Quant Small-Cap Fund: 3 New Stocks in Top 10 Holdings, HDFC Bank Exits
New Stocks Enter Top Holdings as HDFC Bank Exits
In July 2024, the Quant Small Cap Fund made significant changes to its top 10 holdings, adding three new stocks while removing HDFC Bank from the list. The new entries include Aditya Birla Fashion and Retail Ltd., HFCL Ltd., and Sun TV Network Ltd., which replaced HDFC Bank, IRB Infrastructure Developers Ltd., and Housing & Urban Development Corporation Ltd. This reshuffling highlights the fund’s strategic shift toward different sectors and companies, possibly aiming to capitalise on emerging opportunities in the market.
AUM Growth Signals Strong Investor Confidence
The fund’s Assets Under Management (AUM) saw a solid increase of 6.80%, growing from Rs 22,967 crore in June 2024 to Rs 24,530 crore in July 2024. This rise in AUM reflects positive investor sentiment and the fund’s strong performance, with returns of 13.50% since inception and an impressive 52.32% over the past year. This growth indicates that investors continue to see value in the fund’s small-cap focus, which has delivered substantial returns, especially during market rallies.
Increased Cash Allocation Reflects Cautious Strategy
In response to market conditions, the Quant Small Cap Fund has increased its cash allocation significantly, rising from 1.83% in June 2024 to 12.91% in July 2024. The fund also reduced its exposure to equities from 98.17% to 87.09%. This move suggests a more cautious approach, potentially preparing for future market volatility or opportunities. By holding more cash, the fund positions itself to react swiftly to market changes, balancing risk while maintaining flexibility for future investments.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.