Quant Mutual Fund turns cautious on manufacturing, bets on ‘neglected’ IT Services

The fund house, in its monthly factsheet, said that its portfolio construction is focused on under-owned, under-researched, under-valued and neglected stocks.

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Apart from IT Services, Quant Mutual Fund said it continues to remain constructive on Energy, large Infrastructure, select NBFCs, asset management companies (AMCs), Auto Ancillaries, Hotels, Pharmaceuticals, Telecom and data centre themes.

The fund house said it expects market consolidation to become more entrenched in large-cap and blue-chip segments over time. In such an environment, it expects alpha generation to increasingly come from bottom-up, stock-specific opportunities in the micro-, small- and mid-cap segments.

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Sandeep Tandon led Quant Mutual Fund also believes that India could benefit from being relatively away from the crowded AI trade of 2026 and said the country is poised to outperform.
The fund house highlighted its dynamic and active approach to money management, saying its multi-asset, multi-manager structure allows it to act swiftly and seek opportunities across asset classes under different market conditions.The fund house expects consolidation trends to strengthen in the large-cap and blue-chip segments which could make bottom-up stock selection increasingly important, particularly across micro-, small- and mid-cap companies.

The fund house also pointed to its Predictive Analytics framework, which it said had anticipated sharp movements in copper and WTI crude in recent months. It added that crude has largely stalled after its earlier expectation of a gradual correction over the coming months.

Quant Mutual Fund said global markets navigated geopolitical shocks, rising sovereign yields and strong artificial intelligence earnings through August 2026. Despite these challenges, global equity indices remained largely flat during the month, while the Nifty 50 corrected 1.2%.

The fund house noted that Indian corporate earnings continued to show strong growth and profitability. Excluding oil marketing companies, profit growth in the first quarter of FY27 stood at 14% for the Nifty, 27% for the Nifty Next 50 and 38% for the Nifty Midcap index, according to Quant Mutual Fund.

Quant said it continues to believe that the upcoming decade belongs to India and that global capital will continue to view India as a favourable investment destination. It added that robust domestic demand in areas such as discretionary consumption, banking, real estate and industrials supported corporate earnings during the quarter.

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While sharing its new launches, Quant Mutual Fund said that it launched Quant Income Plus Arbitrage Active Fund and Quant Silver ETF. These two funds were firsts of their kind. Out of these two funds, the Income plus arbitrage fund will open for continuous sale and repurchase on September 7 while the silver ETF is open for further subscription.

As of August 2026, the fund house had a total money under management of Rs 1 lakh crore with over 1 crore folios and around 36 funds. The VLRT framework of Quant Mutual Fund has completed six years and the money under management has gone up from Rs 135 crore in April 2020 to Rs 1 lakh crore in August 2026.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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