ELSS Could be Your Chance To Save Tax & Create Wealth

1. ELSS Could be Your Chance To Save Tax & Create Wealth

2. Overview: Indian Economy

3. Budget2021-22: Full throttle Fiscal expansion • The govt. has set itself a fiscal deficit target of 6.8% in FY22 • Immediate concern was the vaccine and the health infrastructure. That has been addressed with Healthcare and Sanitation spend increasing by 136% on a y-o-y basis • There have been some sector specific changes like increase in FDI limit in Insurance to 74% from 49% & scrappage policy for Autos, which augurs well for respective sectors • On rural, there haven’t been any major changes in the allocations apart from minor enhancements in certain schemes • Government has set an ambitious divestment target of Rs 1,750 bn, which includes planned IPO of LIC and privatization of certain public sector financial institutions • Higher borrowings (even after adjusting for reclassification of borrowings of Food Corporation of India) by the government can crowd out the private sector demand for loans, until & unless, foreign flows in debts come to their rescue

4. Down, Down Down…but Glimmers Of Hope With Newest Reading Showcasing Indian Economy’s Resilience Source: Bloomberg, as of September 30, 2020. Note: The numbers in red circle are from a changed data series starting Jan 2015. While a “superior” series, there is no comparable number to equate the “New” with the “Old”. Most economists deduct 0% to 1.5% from the “New” to equate to the “Old”. Or you need to add 0% to 1.5% to equate the “old” to the “New”.

5. Economic Activity vs pre-COVID levels Source: CMIE, Bloomberg, QAMC Research Economic activity in some sectors at 90% and in some sectors above pre-COVID levels

6. Indians Still Consuming: The Hungry Consumers! *2021 YTD data:, Two-wheeler sales data as on Nov‘20, Passenger Vehicle sales Data as on November 2020 Refrigerator data as on October 2020, Cement sales data as on November' 20, Housing loans data as on November 2020, Latest cell phone connections data as on Oct '20 Source: 2 wheeler passenger vehicle and Cement – CMIE database; refrigerator production data – CMIE (IIP ) database, home loans outstanding – RBI Data on Sectoral deployment of bank credit (September 2020). ** Annualized Returns.

7. If The World Slips Sideways, India Will Grow …As It Has Over The Past 39 Years Real GDP growth rate across 10 governments has been 6.3% p.a. over the last 39 years Source: RBI and www.parliamentofindia.nic.in as of September 2020. Note: The number in red rectangle is from a changed data series starting Jan 2015. While a “superior” series, there is no comparable number to equate the “New” with the “Old”. Most economists deduct 0% to 1.5% from the “New” to equate to the “Old”; therefore under Modi, the GDP has been at 5.9% at best matching the 5.6% under the BJP-led coalition government of Vajpayee that resulted in a rout for the BJP at the time of the next election in 2004!* Please note that data used for World GDP for 2017 is a median Estimate since World Bank data is not yet available and India GDP data is governments second advance estimate released at the end of September.

8. Covid 19 – No Resurgence After First Wave, Vaccination Drive Starts • There are no signs of a second wave • Government has approved Oxford-AstraZeneca (manufactured by Serum Institute India) & Bharat Biotech’s (Local player) Vaccines for India • Vaccination started from Jan 16, 2021 • Government plans to vaccinate 300 mln people by August 2021 Source: John Hopkins University Daily new infections have shown a sharp deceleration, so far there are no signs of a second wave

9. Risk to the Recovery • Emergence of a Second Wave of Covid Cases could derail economic recovery • Job Losses amongst salaried employees and Rising Inflation may impact consumer discretionary spend • Real stress in the Banking sector has yet to be revealed as recognition of bad loans has been deferred after a Supreme court order • With fiscal policy in the expansion mode, inflation is the real worry. The risk of higher interest rates has increased

10. Overview: Indian Stock Markets

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

12. Indian Corporates Have Showcased Strong Flexibility on Costs Source: Q Research, Citigroup *Based on results which have come by 31st January 2021 Percentage of companies positively surprising sell side expectations in quarters most impacted by pandemic

13. Estimates Have Adjusted for COVID; Still Optimistic? Data as of January 2021 Source: Bloomberg

14. Quantum Tax Saving Fund

15. What to look for in an ELSS Scheme? • Stability of the Investment team & Consistency in Style • Long term track record across Market Cycle • Prefer a fund with lower turnover ratio (lower churn) so as to reflect alignment of Fund Manager’s approach and your investment horizon • Portfolio should have good quality companies across Large Caps & Mid Caps depending upon where value lies

16. Quantum Tax Saving Fund: ELSS Scheme following Value Strategy • Quantum Tax Saving Fund Invests in Quality Midcap & Large Cap companies with a minimum stock liquidity filter & creates a portfolio for long term capital appreciation. Portfolio is similar to QLTEVF • The fund has a three year lock-in which is one of the lowest amongst other tax saving instruments • A three year lock-in ensures an enforced discipline amongst the investor. Equity is an investment class only in the long term in the near term its speculative • Being an ELSS scheme it comes with an advantage of building wealth and saving taxes • Well suited for long term goals such as children education & retirement planning

17. Our Investment Criteria: Value Evaluate: • The Business of the company • The environment in which it operates • The management and their long-term goals • Can the financials support the long-term goals? Analyze: • The stock price of the company based on fundamentals relative to its peer group, its history, and the market • PER, PCF, P/BV, DivYld, EV/EBITDA Buy: • Current price is generally 40%+ lower than our estimate of long-term value (in case of first time buy) Sell: • Current price is > our estimate of long-term value • Better Investment Alternatives • Changed view of management, Changed view of business

18. Our Macro-Assumptions: The 4 Inputs To Our Bottom-up Stock Selection Process Source: Quantum AMC estimates, as of January 2021

19. Bottom-Up Stock Selection Process Clients get best of bottom up ideas with a risk control measurement for each sector 25 to 40 stocks Portfolio of stocks with broad exposure to various sectors. Reflecting three broad themes: domestic consumption, exports and infrastructure 201 stocks Regular meeting to review ideas and approve value stocks for the database Analysts study stocks in their sector- in India and globally 450+stocks Number of stocks mentioned are as per current average trading volume value criteria. The number of Stock in trading volume criteria, and in portfolio will be changed from time to time based on Investment Strategy of the scheme.

20. Portfolio Construction No To research team YES No effect on decision No Wait YES • Weights assigned to a stock • are a function of: • Reliability of management • Quality of earnings • Stability of earnings • Upside Potential • Alternatives/Cash Indifferent; guided by Research Investment Rules Our portfolio turnover is typically 20%, suggesting a 5 year holding period. Please refer Scheme Information Document of the Scheme for complete Investment Strategy

21. Portfolio Positioning • Portfolio allocation towards cement, steel, power & capital goods utilities will benefit from a capex driven recovery cycle as envisaged by the Budget • Monsoon has been good for second consecutive year. Some of the portfolio stocks are well positioned to benefit from strong agri & rural economy • High quality stocks available at reasonable valuations were added to the portfolio in the correction in February & March 2020 • Portfolio stocks look comfortable after stress test - have strong balance-sheet or strong parentage to last the downturn • Existing cash holding will be used to add new names in case of correction

22. Performance Across the Market Cycles (Mar 2006 – Jan 2021 Quantum Tax Saving Fund – Direct Plan Growth Option) 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 25 Source:Bloomberg

23. 23 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 Ignore Asset Allocation at your own Peril • Past performance may or may not sustained in future • The chart ranks the best to worst performing indexes per calendar year from top to bottom • Data as of December 2020 • Past performance may or may not be sustained in future. • Based on S&P BSE Sensex; Domestic Gold prices and • CRISIL Composite Bond Fund Index • Source: Bloomberg Imagine someone holding an all equity portfolio in 2008, or holding none in the equity rally that followed?

24. 2021- A Simple Asset Allocation Strategy to Deal with Market Cycles Quantum India ESG Equity Fund Your Savings 80% EQUITY 10% 20% ₹ 24 Month Safe Money ₹ 70% PORTFOLIO Quantum Long Term Equity Value Fund Quantum Liquid Fund 20% GOLD Quantum Gold Savings Fund Quantum Equity Fund of Funds Keep 6-24 months of expenses in Liquid Fund, Bank Fixed Deposit so that It can be withdrawn immediately Please note that the above is the suggested fund allocation only and is not to be considered as investment advice / recommendation, please seek independent professional advice and arrive at an informed investment decision before making any investments.

25. Performance of Quantum Tax Saving Fund – Direct Plan – Growth Option The Scheme is Managed by Mr. Sorbh Gupta since October 1, 2016. • Past performance may or may not be sustained in the future.Data as 31st January 2021 • Load is not taken into consideration in scheme returns calculation. Returns are net of Total Expenses and calculated on the basis of Compounded Annualized Growth Rate (CAGR) • *with effect from February 01, 2020 benchmark has been changed from S&P Sensex TRI to S&P BSE 200 TRI • Mr. Sorbh Gupta manages 2 schemes of Quantum Mutual Fund. For performance of other Schemes Managed by Mr. Sorbh Gupta please see slide number 26.

26. Other Schemes managed by Mr. Sorbh Gupta Quantum Long Term Equity Value Fund Mr. Sorbh Gupta is co -managing the scheme effective from December 1, 2020. Mr. Nilesh Shetty is co-managing the scheme effective from March 28, 2011. Past performance may or may not be sustained in the future. Load is not taken into consideration in Scheme Return Calculation. Data as of 31stJanuary, 2021 #BSE 200 TRI. Returns are net of total expenses and are calculated on the basis of Compounded Annualized Growth Rate (CAGR). Different Plans shall have different expense structure. Mr. Sorbh Gupta & Mr. Nilesh Shetty manages 2 schemes of Quantum Mutual Fund.

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30. Disclaimer – Terms of Use The data in this presentation are meant for general reading purpose only and are not meant to serve as a professional guide/investment advice for the readers. This presentation has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been suggested or offered based upon the information provided herein, due care has been taken to endeavor that the facts are accurate and reasonable as on date. Quantum AMC shall make modifications and alterations to the performance and related data from time to time as may be required as per SEBI Mutual Fund Regulations. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investment. None of the Sponsors, the Investment Manager, the Trustee, their respective Directors, Employees, Affiliates or Representatives shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the data/information/opinions contained in this presentation. The Quantum AMC shall make modifications and alterations to the performance and related data from time to time as may be required. Please visit – www.QuantumMF.com to read scheme specific risk factors. Investors in the Scheme are not being offered a guaranteed or assured rate of return and there can be no assurance that the schemes objective will be achieved and the NAV of the scheme may go up and down depending upon the factors and forces affecting securities market. Investment in mutual fund units involves investment risk such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the sponsor / AMC / Mutual Fund does not indicate the future performance of the Scheme. Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-). Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited. The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956. 5th February 2021 Mutual fund investments are subject to market risks, read all scheme related documents carefully.

31. Thank You

32. Solutions to meet Sustainable Development Goals: SGD-17 + = “SMILE” WHAT IS SMILE? THE SMILE STORY OUTCOME SO FAR SMILE was born out of our desire to support credible NGOs and create a steady stream of money flow for them Since 2018, Quantum MF investors have supported 7 NGOs from diverse sectors via the SMILE facility SMILE enables Quantum MF investors to contribute 10% of their investment in eligible schemes to charities vetted by HelpYourNGO

33. SMILE Process Flow 10% OF THE SMILE CORPUS DONATION RECEIPTS INVEST IN SMILE UNITS Q Long Term Equity Value Fund Q Equity Fund of Funds Q Dynamic Bond Q Multi Asset Q Gold Savings Q Liquid HelpYourNGO sends donation receipts and 80G Liaises with NGO grantees Monitors & reviews Donated to NGOs selected by investors and vetted by HelpYourNGO Investors receive periodic program reports from HYNGO on the NGOs supported by them Investors receive periodic program reports from HelpYourNGO on the NGOs supported by them