@Quantum_AMC Hello again! I hope the team at Quantum is safe and sound.
We last discussed on the following thread. I think the readers should go through our last discussion as well.
I follow a principle in life - trust but verify. And I don’t make any random comments. Let me tell you, I have invested in Quantum Liquid Fund, only some portion overall, when I exhausted my other options as I mentioned in the other thread. So thanks to Zerodha for this opportunity to let me interact with you more as an investor.
Two things, I would like to discuss with you today-
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The TER of the fund at 0.16% is a bit high. Ideally, it should range somewhere between 0.05 - 0.08% or max 0.10%. I don’t know how but you need to cut down the cost by half. More so when the yields of the Govt bonds are going south. I don’t have to tell you that money saved is money earned too.
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Yesterday, I was reading this article about India’s borrowing plan, the target now raised to 12L Cr-
COVID-19 impact: Govt to borrow Rs 4 lakh crore more than budget estimate
If I am thinking right, it means Govt would have to issue new bonds and securities so people at large can invest which Govt can utilize in various development projects and repay those loans through the earnings. Is it an opportunity for Quantum Liquid Fund given the majority of portfolio invests in Govt bonds?
Let’s discuss this.
Best,