Quantum Mutual Fund has announced the launch of its first open-ended ESG fund, various news reports have suggested. The scheme, referred to as Quantum India ESG Equity Fund, invests in companies that follow Environment, Social and Governance theme.
Quantum Mutual Fund has launched its first open-ended ESG fund – Quantum India ESG Equity Fund, the Economic Times reported. The scheme invests in companies following Environment, Social and Governance theme. Its NFO opened for subscription on June 21, 2019 and closed on July 5, 2019. It will reopen for continuous sale and repurchase on July 19, 2019. Chirag Mehta - Fund Manager, and Sneha Joshi - Associate Fund Manager, are jointly managing Quantum India ESG Equity Fund.
The scheme follows a long-term approach to investing, mainly holding stocks for as long as it meets the ESG criteria. Its goal is to invest in sustainable companies. Therefore, appropriate changes to the portfolio shall be incorporated when new information relating to ESG parameters is made available. According to the Scheme Information Document, the fund’s investment strategy shall be to park money in a basket of stocks following thorough analysis on the environmental, social and governance aspects of the company. Quantum India ESG Equity Fund falls in the category of thematic funds.
Jimmy Patel, Chief Executive Officer of Quantum Mutual Fund, has been quoted as saying “Quantum AMC is ahead of its time in recognizing the need for a clean and green Equity Fund. Quantum India ESG Equity Fund is an innovative fund to have exposure to quality, sustainable and well diversified exposure to equities,” The Economic Times reported. He further added “The fund will be a multi-cap fund based on comprehensive in-house research based on Environment, Social and Governance (ESG) criteria. Investors would certainly like to make this fund a core part of their portfolio,” the daily reported.