Quantum Flexi Cap Fund NFO: Flexible investments across market caps in profit pool shifts

The Quantum MF has launched its new fund offer, the Quantum Flexicap Fund NFO, on the 21^st of August 2026. The NFO will remain open for subscription till the 4^th of September 2026. The Quantum Flexi Cap Fund aims to capture shifts in the profit pool across the value chain of industries while being flexible across all market caps. In this article, we will review the Quantum Flexi Cap Fund NFO.

What is meant by Profit Pool of an Industry

A profit pool refers to the distribution of profits across different segments within an industry or value chain. Profit pools shift when the growth potential or value creation within an industry moves from one segment to another. Such shifts may be driven by technological advancements, changing consumer preferences, regulatory changes, and industry consolidation. Understanding these shifts can help identify businesses that may be better positioned to participate in evolving growth opportunities.

Shift in Profit Pools

Examples of profit pool shifts include the transition of retail towards e-commerce, consolidation within the telecom sector, increasing consumer preference for premium SUVs, and the shift in the energy sector from conventional thermal power towards renewable energy. Technology, consumer preferences, regulation, or industry consolidation often influence these changes. India’s consumption story has gone through a phenomenal shift in the last few decades. The general population has moved from seeking discounts at ration queues to paying a premium for access to convenient buying options on E-Commerce and Q- Commerce. The rising GDP has changed the way the consumption story is unfolding in India. The chart below shows the GDP growth since 1961.

Source: Worldbank.org data shown above is calendar year

The trajectory of GDP per capita has been on an upward trend since 1990 onwards. The changes in per capita have made lot of changes in the investor behaviour that prioritizes financial security, as well as in consumption behaviour which has shifted to aspirational consumption like vehicles and white goods, beyond basics like food, clothing and shelter.

Source: Worldbank.org data shown above is calendar year

Investment Opportunities in the Shift in Profit Pools

Profit pool (i.e. total profits earned by an industry) never stays static. Disruption, Consolidation, Consumer Preferences or Regulations can cause shifts in profit pool from one segment to another. Understanding these shifts can help identify businesses that may be better positioned to participate in evolving growth opportunities. Companies that benefit from this shift can see higher growth, higher multiples, and hence, higher returns.

Examples of Shift in Profit Pools

• Retail Industry: The graphic below depicts the shift in the profit pools in the Retail Industry of India. Convenience, technology and digital adoption transformed how consumers shop. New formats disrupted the industry and consumer spending shifted towards them. As a result, the industry's profit pool migrated to new entrants.
  
  

  



• Telecom Industry: The chart below depicts the profit pool shifts in the Indian Telecom industry. Many telecom companies competed aggressively, leading to lower prices and hence weaker profitability. Over time, weaker players exited or merged, reducing the number of operators. With fewer players, Average price per user improved, profitability increased, and the profit pool shifted to the survivors.
  
  

  

Capturing the Profit Pool Shift with Quantum Flexi Cap Fund

Opportunities can be found in Large, Mid & Small Cap Segments. In the graphic below, the number inside the bubbles show the number of companies in the various segments of that sector, and the colour of the bubbles represents the different market caps. Here we show the scenarios in two sectors: Healthcare and Real Estate.

Source: Quantum MF Product ppt

Source: Quantum MF Product ppt

Stock Selection Process

Stocks are selected from the addressable universe of 1514 stocks of Companies trading value of over Rs 2 crore/ day (Data as on June 30, 2026). Fundamental research is conducted with long-term earnings and valuation projections. The Research committee reviews and approves stocks. High-conviction investments are undertaken in businesses with credible management and sound governance. GARP-based screening is done to create a diversified portfolio across sectors, driven by domestic, consumption, export, and infrastructure themes.

Investment Criteria

The fund managers employ the GARP criteria for their investment decisions. GARP (Growth at a Reasonable Price) is an investment strategy that seeks to invest in quality businesses with sustainable growth prospects at reasonable valuations. The approach aims to balance growth potential with valuation discipline while selecting investments.

Why invest in the Quantum Flexi Cap Fund NFO?

Managed by fund managers Ketan Gujarathi and Chirag Mehta, the scheme combines the flexibility to invest across market capitalisations with a disciplined, bottom-up stock selection process aimed at capturing Profit Pool shifts through GARP (Growth at a Reasonable Price) investment approach. Through this approach, the Scheme seeks to capture profit pool shifts by identifying quality businesses with sustainable growth prospects, strong management, and reasonable valuations, while maintaining a diversified portfolio.

How is Quantum Flexi Cap Fund taxed?

• Short-Term Capital Gains (STCG): Gains on units held for less than 12 months are taxed at 20%.


• Long-Term Capital Gains (LTCG): Gains on units held for more than 12 months are taxed at 12.5% on gains exceeding 1.25 lakh in a financial year.


• Applicable surcharge and cess will be levied over and above the above tax rates, as per prevailing tax laws.

Who should invest in the Quantum Flexi Cap Fund NFO?

The Quantum Flexi Cap Fund may be a suitable option for:

• Investors seeking capital appreciation and wealth creation over long investment tenures.


• Investors who want to invest for their long-term financial goals.


• Investors who want exposure across market cap segments.


• Investors with sufficiently high-risk appetites.


• Investors with minimum investment tenures of 5 years.

Investors should consult with their financial advisors or mutual fund distributors if the Quantum Flexi Cap Fund NFO is suitable for their investment needs.