Quantum is getting four to five requests from distributors wanting to empanel with it every month.
Since its launch in 2006, direct-to-investor fund house— Quantum Mutual Fund has received applications from 600 distributors. It has 35 distributors empanelled with it currently. Lately, it has been receiving four to five applications to empanel with it every month. Quantum doesn’t pay any commission to these distributors. It organises investor awareness camps (Path to Profit) for their investors.
The fund house has always accepted applications from distributors. However, these distributors were not empanelled with them. According to Jimmy Patel, CEO, Quantum Mutual Fund, the fund house is getting noticed among investors and distributors due to the good track record of its flagship fund – Quantum Long Term Equity Fund.
“We got a lot of requests from distributors wanting to empanel with us when we conducted our investor awareness camps. Distributors don’t want to turn away their clients wanting to invest in our schemes. Distributors didn’t know that they can empanel with us. They want to put our website link on their websites so that online transactions can be facilitated to their clients. Going ahead, we would like to provide training support to distributors who empanel with us. Apart from investors, distributors and financial planners also attend our awareness camps. We are now part of the distributor due diligence process,” said Jimmy Patel.
He further added that due to any absence of commercial incentive to recommend Quantum schemes, distributors just route applications, rather than actively promoting their funds. In many cases, clients choose to invest in Quantum schemes so while distributors may not show preference for Quantum schemes, they are at least able to retain their clients. This is also prompting distributors to empanel with it.
Due to its direct model, the fund house has largely relied on online channels to attract investors. Online platforms like Fundsindia, Fundsupermart and its in house distribution arm— PersonalFN are offering its schemes.
It manages Rs 193 crore as on June 2012 and one of the few small sized AMCs which are profitable.
