360 One Quant Fund Direct Plan-Growth: Insights and Performance Metrics- 2024

Thematic investing has gained immense popularity in the past few years and this 360 ONE Quant Fund Direct-Growth is a thematic fund, which invests in stocks according to quantitative analysis and other mathematical and statistical analysis. 

This article will talk about the details of 360 One Quant Fund Direct Plan-Growth. It will talk about not just the performance and returns, but also the risks and volatility involved in the fund. Then it will highlight key fund metrics, how one can invest in the 360 One Quant Fund, and more. 

Fund Management and Objectives

The 360 ONE Quant Fund Direct scheme has the investment objective of generating long-term capital gains, which can appreciate the investors’ capital. This fund invests in stocks with rigid selection criteria where stocks are selected based on different mathematical and statistical formulas. The investment mandate for these funds is very narrow and people looking for focused funds should invest in this fund or any thematic funds. 

The fund managers who are in charge of this fund are Parijat Garg and Rohit Vaidyanathan. 

• Parijat Garg: Mr. Garg has been working as a quant analyst in the mutual fund and broking industry for the past many years. Before joining 360 One Mutual Fund, he was associated with Quadeye Securities LLP where he used to serve as a portfolio manager. His rich expertise in quant analysis makes him the perfect fund manager for 360 ONE Quant Fund. He is a CFA Charter Holder and completed graduation in Computer Science from the esteemed IIT Bombay. 
• Rohit Vaidyanathan: He is a new entrant in the mutual fund house with his experience working as a research analyst in Centrum Wealth before joining 360 One. He manages other funds as well along with 360 ONE Quant Fund Direct Plan such as 360 ONE Flexicap fund, 360 ONE Balanced Hybrid Fund, and others. 

Invest in 360 One Quant Fund Direct Plan-Growth with a free demat account!

How the 360 One Quant Fund Works?

As mentioned above, 360 ONE Quant Fund is a quant theme fund, so, the fund invests at least 80% of its assets into equity and equity-related instruments of a particular theme. Here this fund has stocks from different sectors, from the financial sector to the pharma sector, to IT, and more. The focus of the fund is to generate higher returns for long-term capital appreciation and thus it invests in stocks after quantitative analysis of the same. 

This fund analyses multiple data from different sources of different stocks and as per quantitative models, and algorithms the stocks are selected. Here the use of historical data is huge. Once the funds are selected, automated trading systems are used which are fed with the data and algorithms of the fund as per which stocks are bought and sold. In addition, risk management techniques are always in place so that risks can be tackled easily. 

Performance and Returns (As of 14 Nov 2024)

360 ONE Quant Fund Direct Plan Growth was introduced around November 2021 and it has offered the following returns during different time frames within this period. 

1 Year Return: 37.94%

YTD Return: 21%

6 Month Return: 7.23% 

3 Month Return: -5.70%

1 Month Return: -9.96%

As you can see this Quant-themed mutual fund of 360 One has been delivering higher returns for the tenure since its inception however, in the recent past the fund has slowed down and offered negative returns which took a toll on the overall returns of the fund. However, the recent slowdown can be somewhat attributed to the overall market slowdown which has been happening due to market correction that’s going on in Indian markets after years of rally. 

Until now, the fund has given the best return of 46.30% between 29 December 2022 and 29 December 2023. While the worst yearly return of -2.15% to date was offered between 5 April 2022 and 5 April 2023. 

Investment Allocation (As of 31 Oct 2024)

The 360 One Quant Fund Direct Plan-Growth portfolio is made of 99.03% equity and only 0.97% of cash and cash equivalents. 

Here is the investment allocation according to market capitalization – 

• Giant & Large Cap: 95.10%
• Mid Cap: 4.90%

The fund’s total portfolio consists of 37 stocks, and it is concentrated in large-cap stocks. 

The top 5 sectors contributing to the 360 One Quant Fund portfolio are:

• Consumer Discretionary – 19.93%
• Industrial – 16.35%
• Materials – 13.93%
• Financial Services – 11.15%
• Technology – 9.62%

The top 5 holdings in the 360 One Quant Fund portfolio include:

• Dixon Technologies – 4.42%

• Oracle Financial – 3.76%

• Torrent Pharma – 3.18%
• Aurobindo Pharma – 3.18% 
• TVS Motor – 3.18%

Key Metrics (As of 14 Nov 2024)

As of 30 September 2024, the fund has an expense ratio of 0.41%, which is lower than the category average of 0.72%.

Fund Details	Information
AUM (Assets Under Management)	₹ 562 Crore as of 31 October  2024
Category	Thematic Fund
Fund Managers	Parijat Garg, Rohit Vaidyanathan
Exit Load	1% if redeemed within 12 months or 365 Days
Entry Load	Nil
Minimum Investment	₹1000 (Lumpsum & SIP)
Benchmark	BSE 200 TRI

The 360 One Quant Fund Growth has delivered strong returns over various time frames except for the past three months (as of 14 November 2024): 

• 2 Year Return – 32.18%
• 1 Year Return: 37.94%
• 6 Month Return: 7.23% 
• 3 Month Return: -5.70%
• 1 Month Return: -9.96%

Risk and Performance of 360 One Quant Fund

This fund is classified as a ‘Very High Risk’ fund, which means it can give higher returns, but at the same time, there are chances of high volatility and losing money.

1. Standard Deviation (Std Dev %):

It shows how much the returns vary from the average. The higher this number, the more the returns fluctuate.

BSE 500 TRI has a standard deviation of 13.72% while this fund has 16.69% and the category average is 15.23%. 

2. Sharpe Ratio:

This ratio indicates the return you get for the risk you’re taking. A higher number means better risk-adjusted returns.

BSE 500 TRI has a Sharpe ratio of 0.71%, while quant funds have 0.76%, on average, and this fund has 0.95%. 

3. Sortino Ratio:

It is similar to Sharpe but only looks at downside risk (the risk of losing money).

The BSE 500 TRI has a Sortino ratio of 1.25%. 

4. Beta:

This ratio indicates the volatility of the fund’s performance, compared to similar funds in the market. The lower the Beta, the more predictable the returns are, and vice versa. It helps in comparing funds. 

The beta for quant funds on average is around 0.85, meaning it’s slightly less volatile than the market, but the beta of 360 One Quant Fund is 1.06 which means it is a bit more volatile than average market volatility. 

5. Jensen’s Alpha:

This measures the extra return the fund gives above the market’s average return.

For Quant funds, the Jensen’s Alpha is usually 4.24%. While this fund has 7.2%, which means the fund has outperformed its peers. 

Taxation for 360 One Quant Fund

If you’re investing in the 360 One Quant Fund, here’s how it will be taxable:

1. Short-Term Gains – If you sell the fund units within 1 year or 365 days of making the investments then you will be paying 20% on the total gains you make from the investments. 
2. Long-Term Gains – If you sell the fund units after one year, and your gain is within Rs. 1.25 lakh, then it will be exempted from taxes. For gains above Rs. 1.25 lakhs, you will be paying 12.5% as taxes. This is without any indexation benefit. 

The longer you hold your investments, the better returns you can expect!

3. Taxes on Dividends – If dividends are earned during the investment tenure, then they will be taxable in the hands of the investors as per the tax slab he falls into. If the dividend income surpasses Rs. 5000 in a financial year, then the fund house will deduct 10% TDS before disbursing the dividend into the account of the investor. 

Minimum Investment and Lock-in Period

The minimum investment amount in 360 One Quant Fund is ₹1000 for both lump sum and SIP payments. There is no lock-in period for the 360 One Quant Fund Direct Plan-Growth.

How to Invest in 360 One Mutual Funds?

You can invest in the 360 One Quant Fund Direct Plan-Growth plan with Shoonya. 

Shoonya offers a free demat account, lifetime zero brokerage trading, advanced trading tools, 100+ technical indicators, and much more!

Investing in Lump Sum Mutual Funds Through the Shoonya Web Platform

Here’s a quick guide on how to invest in lump sum mutual funds through the Shoonya web platform:

1. First, you must log in to your Shoonya account at trade.shoonya.com. From the “Orders” section, click on “MF order.”
2. Search for the fund you wish to invest in; in this case, 360 One Quant Fund Direct Plan-Growth plan.
3. Choose “Fresh” for a new investment and enter the amount you want to invest.
4. You can complete your purchase by clicking the “Purchase” button.
5. You will receive a payment link on your registered email. Use the link to make the payment.

After payment, your mutual fund units will be allotted to your Demat account within T+2 days.

Note: You can only make the payment using the bank account registered with your Demat account.

Setting Up an SIP for Mutual Funds

If you prefer a Systematic Investment Plan (SIP) for 360 One Quant Fund Direct Plan-Growth plan, you must follow these steps:

1. First, you need to log in to your Shoonya account at trade.shoonya.com. Go to “Orders” and click on “XSIP.”
2. Find the mutual fund for which you want to set up an SIP. In this case, 360 One Quant Fund Direct Plan-Growth plan.
3. If this is your first SIP with Shoonya, you need to create a Mandate ID. 

For that, you must enter the mandate amount and the validity date (until you want to keep your SIP active).

4. You must submit the details, and you’ll receive a Mandate authentication link via email. Approval generally takes 24 hours.

Once your Mandate is approved, you can follow these steps to set up your SIP:

1. Go to “XSIP,” enter the SIP amount, and select “Fresh” as the transaction type.
2. Choose the date when the SIP will be debited directly from your registered bank.
3. The approved Mandate ID will auto-reflect.
4. Choose “Monthly” for monthly debits and specify the number of installments (e.g., 24 installments for a 2-year SIP).

This process will help you invest systematically with ease.

Why Invest in 360 One Quant Fund?

Investing or trading using quantitative methods, models may be fascinating as it can offer higher returns, however, it requires experience and expertise in the domain which every investor cannot have. 

Thus, investing in 360 One Quant Fund can help in investing in a quant based fund without you breaking your head on the quant models and strategies. 

Another reason for investing in this fund would be the market beating return it offers. Moreover, even though this is a thematic fund, it has investments across sectors. 

Suitability of this Fund| Who Should Invest?

The 360 One Quant Fund is suitable for investors who are willing to stay invested for at least five years and have a good risk appetite. As these are highly risk funds, with higher return potential, investors who are risk averse can find it intimidating. 

In addition, this fund invests in a restricted number of stocks based on quant models, so if you are looking to diversify otherwise, this fund may not be suitable for you. 

The 360 One Quant Fund Direct is suitable for investors who:

• Looking for capital appreciation in the long run 
• Is a risk-taker as the fund is a very high-risk fund but offers a higher potential for returns 
• Want to invest in a focused fund

Conclusion

As the popularity of quant trading and investment is increasing, so is the popularity of quant funds, and in this space, 360 One Quant Fund is one of the most renowned ones. It has been offering returns over and above its peers, though by taking higher risks as well. So, if you want to invest in this fund, you need to consider both its potential as well as the risk associated with the theme and the fund itself. 

FAQs| 360 One Quant Fund Direct Plan-Growth plan

Source: ValueResearch

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.