look at five crucial factors associated with the fund.

1. Fund focus & objectives

The Quant Small Cap Fund is an open ended equity mutual fund scheme, it primarily invests in small cap businesses. According to the fund house the scheme focuses on delivering long term capital growth and wealth appreciation by investing a minimum of 65% in small cap businesses. The fund is classified as ‘Very High Risk’ under SEBI’s riskometer.

2. Latest NAV & minimum investment

According to the official website the Net Asset Value (NAV) of the Direct Plan Growth option stood at ₹253.36 as of June 15, 2025. Aspirational investors can start investing with a minimum lump sum of ₹5,000 or through SIP starting from ₹1,000.

3. Load structure & asset allocation

This scheme has an exit load of 1% if redeemed within the first year. Furthermore, there is no loan if it is held beyond that. The asset allocation strategy permits investing between 65-100% in small cap businesses whereas the rest can even be invested in mid/ large cap stocks, debt, money market instruments and REITs/InvITs.

4. Fund management & benchmark

The fund is taken care of by a well qualified team of Sandeep Tandon, Ankit Pande, Ayush Kumbhat, Yug Tibrewal, Sameer Kate and Sanjeev Sharma. It is benchmarked in line with the NIFTY Smallcap 250 Total Return Index (TRI), providing investors a relevant performance comparison within the small cap segment.

Note: The returns discussed above are illustrative in nature. For the accurate and updated fund return details refer to the official website of the fund house.

Hence, the Quant Small Cap Fund has consistently outperformed its benchmark over the medium to long term specially over a period of five years. The long term CAGR suggests resilience and efficient fund management.

Therefore, aspirational investors seeking aggressive growth and wealth creation and are willing to weather market ups and downs may find this particular mutual fund investment scheme suitable provided they have a minimum of 5 to 7 years of investment vision.

Disclaimer: This article is for informational purposes only and not investment advice. Mutual fund investments are subject to market risks. Please consult a financial advisor before investing.