Which Mutual Fund Offers Superior Returns: Quantum Flexi Cap or JM Multicap Growth Fund?

When it comes to investment in mutual funds, deciding between options like the Quantum Flexi Cap Fund and the JM Multicap Growth Fund can be a complex decision. Both funds have their unique attributes, risks, and performance metrics. This article aims to provide a detailed comparison of these two funds to help investors make an informed decision.

Performance Metrics and Returns

The first and most obvious factor to consider is performance in terms of returns. Based on the available data:

1-year CAGR (Consumer Annual Growth Rate) for JM Multicap Growth Fund: 48.38 1-year absolute return for JM Multicap Growth Fund: 36.5 3-year CAGR for JM Multicap Growth Fund: — (data not available) 3-year absolute return for JM Multicap Growth Fund: 19.3

In contrast:

1-year absolute return for Quantum Flexi Cap Fund: — (data not available) 3-year CAGR for Quantum Flexi Cap Fund: 19.3 3-year absolute return for Quantum Flexi Cap Fund: — (data not available)

From the above summary, it's evident that the JM Multicap Growth Fund outperforms the Quantum Flexi Cap Fund in terms of both 1-year and 3-year returns.

Risk Factor

Although both Quantum Flexi Cap Fund and JM Multicap Growth Fund offer the potential for higher returns, they also come with the risk of lower returns or even capital loss. Here are the risk ratings associated with these funds:

JM Multicap Growth Fund: Very high risk rating Quantum Flexi Cap Fund: Very high risk rating

This high-risk factor is a crucial consideration for investors as it directly impacts the stability and potential volatility of their investment.

Investment Style and Benchmarking

The investment style and benchmarks of these funds differ significantly:

Multi-cap funds (like the JM Multicap Growth Fund): Invest a minimum of 50% of their assets in small-cap and mid-cap stocks, and are benchmarked against the Nifty500 Multicap 50:25:25 - TRI. Flexi-cap funds (like the Quantum Flexi Cap Fund): Have a more flexible approach, investing in a variety of market segments without a minimum percentage requirement for any particular category, and are benchmarked against the BSE 500 - TRI and the NIFTY 500 - TRI.

Taxation Considerations

Understanding the taxation implications is equally important for smart investing. Below is a brief overview of the taxation for these funds:

Quantum Flexi Cap Fund: 20% tax on returns if redeemed before one year 12.5% tax on returns of 1.25 lakh in a financial year if redeemed after one year JM Multicap Growth Fund:

Tax details are not specified in the provided information. For accurate details, it’s advisable to consult the fund's latest documentation or speak to your financial advisor.

It's important to note that factors like capital gains tax and dividend distribution tax can further influence the net returns.

Conclusion

When comparing JM Multicap Growth Fund and Quantum Flexi Cap Fund, one cannot overlook the performance metrics and the associated risks. The JM Multicap Growth Fund offers higher returns, but it also comes with higher risk. On the other hand, the Quantum Flexi Cap Fund is more flexible but has a bit lower performance based on available data. Investors should carefully consider their risk tolerance, investment goals, and financial situation before making a decision.

Important Note: Past performance is not indicative of future performance. Investors should conduct further research and consult with a financial advisor before making any investment decisions.

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