Small Caps, Big Moves: Inside Quant’s Contrarian Call for 2025

Quant Mutual Fund is dialing up its exposure to mid and small-cap stocks across equity and hybrid schemes, signaling a confident “risk-on” stance amid global market resilience. The move, revealed in its July 2025 portfolio update, reflects a strategic pivot toward sectors poised for cyclical and structural growth.

 

Key Highlights:

 

- Sectoral Sweet Spots
 

- Quant sees buying opportunities in PSUs, infrastructure, hospitality, pharma, materials, retail, and telecom.
 

- Predictive analytics suggest India is entering a favorable macro phase, with manufacturing-led growth echoing China’s 2006–07 trajectory.

 

- Portfolio Tilt & Liquidity
 

- While large caps remain dominant, selective mid and small-cap allocations have been increased in most schemes.
 

- The fund house maintains high liquidity and dynamic asset allocation to manage volatility.

 

- New Fund Launch & Scheme Renaming
 

- The upcoming Quant Equity Savings Fund NFO (July 7–21) aims to blend equity growth with arbitrage and high-quality debt for risk-averse investors.
 

- Four schemes have been renamed in line with SEBI’s standardization directive, including Quant Multi Cap Fund and Quant ESG Integration Strategy Fund.

 

- Macro View & Global Signals
 

- Quant anticipates continued global market resilience, despite geopolitical volatility and fiscal tightening.
 

- The firm expects a significant US dollar devaluation as a long-term macro reset.

 

Quant’s bold bet on India’s mid-market momentum reflects a broader shift in investor appetite—from safety to selective aggression.

 

Source: Economic Times, Quant Mutual Fund Monthly Commentary, Moneycontrol