The objective of the scheme is to achieve long-term capital appreciation by investing in shares and share-related instruments of companies that follow a set of ethical principles.
The scheme will be benchmarked against the Shariah BSE 500 Total Return Index and will be managed by Chirag Mehta.
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He output load will be void for 10% of the units if redeemed or exchanged on or before 365 days from the date of allotment. For the remaining 90% of the units, if redeemed or exchanged on or before 365 days from the date of allotment, the exit fee will be 1% of the applicable NAV. The exit fee will be void if redeemed or exchanged after 365 days from the date of allotment.
The minimum application amount for a lump sum investment will be Rs 500 and thereafter in multiples of Rs 1. The minimum application amount for a monthly SIP will be Rs 500 and thereafter in multiples of Rs 1 with a minimum of 12 instalments. The scheme will allocate 80-100% in equity and equity-related instruments of companies that follow a set of ethical principles and 0-20% in debt and money market instruments that comply with the ethical principles. The corpus of the scheme will invest in equity of companies that comply with a set of ethical principles including those of Sharia, Jainism and other ethical principles covering a broad ethical framework. Such companies that comply with the ethical criteria will be further vetted through Quantum’s proprietary integrity framework.
These companies will also undergo a financial assessment, based on a set of metrics, to ensure they are financially sound before being included in the portfolio.
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Ethical Investment Framework
I. Ethical exclusions
The plan will avoid investing in companies that generate income from:
• Alcohol
• Gambling
• Tobacco
• Vulgar entertainment
• Film screening
• Dissemination and media content
• Film production and distribution.
II. Additional exclusions
The regime will also exclude companies involved in:
• Conventional/general financial services
• Narcotic substances or anything that is greatly harmful to society.
• Leather industries
• Meat and poultry industries or any form of animal cruelty.
• Animal testing (including pharmaceutical companies involved in such practices)
III. Financial evaluation
In accordance with certain ethical considerations, the financial assessment will ensure that portfolio companies have:
• Interest-based debt is less than 25% of total assets
• Interest income is less than 4% of total income.
This financial assessment is independent of the evaluation of financial metrics to determine the financial strength of a company.
The scheme will be suitable for investors seeking long-term capital appreciation and wishing to invest in shares and share-related instruments of companies that follow ethical principles.
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