NFO Alert: Quant Mutual Fund launches Quant Commodities Fund; all you need to know

livemint.com:

Quant Mutual Fund said, “To ride this wave, and the resulting business cycle, we successfully launched several thematic funds which are strongly correlated with cyclical upturns. So, the launch of Quant Commodities Fund is a natural corollary of that belief that we are today at an opportune juncture where our VLRT framework indicates the medium term bottoming of Risk Appetite which will provide an impetus for a new business cycle, within which a commodities super cycle seems imminent." Investors can invest under the scheme with a minimum investment ofRs 5000 per plan/option and in multiples of Re 1.

There is no upper limit for investment. Under normal circumstances, the asset allocation of the scheme will be as follows:Indicative allocations (% of total assets)Risk ProfileMinimumMaximumHigh/Medium/LowEquity and equity-related instruments of companies engaged in commodity and commodity-related sectors80%100%Very HighEquity and equity-related instruments other than companies engaged in commodity and commodity-related sectors0%20%Very HighDebt, Units of debt mutual fund schemes and money market instruments0%20%Low to MediumGold ETF, Silver ETF & or any other asset class in commodities as permissible by SEBI from time to time (excluding commodity derivatives)0%20%Medium to HighExchange Traded Commodity Derivatives (ETCDs) and or any other asset class in commodities as may be permitted by SEBI from time to time (subject to applicable SEBI limits)0%20%Medium to HighForeign equity and equity-related instruments and overseas ETFs0%20%Very HighUnits issued by REITs & InvITs0%10%Very High To date, only one asset management company (AMC) has launched one such commodity fund, thus, allowing inclined investors to avail of returns