Quant Small Cap Fund Direct Growth vs Regular
Quant Small Cap Fund Direct Growth vs Regular: Detailed Review & Best Software for Trading in India
Introduction
Investing in small-sized companies with high growth potential can be rewarding yet challenging. The Quant Small Cap Fund offers both Direct Growth and Regular plans, each tailored for different investor needs. Alongside, having the right software for trading can make your investment journey smoother and more profitable.
This article unpacks the key differences between Quant Small Cap Fund Direct Growth and Regular plans, offers an unbiased review, and introduces the best trading software available in India. Whether a novice or an experienced investor, this guide clarifies your investment decisions in an easy-to-understand manner.
Explore Quant Small Cap Fund Direct Growth and Regular plans, detailed review, and the best software for trading in India to boost your investment strategy.
What is Quant Small Cap Fund?
The Quant Small Cap Fund focuses on investing in smaller Indian companies with a market capitalization outside the top 250. These companies often have a higher growth trajectory but come with more risk and volatility than large caps. The fund manager combines quantitative data analysis and market research to pick promising stocks aimed at generating capital appreciation over the long term.
Direct Growth vs Regular Plan Explained
- Direct Growth Plan: Investors buy directly through the fund house without intermediaries. This means lower expense ratios (around 0.72%), as there are no distributor commissions. Profits are reinvested, giving you compounding benefits.
- Regular Plan: Investments go through brokers or agents who charge commission, reflected in a higher expense ratio. The regular plan is well-suited for investors who prefer assistance or advisory services.
Key Features of Both Plans
| Feature | Direct Growth | Regular Plan |
| Expense Ratio | Lower (~0.72%) | Higher (includes commissions) |
| Returns | Potentially higher due to costs | Slightly lower |
| Support | Self-managed | Broker/advisor support |
| Minimum Investment | ₹5,000 (lump sum), ₹1,000 (SIP) | ₹5,000 (lump sum), ₹1,000 (SIP) |
| Lock-in Period | None | None |
Detailed Quant Small Cap Fund Review
Over 12 years, the Quant Small Cap Fund has delivered about 17.9% CAGR on average, with a fund size of around ₹28,758 crore. Performance shows some volatility but has outperformed many peers over a 5- to 10-year horizon. The fund primarily invests in sectors like Financials (17.2%), Healthcare (17.1%), Services (14.3%), and Energy (13.3%).
It holds key stocks such as Reliance Industries (9.23%) and Jio Financial Services (6.56%), balancing sector and stock diversification to manage risk.
Who Should Choose Direct and Regular?
- Direct Growth: Suitable for investors comfortable managing their portfolios independently, aiming for lower costs and higher returns.
- Regular: Ideal for those seeking guidance or preferring to invest through brokers with advisory support.
Performance Comparison
| Period | Direct Growth | Regular Plan (Typical) |
| 1 Year | -8.98% | Slightly lower due to fees |
| 3 Years | 23.74% | 1-2% lower generally |
| 5 Years | 35.56% | 2-3% lower |
| Since Inception | 17.94% | Slightly lower |
Expense Ratio and Costs
The Direct Growth plan generally has an expense ratio of about 0.72%, while the regular plan is higher due to distributor commissions. Over time, this difference can impact your net returns by a noticeable margin.
Taxation Considerations
Capital gains tax applies as follows:
- Short-term (holding <1 year): Taxed at 20% after indexation.
- Long-term (holding >1 year): 12.5% on gains above ₹1.25 lakh.
Why Software Matters in Trading
Good trading software enhances your investment by offering features like faster execution, real-time data, charting tools, and risk management. Choosing the right platform can improve your decision-making and efficiency.
Best Software for Trading in India
Some of the best trading software platforms in India for retail investors include:
- Quanttrix: User-friendly interface with advanced charting and analytics.
- Upstox Pro: Cost-effective with powerful tools for beginners and pros.
- Angel Broking: Strong advisory and research support.
- Fyers One: Advanced technical analysis tools.
- 5paisa: Affordable pricing with good mobile app experience.
How Software Enhances Your Trading Experience
Trading software offers:
- Instant market access with minimal lag.
- Advanced analytics and charting to identify trends.
- Automated strategies and alerts to seize opportunities.
- Portfolio tracking for better management.
How to Start Investing in Quant Small Cap Fund
- Complete KYC online.
- Choose either Direct Growth or Regular plans.
- Use platforms like Groww, Zerodha Coin, or ET Money to invest.
- Start with as low as ₹1,000 SIP or ₹5,000 lump sum.
- Monitor and adjust your portfolio periodically.
Conclusion and Final Advice
The Quant Small Cap Fund offers two routes depending on your comfort level with investing and cost sensitivity. The Direct Growth plan wins on cost and returns for confident investors, while the Regular plan suits those who want guidance.
Couple your investments with the best trading software in India to elevate your trading efficiency and overall gains. Technology is a powerful ally in today’s markets.
Frequently Asked Questions
1. What is the main difference between Direct Growth and quant small cap fund regular plans?
Direct Growth bypasses intermediaries leading to lower costs and potentially higher returns.
2. Which plan is better for new investors?
Regular plan due to advisory support, though Direct can be better if you’re confident managing investments.
3. What is the minimum SIP amount?
₹1,000 minimum per month.
4. Which is the best trading software for Indian investors?
Quanttrix is popular for its balance of features and usability.
5. Does trading software help with mutual fund investments?
Not directly, but it can aid personal trading strategies alongside mutual funds.