Quantum Mutual Fund, which launched its flagship scheme in 2005, started as a direct-only mutual fund without any distributors. Twelve years later, it changed its strategies and started to offer regular plans and sign up distributors to sell its products.
Not surprisingly, Quantum has lagged its rivals in terms of assets managed and number of distributors. Since 2015–the year for which data became available–its average assets under management have risen five-fold to ₹3,459 crore as of September 2025.
Comparatively, mutual funds that have operated since 2005 now manage assets in the range of ₹13,000 crore to ₹12 trillion, according to Value Research. There’s one exception–Taurus Mutual Fund, which managed ₹966 crore at the end of September.
Since Quantum appointed Seemant Shukla as chief executive officer (CEO) in April this year, things have started to change. He is expanding the fund house’s reach by engaging with mutual fund distributors and registered investment advisors, entering additional cities and building an omnipresent channel. After Shukla joined, the asset management company (AMC) has added ₹480 crore.
Quantum’s entire AUM had increased by only 2% from March 2024 to March 2025, according to data disclosed by the company. However, its AUM grew 17% between March and September.
“The growth in Quantum Mutual Fund’s AUM over a short period is healthy and significant for its size. The new CEO seems to have improved the fund’s positioning among distributors, a segment that remains key in India’s mutual fund market,” said Srikanth Meenakshi, the co-founder of PrimeInvestor, a mutual fund platform. “As long as the products are attractive and commissions are healthy, the distributors will sell the funds. Given that India’s mutual fund industry is still growing with new players entering regularly, Quantum’s track record and improved distribution strategy can help them scale up.”
Focus on partners
In 2017, after the market regulator brought transparency to the commissions paid to distributors, Quantum started offering regular plans. A year later, the asset manager had 4,000 distributors, according to its annual report. Now, under the new CEO, the mutual fund has paced up its focus on empanelling partners–distributors and registered investment advisors.
“We now have 17,691 empanelled partners,” Shukla said. “We are seeing some really green shoots of activation of mutual fund distributors in the last 5-6 months where the numbers have gone up by 3-4x.”
The AMC had 13,983 distributors as of March 2025–still fewer than what its peers had. Shriram AMC and Samco MF had 28,823 and 28,503 distributors, respectively, as of March 2025, according to their annual reports. Trust MF, which started in 2019, had 13,007 distributors. Four other peers had not disclosed the number of their distributors.
As of March, 10% of Quantum’s equity and hybrid AUM came from distributors. As of September, the number had grown to 12%.
For Quantum, starting off with direct-only plans–where customers invest without an intermediary such as a distributor or investment advisor–may have been a progressive step back in 2005, but the market was not ready for it.
“Ajit Dayal, founder of Quantum AMC, was ahead of his time when he launched direct plans when the nomenclature itself didn’t exist,” said Abhishek Kumar, founder at Sahaj Money and a registered investment advisor. “People were not aware of the concept of direct plans when they launched.”
Kumar added that Dayal did not want to sell through the distribution channel. He thought it would be enough to have a product, and people would find it.
“That does not work in the financial sector. If people don’t know about it, how will they put money?” Kumar asked. “By the time they launched the regular plan in 2017, big AMCs had already captured the market share.”
The share of direct plans in total systematic investment plan assets in the country has grown notably over the past five years—from 12% in March 2020 to 21% in March 2025. However, regular plans continue to dominate mutual fund assets.
New markets
To expand its business, Quantum is strengthening its focus on India’s rapidly growing markets, including tier-II cities. The AMC has opened offices in Kolkata, Ahmedabad and Bengaluru, with centres planned in Jaipur and Indore.
“While selecting a new city to start our offices, we see how the city’s mutual fund AUM has grown in the last five-seven years. We also see its channel presence and the vibrancy of the city,” said Shukla.
Jaipur’s share of total mutual fund assets has increased to 0.85% from 0.64% five years ago, according to the Association of Mutual Funds in India. Indore’s share is now 0.43% of the total compared with 0.37% in 2020.
“The focus is on sustainable growth—not just chasing numbers,” Shukla said when asked how Quantum MF would gain market share. “Mutual funds are a simple business built on doing the right things consistently. We are not in a race for market share, but on a path of increasing market share along with trusted partners and thoughtful investors.”
The mutual fund was present on most digital channels before but is now trying to actively engage with all digital channels including platforms such as KFIN, MF Central and fintechs. It plans to appoint a digital vertical head to help establish its presence on digital formats, the CEO added.
The AMC’s oldest plan, Quantum Value Fund, has the highest AUM among all its schemes– ₹1,226 crore as of September. This fund has generated 14.03% CAGR returns since inception on 13 March 2006, according to Value Research. That compares with 13.02% for the tier-I BSE 500 Total Return Index.
On a 10-year basis, Quantum Value Fund has returned 13% compared with SBI Contra Fund’s 17.7% and ICICI Prudential Value’s 16.47%.
Portfolio performance
Quantum MF has 14 schemes in its portfolio now. The Quantum Small Cap Fund launched in 2023 has outperformed the BSE 250 small cap TRI, posting a return of 5.5% since inception compared with the benchmark’s -2.62%.
The Quantum ESG Best In Class Strategy Fund launched in 2019 has underperformed its benchmark, the BSE 100 TRI, delivering a return of 17.64% since inception compared with the benchmark’s 19.69%.
Its Ethical Fund launched in December last year has given 0.2% returns since inception versus the benchmark BSE 500 TRI which has given 7.2% returns in the same period, per Value Research.
Quantum MF is not on the radar in terms of performance, said Santosh Joseph, managing director and chief executive officer of Germinate Investor Services, a distributor.
“If they decide to go through distributors, we will make a conscious call on whether it adds value, their performance and size,” Joseph said.
