C M Y K

QUANTUM MUTUAL FUND

Quantum Gold Fund

OFFER DOCUMENT

QUANTUM GOLD FUND

(An Open ended Exchange Traded Fund with no assured returns)

ASSET MANAGEMENT COMPANY : Quantum Asset Management Company Private Limited

Issue of units of Rs.100/- per unit during the New Fund Offer (NFO) Period. The units being offered under this scheme
will have a face value of Rs.100/- (Rupees One Hundred Only) each and will be issued at a premium equivalent to
difference between allotment price and the face value of Rs.100/- each plus entry load as applicable. During the
continuous offer, units will be issued at NAV based prices.
NEW FUND OFFER OPENS ON : January 24, 2008
NEW FUND OFFER CLOSES ON : February 8, 2008
SCHEME RE-OPENS FOR CONTINUOUS SALE AND REPURCHASE ON LISTING OF UNITS IN NSE
The Trustee/AMC reserves the right to extend the closing date of the New Fund Offer period subject to the condition
that the subscription to the New Fund Offer shall not be kept open for more than 30 days.
The particulars of Quantum Gold Fund (QGF) have been prepared in accordance with the Securities and Exchange
Board of India (Mutual Funds) Regulations, 1996 as amended till date and filed with Securities & Exchange Board of
India (SEBI) and the units being offered for public subscription have neither been approved nor disapproved by SEBI
nor has SEBI certified the accuracy or adequacy of the offer document.
This Offer Document sets forth concisely information that a prospective Investor ought to know before making an
informed investment decision in the Scheme described herein. Investors should carefully read the Offer Document, prior
to making an investment decision and retain the Offer Document for future reference.
As required, a copy of this Offer Document has been submitted 1to National Stock Exchange of India Limited
(hereinafter referred to as NSE). NSE has given vide its letter No. NSE/LIST/58964-V dated October 24, 2007 permission
to the Mutual Fund to use the Exchange's name in this Offer Document as one of the stock exchange on which the
Mutual Fund's units are proposed to be listed subject to, the Mutual Fund fulfilling the various criteria for listing. The
Exchange has scrutinized this offer document for its limited internal purpose of deciding on the matter of granting the
aforesaid permission to the Mutual Fund. It is to be distinctly understood that the aforesaid permission given by NSE
should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE; nor
does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this Offer
Document; nor does it warrant that the Mutual Fund's units will be listed or will continue to be listed on the Exchange;
nor does it take any responsibility for the financial or other soundness of the Mutual Fund, its promoters, its
management or any scheme or project of the Mutual Fund.
Every person who desires to apply for or otherwise acquire any units of the Mutual Fund may do so pursuant to
independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by
reason of any loss which may be suffered by such person consequent to or in connection with such subscription/
acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever.
The Scheme is an open-ended exchange traded Scheme. The Offer Document is dated January 18, 2008. This Offer
Document shall remain effective until a 'material change' (other than a change in fundamental attributes and within the
purview of the Offer Document) occurs. As per the SEBI directive, the Offer Document will be fully revised and reprinted
at least once in two years. Till the time the Offer Document is revised and reprinted, an addendum giving details of
each change will be attached to the Offer Document. Investors are requested to retain the Offer Document for future
references. Investors are also requested that before investing, they should also ascertain about any further changes in
the Offer Document after the date of this Offer Document from the Mutual Fund / Investment Manager / Website /
Investor Service Centres.
This offer document is dated January 18, 2008.

C M Y K
SPONSOR
INVESTMENT MANAGER
TRUSTEE
REGISTRAR & TRANSFER AGENTS
CUSTODIAN
BANKER TO THE ISSUE
STATUTORY AUDITORS
INTERNAL AUDITORS
Quantum Advisors Private Limited
Registered Office : #103-104, 1st Floor,
Regent Chambers, Nariman Point,
Mumbai - 400021
Quantum Asset Management Company Private Ltd.
Registered Office : #107-108, 1st Floor,
Regent Chambers, Nariman Point,
Mumbai - 400021
Tel. No. : 022-2287 5923
Toll Free no. 1800 22 3863
Website : www.QuantumAMC.com
Quantum Trustee Company Private Limited
Registered Office : #107-108, 1st Floor,
Regent Chambers, Nariman Point,
Mumbai - 400021
Tel. No. : 022-2287 5923
Deutsche Investor Services Private Limited (DISPL)
Logitech Park, M.V. Road,
Sakinaka,
Andheri (East),
Mumbai - 400072
Deutsche Bank AG
6th Floor, Nicholas Piramal Tower,
Peninsula Corporate Park,
Ganpatrao Kadam Marg,
Lower Parel,
Mumbai 400 013
HDFC Bank Ltd
Maneckji Wadia Bldg,
Nanik Motwani Marg,
Mumbai-400023
M/s Haribhakti & Co., Chartered Accountants
42, Free Press House, 4th Floor,
215, Nariman Point,
Mumbai - 400 021
M/s Kalyaniwala Mistry & Associates,
Chartered Accountants
Kalpataru Heritage,
127, Mahatma Gandhi Road,
Mumbai - 400 023
2
 QUANTUM MUTUAL FUND
Quantum Gold Fund

INDEX
PARTICULARS PAGE NO.
Definitions ...................................................................................................................................................... 5
Risk Factors ................................................................................................................................................... 10
Highlights ....................................................................................................................................................... 16
Due Diligence by the Asset Management Company .................................................................................... 18
SECTION I
Overview of Gold and Background of Gold Exchange Traded Funds .......................................................... 19
Constitution of The Mutual Fund .................................................................................................................... 23
The Mutual Fund ................................................................................................................................. 23
The Sponsors ...................................................................................................................................... 23
The Trustee Company ......................................................................................................................... 24
The Asset Management Company ...................................................................................................... 29
Modifications to the Scheme .......................................................................................................................... 35
Auditors of the Scheme .................................................................................................................................. 36
The Registrar and Transfer Agents ............................................................................................................... 36
The Custodian ............................................................................................................................................... 36
SECTION II - SCHEME SUMMARY, INVESTMENT OBJECTIVES AND POLICY
Type of the Scheme ....................................................................................................................................... 38
Post-NFO Creation of Units ........................................................................................................................... 38
Working of Gold ETF - Indicative Flow Chart ................................................................................................. 39
Investment Objective ...................................................................................................................................... 40
Principal Investment Strategies ..................................................................................................................... 40
Asset Allocation (Investment Pattern) ............................................................................................................ 41
Change in Investment Pattern ....................................................................................................................... 41
Investment Process ........................................................................................................................................ 41
Manner of holding assets of the Scheme ...................................................................................................... 42
Portfolio Turnover .......................................................................................................................................... 42
Listing ............................................................................................................................................................. 42
Mode of Investment ........................................................................................................................................ 43
Investment restrictions for the Scheme .......................................................................................................... 43
Recording of Investment Decisions ............................................................................................................... 45
Change in Fundamental Attributes ................................................................................................................ 45
Fundamental Attributes .................................................................................................................................. 45
Determination of NAV .................................................................................................................................... 46
Accounting Policies & Standards .................................................................................................................. 51
Benchmark ..................................................................................................................................................... 55
Trading in derivatives .................................................................................................................................... 55
SECTION III - NEW FUND OFFER
New Fund Offer .............................................................................................................................................. 56
New Fund Offer Period .................................................................................................................................. 56
New Fund Offer Price ..................................................................................................................................... 56
Extension/Termination of New Fund Offer Period ......................................................................................... 57
Minimum Amount for Application/Minimum Subscription Amount ................................................................ 57
Investing Directly in the Fund ........................................................................................................................ 58
Minimum number of Investors and maximum holding by single Investor ..................................................... 60

3
Allotment & Refund ........................................................................................................................................ 60
Dividend & Distribution .................................................................................................................................. 61
Who can invest ? ............................................................................................................................................ 62
Who cannot invest ? ...................................................................................................................................... 62
How to apply ? ............................................................................................................................................... 63
Mode of payment ........................................................................................................................................... 64
Cheque Bouncing .......................................................................................................................................... 65
Single Folio Facility ........................................................................................................................................ 65
Account statement ......................................................................................................................................... 65
Units with Depository ..................................................................................................................................... 65
Joint Holders .................................................................................................................................................. 65
Nomination facility ......................................................................................................................................... 66
Householdings ............................................................................................................................................... 66
Web Transactions .......................................................................................................................................... 67
Transfer facility ............................................................................................................................................... 67
Listing ............................................................................................................................................................. 67
Pledge of Units ............................................................................................................................................... 68
Suspension of Sale/Repurchase/Redemption/Switching Options of Units .................................................. 69
Personal Identification Number (PIN) ............................................................................................................ 70
Prevention of Money Laundering, Know-Your-Customer and Investor Protection ...................................... 70
Identification Documents ............................................................................................................................... 71
Freezing/ Seizure of Accounts ....................................................................................................................... 71
SECTION IV - LOAD STRUCTURE AND RECURRING EXPENSES
Load Structure ............................................................................................................................................... 72
Fees & Expenses of the Scheme ................................................................................................................... 73
Initial Issue Expenses .................................................................................................................................... 73
Annual Scheme Recurring Expenses ........................................................................................................... 74
Impact of Expenses on NAV of units .............................................................................................................. 75
Condensed Financial Information ................................................................................................................. 76
SECTION V - UNITHOLDERS RIGHTS & SERVICES
Investor Service ............................................................................................................................................. 77
Ease of Transaction ....................................................................................................................................... 77
Problem Resolution ....................................................................................................................................... 78
Information about the Scheme ....................................................................................................................... 78
NAV Information ............................................................................................................................................. 78
Rights of Unitholders of Scheme ................................................................................................................... 79
Duration of Scheme and winding up ............................................................................................................. 79
Procedure and manner of winding up ........................................................................................................... 80
Tax Benefits/Consequences of Investing in Mutual Funds ........................................................................... 80
SECTION VI - OTHER MATTERS
Unitholders Grievances Redressal Mechanism ............................................................................................ 85
Associate transactions ................................................................................................................................... 85
Penalties & Pending litigations ...................................................................................................................... 86
Power to make rules ...................................................................................................................................... 87
Power to remove difficulties ........................................................................................................................... 87
Scheme to be binding on the Unitholders ..................................................................................................... 87
Documents available for inspection .............................................................................................................. 87

4
 QUANTUM MUTUAL FUND
Quantum Gold Fund

DEFINITIONS
In this Offer Document, the following words and expressions shall have the meaning specified herein, unless the context
otherwise requires:
"AMC" or "Asset Management Company" Quantum Asset Management Company Private Limited, incorporated
or "Investment Manager" under the provisions of the Companies Act, 1956 and approved by the
Securities and Exchange Board of India to act as the Asset Management
Company for the Scheme(s) of Quantum Mutual Fund.
'Authorised Participant' 'Authorised Participant' means a Member of the National Stock Exchange
or any other recognized stock exchange or any other person who is
appointed by the AMC to act as an Authorised Participant on entering
into a Participant Agreement with the AMC and who would be creating/
redeeming units in creation unit size.
Allotment Price Allotment price is the price of half (½) gram of physical gold in the
domestic market.
"Benchmark " The benchmark for the scheme is the price of physical gold in the domestic
market. The benchmark may be changed in future if a benchmark better
suited to the investment objective of the scheme is available.
"Bills" A bill of exchange is a document ordering the payment of money; drawn
by one person or bank on another. The bill can be further discounted to
receive in advance a sum which is less than the face value.
"Business Day" A day other than:
(i) Saturday and Sunday; or
(ii) A day on which the banks in Mumbai and/RBI are closed or
(iii) A day on which the Bombay Stock Exchange and/or National Stock
Exchange are closed; or
(iv) A day on which there is no RBI Clearing/settlement of securities
(v) A day, which is a public and/or bank holiday at a Investor Service
Centre where the application is received; or
(vi) A day on which Sale and/or Repurchase and/or Redemption and/
or switches of Units is suspended by the Trustee/AMC; or
(vii) A Book closure period as may be announced by Trustee/AMC
(viii) A day on which normal business cannot be transacted due to
storms, floods, bandhs, strikes, other force majeure events or such
other events as the AMC may specify from time to time.
The AMC reserves the right to declare any day as a Business Day or
otherwise at any or all Investor Service Centres. The day(s) on which the
money markets are closed/not accessible, shall not be treated as business
day(s) for the purpose of the Scheme.
"Business Hours" Presently 9.30 a.m. to 5.30 p.m. on any Business Day or such other time
as may be decided by the Asset Management Company from time to
time and the same may be different for different ISCs.

5
'Creation Unit Size'
"Custodian"
"Call Money Market"
"Call money/Money at Call"
"Certificate of Deposits" or "CD's"
"Collateralised Borrowing and
Lending Obligation" or "CBLO"
"Commercial Paper " or "CP's"
"Corporate Debt Securities"
"Depository"
'Depository Participant'
"Dividend"
'Domestic Prices of Gold'
"Entry Load" or "Sales Load"
"Exit Load" or "Repurchase Load" or
"Redemption Load"
'Exchange/Market'
'Exchange Traded Fund/ETF'
'Creation Unit Size' is the number of units of the Scheme, which is
exchanged against a predefined quantity and purity of physical Gold
(held with the sub-custodian) called the Portfolio Deposit and a Cash
Component.
For redemption of units it is vice versa i.e. a certain number of units of
Scheme are exchanged for Portfolio Deposit and Cash Component. The
Portfolio Deposit and Cash Component may change from time to time
and is discussed separately under this Offer Document.
A person who has been granted a certificate of registration to carry on
the business of custodian of securities under the Securities and Exchange
Board of India (Custodian of Securities) Regulations 1996, which for the
time being is Deutsche Bank AG.
Call money market refers to the market for short term funds ranging from
overnight funds to a maximum tenor of 14 days
Refers to the money invested by the Funds in the overnight Money Market,
subject to necessary regulatory approvals.
CD's are short term borrowings by banks. CD's can be issued for
maturities between 7 days up to a year from the date of issue
CBLO's are a discounted money market instrument available in electronic
book entry form for the maturity period ranging from one day to ninety
days. It is a product developed by CCIL (Clearing Corporation Of India
Ltd).
CP's are a short term instrument to enable non-banking companies to
borrow funds for the short term. It is an unsecured money market
instrument issued in the form of promissory note. CP's can be issued for
maturities between 7 days up to a year from the date of issue.
(Bonds and Debentures) - Debt securities issued by the corporates. It
can be further classified into bonds/debentures issued by the public sector
and private sector companies.
Depository as defined in the Depository Act, 1996 (22 of 1996)
'Depository Participant' means a person registered as such under sub-
section (1A) of section 12 of the Securities and Exchange Board of India
Act, 1992.
Income distributed under the Scheme on the Units.
'Domestic Prices of Gold' means price calculated using valuation
methodology described in the chapter 'Valuation Policy and Determination
of NAV.'
Load on Sale/Switch in of Units.
Load on Repurchase/Redemption/Switch out of Units.
'Exchange/Market' means the National Stock Exchange (NSE) and such
other recognized stock exchange(s) where the units of the Scheme are
listed.
'Exchange Traded Fund/ETF' means a fund whose units is listed on an
exchange and can be bought/sold at prices which may be close to the
NAV of the Scheme.
6

"Eligible Investors" or "Large Investors"
"FII"
"Floating rate Instruments"
"Government Securities" or "G-secs"
"Investment Management Agreement"
"Investor Service Centres" or "ISCs"
"Load"
"Liquidity Window"
"MIBOR" or "Mumbai Inter Bank Offer Rate"
"Mutual Fund" or "the Fund"
QUANTUM MUTUAL FUND
Quantum Gold Fund
"Eligible Investors" or "Large investors" means investors who are eligible
to invest in the Scheme and who would be creating units of Quantum
Gold Fund in creation unit size by depositing predefined quantity and
purity of physical gold which should be acceptable by the Custodian for
such purposes. Further eligible/large investors would also mean those
investors who would be redeeming units of Quantum Gold Fund in
creation unit size.
Foreign Institutional Investor, registered with SEBI under the Securities
and Exchange Board of India (Foreign Institutional Investors) Regulations,
1995, as amended from time to time.
Floating rate instruments are debt/money market instruments, with interest
rates that are re-set periodically. The periodicity of interest reset could be
daily, monthly, annually, or any other periodicity that may be mutually
agreed between the issuer and the Fund.
Securities created and issued by the Central Government and/or a State
Government (including Treasury Bills) or Government Securities as defined
in the Public Debt Act, 1944, as amended or re-enacted from time to
time.
The Investment Management Agreement dated 7th October, 2005 entered
into between Quantum Trustee Company Private Limited and Quantum
Asset Management Company Private Limited, as amended from time to
time.
Designated branches of Quantum Asset Management Company Private
Ltd. or Deutsche Investor Services Private Limited (DISPL) and such
other centres/offices as may be designated by the AMC/DISPL from time
to time. All these locations are also the official points of acceptance of
transactions and cut-off time as mentioned in the Offer Document shall
be reckoned at these official points.
In the case of Repurchase/Redemption/Switch out of a Unit, the sum of
money deducted from the Applicable NAV on the Repurchase/
Redemption/Switch out and in the case of Sale/Switch in of a Unit, a
sum of money to be paid by the prospective Investor on the Sale/Switch
in of a Unit in addition to the Applicable NAV.
For the purposes of this Scheme, "Liquidity Window" would mean the
days on which the Mutual Fund will issue or repurchase units directly
from Investors, as may be decided by the Mutual Fund, at its discretion
from time to time during the continuous offer. Presently the Liquidity
Window is "on all business days" open only for Authorised Participants
and Eligible Investors.
MIBOR is a polled reference rate for 1 day, 14 days, I month and 3
months published by NSE and the Fixed Income Money Market and
Derivatives Association of India (FIMMDA) daily.
Quantum Mutual Fund, a trust set up under the provisions of the Indian
Trusts Act, 1882 and registered with SEBI under the Securities and
Exchange Board of India (Mutual Funds) Regulations, vide Registration
No. MF/051/05/02 dated December 2, 2005.
7
"Money Market Instruments" Commercial Papers, Commercial Bills, Treasury Bills, Government
Securities having an unexpired maturity upto one year, call or notice
money, certificate of deposit, usance bills, and any other like instruments
as specified by the Reserve Bank of India from time to time
"NAV" Net Asset Value per Unit of the Scheme, calculated in the manner
described in this Offer Document or as may be prescribed by the SEBI
Regulations from time to time.
'NSE' 'NSE' means the National Stock Exchange of India Ltd., a Stock Exchange
recognized by the Securities and Exchange Board of India.
"New Fund Offer" or NFO Offer for subscription of Units during the New Fund Offer Period.
"New Fund Offer Period" or NFO Period The date on or the period during which the initial subscription of Units of
the Scheme can be made.
"NRE Account" Non-Resident External Account.
"NRI" A Non-Resident Indian or a person of Indian origin residing outside India.
"NRSR Account" Non-Resident Special Rupee Account.
"OCB" Overseas Corporate Bodies means firms and societies which are held
directly or indirectly but ultimately to the extent of at least 60% by NRIs
and trusts in which at least 60% of the beneficial interest is held
irrevocably by such persons.
"Offer Document" This document issued by Quantum Mutual Fund, inviting offer for
subscription to the Units of the Scheme.
"Official Points of Acceptance" The HDFC Bank branches, BNP Paribas branches and the Investor
Service Centres of the AMC, Quantum Information Services Pvt. Ltd. and
Deutsche Investor Services Private Limited (DISPL) as stated in the back
cover of this Offer Document.
"Quantum Advisors" Quantum Advisors Private Limited, the sponsors.
"RBI" Reserve Bank of India, established under the Reserve Bank of India Act,
1934.
"Registrar and Transfer Agent" Deutsche Investor Services Private Limited (DISPL) registered under the
SEBI (Registrars to an Issue and Share Transfer Agents) Regulations
1993, currently acting as the registrar to the Scheme or any other registrar
appointed by the AMC from time to time.
"Repurchase/Redemption" Repurchase/Redemption of Units of the Scheme as outlined under the
Section "Repurchase/Redemption of Units" in this Offer Document
"Repo/Reverse Repo" Sale/Purchase of Government Securities as may be allowed by RBI from
time to time with simultaneous agreement to Repurchase/resell them at a
later date
"Sale/Subscription" Sale or allotment of Units to the Unitholder upon subscription by the
investor/applicant under the Scheme.
"Scheme" or "QGF" Means Quantum Gold Fund (QGF) offered under this offer document in
the form of a Exchange Traded Fund to be listed on one or more
Exchanges, (including, as the context permits, all the Plan(s) and Option(s)
under any Plan under this Scheme).
"SEBI" Securities and Exchange Board of India, established under the Securities
and Exchange Board of India Act, 1992.

8
 QUANTUM MUTUAL FUND
Quantum Gold Fund

"SEBI Regulations" or "Regulations" Securities and Exchange Board of India (Mutual Funds) Regulations,
1996, as amended from time to time.
"Short term debt instruments" Debt instruments which have residual maturity of less than 1 year.
"Sponsors" or "Settlors" Quantum Advisors Private Limited.
"Stock Exchanges" means the Bombay Stock Exchange or the National Stock Exchange.
"Switch" or "Lateral Shift" Repurchase/Redemption of a Unit in any Scheme (including the Plans/
Options therein) of the Mutual Fund against sale of a Unit in another
Scheme (including the plans/options therein) of the Mutual Fund, subject
to completion of lock-in period, if any, of the Units of the Scheme(s) from
where the Units are being switched and applicable load structure.
"Switchover Fee" A charge incurred to switch from one scheme to another within the Mutual
Fund or to switch from one Plan to another within the Scheme.
"Treasury Bills" or "T-Bills" T-Bills are short term debt instruments issued by Central Government.
Currently Treasury Bills are issued with - 91 day, 182 day and 364 day
maturity period.
"Trustee Company" Quantum Trustee Company Private Ltd., incorporated under the provisions
of the Companies Act, 1956.
"Trust Deed" The Trust Deed dated 7th October, 2005 made by and between the
Sponsor and Quantum Trustee Company Private Limited ("Trustee"), as
amended from time to time, establishing an irrevocable trust, called
Quantum Mutual Fund.
"Trust Fund" Amounts settled/contributed by the Sponsors towards the corpus of the
Quantum Mutual Fund and additions/accretions thereto.
"Tracking Error" Tracking Error means the extent to which the NAV of the fund moves in
a manner inconsistent with the movements of the benchmark (price of
physical gold in the domestic market) on any given day or over any
given period of time due to any cause or reason whatsoever including
but not limited to expenditure incurred by the scheme, dividend payouts
if any, whole cash not invested at all times as it may keep a portion of
funds in cash to meet redemption etc.
"Unit" The interest of the Unitholder which consists of one undivided share in
the net assets of the Scheme.
"Unitholder" or "Investor" or "Client" A person holding Units in the Scheme offered under this Offer Document.
Words and expressions used in this offer Document and not defined will have same meaning as assigned to them in
Trust Deed. Interpretation For all purposes of this Offer Document, except as otherwise expressly provided or unless the
context otherwise required:
z the terms defined in this Offer Document include the singular as well as the plural.
z pronouns having a masculine or feminine gender shall be deemed to include the other.

9
 RISK FACTORS

Standard Risk Factors:

z Mutual Funds and securities investments are subject to market risks and there is no assurance or guarantee that
the Scheme objectives will be achieved.
z Quantum Gold Fund (QGF) is the name of the Scheme and does not in any manner indicate either the quality of
the Scheme or its future prospects and the returns. Investors are therefore urged to study the terms of offer carefully
and consult their Investment Advisor before they invest in the Scheme.
z As with any investment in securities, the NAV of the units issued under the Scheme can go up or down depending
on the various factors and forces affecting the gold markets, capital markets and money markets.
z Past performance of the Sponsor and its affiliates/AMC/Mutual Fund does not indicate the future performance of the
Schemes of the Mutual Fund and may not necessarily provide a basis of comparison with other investments.
Investors should study this Offer Document carefully in its entirety before investing and retain the Offer Document
for future references.
Unitholders in the Scheme are not being offered any guaranteed/assured returns.
As per SEBI circular ref. SEBI/IMD/CIR No. 10/22701/03 dated December 12, 2003 read with circular ref. SEBI/IMD/CIR
No. 1/42529/05 dated June 14, 2005, it is specified inter alia that each portfolio under a scheme should have a minimum
of 20 investors and no single investor should account for more than 25% of the corpus of such portfolio.
Determining the breach of the 25% limit by an Investor - The average net assets of the Scheme would be calculated
daily and any breach of the 25% holding limit by an investor would be determined. At the end of the quarter, the average
of daily holding by each such investor is computed to determine whether that investor has breached the 25% limit over
the quarter. If there is a breach of limit by any investor over the quarter, a rebalancing period of one month would be
allowed and thereafter the investor who is in breach of the rule shall be given 15 days notice to redeem his exposure
over the 25% limit. Failure on the part of the said investor to redeem his exposure over the 25% limit within the aforesaid
15 days would lead to automatic redemption by the Mutual Fund on the applicable Net Asset Value on the 15th day of
the notice period.
The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Scheme beyond the
initial contribution of Rs. 1,00,000 (Rupees One Lakh only) made by it towards setting up the Mutual Fund. The associates
of the sponsor are not responsible or liable for any loss or shortfall resulting from the operation of the Scheme.
Scheme Specific Risk Factors:
The Scheme is subject to the principal risks described below. Some or all of these risks may adversely affect
Scheme's NAV, trading price, yield, total return and/or its ability to meet its objectives.
The Scheme's NAV will react to the Gold price movements. The Investor may lose money over short or long period due
to fluctuation in Scheme's NAV in response to factors such as economic and political developments, changes in interest
rates and perceived trends in bullion prices, market movement and over longer periods during market downturns.
The concept of exchange-traded funds is relatively new to Indian capital markets. Trading in QGF units could therefore be
restricted due to which market price may or may not reflect the true NAV of the QGF units at any point of time. Although
the units described in this Offer Document are to be listed on the Exchange, there can be no assurance that an active
secondary market will develop or be maintained.
The market price of ETF units, like any other listed security, is largely dependent on two factors, viz., (1) the intrinsic
value of the unit (or NAV), and (2) demand and supply of units in the market.
Sizeable demand or supply of the units in Exchange may lead to market price of the units to quote at premium or
discount to NAV. Hence the price of QGF units is less likely to hold significant variance (large premium or discount) from
the latest declared NAV all the time.

10
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Trading in QGF units on the Exchange may be halted because of market conditions or for reasons that in view of
Exchange Authorities or SEBI, trading in QGF units is not advisable. In addition, trading in QGF units is subject to trading
halts caused by extraordinary market volatility and pursuant to Exchange and SEBI 'circuit filter' rules. There can be no
assurance that the requirements of Exchange necessary to maintain the listing of QGF units will continue to be met or will
remain unchanged.
Any changes in trading regulations by the stock exchange (s) or SEBI may affect the ability of Authorised Participant to
arbitrage resulting into wider premium/ discount to NAV. Any changes in the regulations relating to import and export of
gold or gold jewellery (including customs duty, sales tax and any such other statutory levies) may affect the ability of the
scheme to buy/sell gold against the purchase and redemption requests received.
The units of the Scheme may trade above or below their NAV. The NAV of the Scheme will fluctuate with changes in the
market value of Scheme's holdings. The trading prices of QGF units will fluctuate in accordance with changes in their
NAV as well as market supply and demand for the units. However, given that QGF units can be created and redeemed
in Creation Units Size directly with the Fund, it is expected that large discounts or premiums to the NAV of QGF units will
not sustain due to arbitrage opportunity available.
The units will be issued only in dematerialized form through depositories. The records of the depository are final with
respect to the number of units available to the credit of a unit holder.
The formula for determining NAV of the units is based on the imported (landed) value of gold. The landed value of gold
is computed by multiplying international market price by US dollar value. The value of gold or NAV, therefore will depend
upon the conversion value of US dollar into Indian rupee and attracts all the risks attached to such conversion.
Tracking error may have an impact on the performance of the scheme. However QAMC will endeavour to keep the
tracking error as low as possible.
There is no Exchange for physical gold in India. The Fund may have to buy or sell gold from the open market, which may
lead to counter party risks for the Fund for trading and settlement.
The Fund has to sell gold only to bullion bankers/traders who are authorized to buy gold. Though, there are adequate
numbers of players (commercial or bullion bankers) to whom the Fund can sell gold, the Fund may have to resort to
distress sale of gold if there is no or low demand for gold to meet its cash needs for redemption or expenses.
There is a risk that part or all of the Scheme's gold could be lost, damaged or stolen. Access to the Scheme's gold could
also be restricted by natural events or human actions.
Any of these actions may have adverse impact on the operations of the scheme and consequently on investment in units.
The Trustee, in the general interest of the unit holders of the Scheme offered under this Offer Document and keeping in
view the unforeseen circumstances/unusual market conditions, may limit the total number of Units which can be redeemed
on any Business Day.
Investors may note that even though this is an open-ended scheme, the Scheme would ordinarily sell and/or repurchase
units only in creation unit size during the Liquidity Window. Investors holding less than creation unit size can sell their
units through the secondary market on Exchange. Retail Investors would be allowed to invest only during the NFO period
and the units allotted to Retail Investors during NFO can be sold only through the Secondary Market.
Buying and selling units on stock exchange requires the investor to engage the services of a broker and are subject to
payment of margins as required by the stock exchange/broker, payment of brokerage, securities transactions tax and
such other costs
The returns from physical Gold in which the Scheme invests may under perform returns from the various general
securities markets or different asset classes. Different types of securities tend to go through cycles of out-performance
and under-performance in comparison of the general securities markets.
The Scheme is not actively managed. The Scheme may be affected by a general price decline in the Gold prices. The
Scheme invests in the physical Gold regardless of their investment merit. The AMC does not attempt to take defensive
positions in declining markets.

11
The NAV of the units is determined based on the formula for valuation of gold prescribed by SEBI whereas the actual
price of gold in the domestic market may be different from the value of gold arrived at based on the prescribed formula.
This may lead to extreme conditions like NAV being far too different from the domestic market price of gold. In such
extreme conditions, the trustees reserve the right to delay or suspend the sale/redemption of units.
For the valuation of QGF units, indirect taxes like customs duty, VAT, etc would also be considered. Hence, any change
in the rates of indirect taxation would affect the valuation of QGF units.
The Fund may have to sell gold to meet recurring expenses. In such an event, irrespective of whether the price of gold
goes up or not, the NAV of the Fund will go down due to such expenses.
Whereas the Indian market was formerly restrictive, a process of deregulation has been taking place over recent years.
This process has involved removal of trade barriers and protectionist measures, which could adversely affect the value of
investments. It is possible that the future changes in the Indian political situation, including political, social or economic
instability, diplomatic developments and changes in tax laws, changes in SEBI/ Stock Exchange/ RBI regulations and
other applicable laws/regulations could have an effect on such investments and valuation thereof. Expropriation, confiscatory
taxation or other relevant developments could affect the value of investments.
Common Risks Associated with Investments in Debt and Money Market Instruments
Given below are some of the common risks associated with investments in fixed income and money market securities.
These risks include but are not restricted to:
Liquidity and Settlement Risks
This refers to the ease at which a security can be sold at or near its true value. The primary measure of liquidity risk is
the spread between the bid price and the offer price quoted by a dealer. Liquidity risk is characteristic of the Indian fixed
income market.
The liquidity of the Scheme's investments may be inherently restricted by trading volumes, transfer procedures and
settlement periods. From time to time, the Scheme will invest in certain debt securities of certain companies, industries,
sectors, etc. based on its investment objectives and policies as outlined in this Offer Document. Reduced liquidity in the
secondary market may have an adverse impact on market price and the Scheme's ability to dispose of particular
securities, when necessary, to meet the Scheme's liquidity needs or in response to a specific economic event or during
restructuring of the Scheme's investment portfolio.
Investment Risks
The value of, and income from, an investment in the Scheme can decrease as well as increase, depending on a variety
of factors which may affect the values and income generated by the Scheme's portfolio of debt securities. The returns of
the Scheme's investments are based on the current yields of the securities, which may be affected generally by factors
affecting capital markets such as price and volume, volatility in the stock markets, interest rates, currency exchange rates,
foreign investment, changes in Government and Reserve Bank of India policy, taxation, political, economic or other
developments, closure of the Stock Exchanges etc. Different types of securities in which the Scheme would invest as
stated in the offer document carry different levels and types of risk. Accordingly the Scheme's risk may increase or
decrease depending upon its investment pattern. e.g. corporate bonds carry a higher amount of risk than Government
securities. Further even amongst corporate bonds, bonds which are AAA rated are comparatively less risky than bonds
which are AA rated. The Scheme will endeavour to invest in highly researched securities offering relative yield for the
commensurate risks. However the erosion in the value of the investments/portfolio in the case of the capital and financial
markets passing through a bearish phase is a distinct possibility.
Interest Rate Risk
Changes in interest rate may affect the Scheme's net asset value. Generally the prices of instruments increase as interest
rates decline and decrease as interest rates rise. Prices of long-term securities fluctuate more in response to such
interest rate changes than short-term securities. Indian debt and government securities markets can be volatile leading to
the possibility of price movements up or down in fixed income securities and thereby to possible movements in the NAV.

12
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Credit Risk
Credit risk or Default risk refers to the risk that an issuer of a fixed income security may default (i.e. the issuer will be
unable to make timely principal and interest payments on the security). Because of this risk, debentures are sold at a
higher yield above those offered on Government Securities which are sovereign obligations and free of credit risk.
Normally, the value of fixed income securities will fluctuate depending upon the changes in the perceived level of credit
risk as well as any actual event of default. The greater the credit risk, the greater the yield required for someone to be
compensated for the increased risk.
Re-investment Risk
Investments in fixed income securities may carry re-investment risk as interest rates prevailing on the interest or maturity
due dates may differ from the original coupon of the bond. Consequently, the proceeds may get invested at a lower rate.
This risk refers to the interest rate levels at which cash flows received from the securities in the Scheme or from
maturities in the Scheme are reinvested. The additional income from reinvestment is the "interest on interest" component.
The risk refers to the fall in the rate for reinvestment of interim cash flows.

13
Special Considerations
Debt securities are subject to the risk of an Issuer's inability to meet principal and interest payments on the obligations
(credit risk). Debt securities may also be subject to price volatility due to such factors as interest sensitivity, market
perception or the creditworthiness of the Issuer and general market liquidity (market rate risk). As mentioned earlier debt
securities which are AAA rated are comparatively less risky than securities which are AA rated.
Given that the liquidity of the investments made by the Scheme could, at times, be restricted by trading volumes and
settlement periods, the time taken by the Mutual Fund for Repurchase/Redemption of Units may be significant in the
event of an inordinately large number of Repurchase/Redemption requests or a restructuring of the Scheme. In view of
the above, the Trustee has the right, in its sole discretion, to limit Repurchase/Redemptions (including suspending
Repurchases/Redemptions) under certain circumstances, as described on Page No. 69 under the section titled "Right to
Limit Repurchases/Redemptions".
Certain focus areas are already enjoying favourable tax treatment as provided by the Government of India and the
Scheme may also receive favourable tax treatment in other focus areas. If these tax benefits are removed or amended,
it is possible that the changes may have a material adverse impact on the entire revenue and earnings of companies
engaged in business in such focus areas.
The entire Initial issue expenses will be borne by the AMC.
Repurchase/Redemption by the Unitholder due to change in the fundamental attributes of the Scheme or due to any
other reasons may entail tax consequences. The Trustee, AMC, Mutual Fund, their directors or their employees shall not
be liable for any such tax consequences that may arise.
The Trustee, AMC, Mutual Fund, their directors or their employees shall not be liable for any of the tax consequences
that may arise, in the event that the Scheme is wound up for the reasons and in the manner provided for in Page No. 88.
The tax benefits described in this Offer Document are as available under the present taxation laws and are available
subject to relevant conditions. The information given is included only for general purpose and is based on the AMC's
interpretation regarding the law and practice currently in force in India and the Unitholders should be aware that the
relevant fiscal rules or their interpretation may change. As is the case with any investment, there can be no guarantee
that the tax position or the proposed tax position prevailing at the time of an investment in the Scheme will endure
indefinitely. In view of the individual nature of tax consequences, each Unitholder is advised to consult his/her/their own
professional tax advisor before investing in the units of the scheme.
Neither this Offer Document nor the Units have been registered in any jurisdiction.
This offer document is meant for circulation only in India and therefore has not been registered in any other jurisdiction.
The distribution of this Offer Document in certain jurisdictions may be restricted or totally prohibited due to registration
requirements and accordingly, persons who come into possession of this Offer Document are required to inform themselves
about such regulations/restrictions and to observe any such restrictions and/or compliance requirements.
This Offer Document is not meant for circulation in USA or for use of U.S. Persons, as defined by the Regulations under
The Securities Act 1933, of the United States of America or other person in such country where it is not lawful to make
such an issue.
No person has been authorised to issue any advertisement or to give any information or to make any representations
other than that contained in this Offer Document. Circulars in connection with this offering not authorised by the Mutual
Fund and any information or representations not contained herein must not be relied upon as having been authorised by
the Mutual Fund.
Investors should study this Offer Document carefully in its entirety and should not construe the contents hereof as advice
relating to legal, taxation, investment or any other matters. Investors are advised to consult their legal, tax, investment and
other professional advisors to determine possible legal, tax, financial or other considerations of subscribing to or
repurchasing Units, before making a decision to invest/Repurchase Units.
The Benchmark for the Scheme is the price of physical gold in the domestic market. Performance comparisons for the
Scheme will be made vis-à-vis the Benchmark. However, the Scheme's performance may not be strictly comparable with
the performance of the Benchmark due to tracking error. Tracking Error means the extent to which the NAV of the fund

14
 QUANTUM MUTUAL FUND
Quantum Gold Fund

moves in a manner inconsistent with the movements of the benchmark (price of physical gold in domestic market) on any
given day or over any given period of time due to any cause or reason whatsoever including but not limited to expenditure
incurred by the scheme, dividend payouts if any, whole cash not invested at all times as it may keep a portion of funds
in cash to meet redemption etc., The Trustee/AMC reserves the right to change the benchmark for evaluation of performance
of the Scheme from time to time in conformity with the investment objectives and appropriateness of the Benchmark
subject to the SEBI Regulations, and other prevailing guidelines, if any. The performance of this Scheme will also be
compared with its peers in the industry. The performance will be placed before the Investment Committee as well as the
Board of Directors of the AMC and the Trustee Company in each of their meetings.
The Mutual Fund may disclose details of the Unitholder's account and transactions thereunder to the Bankers, as may be
necessary for the purpose of effecting payments to the Investor and to the Central Government/State Government or any
statutory authority to fulfill its legal obligations if any under any applicable law.
NOTE: THE ASSET MANAGEMENT COMPANY HAS NO PREVIOUS EXPERIENCE IN MANAGING A GOLD SCHEME.
THIS IS THE FIRST GOLD SCHEME BEING LAUNCHED UNDER ITS MANAGEMENT.

15
 HIGHLIGHTS

Sponsors - The Sponsor of the Mutual Fund is Quantum Advisors Private Limited a SEBI registered Portfolio Manager
engaged in the business of portfolio management and advisory services. Quantum Asset Management Company Private
Limited, the Asset Management Company (AMC) of Quantum Mutual Fund is a wholly owned subsidiary of Quantum
Advisors Private Limited
Scheme - Quantum Gold Fund (QGF) is an Open Ended Fund, which will be listed on the Exchange in the form of an
Exchange Traded Fund (ETF) tracking domestic prices of gold through investments in physical Gold.
Investment Objective - The investment objective of the scheme is to generate returns that are in line with the performance
of gold and gold related instruments, subject to tracking errors. However, investments in gold related instruments will be
made if and when SEBI permits mutual funds to invest in gold related instruments. QGF is designed to provide returns
that, before expenses, closely correspond to the returns provided by Gold.
Issue Price - Each unit of QGF being offered will have a face value of Rs.100/- each and will be issued at a premium
equivalent to difference between the allotment price and the face value of Rs.100/-.
Each unit of QGF issued under the scheme will be approximately equal to price of half (½) gram of Gold.
Subscription - During the NFO period the minimum investment amount for opening account is Rs. 5,000/- and in
multiples of Rs.1,000/- thereafter. On an ongoing basis direct purchases from the Fund would be restricted to only
Authorised Participants and Eligible Investors. Authorised Participants and Eligible Investors can buy/redeem in creation
unit size directly from the Fund on a daily basis. Direct purchase from the Fund by retail investors is not permitted. Units
of QGF can be bought/sold like any other stock on the National Stock Exchange of India Ltd. (NSE) or on any other stock
exchange where it is listed.
As Authorised Participants and Eligible Investors can buy/sell QGF units directly from the Fund, this mechanism provides
efficient arbitrage between the traded prices and the NAV, thereby reducing the incidence of QGF units being traded at
a high premium/discount to NAV.
Units in Dematerialised Form - QGF units will be issued only in dematerialized form through depositories. The records
of the depository are final with respect to the number of units available to the credit of a unit holder. This will help in
consolidating with other portfolio holdings and will eliminate need for physical storage thereby eliminating risk.
Target Corpus - The minimum subscription (target) amount for the Scheme is Rs.10 lacs. There is no maximum subscription
(target) amount for the Scheme therefore, subject to the applications being in accordance with the terms of this offer, full
and firm allotment will be made to the Unitholders.
Benchmark - The benchmark to evaluate the performance of the Scheme shall be the price of physical Gold in domestic
market.
Liquidity - All investors including Authorised Participants and Eligible Investors may sell their units in the stock exchange(s)
on which these units are listed on all the trading days of the stock exchange. In addition, mutual fund will repurchase
units from Authorised Participants and Eligible Investors on a daily basis in creation unit size.
Proposed Listing - The scheme is proposed to be listed on the National Stock Exchange (NSE) or such other exchange
as may be permitted and decided by the Trustees.
Transparency - The AMC will calculate and disclose the first Net Asset Value of the Scheme not later than 30 days from
the closure of New Fund Offer Period. Subsequently, the NAV will be calculated and disclosed at the close of every
Business Day.
Switching Option - During the NFO period the Mutual Fund will allow investors to switch-in all or part of their investment
from any other open ended scheme/plan/option of the Fund to QGF. After the NFO, the Fund may at its own discretion,
allow switch-in or switch-out into/from the Scheme.

16
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Load Structure
(A) During New Fund Offer Period:
Investor Category Entry Load Exit Load
Authorised Participants Nil Nil
Eligible Investors Nil 0.50%
Retail Investors Nil Not Applicable*
*Retail Investors can exit the scheme only through Secondary Market.
(B) Ongoing Basis:
Investor Category Entry Load Exit Load
Authorised Participants Nil Nil
Eligible Investors Nil 0.50%
The load structure is, however, subject to change from time to time and such changes shall be implemented prospectively.
Tax benefits/Consequences
Conversion of the underlying physical Gold to QGF units may attract capital gains tax depending on acquisition cost and
holding period of each individual stock to the investor. Repurchase of QGF units by the Fund or sale of QGF units on the
Stock Exchange may attract capital gain tax depending upon the holding period of the units.
Income distributed by the Scheme will be exempt from Income-Tax in the hands of the Unitholders. On the income
distribution, if any, made by the Mutual Fund, additional income tax is payable by the Mutual Fund under Section 115R
of the Act (other than equity-oriented funds i.e. such fund where the investible funds are invested by way of equity shares
in domestic companies to the extent of more than 65% of the total proceeds of such fund). The additional income-tax on
distribution of income shall be payable by the Mutual Fund at the rate of 14.025% (including surcharge and education
cess) on income distributed to an individual/HUF and at the rate of 22.44% (including surcharge and education cess) on
income distributed to any other Unitholder. A gift of Units, purchased under the Scheme is exempt from Gift-Tax. Units of
the Scheme are not subject to Wealth-tax. There will also be no tax deduction at source on Repurchase/redemption,
irrespective of the Repurchase/Redemption amount for resident investors. Under Section 195 of the Act, the Mutual Fund
is required to deduct tax at source at the rate of 30% (plus applicable surcharge & education cess) on any short term
capital gains, and at the rate of 20% (plus applicable surcharge and education cess) on any long term capital gains, if
the payee Unitholder is a non-resident.
Repatriation
Repatriation benefits would be available to NRIs/FIIs/PIOs subject to applicable conditions.

17
 DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY

A Due Diligence Certificate, duly signed by the Compliance Officer of Quantum Asset Management Company Private
Limited, has been submitted to SEBI on October 10, 2007, which reads as follows:

DUE DILIGENCE CERTIFICATE

It is confirmed that:

1. The draft Offer Document forwarded to SEBI is in accordance with the Securities and Exchange Board of India
(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from time to time.

2. All legal requirements connected with the launching of the Scheme as also the guidelines, instructions, etc. issued
by the Government of India and any other competent authority in this behalf, have been duly complied with.

3. The disclosures made in the Offer Document are true, fair and adequate to enable the Investors to make a well-
informed decision regarding investments in the proposed Scheme.

4. The intermediaries named in the Offer Document are registered with SEBI and till date such registration is valid.

Place: Mumbai Signed: Sd/-

Date: October 9, 2007 Name: Murali A. Krishnan
Designation: Compliance Officer

CERTIFICATE BY THE TRUSTEE

A certificate duly signed by the Chairman of Quantum Trustee Company Private Limited has been submitted to SEBI on
October 10, 2007 which reads as follows:

"The Board of Directors of Quantum Trustee Company Private Limited have ensured that "Quantum Gold Fund" approved
by them on September 24, 2007 is a new product offered by Quantum Mutual Fund and is not a minor modification of the
existing scheme/fund/product of Quantum Mutual Fund."

Place: Mumbai Signed: Sd/-

Date: October 9, 2007 Name: Jagdish Capoor
Designation: Chairman

18
 QUANTUM MUTUAL FUND
Quantum Gold Fund

SECTION 1

OVERVIEW OF GOLD AND BACKGROUND OF GOLD EXCHANGE TRADED FUNDS

History
Since the beginning of civilization, gold has been associated with wealth, prestige and power. It is a highly sought-after
precious metal which, for many centuries, has been used as money, a store of value and in jewellery. The metal naturally
occurs as nuggets or grains in rocks, underground veins and in alluvial deposits. Physically, it is a dense, soft, shiny,
yellow metal and is the most malleable and ductile of the known metals.
Guarantee for currency
Historically, after paper currency became popular, gold was used to back currency under a system known as the gold
standard. A certain weight of gold was given the name of a unit of currency. For a long period, the United States
government set the value of the U.S. dollar such that one troy ounce of gold was equal to $20.67. In 1934, the dollar was
revalued to $35 per troy ounce. Over time, it was difficult to maintain this price and U.S. and European banks agreed to
manipulate the market to prevent further currency devaluation against increased gold demand. This could not be sustained
over the longer term. On March 17, 1968, economic circumstances caused the collapse of this gold pool and a two-tiered
pricing scheme was established where international accounts were settled at the old rate of $35 /oz, but prices on the
open market were allowed to be determined by market forces. Over the early 1970s, this system was gradually abandoned
and prices were freed from control.
Central Banks still hold gold reserves, although the level has gradually been declining.
Gold reserves, major official gold holders (tonnes)
Gold Holders 1990 1995 2000 2005
World 35,582.1 34,574.4 33,029.7 30826.7
IMF 3,217.0 3,217.0 3,217.3 3217.3
United States 8,146.2 8,139.8 8,136.9 8135.1
Japan 753.6 753.6 763.5 765.2
Austria 634.3 373.1 377.5 302.5
France 2,545.8 2,545.9 3,024.6 2825.8
Germany 2,960.5 2,960.4 3,468.6 3427.8
Italy 2,073.7 2,073.7 2,451.8 2451.8
Netherlands 1,366.7 1,081.5 911.8 694.9
Portugal 492.4 499.7 606.7 417.5
Spain 485.6 486.2 523.4 457.7
Switzerland 2,590.3 2,590.2 2,419.4 1290.1
United Kingdom 589.1 573.3 487.5 310.8
China 395.0 395.0 395.0 600.0
India 332.6 397.5 357.8 357.7
Taiwan 421.0 422.1 421.8 423.3
Russia … 292.8 384.4 386.9
Venezuela 356.4 356.4 318.5 357.1
Source: World Gold Council

19
Gold Prices
Being one of the most valuable and universally accepted metals, the price of gold is a keenly watched factor in global
economics. The prices are determined on the open market, but a procedure known as 'Gold fixing', that originated in
London in September 1919 provides a daily benchmark figure.
International Prices of Gold
($/ t. ounce)
900
800 Price
700
600
500
400
300
200
100
1975 1979 1983 1987 1991 1995 1999 2003 2007

Source: Bloomberg
The Current Scenario
Even today, after gold has been officially delinked from currencies, it has a huge role to play in the global economy. Gold
is still widely considered to be an asset whose intrinsic value and purchasing power will not be extensively subjected to
the vagaries of inflation. So, during times of high inflation or depreciating currencies, people have turned to gold as a
store of value. As the economic factors which influence the value of gold is often contrarian to their impact on other
financial assets, gold is used as an effective asset-allocation and diversification tool. For instance, there is low to
negative correlation between returns on gold and those on stock markets.
Demand factors and Price Determinants
Today, the price of gold is ultimately driven by supply and demand. Unlike most other commodities and metals, gold has
very limited utilitarian use as jewellery and in industrial use. As gold is primarily seen as a store of value, the hoarding
and unhoarding of gold plays a greater role in influencing the price. The fact does remain that almost all the gold ever
mined still exists and can come to the market at the right price. Since the proportion of gold hoarded is huge when
compared to the annual mining and production of the metal, prices are affected mainly by sentiment changes, rather than
by changes in annual production or physical (jewellery and industrial) demand.
Inflation and Interest Rates - Historically, gold prices have been positively correlated with inflation rates and negatively
correlated with the US Dollar. Simply put, this means that as inflation rises, the price of gold also rises, as investors try
to hedge their positions. Unlike paper-backed assets, gold cannot be created at will. So, its value will remain relatively
stable. When the dollar depreciates, gold prices usually appreciate, as investors holding positions in the U.S. Dollar and
U. S. Dollar backed assets would try to hedge their currency losses. Interest rates are also inversely correlated to gold.
Under normal circumstance, rising interest rates takes some shine off the precious metal. During times of low interest
rates (and rising inflation), investors seek the safe haven of gold.
Central Bank Sales - Central Banks and the International Monetary Fund also play in important role in the gold price. As
a group, they are one of the largest holders of gold and any significant movement by them could drive prices. Selling
would create a supply glut and drive down prices. Any sign of increasing holdings can also start off a domino effect of
purchases by others.

20
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Uncertainty - Society dislikes uncertainty. In times of national crises, emergencies or wars, there is insecurity about
whether assets may be seized or whether the currency will become worthless. Geopolitical strifes also have the same
psychological effect on people and there is a rush to transfer assets into gold.
Demand - Supply - The fundamental factors also support gold. Production over the past few years are showing a
declining trend. Global supply declined by almost 13% in 2004, and recovered in 2005 to just breach the 2003 levels. On
the other hand, demand is increasing at a rapid rate. At the retail level, the demand for gold has been booming, driven
in part by the increasing prosperity of the middle classes in the growing economies of China and India. Both countries
have strong cultural affinities to gold. As more investors become aware of the inherent benefits of investing in the
precious metal and more investment options become available, the demand-supply scenario is likely to be more stretched.
World Gold Supply and Demand (2003 - 2006) (In Tonnes)
2003 2004 2005 2006
Supply
Mine production 2,593 2,492 2,550 2,475
Net producer hedging -270 -422 -86 -369
Total mine supply 2,322 2,070 2,464 2,106
Official sector sales 617 469 674 329
Old gold scrap 939 849 886 1,106
Total supply 3,879 3,388 4,025 3,541
Demand
Fabrication
Jewellery 2,478 2,614 2,707 2,279
Industrial & dental 380 411 427 452
Sub-total above fabrication 2,858 3,025 3,134 2,731
Bar & coin retail investment 310 398 411 411
Other retail investment -18 -60 -26 -28
ETFs & similar 39 133 208 260
Total demand 3,189 3,496 3,727 3,374
Inferred investment 690 -108 297 167
London PM fix (US$/oz) 363.32 409.17 444.45 603.77
World Gold Council
Source: GFMS Ltd. Data in this table are consistent with those published by GFMS but adapted to the WGC's presentation and take account of the
additional demand data now available. The "inferred investment" figure differs from the "implied net (dis)investment" figure in GFMS' supply and demand table
as it excludes "ETFs and similar" and "other retail investment". Note that jewellery data refer to fabrication.

The Indian Scenario

Indians are the largest consumers of the metal. Traditionally, jewellery has been the primary driver of gold demand in
the country. Now, the investment appeal of gold is also attracting a lot of interest. Demand is bound to grow as Indian
investors increase their allocations to alternative investments and larger numbers of investment avenues emerge.

21
Investing
Investment in gold can be done directly through ownership, or indirectly through shares, futures etc. The downside in
physical buying is that additional costs have to be incurred in the form of storage, insurance and making charges. There
is also the risk of theft and loss. Buying an equity share in a gold producing firm may not achieve the desired objectives.
The investor will also be exposed to management risks. Producers could also undertake hedging strategies and enter
into fixed price contracts with consumers. As such, they may not be able to take advantage of any price increases. (On
the other side, they will not be adversely affected by price declines too)
The launch of gold futures in India in 2003 after a gap of more than four decades has opened up a new investment
avenue. Investors should be cautious when dealing in futures as the potential for losses (and of course, profits) is much
more. An inexperienced investor may lose more than he can afford.
From an investment perspective, ETFs are seen to be more secure and scientific than physically purchasing and holding
stock. Gold exchange-traded funds (or GETFs) are special types of exchange-traded funds (ETFs) tracking the price of
gold. Gold exchange-traded funds are traded on the major stock exchanges including London, Paris, New York and now,
Mumbai.

22
 QUANTUM MUTUAL FUND
Quantum Gold Fund

CONSTITUTION OF THE MUTUAL FUND

THE MUTUAL FUND

Quantum Mutual Fund (the "Mutual Fund" or "the Fund") has been constituted as a Trust in accordance with the
provisions of the Indian Trusts Act, 1882 (2 of 1882) by execution of a Trust Deed dated October 7, 2005 which was
registered with the Sub-Registrar, Mumbai on October 21, 2005.
The Mutual Fund was registered with SEBI on December 2, 2005 under registration no. MF/051/05/02.
Quantum Advisors Pvt Ltd has made an initial contribution of Rs. 1,00,000/- to the corpus of the Fund.
The objective of the Mutual Fund is to offer to the public and other eligible Investors, Units in one or more Schemes in
the Mutual Fund for making group or collective investments primarily in Indian Securities in accordance with and as
permitted under the directions and guidelines issued from time to time by SEBI.
The Corporate Office of the Mutual Fund is at 107, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021
THE SPONSORS
The Sponsor of the Quantum Mutual Fund is Quantum Advisors Private Limited (Quantum Advisors). Quantum Advisors
is a SEBI Registered Portfolio Manager (Registration No. PM/INP000000187) engaged in the business of rendering
Portfolio Management and Advisory Services. The objective of the Sponsor is to build an India-focused Investment
Management Institution that can consistently generate returns for its clients.
Quantum Advisors has been in the business of providing equity research, investment advisory services and managing
portfolio of securities since 1990. It proposes to further grow its business to become the country Advisor/Manager for
Foreign Institutional Investors and Indian retail and High Networth Clients.
The Sponsor is carrying on its portfolio managerial activities in compliance with the provisions of Regulation 24(2) of
SEBI (Mutual Funds) Regulations, 1996 and there is no conflict of interest i.e. there is segregation of office space, staff,
systems access and all other requirements of Regulation 24(2) of SEBI (Mutual Funds) Regulations are being complied
with.
A brief background of the history and activities undertaken by Quantum Advisors till date and its Founder Mr. Ajit Dayal
are given below:
Quantum Advisors Private Limited:
1990 : First pure Equity Research house in India. Did contractual research for Barrings, Kleinwort Benson,
Asian Capital Partners and Jardine Fleming
1990-1998 : Published the annual Quantum Stock Market Year Book, except for three years (1993-1995) when
the books were not published
1992 : Exclusive Equity Research and Advisory Services agreement with Jardine Fleming
1995 : Terminated Advisory Service agreement with Jardine Fleming
1996-1998 : Equity Research and advisory services for Walden International Investment Group
1996-1998 : Equity Research and advisory services for Prolific Asset Management Limited, UK
1998-2004 : Equity Research and advisory services for Hansberger Global Investors Inc., USA
2000 to date : Equity Research and Advisory Services to Foreign Institutional Investors & Portfolio Management
Services for individual clients on discretionary basis
Ajit Dayal - Founder and Director:
Has over 21 years of experience in the Indian capital markets
8 years of experience in the international stock market as an analyst and a portfolio manager. Managed assets globally
for Hansberger Global Investors (HGI)

23
Deputy Chief Investment Officer of HGI; lead manager on the US$ 2 billion (Rs. 90 bn) Vanguard International Value
Fund and on a US$ 300 m (Rs. 13,500 m) pension account between years 2000 & 2004
Founder of www.equitymaster.com and www.personalfn.com, India's premier financial websites
Voted # 1 Indian Equity Analyst by "AsiaMoney" in 1993 and 1994. Voted to All-Star Asian Team by "Institutional Investor'
in 1994.
With Quantum Advisors since 1990.
He has a Bachelor of Arts degree in Economics (Bombay University) and an MBA from The University of North Carolina
at Chapel Hill.
Given below is a brief summary of Audited financials of Quantum Advisors Private Limited for the last three years:
(In Rupees)
Description Year ended Year ended Year ended
June 30, 2007 June 30, 2006 June 30, 2005
Total Income 21,713,295 26,099,948 21,426,541
Profit Before Tax 1,962,456 2,938,848 946,546
Profit After Tax 1,292,211 2,609,855 199,148
Shareholders' Funds 201,263,035 199,970,824 121,360,969
Earnings per share (1.37) (0.14) 0.08
Equity Capital 18,321,430 18,321,430 18,321,430
Preference Capital 76,000,000 76,000,000 Nil
Free Reserves 106,941,605 105,649,394 103,039,539
Net-worth 201,263,035 199,970,824 121,360,969
Face Value per share
Equity 10.00 10.00 10.00
Preference 100.00 100.00 Nil
Book Value of Equity Share 68.36 67.66 66.24
Percentage of Dividend per share Nil Nil 0.50%
Dividend per share Nil Nil Rs. 0.05
THE TRUSTEE COMPANY
Quantum Trustee Company Private Ltd. (The "Trustee Company" or the "Trustee") is a Company incorporated under the
Companies Act, 1956. Under the Trust Deed dated 7th October, 2005, the Trustee Company has been appointed as a
trustee for the Fund.
A brief background of the Directors on the Board of the Trustee Company is given below:
Jagdish Capoor, Chairman of HDFC Bank Ltd; former Chairman of Bombay Stock Exchange; former Deputy Governor of
the Reserve Bank of India.
Hormazdiyaar Vakil, Partner, Mulla & Mulla & Craigie Blunt & Caroe; Advocate and Solicitor, Supreme Court of England
Satish Mehta, CEO of Quantum Advisors Private Limited.
Mr. Suresh Lulla, MD of Qimpro Consultants Pvt. Ltd.- focused quality management consultancy.

24
 QUANTUM MUTUAL FUND
Quantum Gold Fund

The Details of the Directors interest and directorships in other entities are given below:
Name & Address Occupation/Directorships
Mr. Jagdish Capoor Chairman of:
(s/o Mr. Radhey Mohan Capoor) HDFC Bank Limited
Ramon House, Churchgate, Director:
Mumbai - 400 020 The Indian Hotels Co. Ltd.
Assets Care Enterprises Ltd.
GHCL ltd.
Bombay Stock Exchange Limited
Member of Board of Governors of
Indian Institute of Management, Indore
Trustee:
Sumati Capoor Charitable Trust
Mr. Hormazdiyaar Vakil Partner
(s/o Mr. Shiavax Vakil) Mulla & Mulla & Craigie Blunt & Caroe
Mulla & Mulla & Craigie Blunt & Caroe, Director:
51, M. G. Road, Pennwalt Ltd
Mumbai - 400 001 Neterson Technologies Pvt. Ltd
Alternate Director:
Cosco (India) Shipping Pvt. Ltd.
ASL Shipping & Logistics (India) Pvt. Ltd
Trustee:
Fort Gratuitous Dispensary
Nariman Point Churchgate Citizens Welfare Trust
Mr. Satish Mehta * CEO
(S/o Mr. Gordhan Tulsidas Mehta) Quantum Advisors Private Limited
107, Regent Chambers, Director:
Nariman Point, Mumbai 400021 Network Advertising Private Limited
Sparsh BPO Services Limited
Mr. Suresh Lulla Director & CEO:
(S/o Satram Singh Lulla) Best Prax Club Private Limited
7, Sindhu, Marine Drive, Director:
G-Road, Mumbai Qimpro Consultants Private Limited - Managing Director
IOL Broadband Limited - Director
* Director is associated with the Sponsor.
Trustee Functions:
The Trustee Company shall carry out all its functions and obligations as prescribed in the SEBI Regulations and the Trust
Deed. The Board of Directors of the Trustee shall meet atleast once every two months. The performances of all the
Schemes will be placed before the Trustee and reviewed by them at such meetings. The report on statutory compliances
and Investor servicing will also be regularly placed at such meetings by the AMC. An Audit committee of the Trustee has
been constituted to inter-alia review the internal audit systems and the internal and statutory audit reports and the
recommendations made therein and to ensure that the rectification(s) as suggested by the internal and external auditors
are acted upon. An independent director of the Trustee Company shall be the Chairman of the Audit Committee.
3 & 6 Trustee Board Meetings were held in 2005-06 (for the period October 2005 to March 2006) and in 2006-07
respectively. 5 Audit Committee Meetings of Trustee were held in 2006-07.

25
Trusteeship Fees
Pursuant to the Trust Deed constituting the Fund, the Fund is authorised to pay the Trustee Company, a fee for their
services, in addition to the reimbursement of all costs, charges and expenses, being a sum computed at the rate of
0.11% of the amount, being the aggregate of the Trust Fund and Unit Capital of all the Schemes put together on 1st April
each year or a sum of Rs.10 Lacs, which ever is lower or such other sum as may be agreed upon between the Settlor
and the Trustee Company from time to time subject to the condition that the Trusteeship Fees will not exceed the limit
for expenses prescribed by SEBI. The Trustee Company may charge further fees as permitted from time to time under
the Trust Deed and the Regulations.
General Power of the Trustee Company
It is hereby declared that the Trustee Company shall have and shall be deemed to have the legal ownership of the Trust
Fund and that the general superintendence, direction and management of the affairs of the Trust and all powers,
authorities and discretions appurtenant to or incidental to the purpose of the trust shall absolutely vest in the Trustee,
subject nevertheless to the provisions of the Trust Deed and this Offer Document. Subject to the aforesaid, the Trustee
shall as regards all trusts, powers, authorities and discretions hereby vested in them, have absolute and uncontrolled
discretion as to the exercise thereof in relation to the mode and time for exercise thereof.
Trustee to Act Efficiently
The Trustee Company shall manage affairs of the Trust with utmost economy consistent with the maintenance of
efficiency of administration and act in interests of the Unitholders.
Summary of substantive provisions of the Trust Deed, which may be of material interest to the Unitholders
Functions & Responsibilities of the Trustees.
Pursuant to the Trust Deed constituting the Mutual Fund and SEBI (Mutual Funds) Regulations, 1996 the Trustee has
several rights and obligations, as given below:
1. The Trustee shall be responsible for management of the Mutual Fund, for holding the Trust Fund, to provide
information to the Unitholders, SEBI, the Sponsor and any other regulatory body, to ensure compliance by the
Mutual Fund and/or the AMC of all the statutory formalities, reporting requirements etc. and to ensure that the
interest of the Unitholders is protected.
2. The Trustee shall forbid the Mutual Fund to make or guarantee loans or to take up any activity in contravention of
the SEBI Regulations.
3. The Trustee shall ensure that the AMC complies with and does not contravene the SEBI Regulations, all guidelines,
all circulars, applicable to mutual funds and that the decisions of the AMC do not exceed the powers conferred
upon it.
4. The Trustee shall ensure before the launch of any Scheme that the AMC has :
a. systems in place for its back office, dealing room and accounting;
b. appointed key personnel including fund manager(s) for the Scheme and submitted their bio-data containing
the educational qualifications, past experience in the securities market with the trustees, within 15 days from
the date of their appointment and the trustees are satisfied with the adequacy of the number of Key Personnel,
considering the size of the Mutual Fund and the proposed scheme;
c. appointed auditors to audit its accounts;
d. appointed a compliance officer who shall be responsible for monitoring the compliance of the SEBI Act, 1992,
rules and regulations, notifications, guidelines, instructions issued by SEBI or the Central Government from
time to time and for redressal of Investor grievances;
e. appointed Registrars and Share Transfer agents who are registered with SEBI and laid down parameters for
their supervision;
f. Prepared a compliance manual which is updated by including all the provisions of regulations and guidelines
issued by SEBI from time to time and designed internal control mechanisms, including internal audit systems,
commensurate with the size of the Mutual Fund;
g. specified norms for empanelment of brokers and marketing agents.

26
 QUANTUM MUTUAL FUND
Quantum Gold Fund

5. The Trustee shall with respect to the investments made by the Mutual Fund ensure that the applicable investment
restrictions as laid down in the SEBI Regulations are complied with.
6. The Trustee shall ensure that the transactions entered into by the AMC and/or activities of the AMC are in accordance
with the SEBI Regulations and the Scheme.
7. The Trustee shall ensure that the AMC has been managing the Schemes independently of other activities and have
taken adequate steps to ensure that the interests of the Unitholders of one Scheme are not compromised with
those of any other Scheme or with other activities of the AMC.
8. If the Trustee has reason to believe that the conduct of the business of the Mutual Fund is not in conformity with the
SEBI Regulations, it shall forthwith take such remedial steps as are necessary to rectify the situation and shall
immediately inform SEBI of the violation and the action taken by the Trustee.
9. It shall be the duty of the Trustee to take into its custody or under their control all the property of the Schemes of
the Mutual Fund and hold these in trust for the Unitholders. The Trustee shall be accountable for and be the
custodian of the funds and property of the respective Schemes and shall hold the same for the benefit of the
Unitholders in accordance with the SEBI Regulations and the provisions of the Trust Deed.
10. The Trustee shall ensure that the networth of the AMC is maintained as per the SEBI Regulations and in case of
any shortfall, ensure that the AMC make up for the shortfall as per the SEBI Regulations.
11. The Trustee periodically reviews all service contracts such as custody arrangements, transfer agency of the securities
and satisfy itself that such contracts are executed in the interest of the Unitholders
12. The Trustee shall ensure that there is no conflict of interest between the manner of deployment of its networth by
the AMC and the interest of the Unitholders .
13. The Trustee shall periodically review the Investor complaints received and the redressal of the same by the AMC.
14. The Trustee shall abide by the Code of Conduct as specified in the Fifth Schedule to the SEBI Regulations.
15. (i) It is the responsibility of the Trustee in carrying out its responsibilities to maintain arms' length relationship
with other companies or institutions or financial intermediaries or any body corporate with which the Trustee
may be associated.
(ii) A Director shall not participate in the meetings of the Trustee or in any decision making process for any
investments in which he may be interested.
It is the duty of each Director to furnish to the Trustee, the particulars of any interest which he may have in any
other company or institution or financial intermediaries or any corporate body by virtue of his position as director,
partner or with which he may be associated in any other capacity.
16. It is the duty of the Trustee to act in the interest of the Unitholders
17. It is the duty of the Trustee to provide or cause to provide information to the Unitholders and SEBI as may be
required by SEBI from time to time.
18. It shall be the duty of the Trustee to take reasonable care to ensure that the funds under the Schemes floated by
are managed by the AMC in accordance with the Trust Deed and the SEBI Regulations.
19. The Trustee shall have appointed a Custodian and entered into a Custodian Agreement on behalf of the Mutual
Fund with the Custodian in accordance with the SEBI Regulations and shall be responsible for the supervision of
its activities in relation to the Mutual Fund.
20. The Trustee shall supervise the collection of any income due to be paid to the Scheme of the Mutual Fund and for
claiming any repayment of tax and holding any income received in trust for the Unitholders in accordance with the
Trust Deed and the SEBI Regulations.
21. The Trustee will not acquire any asset out of Trust fund which involves the assumption of any liability which is
unlimited or which results in encumbrance of the Trust Fund in any way.

27
22. The Trustee, in the execution and exercise of all or any of the trust's powers, authorities and discretions vested in
it by these presents, shall hold the Assets of the Mutual Fund in its name or in the name of an appointed Custodian
or as the Trustee may decide from time to time to be in the interest of the Mutual Fund.
23. The Trustee shall keep such records as are necessary or direct the AMC to keep such records:
(i) to enable the Trustee to comply with the SEBI Regulations and other directives of SEBI; and
(ii) to demonstrate that such compliance by the Trustee has been achieved.
24. The Trustee shall carry out periodic checks (including spot checks) on the AMC in order to ensure the following -
(i) that investments are of the permitted kind and within set limits;
(ii) that the Mutual Fund's Assets are duly protected;
(iii) that transactions in Units are properly executed by the AMC;
(iv) pricing of Units is as per the SEBI Regulations;
(v) internal controls adopted by the AMC are adequate;
(vi) proper accounting of the income of the Mutual Fund and charging of expenses and distribution of income as
permitted are followed by the AMC.
25. The Trustee shall ensure that all necessary information, statements, accounts, reports, publications, investment
portfolio etc. with respect to the Mutual Fund and/or its Schemes are prepared in the manner required by the SEBI
Regulations. Further where required under the SEBI Regulations the Trustees shall ensure that such information,
statements, accounts, reports, investment portfolio, etc. are filed with or mailed to or reported to SEBI or the
Unitholders or to any other person as may be required under any law or by SEBI.
26. The Trustee shall ensure that a copy of the Trust Deed is kept open for public inspection at the principal office of
the Mutual Fund during business hours on all business days.
27. The Trustee shall generally do all such matters and things as may be necessary to promote the Trust or as may be
incidental to or consequential upon the discharge of its functions/duties and the exercise and enforcement of all or
any of the powers and rights under this Trust Deed.
Amendments to the Trust Deed shall not be carried out without prior approval of SEBI and Unitholders approval
would be obtained where it affects the interest of Unitholders.
Note: The Board of Quantum Trustee Company and the Quantum AMC have ensured that the Registrar (Deutsche
Investor Services Private Limited (DISPL) and Transfer Agent has adequate capacity to discharge responsibilities with
regard to processing of applications and dispatching Unit Certificates/Account Statements to Unitholders within the time
limit prescribed in the Regulations and also has sufficient capacity to handle Investor complaints.
Compliance Officer :
Mr. Murali A. Krishnan is designated as the Compliance Officer.
Auditors of the Scheme
Statutory Auditors:
M/s Haribhakti & Co., Chartered Accountants
42, Free Press House, 4th Floor,
215, Nariman Point,
Mumbai - 400 021
Internal Auditors:
M/s Kalyaniwala Mistry & Associates, Chartered Accountants
Kalpataru Heritage, 127,
Mahatma Gandhi Road,
Mumbai - 400 023

28
 QUANTUM MUTUAL FUND
Quantum Gold Fund

THE ASSET MANAGEMENT COMPANY

Quantum Asset Management Company Private Ltd. ("Quantum AMC"), the Investment Manager of the Mutual Fund, is a
Company incorporated under the Companies Act, 1956 and is a wholly owned subsidiary of Quantum Advisors Pvt Ltd,
the sponsors. Quantum AMC is acting as the Investment Manager for the Schemes of Quantum Mutual Fund pursuant to
the Investment Management Agreement dated 7 October, 2005.
The AMC has received approval from SEBI for providing research services on a commercial basis to the Sponsor and
QIEF Management LLC, Mauritius. The AMC confirms that the research services provided by it, in terms of SEBI's
approval, are not in conflict with the activities of the Mutual Fund.
Though Quantum AMC itself has been incorporated in September, 2005, Quantum Advisors Private Limited, the Sponsor,
is a SEBI registered Portfolio Manager and involved in the business of Equity Research, Investment Advisory and
Portfolio Management Services since 1990 providing such services to Foreign Institutional Investors, Venture Capital
Funds and High Networth Individuals, as described in Page No. 23.
Shareholding pattern of the AMC:
Quantum AMC is a wholly owned subsidiary (100%) of its sponsor Quantum Advisors Pvt. Ltd.
A brief background of the Directors on the Board of the Quantum Asset Management Company is given below:
Ajit Dayal, CEO & CIO, QIEF Management LLC, Mauritius a FSC licensed Investment Manager.
C. Srinivasan, former Director-Finance of BHEL - manufacturer and supplier of power.
Mahesh Vyas, MD & CEO of CMIE - provider of reliable economic data in India.
I.V. Subramaniam, CIO of Quantum Advisors Private Limited, a SEBI registered Portfolio Manager.
The Details of the Directors interest and directorships in other entities are given below:
Directors/Address Occupation/Directorships
Mr. Ajit Dayal * CEO & CIO - QIEF Management LLC, Mauritius
(S/o Dr. D.M. Dayal) Director :
15, CCI Chambers, Dinsha Wacha Road, Quantum Advisors Pvt. Ltd.
Churchgate, Mumbai - 400 020 Quantum Information Services Limited
Equitymaster India Limited
Mymakaan.com Private Limited
Helpyourngo.com India Private Limited
Principal Real Estate Investment Private Limited
Primary Real Estate Advisors Private Limited, Mumbai
Primary Real Estate Advisors Limited, Mauritius.
Mr. Srinivasan Chinnasamy Iyengar Ex-Director Finance BHEL
(S/o Mr. Chinnasamy Iyengar)
CKVI Apts, Tiruvanai Koil-Post, Directorships :
Trichy-620005, Tamil Nadu BJN Hotels Ltd. - Director
Mr. Mahesh Vyas Managing Director & CEO
(S/o Mr. Madanlal Vyas) Centre for Monitoring Indian Economy Pvt. Ltd. (CMIE)
11, Apple Heritage, Director:
54-C, Andheri-Kurla Road, Geojit Financial Services Ltd.
Andheri (East), Geojit Credits Pvt. Ltd.
Mumbai - 400 093 Soltrix India Pvt. Ltd.
Mr. I.V. Subramaniam* CEO & CIO - Quantum Advisors Private Limited
(S/o Mr. S. Srinivasan) Directorships :
10, Chaya, Plot No. 74, Garodia Nagar, Helpyourngo.com India Private Limited
Ghatkopar (East), Mumbai - 400 077. Quantum Advisors Pvt. Ltd. - Alternate Director
* Director(s) is/are associated with the Sponsor or its associates.

29
Key Personnel of the Investment Manager
The details of key personnel of Quantum AMC and their experience are as under: -
Name of the Employee Age Designation Educational Total number Assignments held during
(Yrs) Qualification of years of the last 10 years
experience
Devendra Nevgi 40 CEO & CIO B.COM, C.A. 13 Head of Fixed Income & Fund
Manager - Quantum AMC
(January 2006 to March 2007)
Global Portfolio Manager
Armour General Credit &
Indemnity Ltd.
(May 2004 to August 2005)
Head of Debt & Fund Manager
Sahara Mutual Fund
(September 2001 to April 2004)
Manager
Canbank Mutual Fund
(August 1995 to August 2001)
Arvind Chari 27 Fund Manager MMS 5 Oct 2005 to April 23, 2007 -
- Fixed Income (Finance) Quantum AMC, Associate. Fund
M.Com (Bkg Manager - Debt
& Fin) B.Com Aug 2004 to Sept 2005 -
Research Analyst - Fixed Income
Quantum Advisors P Ltd.
Aug 2003 to July 2004 - Fixed
Income Dealer - Tower Capital &
Securities Pvt Ltd
Nov 2002 to April 2003 KJMC
Capital Market Services
Feb 2002 to Oct 2002 -
Freelancer - Research Articles on
Financial topics.
Atul Kumar 30 Fund Manager B Com., 7 ½ November 15, 2006 to June 28,
- Equity PGDBM 2007
Joint Fund Manager - Equity -
Quantum AMC
October 2005 to November 14,
2006
Analyst - Equity at Quantum AMC
September 2005 to October 2005
Analyst- Equity, Quantum
Advisors Pvt. Ltd.
January 2005 to August 2005
Analyst - Equity - Sahara Asset
Management Co. Pvt. Ltd.
November 2003 to January 2005
Analyst with K R Choksey Shares
& Securities Pvt. Ltd.
May 2001 to September 2003
Consultant with Astute Consulting
Pvt. Ltd.
June 1999 to April 2001
Management Consulting with S.
B. Billimoria & Co.

30
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Name of the Employee Age Designation Educational Total number Assignments held during
(Yrs) Qualification of years of the last 10 years
experience
Murali A. Krishnan 47 Head - Legal
& Compliance B.Com (Hons), 25 Head - Legal & Compliance
LL.B, ACS Quantum Asset Management Co.
Pvt. Co.
(October 2005 to date)
Head- Legal & Compliance at
Quantum Advisors Pvt. Ltd.
(January 2005 to October 2005)
V.P-Legal & Compliance at
Quantum Information Services
Ltd.
(2000 to 2004)
Practicing Company Secretary
(1995-1999)
Mahesh Vyas 40 Head - B.Com, FCA 15 Head-Operations & Finance
Operations & Quantum Asset Management Co.
Finance Pvt. Co.
(March 2007 onwards)
V.P. Finance - Quantum Asset
Management Co. Pvt. Co.
(October 2005 to February 2007)
V.P. Finance -
Quantum Advisors Pvt. Ltd.
(July 15, 2005 to September
2005)
Finance Controller of Kemtec
Group of companies (April 2002
to February 2005)
Practicing Chartered Accountant
(April 1998 to March 2002)
Finance Controller of Vally Group
of companies
(March 1994 to March 1998)
Hitendra Parekh 38 Dealer B.Com, Masters 16 Dealer
in Financial Quantum Asset Management Co.
Management Pvt. Ltd.
(Oct 2005 to date)
Manager - Operations with
Quantum Advisors Pvt Ltd
(Oct 2004 to Oct 2005)
Operations Dept. of UTI Securities
Ltd. (Sept 1995 to Sept 2004)

31
Details of the Fund Management Team:
The Investment & Research Team comprises of a CIO, 1 Fund Manager- Equity, 1 Fund Manager - Fixed Income, 1
Associate Fund Manager-Commodities (all of whom also do research), 5 equity research analysts and 1 commodity
research analyst.
Brief profiles of these personnel are given below:
Name Age Designation Educational Experience
Qualifications
Devendra Nevgi 40 CEO & CIO B.COM, C.A. January 2006 to March 2007
Head of Fixed Income & Fund Manager -
Quantum AMC
May 2004 to September 2005
Global Portfolio Manager
Armour General Credit & Indemnity Ltd.
September 2001 to April 2004
Head of Debt & Fund Manager
Sahara Mutual Fund
August 1995 to August 2001
Manager
Canbank Mutual Fund
Arvind Chari 27 Fund Manager - MMS (Finance) Oct 2005 to April 23, 2007 -Associate
Fixed Income M.Com (Bkg & Fin) Fund Manager - Debt Quantum AMC
B.Com Aug 2004 to Sept 2005 - Research
Analyst - Fixed Income
Quantum Advisors P Ltd
Aug 2003 to July 2004 - Fixed Income
Dealer - Tower Capital & Securities Pvt
Ltd
Nov 2002 to April 2003 KJMC Capital
Market Services
Feb 2002 to Oct 2002 - Freelancer -
Research Articles on Financial topics.
Atul Kumar 30 Fund Manager - B Com., PGDBM November 15, 2006 to June 28, 2007
Equity Joint Fund Manager - Equity - Quantum
AMC
October 2005 to November 14, 2006
Analyst - Equity at Quantum AMC
September 2005 to October 2005
Analyst- Equity at Quantum Advisors P
Ltd
January 2005 to August 2005
Analyst - Equity - Sahara Asset
Management Co. Pvt. Ltd.
November 2003 to January 2005
Analyst - K R Choksey Shares &
Securities Pvt. Ltd.
May 2001 to September 2003
Consultant - Astute Consulting Pvt. Ltd.
June 1999 to April 2001
Management Consulting - S B Billimoria
& Co.

32
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Name Age Designation Educational Experience

Qualifications
Janish Shah 34 Analyst - Equity B.Com September 2002 to March 2007
Head Research - Networth Stockbroking
Limited
August 1996 to August 2002
Research Analyst - C'sen Financial
Services
Tanu Midha 25 Asst. Analyst - B.Com (Honours.) July 2005 to Sept 2005 - Asst. Analyst -
Equity from Delhi Equity
University Quantum Advisors P Ltd
Post Graduate July 2003 to June 2004
Diploma in Asst. Manager-Customer Support Officer
Securities Market at ING Vysya Bank, Delhi
Programme from June 2002 - June 2003
UTI Institute of Management Trainee at ING Vysya Bank,
Capital Markets, Delhi
Mumbai
Zaharah Sheriff 31 Asst. Analyst - Bachelor of September 2005 - October 2005
Equity Commerce (B.Com) Asst. Analyst - Equity at Quantum
Chartered Advisors Pvt. Ltd.
Accountant (CA) May 2004 - September 2005
(India) Entrepreneur - Equity Research &
Certified Public Investments
Accountant (CPA) January 2001 - April 2004
Entrepreneur - Business & Tax
Consulting
March 2000 - December 2000
Practice Manager - Wright & Morani, P.C.
September 1997 - August 1999
Audit & Business Advisory, In-charge -
Arthur Andersen
July 1996 - August 1997
Corporate Finance, Consultant - Arthur
Andersen
Ashwin Lalchandani 29 Asst. Analyst - BBA January 2006 - July 2007
Equity Post Graduate in Asst. Analyst - Equity - Quantum Advisors
Accounts & Finance Pvt. Ltd.
December 2004 - January 2005
Service Executive - Citibank NA
July 2000 - June 2004
Marketing Manager - Radlas Pvt. Ltd.
Chirag Mehta 26 Associate Fund B.Com, M.Com February 2006 - March 2007
Manager - MMS Asst. Analyst Commodities - Quantum
Commodities Advisors Pvt. Ltd.
May 2005 - June 2005
Internship - Kotak & Co.

33
Name Age Designation Educational Experience
Qualifications
Ashwin Shah 27 Associate Analyst- B.Com June 2006 to July 2007
Commodities PGDACM Manager - Communications -
Quantum Advisors Pvt. Ltd.
August 2003 to February 2006
Senior Associate - NASSCOM
Krishnendu Saha 31 Junior Analyst - Chartered April 2007 to September 2007
Equity Accountant Pharma Analyst - India Infoline Ltd.
October 2006 to April 2007
Research Analyst - Dawnay Day AV
Analytics Pvt. Ltd.
April 2006 to October 2006
Analyst - Credit Division of IndusInd Bank
Fund Manager of the Scheme:
Mr. Arvind Chari
3, Mahavir Cottage,
125, Garodia Nagar,
Ghatkopar (East),
Mumbai 400 077
Obligations of the Asset Management Company
1. Quantum AMC shall take all reasonable steps and exercise due diligence to ensure that the investment of funds
pertaining to any Scheme is not contrary to the provisions of the Regulations and the Trust Deed.
2. Quantum AMC shall exercise due diligence and care in all its investment decisions as would be exercised by other
persons engaged in the same business.
3. Quantum AMC shall be responsible for the acts of commissions or omissions by its employees or the persons
whose services have been procured by Quantum AMC.
4. Quantum AMC will submit to the Trustees quarterly reports of each year on its activities and the compliance with
the Regulations.
5. The Trustees at the request of Quantum AMC may terminate the assignment of Quantum AMC at any time. Provided
that such termination shall become effective only after the Trustees have accepted the AMC's request for termination
of their assignment and communicated their decision in writing to Quantum AMC.
Notwithstanding anything contained in any contract or agreement or termination, Quantum AMC or its directors or
other officers shall not be absolved of liability to the Mutual Fund for their acts of commission or omissions, while
holding such position or office.
6. Quantum AMC shall not through any broker associated with the Sponsor, purchase or sell securities, which is
average of 5% or more of the aggregate purchases and sale of securities made by the Mutual Fund in all its
Schemes. Provided that for the purpose of this sub-regulation, aggregate purchase and sale of securities shall
exclude sale and distribution of Units issued by the Mutual Fund. Provided further that the aforesaid limit of 5%
shall apply for a block of any three months.
7. Quantum AMC have not/shall not purchase or sell securities through any broker [other than a broker referred to in
clause 6 above] which is average of 5% or more of the aggregate purchases and sale of securities made by the
Mutual Fund in all its Schemes, unless Quantum AMC has recorded in writing the justification for exceeding the
limit of 5% and reports of all such investments are sent to the Trustees on a quarterly basis. Provided that the
aforesaid limit of 5% shall apply for a block of three months.

34
 QUANTUM MUTUAL FUND
Quantum Gold Fund

8. Quantum AMC have not/shall not utilise the services of the sponsor or any of its associates, employees or their
relatives, for the purpose of any securities transaction and distribution and sale of securities. Provided that Quantum
AMC may utilize such services if disclosure to that effect is made to the Unitholders and the brokerage or commission
paid is also disclosed in the half yearly annual accounts of the Mutual Fund.
Provided further that the Mutual Funds shall disclose at the time of declaring half-yearly and yearly results:
a. any underwriting obligations undertaken by the Schemes of the Mutual Funds with respect to the issue of
securities of associate companies.
b. devolvement, if any
c. subscription by the Schemes in the issues lead managed by associate companies
d. subscription to any issue of debt on private placement basis where the sponsor or any of its associate
companies has acted as arranger or manager.
9. Quantum AMC shall file with the Trustees the details of transactions in securities by the key personnel of the Asset
Management Company in their own name or on behalf of Quantum AMC and shall also report to SEBI, as and
when required by SEBI.
10. In case Quantum AMC enters into any securities transactions with any of its associates a report to that effect shall
be sent to the Trustees at its next meeting.
11. In case any company has invested into a Scheme more than 5 per cent of the net asset value of that Scheme, the
investment made by that Scheme or by any other Scheme of the same mutual fund in that company or its subsidiaries
shall be brought to the notice of the Trustees by the Asset Management Company and be disclosed in the half
yearly and annual accounts of the respective Schemes with justification for such investment. Provided the latter
investment has been made within one year of the date of the former investment calculated on either side.
12. Quantum AMC shall file with the Trustees and SEBI -
a. detailed bio-data of all its Directors alongwith their interest in other companies within fifteen days of their
appointment; and
b. Any change in the interests of Directors every six months.
c. A quarterly report to the Trustees giving details and adequate justification about the purchase and sale of the
securities of the group companies of the Sponsor or the Quantum AMC as the case may be, by the Mutual
Fund during the said quarter.
13. Each Director of Quantum AMC shall file the details of his transactions of dealing in securities with the Trustees on
a quarterly basis in accordance with guidelines issued by SEBI
14. Quantum AMC shall not appoint any person as key personnel who has been found guilty of any economic offence
or involved in violation of securities laws.
15. Quantum AMC shall appoint registrars and share transfer agents who are registered with the SEBI.
16. Quantum AMC shall abide by the Code of Conduct as specified in the Fifth Schedule of the SEBI Regulations.
Investment Management Fees
In terms of the Investment Management Agreement and the Regulations, the AMC is entitled to an annual management
and advisory fee at the rate of 1.25% of the average daily net assets for net assets upto Rs.100 crore and at the rate of
1.00% for the net assets in excess of Rs.100 crore. For Schemes launched on a No- Load basis, the AMC is entitled to
collect an additional management fee of upto 1% of the average net assets outstanding in each financial year and the
total management fee shall not exceed the limit stated under the Regulation 52(6) of SEBI.
MODIFICATIONS TO THE SCHEMES
The Trustee may from time to time, prescribe the terms and make such rules for the purpose of giving effect to the
provisions of the Schemes with power to the Investment Manager to add to, alter or amend all or any of these terms that
may be framed from time to time.

35
However, the Trustee shall ensure that no change in the fundamental attributes of any Schemes or the Trust or fees and
expenses payable or any other change which would modify the Scheme so as to affect the interest of Unitholders, shall
be carried out unless,
I. A written communication about the proposed change is sent to each Unitholder and an advertisement is given in
one English daily newspaper having nationwide circulation as well as in a newspaper published in the language
of the region where the head office of the Mutual Fund is situated; and
II. The Unitholders are given an option to Exit at the prevailing Net Asset Value without any Exit Load.
If any difficulty arises in giving effect to the provisions of the Scheme, the Trustee may do anything not inconsistent with
such provisions, which appear to them to be necessary, desirable or expedient, for the purpose of removing such
difficulty.
In case any amendments are made by SEBI to the existing Regulations, and changes are brought about to the Income
Tax Act, 1961 or the rules thereof, the same will be applicable to this Scheme without further intimation to the Unitholders.
Compliance and Investor Relations Officer of the AMC is:
Murali A. Krishnan
107, Regent Chambers,
1st Floor, Nariman Point
Mumbai-400021
The Auditors of Quantum AMC are:
C. C. Chokshi & Company, Chartered Accountants,
12, Dr. Annie Besant Road, Opp. Shivsagar Estate,
Worli, Mumbai - 400 018
AUDITORS OF THE SCHEME
Haribhakti & Co., Chartered Accountants
42, Free Press House, 4th Floor,
215, Nariman Point, Mumbai - 400 021
INTERNAL AUDITORS
M/s Kalyaniwala Mistry & Associates, Chartered Accountants
Kalpataru Heritage, 127, Mahatma Gandhi Road,
Mumbai - 400 023
THE REGISTRAR & TRANSFER AGENT
Quantum AMC has appointed Deutsche Investor Services Private Limited (DISPL) to act as Registrar and Transfer Agents
("The Registrar") to the Scheme. The Registrar is registered with SEBI under registration number INR000004017. Quantum
AMC and the Trustee have satisfied themselves, after undertaking appropriate due diligence measures, that the Registrar
is able to provide the services required and has adequate facilities, including systems facilities and back up, to process
applications and despatch Account Statements/Unit certificates to Unitholders within the time limits prescribed in the
Regulations and also sufficient capacity to handle Investor complaints.
THE CUSTODIAN
Deutsche Bank AG located at 6th Floor, Nicholas Piramal Tower, Peninsula Corporate Park, Ganpatrao Kadam Marg,
Lower Parel, Mumbai 400 013 has been appointed as the Custodian and Administrator for the Scheme. The Custodian
is registered with SEBI under registration number IN/CUS/003. The registration of the Custodian is valid and effective.
The Custodian appointed shall hold the custody and possession of the securities and investment of the Fund and will
discharge all the functions as are ordinarily discharged by a Custodian. It does not have any power or authority to sell
or dispose of or deal with the securities/investment held by it on behalf of the Fund except as instructed by the AMC. The
Trustee reserves the right to change the custodian, if required.

36
 QUANTUM MUTUAL FUND
Quantum Gold Fund

The salient features of the Custodial Agreement and responsibilities of Custodian would inter-alia include:
1. Keeping in safe custody of physical gold and all the securities and other such instruments belonging to the Fund
segregated from the other assets of Custodian and from the assets of other clients of the Custodian and shall be
held in the name of the Trustee(s) a/c Fund or Scheme or Custodian a/c Scheme or in such other manner as may
be mutually agreed.
2. Ensuring smooth inflow/outflow of physical gold and securities and such other instruments as and when necessary,
in the best interest of the investors.
3. Ensuring that the benefits due to the holdings of Fund are recovered in time.
4. Responsibility for loss of / or damage to the physical gold and securities due to fraud, bad faith, negligence, willful
neglect, default, or willful default on Custodian's part or on the part of its approved agents.
5. Custodian may, with the prior consent of Trustees, appoint Sub-custodian/s who is/are eligible to act as a custodian
of Gold under applicable laws and regulations.
The Custodian will be entitled to remuneration for its services in accordance with the terms of the Custody Agreement.

37
 SECTION II

SCHEME SUMMARY, INVESTMENT OBJECTIVES AND POLICIES

QUANTUM GOLD FUND (QGF)

Type of Scheme
Open-Ended, Exchange Traded Scheme tracking domestic market prices of gold through investments in physical Gold.
Issue of Units
1. Each unit of QGF will be approximately equal to price of half (½) gram of Gold.
2. In the New Fund Offer Period, the Fund will accept cheque or demand draft. The minimum amount of investment is
Rs.5,000/- and in multiples of Rs.1,000/- thereafter.
3. After the NFO, as QGF units will be listed on the NSE, investors can buy or sell units of QGF from the secondary
market on the National Stock Exchange of India Ltd.
4. Ongoing Sales/Redemption: On an ongoing basis, direct purchases from the Fund would be restricted to only
Authorised Participants and Eligible Investors. Authorised Participants and Eligible Investors can buy/redeem in
creation unit size directly from the Fund on a daily basis.
Creation Unit Size
'Creation Unit Size' is a number of QGF units, which is exchanged for Portfolio Deposit which would consist of physical
Gold of defined purity and quantity and Cash Component. The facility of creating/redeeming units in Creation Unit size
will be available only for the Authorised Participants (whose names will be available on the website of the Fund
i.e.www.QuantumAMC.com) and large or eligible investors as defined in this Offer Document.
The creation unit size would change from time to time due to change in NAV. The Fund may from time to time change
the size of the creation unit size in order to equate it with marketable lots of the underlying instruments.
The investor has to deposit or will receive at least 1 kilogram of physical gold & in multiples of 1 kilogram thereof in order
to create / redeem units of the scheme. The Portfolio Deposit and Cash Component is defined as follows: -
a. Portfolio Deposit shall consist of Physical Gold which will be in predefined quantity and purity and will be held by
the custodian/sub-custodian as may be specified by the AMC and will be defined and announced by the AMC and
will vary from time to time.
b. Cash Component for Creating units in Creation Unit Size: Cash Component represents the difference between the
applicable net asset value of units in Creation Unit Size and the market value of physical Gold. This difference will
represent accrued interest, income earned by the Scheme, accrued annual charges including management fees
and residual cash in the Scheme. In addition the Cash Component may include transaction cost as charged by the
Custodian/DP and other incidental expenses for creating units. The cash component will vary from time to time and
will be decided and announced by the AMC. Cash Component for Creation will also include entry load, if applicable.
The entry load will be declared by the AMC from time to time and will be within the limits specified under the
Regulations.
c. Cash Component for Redemption in Creation Unit Size: Cash Component represents the difference between the
applicable net asset value of units in creation unit size and the market value of the physical Gold. This difference
will represent accrued interest, income earned by the Scheme, accrued annual charges including management
fees and residual cash in the scheme. Any transaction cost charged by the Custodian/DP and other incidental
expenses for redeeming units will also form part of Cash Component. The cash component for redemption will vary
from time to time and will be decided and announced by the AMC to the Authorised Participants. The Cash
Component will also include exit load, if applicable. The exit load will be declared by the AMC from time to time.

38
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Example of Creation/Redemption of Units

As explained above, the Creation Unit is made up of 2 components i.e. Portfolio Deposit and Cash Component. The
Portfolio Deposit will be determined by the Fund. The Portfolio Deposit will be physical Gold and will be for 1 kg and in
multiples of 1 kg. The value of Portfolio Deposit will change due to changes in the prices during the day.
The Cash Component will be arrived in the following manner:
(Physical Gold of 1 kg based on price in Mumbai as on September 19, 2007)
Number of units comprising one Creation Unit 2,000
NAV per unit 475.00
Value of One Creation Unit 950,000
Value of Portfolio Deposit (physical Gold of 1 kg) 947,000
Cash Component # 3,000
The above is just an example to illustrate the calculation of cash component. As can be seen from the above example,
for subscription of 1 creation unit, 1 kilograms of Gold equivalent to Rs. 947,000/- would be the Portfolio Deposit and Rs.
3,000/- would be the cash component.
# Cash Component will vary depending upon the actual charges incurred like Custodial Charges and other incidental
charges for creating units.
An Indicative Flow Chart on working of Gold ETF

NFO STAGE SECONDARY MARKET

SELLER

BUY/SELL
AUTHORISED PARTICIPANT/ LARGE
INVESTOR MARKET STOCK EXCHANGE
MAKING/ARBITRAGE
Creation in
physical gold

ETF UNIT
Redemption
in gold

MUTUAL FUND BUYER

39
Investment Objective
The investment objective of the scheme is to generate returns that are in line with the performance of gold and gold
related instruments, subject to tracking errors.
The Scheme's performance will be benchmarked against the price of physical gold in domestic market. The benchmark
may be changed in future, if a benchmark better suited to the investment objective of the scheme is available.
There is no assurance that the investment objective of the Scheme will be achieved.
Tracking Error
Tracking error means the variance between returns of the underlying benchmark (gold in this case) and the NAV of the
scheme for any given period.
NAV of the Scheme is dependant on valuation of gold. Gold has to be valued based on the formula as per Notification
no. SEBI/LAD/DOP/82534/2006 dated December 20, 2006 issued by SEBI which is effective from December 27, 2006.
NAV so computed may vary from the price of Gold in the domestic market.
Tracking error could be the result of a variety of factors including but not limited to:
 Delay in the purchase or sale of gold due to:
z Illiquidity of gold,
z Delay in realisation of sale proceeds,
z Creating a lot size to buy the required amount of gold
 The scheme may buy or sell the gold at different points of time during the trading session at the then prevailing
prices which may not correspond to its closing prices.
 The potential for trades to fail, which may result in the Scheme not having acquired gold at a price necessary to
track the benchmark price.
 The holding of a cash position and accrued income prior to distribution of income and payment of accrued expenses.
 Disinvestments to meet redemptions, recurring expenses, dividend payouts etc.
 Execution of large buy / sell orders
 Transaction cost (including taxes and insurance premium) and recurring expenses
 Realisation of Unit holders' funds
The scheme will endeavor to minimise the tracking error by:
z Use of gold related derivative instruments, as and when allowed by regulations
z Rebalancing of the portfolio
Principal Investment Strategies
The AMC uses 'passive' approach to try and achieve the Scheme's investment objective. The Scheme does not try to
''beat'' the markets they track and do not seek temporary defensive positions when markets decline or appear over
valued. The AMC does not make any judgments about the investment merit of a particular gold investment nor will it
attempt to apply any economic, financial or market analysis. Passive approach eliminates active management risks in
regards to over / underperformance vis-à-vis the benchmark.
The QGF will invest upto 100% but at least 90% of its total assets in the physical Gold. The QGF may hold upto 10% of
their total assets in other securities/instruments as specified in this offer document. As long as a Scheme invests at least
90% of its total assets in physical Gold, it may also invest its other assets in cash and cash equivalents and short-term
high quality debt that would include, obligations of the Indian Government and its agencies, Commercial Papers (rated by
recognized Rating agencies), Bank Certificates of Deposit, repurchase agreements (Repo's), units of liquid funds and
other money market instruments permissible under the investment norms.

40
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Investment Pattern
The investment policies of the Scheme shall be as per SEBI (Mutual Funds) Regulations, 1996, and within the following
guideline. The asset allocation under the Scheme, under normal circumstances, will be as follows:
Investments Indicative Allocation Risk Profile
(% to net assets)
Physical Gold 90% to 100%* Medium to High
Money Market instruments, Short-term Corporate 0% to 10% Low
debt securities, CBLO and units of Debt and Liquid
Schemes of Mutual Funds
* As the scheme invests 90% to 100% of the net assets into Gold, the scheme will, by and large, be passively
managed fund. However, if and when permitted under SEBI regulations, the scheme may invest in gold related
securities including derivatives.
Note: Investment in warehouse receipts and other permitted instruments linked to Gold Prices and units of international
gold linked ETFs would be made as and when, and to the extent permitted by regulatory authorities.
It may be clearly understood that the percentages above are only indicative and not absolute.
Pending deployment of funds of the Scheme in gold/securities in terms of the investment objectives of the Scheme, the
AMC can invest the funds of the Scheme in short-term deposits of scheduled commercial banks. The investments in short
term deposits of scheduled commercial banks will be reported to the trustees along with the reasons for the investment
which, inter alia, would include comparison with the interest rates offered by other scheduled commercial banks. Further,
Quantum AMC will ensure that the reasons for such investments are recorded in the manner prescribed in SEBI Circular
MFD/CIR/6/73/2000 dated July 27, 2000 and such investments in short-term deposits are made in line with SEBI Circular
SEBI/IMD/CIR No. 1/ 91171 /07dated April 16, 2007.
The Scheme would invest in money market instruments, short-term corporate debt securities, CBLO and units of debt and
liquid schemes of mutual funds, in order to meet the liquidity requirements of the Scheme.
Change in Investment Pattern
Subject to SEBI Regulations, the asset allocation pattern indicated above may change from time to time, keeping in view
market conditions, market opportunities, applicable regulations and political and economic factors. It must be clearly
understood that the percentage stated above are only indicative and not absolute. These proportions may vary substantially
depending upon the perception of the AMC, the intention being at all times to seek to protect the interest of the unit
holders. Such changes in the investment pattern will be for short term and keeping in view the passive nature of the
Scheme.
Implementation of Policies
The Scheme, in general, will buy the physical Gold. Expectation is that, over time, the tracking error of the Scheme
relative to the performance of the domestic prices of gold will be relatively low.
Investment Process
The Scheme will endeavor to track the domestic prices of gold by investing in physical Gold.
For investment of NFO proceeds and Cash subscriptions the investment decisions are made by the AMC's Portfolio Team
and carried out by the designated Fund Manager. The Portfolio Team comprises of the Fund Manager who leads the
team and the Associate Fund Manager - Commodities. The final responsibility for the investment decisions rests with the
Portfolio Team. The CEO of the Company is not involved in the Fund management activity.
Normally the Fund will receive physical Gold from the authorised participants/eligible investors against the exchange of
QGF units in Creation Unit size as defined by the Fund.
The AMC will analyse from time to time different ways of taking exposure in gold from the perspective of risk and return
and decide the same in the best interest of investors.

41
The AMC will maintain record of investment decisions on daily basis along with rationale for such investments. The
compliance of the same will be reported in the Quarterly Report to the Boards of AMC and Trustee Company.
Manner of holding of assets of the Scheme
The Gold deposited with the Scheme will be held in physical form.
Securities of the Scheme will mostly be held in dematerialized form but in certain circumstances if permitted under the
regulations it may be held in physical format. In case the securities are held in dematerialized mode, the rules of SEBI
(Depositories and Participant) Regulations, 1996 would apply.
Underwriting
The Scheme will not accept underwriting and sub underwriting obligations.
Policy for Borrowing
In terms of regulations as presently prevailing, the Scheme shall have powers to borrow up to a maximum of 20% of the
net assets of the Scheme as on the date of borrowing for a maximum duration of 6 months or as may be permitted by
prevailing regulations. This borrowing shall be used only to meet repurchase/redemption of units/dividends or interest
payouts as a temporary liquidity measure as per Regulation 44[2] of Chapter VI of SEBI [Mutual Funds] Regulations,
1996, on such terms (as to creation of charge on the properties of the scheme, rate of interest, margins etc.) as the
Trustee/AMC considers to be in the interest of investors.
Portfolio Turnover
Portfolio Turnover is a term used to measure the volume of trading that occurs in a Scheme's portfolio (gold in this
scheme) during a given time period. Quantum Gold Fund is an open-ended Exchange Traded Fund. It is therefore
expected that there would be a number of subscriptions and redemptions on a daily basis through Authorised Participants
and eligible investors that may require purchase or sale of gold. The Scheme is largely passive but dependant on the
purchase and redemptions of units by Authorised Participants and Eligible Investors on a day to day basis. Consequently,
it is difficult to estimate with any reasonable measure of accuracy, the likely turnover in the portfolio.
Portfolio Turnover is defined as the aggregate of purchases and sales as a percentage of the corpus during the specified
period of time.
The Scheme may have to sell gold to meet cash needs arising out of redemption requests. The Scheme/ QMF may
require sales tax registration to sell gold. The scheme will obtain sales tax registration, if necessary.
Listing
The Fund would endeavour to get the units of the Scheme listed on National Stock Exchange of India Ltd. (NSE) within
30 days from the date of closure of the New Fund Offer of Scheme. The trading will be as per normal settlement cycle.
The AMC reserves the right to list the units of Scheme on any other recognized stock exchange.
Communication of NAV
The NAV of QGF will be communicated to at least two newspapers on a daily basis. The same will also be available on
the website of the Fund (www.QuantumAMC.com) and website of AMFI (www.amfiindia.com).
Purchase of QGF Units by the AMC
The AMC reserves the right to invest its own funds in the Scheme based on the limits set by the AMC's Board of
Directors and in accordance with SEBI Circular no. SEBI/IMD/CIR No. 10/22701/03 dated December 12, 2003 regarding
the minimum number of investors in the Scheme. Under the regulations, the AMC is not permitted to charge any
investment management and advisory services fee on its own investment in the Scheme.
Dematerialization
a. Units of the Scheme will be available in Dematerialized (electronic) form only. However, AMC, at its discretion may
send account statements to unit holders periodically.

42
 QUANTUM MUTUAL FUND
Quantum Gold Fund

b. The applicant under the Scheme will be required to have a beneficiary account with a Depository Participant of
NSDL and/or CDSL and will be required to indicate in the application the Depository Participants (DP's) name, DP
ID Number and the beneficiary account number of the applicant.
c. Units of the Schemes will be issued, traded and settled compulsorily in dematerialized form.
There would be no rematerialisation of units.
Policy on Inter Scheme Transfers
The scheme predominantly invests in Gold in physical form. The scheme may invest in gold related derivative instruments,
if and when permitted under the Regulations. The gold or gold related instruments may not be transferred to another
scheme unless such other scheme is eligible to invest in gold or gold related instruments. The scheme may also invest
up to 10% in debt and money market instruments. Transfer of Investments in debt and money market instruments from
the Scheme to another Scheme/Plan, present or to be floated in future, may be made at the discretion of the Fund
Manager and in accordance with the current regulations, only if:
Such transfer is done at the prevailing market price for quoted instruments on spot basis; and the security (ies) so
transferred is/are in conformity with the Investment objective of the Scheme/Plan to which such transfer has been made.
Mode of Investment
A. Purchase of Gold: The Fund will start investing the amount received in the New Fund Offer immediately after the
receipt of the Minimum Target Amount and may be fully invested prior to the date of allotment of the QGF units.
After the close of NFO, the scheme may purchase gold from a bank or any other institution authorized to import
gold, if the amount mobilized through NFO is not less than the minimum market lot for such import. If the amount
available is less than the minimum market lot for import, the scheme may purchase gold from local market. Any
such transaction in local market is fraught with counter party risk, risk of theft/loss during the movement from vendor
to the safe vault of the scheme. These risks are mitigated by due diligence conducted on the counter-party and by
appropriate insurance policies.
B. The securities in which the Investment Manager may invest under the Scheme will be through the primary as well
as secondary markets, private placement, preferential/firm allotments, auctions/book building and such others. These
securities may be those listed on the various stock exchanges recognised by SEBI or unlisted securities and the
investment will be in conformity with the pertinent rules and regulations, internal restrictions applicable at the time
of making the investment.
Investment in Gold related Derivatives
The Fund may use derivative instruments related to gold only after the same is allowed under the Regulations.
Investment Limitation and Restrictions
The following investment limitations and other restrictions, inter-alia, as contained in the Trust Deed and the Regulations
apply to the Scheme:
1. The AMC uses a "passive" approach to try and achieve the scheme investment objective. The scheme invests in
gold as an asset regardless of its investment merit.
2. The scheme shall invest in gold of 0.995 fineness and above.
3. No loans may be advanced by the Mutual Fund and the Fund shall not borrow except to meet temporary liquidity
needs of the Fund for the purpose of repurchase, redemption of Units or payment of interest or dividends to
Unitholders, provided the Fund shall not borrow more than 20% of the net assets of the Scheme and the duration
of such borrowing shall not exceed a period of six months or as may be permitted by the Regulations from time to
time.
4. The Scheme may invest in another scheme, under the same AMC or any other mutual fund provided that the
aggregate inter-scheme investments made by all schemes under the same AMC or any other mutual fund shall not
exceed 5% of the net assets of the Fund or any other limit as prescribed by the Regulations from time to time. The
AMC is not permitted by the Regulations to charge any investment management and advisory services fee on such
investments.

43
5. The Fund shall buy and sell gold/securities only against deliveries. In no case shall the Fund engage in short
selling, carry forward transactions or Badla financing.
6. The Scheme shall not make any investment in:
a) any unlisted security of an associate or group company of the Sponsor;
b) any security issued by way of private placement by an associate or group Company of the Sponsor; or
c) the listed securities of group companies of the Sponsor which is in excess of 25% of the net assets of the
Scheme.
d) any fund of funds scheme.
7. Transfer of investments from one Scheme to another Scheme in the same Mutual Fund is permitted provided:
a) such transfers are done at the prevailing market price for quoted instruments on a spot basis (spot basis shall
have the same meaning as specified by a Stock Exchange for spot transactions); transfer of unquoted securities
will be made as per the policies laid down by the Trustees from time to time, and
b) the securities so transferred shall be in conformity with the investment objective of the Scheme to which such
transfer has been made.
8. The Fund shall get the securities purchased transferred in the name of the Fund on account of the concerned
Scheme, wherever investments are intended to be of a long-term nature.
9. All investments in unrated debt instruments shall be subject to prior approval of the Board of the AMC and the
Trustee.
10. Pending deployment of funds of the Scheme in securities in terms of the investment objectives of the Scheme, the
AMC can invest the funds of the Scheme in short-term deposits of scheduled commercial banks. The investments
in short term deposits of scheduled commercial banks will be reported to the trustees along with the reasons for the
investment which, inter alia, would include comparison with the interest rates offered by other scheduled commercial
banks. Further, Quantum AMC will ensure that the reasons for such investments are recorded in the manner
prescribed in SEBI Circular MFD/CIR/6/73/2000 dated July 27, 2000 and such investments are made in accordance
with the SEBI Circular SEBI/IMD/CIR No. 1/ 91171 /07dated April 16, 2007.
11. The Fund may lend securities in accordance with "Guidelines for Participation by Mutual Funds in Stock Lending"
issued by SEBI or any amendments thereto.
12. In case any company has invested more than 5% of the net asset value of this Scheme, the investment made by
the Scheme or by any other scheme of Quantum Mutual Fund in that company or its subsidiaries, if any, shall be
brought to the notice of the Trustees by Quantum AMC and be disclosed in the half-yearly and annual accounts
with justification for such investment provided that the latter investment has been made within one year of the date
of the former investment calculated on either side.
13. All the Scheme's securities investments will be in transferable securities or in money at call or any such facility
provided by RBI in lieu of call.
14. No loans for any purpose can be advanced by the Scheme.
15. The Scheme shall not make any investment in a Fund of Fund's Scheme.
16. The Scheme will not enter into any transaction, which exposes it to unlimited liabilities or results in the encumbering
of its assets in any way so as to expose them to unlimited liability.
These investment limitations/parameters as expressed/linked to the net asset/net asset value/capital, shall in the ordinary
course, apply as at the date of the most recent transaction or commitment to invest. Changes do not have to be effected
merely because of appreciation or depreciation in value or by reason of the receipt of any rights, bonuses or benefits in
the nature of capital or of any scheme of arrangement or for amalgamation, reconstruction or exchange, or at any
repayment or Redemption or other reason outside the control of the Fund, in case any such limits would thereby be

44
 QUANTUM MUTUAL FUND
Quantum Gold Fund

breached due to such an event. If these limits are exceeded for reasons beyond its control, AMC shall adopt as a priority
objective the remedying of that situation, taking due account of the interests of the Unitholders.
The Scheme will comply with SEBI regulations and any other Regulations applicable to the investments of Mutual Funds
from time to time. The AMC/Trustees may alter the above restrictions from time to time to the extent that changes in the
Regulations may allow and/or as deemed fit in the general interest of the Unitholders, so as to permit the Scheme to
make its investments in the full spectrum of permitted investments for mutual funds to achieve its investment objective.
RECORDING OF INVESTMENT DECISIONS
Record of all investment decisions will be maintained with justifications for the same as required under the regulations.
In respect of investment in gold, record of each investment decision describing the quantity, fineness, price, counter party,
date of purchase and date of delivery to the custodian will be maintained.
It is the responsibility of the AMC to ensure that the investments are made as per the internal/Regulatory guidelines,
Scheme investment objectives and in the best interest of the Unitholders of the Scheme.
Performance Measurement & Reporting
The Fund Manager will make presentations to the Board of the AMC and the Trustees periodically, indicating the
performance of the Scheme. The Fund's benchmark shall be the price of physical Gold in the domestic market. Among
other things, the Board of AMC and Trustee will review the performance of the Scheme in comparison to the benchmark.
The Trustees reserve the right to change the benchmark for evaluation of performance of the Scheme from time to time
in conformity with the Investment objectives and appropriateness of the benchmark subject to SEBI Regulations, and
other prevailing guidelines, if any.
The Fund Manager will bring to the notice of the AMC Board, specific factors if any, which are impacting the performance
of the Scheme. The Board may after consideration of all relevant factors, if necessary, give appropriate directions to the
AMC. Similarly, the performance of the Scheme will be submitted to the Trustees. The Fund Manager will explain to the
Trustees, the details on the Scheme's performance vis-à-vis the benchmark returns. The Trustees and the AMC Board
may also review the performance of the scheme in the light of performance of the mutual fund industry as published from
time to time by independent research agencies and financial newspapers and journals and may take corrective action in
case of unsatisfactory performance. The Scheme performance would also be measured on a risk adjusted basis against
its peers.
All investment decisions shall be recorded in terms of SEBI Circular no MFD/CIR/6/73/2000 dated July 27, 2000 or as
may be revised by SEBI from time to time.
CHANGE IN FUNDAMENTAL ATTRIBUTES
Subject to Regulation 18(15A), the Trustee shall ensure that no change in the fundamental attributes of the Scheme or
the trust or fees and expenses payable or any other change which would modify the Scheme and affect the interest of
Unitholders, shall be carried out unless:
z a written communication about the proposed change is sent to each Unitholder and an advertisement is given in
one English daily newspaper having nation-wide circulation as well as in a newspaper published in the language
of the region where the head office of the Mutual Fund is situated; and
z the Unitholders are given an option to exit at the prevailing Net Asset Value without any Exit Load.
FUNDAMENTAL ATTRIBUTES
"Fundamental Attributes" referred above shall be as referred in SEBI Circular dated February 4, 1998 read with SEBI
Regulations.
Notwithstanding the above, when any change in the fundamental attributes of the Scheme or the Trust or fees and
expenses payable or any other change which would modify the Scheme or affects the interest of the Unitholders, is
proposed to be carried out, the Trustees shall ensure that such changes are made on fulfillment of parameters laid down
by SEBI (Mutual Funds) Regulations, 1996.

45
Fundamental Attributes of the Scheme shall mean:
Type of scheme i.e. open ended exchange traded Gold Fund.
z Investment Objectives & Policies as defined in Section II of this Offer Document
z Terms of Issue relating to listing, Repurchase/Redemption, fees, expenses
Fundamental Attributes will not cover such actions of the Trustees of the Mutual Fund or the Board of Directors of
Quantum AMC made in order to conduct the business of the Trust, the Scheme or, Quantum AMC where such business
is in the nature of discharging the duties and responsibilities with which they have been charged. Nor will it include
changes to the Scheme made in order to comply with changes in regulation with which the Scheme has been required
to comply.
DETERMINATION OF NAV
The NAV of the Units of the Scheme will be computed by dividing the value of net assets of the Scheme by the number
of Units outstanding on the valuation date.
Example showing calculation for determination of NAV:
Price of Gold per half gram 473.50
Gold Held by the Scheme in Grams 99,000
Portfolio Value (i.e. Value of Gold held by the Scheme) 93,753,000
Cash 947,000
Net Assets of the Scheme 94,700,000
No. of Units of the Scheme 200,000
NAV per unit 473.50
Valuation Norms
The Fund shall value its investments in gold in accordance with the valuation norms specified under The SEBI (Fourth
Amendment ) Regulations 2006, notified by the Government vide gazette dated December 27, 2006 (No. F No. SEBI/
LAD/DOP/82534/2006).
The broad Valuation Norms are detailed below:
The Gold held by the Fund shall be valued at the AM fixing price of London Bulllion Market Association (LBMA) in US
dollars per troy ounce for gold having a fineness of 995.0 parts per thousand, subject to the following:
(a) adjustment for conversion to metric measures as per standard conversion rates;
(b) adjustment for conversion of US dollars into Indian rupees as per the RBI reference rate declared by the Foreign
Exchange Dealers Association of India (FEDAI); and
(c) addition of i) transportation and other charges that may be normally incurred in bringing such gold from London to
the place where it is actually stored on behalf of the mutual fund; and ii) notional customs duty and other applicable
taxes and levies that may be normally incurred to bring the gold from London to the place where it is actually
stored on behalf of the mutual fund.; provided that the adjustment under clause (c) above will be made on the basis
of the notional premium that is usually charged for delivery of gold to the place where it is actually stored on behalf
of the mutual fund; Provided further that where the gold held by the Fund has a greater fineness, the relevant
LBMA prices of AM fixing shall be taken as the reference price under this clause. In case the gold acquired by the
Fund is not in the form of standard bars, it shall be assayed and converted into standard bars which comply with
the good delivery norms of the LBMA and thereafter valued in terms of this clause.
The Fund shall value its investments in debt and money market instruments according to the Valuation Norms as
specified in the Eighth Schedule of the Regulations, or such guidelines/recommendations as may be specified by SEBI/
AMFI from time to time, which presently is as indicated below:

46
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Traded Securities
(i) Traded securities shall be valued at the last quoted price on The National Stock Exchange (NSE). However, if the
securities are not listed on NSE, the securities shall be valued at the price quoted at the exchange where they are
principally traded.
(ii) When on a particular valuation day, a security has not been traded on NSE but has been traded on another stock
exchange; the value at which it is traded on that stock exchange shall be used.
Thinly Traded Securities / Non-Traded Debt Securities:
Thinly Traded Debt Securities:
A debt security (other than Government Securities) shall be considered as a thinly traded security if on the valuation date,
there are no individual trades in that security in marketable lots (currently Rs 5 crore) on the principal stock exchange or
any other stock exchange. A thinly traded debt security as defined above would be valued as per the norms set for non-
traded debt security.
Non Traded Securities:
When a security (other than Government Securities) is not traded on any stock exchange for a period of thirty days prior
to the valuation date, the scrip must be treated as a 'non traded' security.
Valuation of Non-Traded Securities:
Non traded/thinly traded securities shall be valued "in good faith" by Quantum AMC on the basis of appropriate valuation
methods based on the principles laid down below and approved by the AMC. Such decision of the AMC must be
documented and the supporting data in respect of each security so valued must be preserved. The methods used to
arrive at the values "in good faith" shall be periodically reviewed by the Trustees and reported upon by the Auditors as
"Fair and Reasonable" in their report on the annual accounts of the Fund.
Non-Traded/Thinly Traded Debt Securities of Upto 182 Days to Maturity:
As the money market securities are valued on the basis of amortization (cost plus accrued interest till the beginning of
the day plus the difference between the Redemption value and the cost spread uniformly over the remaining maturity
period of the instruments) a similar process should be adopted for non-traded debt securities with residual maturity of
upto 182 days, in the absence of any other standard benchmarks in the market. Debt securities purchased with residual
maturity of upto 182 days are to be valued at cost (including accrued interest till the beginning of the day) plus the
difference between the Redemption value (inclusive of interest) and cost spread uniformly over the remaining maturity
period of the instrument. In case of a debt security with maturity greater than 182 days at the time of purchase, the last
valuation price plus accrued interest should be used instead of purchase cost. All other non-traded Non Government debt
instruments shall be valued using the method suggested below:
Non-Traded/Thinly Traded Debt Securities of Over 182 Days to Maturity:
For the purpose of valuation, all Non Traded Debt Securities would be classified into "Investment grade" and "Non
Investment grade" securities based on their credit ratings. The non-investment grade securities would further be classified
as "Performing" and "Non Performing" assets.
All Non Government investment grade debt securities, classified as not traded, shall be valued on yield to maturity basis
as described in the applicable SEBI circular.
All Non Government non-investment grade performing debt securities would be valued at a discount of 25% to the face
value.
All Non Government non-investment grade non-performing debt securities would be valued based on the provisioning
norms.
The approach in valuation of non traded debt securities is based on the concept of using spreads over the benchmark
rate to arrive at the yields for pricing the non traded security.

47
The yields for pricing the non traded debt security would be arrived at using the process as defined below.
Step A: A risk free benchmark yield is built using the government securities (GOI Sec) as the base. GOI Securities are
used as the benchmarks as they are traded regularly, free of credit risk and traded across different maturity spectrums
every week.
Step B: A matrix of spreads (based on the credit risk) are built for marking up the benchmark yields. The matrix is built
based on traded corporate paper on the wholesale debt segment of an appropriate stock exchange and the primary
market issuances. The matrix is restricted only to investment grade corporate paper.
Step C: The yields as calculated above are marked-up/marked-down for ill-liquidity risk.
Step D: The yields so arrived are used to price the portfolio.
Methodology
Construction of Risk Free Benchmark
Using Government of India dated securities, the benchmark shall be constructed as below:
Government of India dated securities will be grouped into the following duration buckets viz., 0.5-1 years, 1-2 years, 2-3
years, 3-4 years, 4-5 years, 5-6 years and 6 years and the volume weighted yield would be computed for each bucket.
These duration buckets may be changed to reflect the market value more closely by any agency suggested by AMFI
giving benchmark yield/matrix of spreads over benchmark yield. Accordingly, there will be a benchmark YTM for each
duration bucket.
The benchmark as calculated above will be set at least weekly, and in the event of any significant movement of prices
of Government securities on account of any event impacting interest rates on any day such as change in the RBI policies,
the benchmark will be reset to reflect any change in the market conditions.
Note: The concept of duration over tenor has been chosen in order to capture the reinvestment risk. It is intended to
gradually move towards a methodology that incorporates the continuous curve approach for valuation of such securities.
However, in view of the current lack of liquidity in the corporate bond markets, a continuous curve approach to valuation
would be necessarily based on limited data points, and this would result in out of line valuations. As an interim methodology
therefore it is proposed that the Duration Bucket approach be adopted and continuously tracked in order to fine-tune the
duration buckets on a periodic basis. Over the next few years it is expected that with the deepening of the secondary
market trading, it would be possible to make a gradual move from the Duration Bucket approach towards a continuous
curve approach.
Building a Matrix of Spreads for Marking-up the Benchmark Yield
Mark up for credit risk over the risk free benchmark YTM as calculated in step A, will be determined using the trades of
corporate debentures/bonds of different ratings. All trades on appropriate stock exchange during the fortnight prior to the
benchmark date will be used in building the corporate YTM and spread matrices. Initially these matrices will be built only
for corporate securities of investment grade. The matrices are dynamic and the spreads will be computed every week.
The matrix will be built for all duration buckets for which the benchmark GOI matrix is built to effectively link the corporate
matrix with the GOI securities matrix.
Accordingly:
All traded paper (with minimum traded value of Rs. 1 crore) (Rupees One Crore Only) will be classified by their ratings
and grouped into 7 duration buckets; for rated securities, the most conservative publicly available rating will be used;
For each rating category, average volume weighted yield will be obtained both from trades on the appropriate stock
exchange and from the primary market issuances;
Where there are no secondary trades on the appropriate stock exchange in a particular rating category and no primary
market issuances during the fortnight under consideration, then trades on appropriate stock exchange during the 30 days
period prior to the benchmark date will be considered for computing the average YTM for such rating category;
If the matrix cannot be populated using any or all of the above steps, then credit spreads from trades on appropriate
stock exchange of the relevant rating category over the AAA trades will be used to populate the matrix;

48
 QUANTUM MUTUAL FUND
Quantum Gold Fund

In each rating category, all outliners will be removed for smoothening the YTM matrix;
Spreads will be obtained by deducting the YTM in each duration category from the respective YTM of the GOI securities;
In the event of lack of trades in the secondary market and the primary market the gaps in the matrix would be filled by
extrapolation. If the spreads cannot be extrapolated for the reason of practicality, the gaps in the matrix will be filled by
carrying the spreads from the last matrix.
Mark-up/Mark-down Yield
The Yields calculated would be marked-up/marked-down to account for the ill-liquidity risk, promoter background, finance
company risk and the issuer class risk. As the level of ill-liquidity risk would be higher for non rated securities the
marking process for rated and non rated securities would be differentiated as follows:
Adjustments for Securities rated by External Rating Agencies
The Yields so derived out of the above methodology could be adjusted to account for risk mentioned above by an
appropriate discount or premium as may be required. The range of the markups for both discount as well as premium is
given below:
Premium
A Discretionary premium of up to -50 Basis Points for securities having a duration of up to 2 years and up to 25 Basis
Points for securities having duration higher than 2 years will be permitted to be provided for the above mentioned types
of risks. The rationale for the above discount structure is to take cognizance of the differential interest rate risk of the
securities. This structure will be reviewed periodically.
Discount
SEBI vide circular dated 20 February, 2002, has revised the discretionary discount limits as below:
Category Discretionary discount over benchmark yield in basis points
Rated Instruments with duration up to 2 years Discretionary Discount of up to +100
Rated Instruments with duration over 2 years Discretionary Discount of up to +75
Adjustments for Internally Rated Securities
To value an unrated security, the fund manager has to assign an internal credit rating, which will be used for valuation.
Since unrated instruments tend to be more illiquid than rated securities, the yields would be mandatorily marked up by
adding +50 basis point for securities having duration of up to two years and +25 basis point for securities having duration
of higher than two years to account for the illiquidity risk.
The yields derived from the above methodology could be adjusted to account for risk mentioned above. SEBI vide
circular dated 20 February, 2002, has revised the discretionary discount limits as below:
Category Discretionary discount over benchmark yield in basis points
Unrated Instruments with duration up to 2 years - Discretionary Discount of up to +50 over and above the mandatory
Discount of +50
Unrated Instruments with duration over 2 years - Discretionary Discount of up to +50 over and above the mandatory
Discount of +25
The benchmark yield/matrix of spreads over benchmark yield obtained from any agency suggested by AMFI as a provider
of benchmark yield/matrix of spreads over benchmark yield to mutual funds, must be applied for valuation of securities on
the day on which the bench mark yield/matrix of spreads over benchmark yield is released by the aforesaid agency.

49
Valuation of Securities with Put/Call Option
The option embedded securities would be valued as follows:
Securities with Call option
The securities with call option shall be valued at the lower of the value as obtained by valuing the security to final
maturity and valuing the security to call option.
In case there are multiple call options, the lowest value obtained by valuing to the various call dates and valuing to the
maturity date is to be taken as the value of the instrument.
Securities with Put option
The securities with put option shall be valued at the higher of the value as obtained by valuing the security to final
maturity and valuing the security to put option.
In case there are multiple put options, the highest value obtained by valuing to the various put dates and valuing to the
maturity date is to be taken as the value of the instruments.
Securities with both Put and Call option on the same day
The securities with both Put and Call option on the same day would be deemed to mature on the Put/Call day and would
be valued accordingly.
Government Securities
Government securities will be valued as per the prices for Government Securities released by an agency suggested by
AMFI for the sake of uniformity in calculation of NAVs. Government Securities are valued at the prices released by
CRISIL, which is currently the only approved agency suggested by Association of Mutual Funds in India (AMFI).
Fixed Income and Money Market Securities
Debt instruments shall generally be valued on a yield to maturity basis on the basis of the capitalization factor for
comparable traded securities and with an appropriate discount for a lower liquidity.
While investments in call money, bills purchased under rediscounting scheme and short term deposits with banks shall
be valued at cost plus accrual; other money market instruments shall be valued at the yield at which they are currently
traded. For this purpose, instruments not traded for a period of 7 days will be valued at cost plus interest accrued till the
beginning of the day plus the difference between the Redemption value and the cost spread uniformly over the remaining
maturity period of the instruments.
Valuation of "Repo"
Where instruments have been bought on `repo' basis, the instrument must be valued at the resale price after deduction
of applicable interest up to date of resale. Where an instrument has been sold on a `repo' basis, adjustment must be
made for the difference between the Repurchase price (after deduction of applicable interest up to date of repurchase)
and the value of the instrument. If the Repurchase price exceeds the value, the depreciation must be provided for and if
the Repurchase price is lower than the value, credit must be taken for the appreciation.
Valuation of Warrants
In respect of warrants to subscribe for shares attached to instruments, the warrants shall be valued at the value of the
share which would be obtained on exercise of the warrant as reduced by the amount which would be payable on
exercise of the warrant. A discount similar to the discount to be determined in respect of convertible debentures (as
referred in valuation of convertible debentures and bonds above) shall be deducted to account for the period which must
elapse before the warrant can be exercised;
Valuation of Derivative Products
The traded derivatives shall be valued at market price in conformity with the stipulations of sub clauses (i) to (v) of clause
1 of the Eighth Schedule to the Regulations.

50
 QUANTUM MUTUAL FUND
Quantum Gold Fund

The valuation of untraded derivatives shall be done in accordance with the valuation method for untraded investments
prescribed in sub clauses (i) and (ii) of clause 2 of the Eighth Schedule to the Regulations.
Expense and Income Accrual
All expenses and incomes accrued up to the valuation date shall be considered for computation of NAV. For this
purpose, while major expenses like management fees and other periodic expenses should be accrued on a day to day
basis, other minor expenses and income need not be so accrued, provided the non-accrual does not affect the NAV
calculations by more than 1%.
Changes in the Securities and Units
Any changes in securities and in the number of units are recorded in the books not later than the first valuation date
following the date of transaction. If this is not possible given the frequency of NAV disclosure, the recording may be
delayed up to a period of seven days following the date of the transaction, provided that as a result of the non-recording,
the NAV calculations shall not be affected by more than 1%. In case the Net Asset Value of a scheme differs by more
than 1%, due to non-recording of the transactions, the investors or scheme/s as the case may be, shall be paid the
difference in amount as follows:-
(i) If the investors are allotted units at a price higher than Net Asset Value or are given a price lower than Net Asset
Value at the time of sale of their units, they shall be paid the difference in amount by the Scheme.
(ii) If the investors are charged lower Net Asset Value at the time of purchase of their units or are given higher Net
Asset Value at the time of sale of their units, asset management company shall pay the difference in amount to the
Scheme. The asset management company may recover the difference from the investors.
The valuation guidelines as outlined above are as per SEBI Regulations and are subject to change from time to time in
conformity with changes made by SEBI.
SEBI has issued vide circular no. MFD/CIR/8/92/2000 dated September 18, 2000 as amended by SEBI circular no. MFD/
CIR/14/088/2001 dated March 28, 2001 (i) Guidelines for Valuation of Securities; and (ii) Guidelines for Identification and
Provisioning for Non-Performing Assets (NPAs). These Guidelines are supplementary to the provisions specified in SEBI
Regulations.
These Guidelines have become effective as follows (SEBI circular no. MFD/CIR/8(a)/104/2000 dated October 03, 2000):
(i) Guidelines for identification and provisioning of NPAs and Valuation of non-traded and thinly traded equity shares
from October 16, 2000.
(ii) Guidelines for Valuation of non-traded and thinly traded debt securities from December 1, 2000.
All other assets (if any) are taken at fair value as determined in-good faith in accordance with the appropriate valuation
methods based on the principles approved/adopted by the AMC, and amended from time to time, to ensure appropriate
fair valuation of assets for the Fund. The Trustees/AMC may alter these above stated investment valuation norms from
time to time, and also to the extent the SEBI (Mutual Funds) Regulations, 1996 change, so as to permit the Scheme to
make valuation of its investments in the full spectrum of permitted valuation norms for Mutual Funds to determine NAV.
As such valuation of all investments of the Scheme will be made in accordance with SEBI (Mutual Funds) Regulations,
1996 including Schedule VIII thereof.
ACCOUNTING POLICIES AND STANDARDS
In accordance with Regulation 50 read with the Ninth Schedule to the SEBI Regulation, the Scheme shall follow the
accounting policies and standards stated below:
a) The AMC, for each Scheme and its Plans, shall keep and maintain proper books of account, records and documents,
so as to explain its transactions and to disclose at any point of time the financial position of the Scheme and, in
particular, give a true and fair view of the state of affairs of the Fund.
b) For the purposes of the financial statements, the Scheme and its Plans shall mark all investments other than Gold
to market and carry investments in the balance sheet at market value. However, since the unrealized gain arising
out of appreciation on investments cannot be distributed, provision shall be made for exclusion of this item when
arriving at distributable income.
51
c) The Gold held by the Fund shall be valued at the AM fixing price of London Bulllion Market Association (LBMA) in
US dollars per troy ounce for gold having a fineness of 995.0 parts per thousand, subject to the following:
z adjustment for conversion to metric measures as per standard conversion rates;
z adjustment for conversion of US dollars into Indian rupees as per the RBI reference rate declared by the
Foreign Exchange Dealers Association of India (FEDAI); and
" addition of i) transportation and other charges that may be normally incurred in bringing such gold from
London to the place where it is actually stored on behalf of the mutual fund; and ii) notional customs duty and
other applicable taxes and levies that may be normally incurred to bring the gold from London to the place
where it is actually stored on behalf of the mutual fund.; provided that the adjustment under clause c) above
will be made on the basis of the notional premium that is usually charged for delivery of gold to the place
where it is actually stored on behalf of the mutual fund; Provided further that where the gold held by the Fund
has a greater fineness, the relevant LBMA prices of AM fixing shall be taken as the reference price under this
clause. In case the gold acquired by the Fund is not in the form of standard bars, it shall be assayed and
converted into standard bars which comply with the good delivery norms of the LBMA and thereafter valued
in terms of this clause.
d) Dividend income earned by the Scheme and its Plans shall be recognized, not on the date the Dividend is
declared, but on the date the share is quoted on an ex-Dividend basis. For investments, which are not quoted on
the stock exchange, Dividend income would be recognized on the date of declaration of Dividend.
e) In respect of all interest-bearing investments, income shall be accrued on a day to day basis as it is earned.
Therefore, when such investments are purchased, interest paid for the period from the last interest due date up to
the date of purchase should not be treated as a cost of purchase but shall be debited to Interest Recoverable
Account. Similarly, interest received at the time of sale for the period from the last interest due date up to the date
of sale must not be treated as an addition to sale value but shall be credited to Interest Recoverable Account.
f) In determining the holding cost of investments and the gains or loss on sale of investments, the "average cost"
method shall be followed for each security.
g) Bonus shares to which the Scheme becomes entitled should be recognised only when the original shares on which
the bonus entitlement accrues are traded on the stock exchange on an ex-bonus basis. Similarly, rights entitlements
should be recognised only when the original shares on which the right entitlement accrues are traded on the stock
exchange on an ex-rights basis
h) Transactions for purchase or sale of investments shall be recognized as of the trade date and not as of the
settlement date, so that the effect of all investments traded during a financial year are recorded and reflected in the
financial statements for that year. Where investment transactions take place outside the stock market, for example,
acquisition through private placement or purchases or sales through private treaty, the transaction would be recorded,
in the event of a purchase, as of the date on which the Scheme obtains an enforceable obligation to pay the price
or, in the event of a sale, when the Scheme obtains an enforceable right to collect the proceeds of sale or an
enforceable obligation to deliver the instruments sold.
i) Where income receivable on investments has accrued but has not been received for the period specified in the
guidelines issued by SEBI, provision shall be made by debiting to the revenue account the income so accrued in
the manner specified by guidelines issued by the SEBI.
j) When Units are sold in the Scheme, an appropriate part of the sale proceeds shall be credited to an Equalization
Account and when Units are Repurchased an appropriate amount shall be debited to Equalization Account. The
net balance on this account shall be credited or debited to the Revenue Account. The balance on the Equalization
Account debited or credited to the Revenue Account shall not decrease or increase the net income of the Fund but
is only an adjustment to the distributable surplus. It shall therefore be reflected in the Revenue Account only after
the net income of the Fund is determined.
k) When Units are sold, after considering the equalization as above, the difference between the sale price and the
face value of the Unit, if positive, shall be credited to reserves and if negative, shall be debited to reserve, the face
value being credited to Capital Account. Similarly, when the Units are Repurchased, after considering the equalization

52
 QUANTUM MUTUAL FUND
Quantum Gold Fund

as above, the difference between the purchase price and face value of the Unit, if positive, shall be debited to
reserves and, if negative, shall be credited to reserves, the face value being debited to the Capital Account.
l) The cost of investments acquired or purchased shall include brokerage, stamp charges and any charge customarily
included in the broker's bought note. In respect of privately placed debt instruments any front-end discount offered
shall be reduced from the cost of the investment.
m) Underwriting commission shall be recognized as revenue only when there is no devolvement on the Scheme and
its Plans. Where there is devolvement on the Scheme and the Plans thereunder, the full underwriting commission
received and not merely the portion applicable to the devolvement shall be reduced from the cost of the investment.
The accounting policies and standards outlined above are as per the existing Regulations and are subject to
change as per changes in the Regulations.
Guidelines for Identification and Provisioning for Non Performing Assets (Debt Securities) For Mutual Funds:
(A) Definition of a Non Performing Asset (NPA) : An 'asset' shall be classified as non performing, if the interest and/
or principal amount have not been received or remained outstanding for one quarter from the day such income/
installment has fallen due.
(B) Effective date for classification and provisioning of NPA's : The definition of NPA may be applied after a quarter
past due date of the interest. For e.g. if the due date for interest is 31.12.2002, it will be classified as NPA from
01.04.2003.
(C) Treatment of income accrued on the NPA and further accruals : After the expiry of the 1st quarter from the date
the income has fallen due, there will be no further interest accrual on the asset i.e. if the due date for interest falls
on 31.12.2002 and if the interest is not received, accrual will continue till 31.03.2003 after which there will be no
further accrual of income. In short, taking the above example, from the beginning of the 2nd quarter there will be no
further accrual on income.
On classification of the asset as NPA from a quarter past due date of interest, all interest accrued and recognized
in the books of accounts of the Fund till the date, should be provided for. For e.g. if interest income falls due on
30.06.2000, accrual will continue till 30.09.2000 even if the income as on 30.06.2000 has not been received.
Further, no accrual will be done from 01.10.2000 onwards. Full provision will also be made for interest accrued and
outstanding as on 30.06.2000.
(D) Provision for NPA's - Debt Securities : Both secured and unsecured investments once they are recognized as
NPA's call for provisioning in the same manner and where these are related to close ended scheme the phasing
would be such that to ensure full provisioning prior to the closure of the scheme or the scheduled phasing which
ever is earlier.
The value of the asset must be provided in the following manner or earlier at the discretion of the fund. Fund will
not have discretion to extend the period of provisioning. The provisioning against the principal amount or installments
should be made at the following rates irrespective of whether the principal is due for repayment or not
z 10% of the book value of the asset should be provided for after 6 months past due date of interest i.e. 3
months from the date of classification of the asset as NPA.
z 20% of the book value of the asset should be provided for after 9 months past due date of interest i.e. 6
months from the date of classification of the asset as NPA.
z Another 20% of the book value of the assets should be provided for after 12 months past due date of interest
i.e. 9 months from the date of classification of the asset as NPA.
z Another 25% of the book value of the assets should be provided for after 15 months past due date of interest
i.e. 12 months from the date of classification of the asset as NPA.
z The balance 25% of the book value of the asset should be provided for after 18 months past due date of the
interest i.e. 15 months from the date of classification of the assets as NPA. Book value for the purpose of
provisioning for NPA's shall be taken as a value determined as per the prescribed valuation method.

53
 This can be explained by an illustration:
Let us consider that interest income is due on a half yearly basis and the due date falls on 30.06.2002 and the
interest is not received till 1st quarter after due date i.e. 30.09.2002. This provisioning will be done in following
phased manner:
10% provision 01.01.2003 6 months past due date of interest i.e. 3 months from the date
of classification of asset as NPA (01.10.2002)
20% provision 01.04.2003
20% provision 01.07.2003
25% provision 01.10.2003
25% provision 01.01.2004
Thus, 1 1/2 years past the due date of income or 1 1/4 year from the date of classification of the 'asset' as an NPA,
the 'asset' will be fully provided for. If any installment is fallen due, during the period of interest default, the amount
of provision should be installment amount or above provision amount, whichever is higher.
(E) Reclassification of assets: Upon reclassification of assets as 'performing assets':
1. In case a company has fully cleared all the arrears of interest, the interest provisions can be written back in
full.
2. The asset will be reclassified as performing on clearance of all interest arrears and if the debt is regularly
serviced over the next two quarters.
3. In case the company has fully cleared all the arrears of interest, the interest not credited on accrual basis
would be credited at the time of receipt.
4. The provision made for the principal amount can be written back in the following manner:
a. 100% of the asset provided for in the books will be written back at the end of the 2nd calendar quarter
where the provision of principal was made due to the interest defaults only
b. 50% of the asset provided for in the books will be written back at the end of the 2nd calendar quarter
and 25% after every subsequent quarter where both installments and interest were in default earlier.
5. An asset is reclassified as 'standard asset' only when both overdue interest and overdue installments are paid
in full and there is satisfactory performance for a subsequent period of 6 months.
(F) Receipt of past dues: When the fund has received income/principal amount after their classifications as NPA's;
z For the next 2 quarters, income should be recognized on cash basis and thereafter on accrual basis. The
asset will be continued to be classified as NPA for these two quarters.
z During this period of two quarters although the asset is classified as NPA no provision needs to be made for
the principal if the same is not due and outstanding
z If part payment is received towards principal, the asset continues to be classified as NPA and provisions are
continued as per the norms set at (D) above. Any excess provision will be written back.
(G) Classification of Deep Discount Bonds as NPA's: Investments in Deep Discount Bonds can be classified as
NPA's, if any two of the following conditions are satisfied:
z If the rating of the Bond comes down to grade 'BB' or below.
z If the company is defaulting in their commitments in respect of other assets, if available.
z Full Net worth erosion.
Provision should be made as per the norms set at (D) above as soon as the asset is classified as NPA. Full

54
 QUANTUM MUTUAL FUND
Quantum Gold Fund

provision can be made if the rating comes down to grade 'D'

(H) Re-schedulement of an asset: In case any company defaults either interest or principal amount and the fund has
accepted a re-schedulement of the schedule of payments, then the following practice may be adhered to:
(i) In case it is a first re-schedulement and only interest is in default, the status of the asset namely, 'NPA' may
be continued and existing provisions should not be written back. This practice should be continued for two
quarters of regular servicing of the debt. Thereafter, this will be classified as 'performing asset' and the
interest provided may be written back.
(ii) If the re-schedulement is done due to default in interest and principal amount, the asset should be continued
as non-performing for a period of 4 quarters, even though the asset is continued to be serviced during these
4 quarters regularly. Thereafter, this can be classified as 'performing asset' and all the interest provided till
such date should be written back.
(iii) If the re-schedulement is done for a second/third time or thereafter, the characteristic of NPA should be
continued for eight quarters of regular servicing of the debt. The provision should be written back only after it
is reclassified as 'performing asset'.
(I) Disclosure in the Half Yearly Portfolio Reports: The mutual funds shall make scrip-wise disclosures of NPA's on
half yearly basis along with the half yearly portfolio disclosure. The total amount of provisions made against the
NPA's shall be disclosed in addition to the total quantum of NPA's and their proportion of the assets of the mutual
fund scheme. In the list of investments an asterisk mark shall be given against such investments which are
recognized as NPA's. Where the date of Redemption of an investment has lapsed, the amount not redeemed shall
be shown as 'Sundry Debtors' and not investment provided that where an investment is redeemable by installments
that will be shown as an investment until all installments have become overdue.
BENCHMARK
The Benchmark Index for the Scheme is price of physical Gold in the domestic market. Performance comparisons
for the Scheme will be made vis-à-vis the Benchmark.
However, the Scheme's performance may not be strictly comparable with the performance of the Benchmark, due to the
inherent differences in the construction of the portfolios. The Trustee/AMC reserves the right to change the benchmark for
evaluation of performance of the Scheme from time to time in conformity with the investment objectives and appropriateness
of the Benchmarks subject to the SEBI Regulations, and other prevailing guidelines, if any. The performance of this
scheme will be compared with its peers in the Industry. The performance will be placed before the Investment Committee
as well as the Board of Directors of the AMC and the Trustee Company in each of their meetings.
INVESTMENT IN GOLD RELATED DERIVATIVES
The Fund may use derivative instruments related to Gold only after the same is allowed under the Regulations.

55
 SECTION III

NEW FUND OFFER

NEW FUND OFFER

This offer is being made inviting applications to subscribe to the Units of Quantum Gold Fund which is an open-ended
exchange traded scheme.
NEW FUND OFFER PERIOD
The New Fund Offer Period for the Scheme will commence from January 24, 2008 & close on February 8, 2008.
NEW FUND OFFER PRICE
Each unit of QGF being offered will have a face value of Rs.100/- each and will be issued at a premium equivalent to
difference between the allotment price and the face value of Rs.100/-.
Allotment Price is the price of half (½) gram of physical gold in the domestic market.
Each unit of QGF issued under the scheme will be approximately equal to price of half (½) gram of Gold.
Ongoing Sales/Redemptions:
On an ongoing basis direct purchases/redemptions from the Fund would be restricted to only Authorised Participants and
Eligible Investors. Authorised Participants and Eligible Investors can buy/redeem in creation unit size directly from the
Fund on a daily basis.
Units of QGF can be bought/sold by all Investors like any other stock on the National Stock Exchange of India Ltd. (NSE)
or on any other stock exchange where it is listed.
As QGF units can be bought/sold directly from the Fund, this mechanism provides efficient arbitrage between the traded
prices and the NAV, thereby reducing the incidence of QGF units being traded at a high premium/discount to NAV.
QGF units will be issued only in dematerialized form through depositories. The records of the depository are final with
respect to the number of units available to the credit of a unit holder. This will help in consolidating with other portfolio
holdings and will eliminate need for physical storage thereby eliminating risk.
Matrix showing Subscription at NFO stage & Subscription and redemption on ongoing basis for Large and Small/
Other Investors
Subscriptions Redemptions
New Fund Offer Small Investors Can apply through cheque/draft Not Applicable
Large Investor / Can apply through cheque/draft Not Applicable
Authorised
Participant
On going basis when the Small Investors Can be traded on Stock Can be traded on Stock
Scheme opens for Exchange Exchange
subscription / redemption
Large Investor / Facility Available on all business Facility Available on all business
Authorised days in Creation Unit Size days in Creation Unit Size
Participant
Trading of units on the Small Investors Facility Available on all trading Facility Available on all trading
Exchange days days
Large Investor / Facility Available on all trading Facility Available on all trading
Authorised days days
Participant

56
 QUANTUM MUTUAL FUND
Quantum Gold Fund

EXTENSION/TERMINATION OF THE NEW FUND OFFER PERIOD

The subscription list may be closed earlier by giving at least one day's notice in one daily newspaper. The Trustee
reserves the right to extend the closing date of the New Fund Offer Period, subject to the condition that the subscription
list of the New Fund Offer Period shall not be kept open for more than 30 days.
MINIMUM AMOUNT FOR APPLICATION/MINIMUM SUBSCRIPTION AMOUNT
During NFO Period
During the NFO period the minimum investment amount for opening account is Rs. 5,000/- and in multiples of Rs.1,000/
- thereafter. On an ongoing basis direct purchases from the Fund would be restricted to only Authorised Participants and
eligible investors. Authorised Participants and Eligible Investors can buy/redeem in creation unit size directly from the
Fund on a daily basis, by following the procedure stated on Page No. 58.
In case of over-subscription, the AMC would endeavour to give proportionate allotment. Allotment of units under the
Scheme would be at the discretion of the Trustee.
The minimum subscription (target) amount for the Scheme is Rs.10 lac. There is no maximum subscription (target)
amount for the Scheme therefore, subject to the applications being in accordance with the terms of this offer, full and firm
allotment will be made to the Unitholders.
In accordance with the SEBI Regulations, if the Mutual Fund fails to collect the minimum subscription amount of Rs.10 lac
under the Scheme, the Mutual Fund and the AMC shall be liable to refund the subscription amount to the Applicants of
the Scheme. Any amount refundable will be refunded within a period of 6 weeks from the date of closure of the New
Fund Offer period as per SEBI Regulations. In addition to the above, refund of subscription amount to Applicants whose
applications are invalid for any reason whatsoever, will commence after the allotment process is completed. In the event
of failure to despatch the refund proceeds within the above referred time period of 6 weeks, interest @ 15% per annum
or such rate as may be specified by SEBI, would be paid by the AMC to the Unitholders for the period of delay.
INVESTING ON AN ONGOING BASIS
ON THE EXCHANGE
An investor can buy/sell units on a continuous basis on the National Stock Exchange of India Ltd. during the trading
hours like any other publicly traded stock at prices which may be close to the NAV of the QGF units. The price of the
units in the market will depend on demand and supply at that point of time.
The AMC will also appoint an Authorised Participant to provide the liquidity in secondary market on an ongoing basis.
The Authorised Participant would offer daily two-way quote in the market.
Entry/Exit Load:
There will be no entry/exit load on QGF units bought or sold through the secondary market on the NSE. However, an
investor would be paying cost in the form of a bid and ask spread and brokerage, as charged by his broker, for buying/
selling QGF Units.
Settlement of Purchase/Sale of QGF Units on NSE:
Buying/Selling of units of the Scheme on NSE is just like buying/selling any other normal listed security. If an investor has
bought units, an investor has to pay the purchase amount to the broker/sub-broker such that the amount paid is realised
before the funds pay-in day of the settlement cycle on the NSE. If an investor has sold units, an investor has to deliver
the units to the broker/sub-broker before the securities pay-in day of the settlement cycle on the NSE. The units (in the
case of units bought) and the funds (in the case of units sold) are paid out to the broker on the pay-out day of the
settlement cycle on the NSE. The NSE regulations stipulate that the trading member should pay the money or units to the
investor within 48 hours of the pay-out.
If an investor has bought units, he should give standing instructions for 'Delivery-In' to his/her DP for accepting units in
his/her beneficiary account. An investor should give the details of his/her beneficiary account and the DP-ID of his/her DP
to his/her trading member. The trading member will transfer the units directly to his/her beneficiary account on receipt of
the same from NSE's Clearing Corporation.

57
An investor who has sold units should instruct his/her Depository Participant (DP) to give 'Delivery Out' instructions to
transfer the units from his/her beneficiary account to the Pool Account of his/her trading member through whom he/she
have sold the units. The details of the Pool A/C (CM-BP-ID) of his/her trading member to which the units are to be
transferred, unit quantity etc. should be mentioned in the Delivery Out instructions given by him/her to the DP.
The instructions should be given well before the prescribed securities pay-in day. SEBI has advised that the Delivery Out
instructions should be given at least 24 hours prior to the cut-off time for the prescribed securities pay-in to avoid any
rejection of instructions due to data entry errors, network problems, etc.
Rolling Settlement:
As per the SEBI's circular dated March 4, 2003, the rolling settlement on T+2 basis for all trades has commenced from
April 1, 2003 onwards. The Pay-in and Pay-out of funds and the units will take place 2 working days after the trading
date.
The pay-in and pay-out days for funds and securities are prescribed as per the Settlement Cycle. A typical Settlement
Cycle of Rolling Settlement is given below:
Day Activity
T The day on which the transaction is executed by a trading member
T+1 Confirmation of all trades including custodial trades by 11.00 a.m.
T+1 Processing and downloading of obligation files to brokers /custodians by 1.30 p.m.
T+2 Pay-in of funds and securities by 11.00 a.m.
T+2 Pay out of funds and securities by 1.30 p.m.
While calculating the days from the Trading day (Day T), weekend days (i.e. Saturday and Sundays) and bank holidays
are not taken into consideration.
DIRECT PURCHASE FROM THE FUND
Presently the Scheme would be open for ongoing subscription/redemption only for Authorised Participants and Eligible
Investors in Creation Units Size on a daily basis from the date of listing at the applicable NAV subject to entry load, if
any. Presently the Fund does not propose to charge any entry or exit load for Authorised Participants. In case of Eligible
Investors, the Fund will charge no entry load but will charge an exit load of 0.5%.
Time Stamping of Applications
The Fund would comply with the applicable provisions of Circular No. SEBI/IMD/CirNo.8/5611/2004 dated March 19,
2004 relating to time stamping of application for purchase and redemption.
The units can be purchased directly from the Fund by using any of the following modes of subscription:
Creation/Redemption of units in Creation Unit Size by Exchanging Portfolio Deposit
The Authorised Participants and Large Investors can directly buy/sell with the funds in Creation Unit Size by exchanging
portfolio deposit as follows: -
The Fund creates / redeems QGF Units in large size known as "Creation Unit". The value of the "Creation Unit Size" is
1 kilogram of physical Gold or in multiples of 1 kg. thereof called as the "Portfolio Deposit" and a "Cash Component"
which will be exchanged for the respective number of QGF Units. The Portfolio Deposit and the Cash Component, which
constitutes the Creation Unit Size are defined separately. The Portfolio Deposit and Cash Component may change from
time to time and will be announced by AMC/Fund to the authorised participants.
Note: QGF Units in less than Creation Unit Size cannot be purchased/redeemed directly with the Fund.
Procedure for Creating QGF Units in Creation Unit Size
The requisite physical gold constituting the Portfolio Deposit has to be submitted to the Custodian/AMC/Registrar while
the Cash Component has to be paid to the Custodian/AMC. On confirmation of the same by the Custodian/AMC that the

58
 QUANTUM MUTUAL FUND
Quantum Gold Fund

predefined quantity and purity of physical gold has been received, the AMC will transfer the respective number of QGF
Units into the investor's DP account. The AMC may create "Creation Unit" prior to receipt of all or a portion of the relevant
Portfolio Deposit and Cash Component in certain circumstances where the purchaser, among other things, posts collateral
to secure its obligation to deliver such outstanding Portfolio Deposit Securities and Cash Component.
The Portfolio Deposit and Cash Component for QGF Units may change from time to time due to change in NAV. The
Fund may from time to time change the size of creation unit in order to equate it with marketable lot of underlying
instruments.
The creation request can be made to the Fund in a duly filled application form. Application Forms for Creation of QGF
Units can be obtained from the office of AMC, Registrars and Transfer Agents, Custodian.
Fractional Units
Units may be allotted in fractions during the Ongoing Creation of Units in Creation Unit Size by exchanging Portfolio
Deposit. Fractional unit holder will be allotted upto 3 decimals. Every month the units allotted will be added with the
opening balance.
Entry Load
The AMC proposes not to charge entry load during the NFO as well as on an ongoing basis. However, load may be
charged in future and will be announced by the AMC from time to time and will be within the limits specified under the
Regulations. Presently there is no entry load on ongoing purchases.
Procedure for Redeeming QGF Units in Creation Unit Size
The requisite number of QGF Units equaling the Creation Unit Size has to be transferred to the Fund's DP account and
the Cash Component to be paid to the AMC / Custodian. On confirmation of the same by the AMC, the Custodian will
transfer the Portfolio Deposit by handing over the physical Gold of the predefined purity and quantity to the investor and
pay the Cash Component, if applicable.
The AMC may redeem the QGF Units in Creation Unit Size prior to receipt of all or portion of the relevant QGF Units in
certain circumstances where the purchaser, among other things, posts collateral to secure its obligation to deliver such
outstanding QGF Units.
The Portfolio Deposit and Cash Component for the QGF Units may change from time to time due to change in NAV. The
Fund may from time to time change the size of creation unit in order to equate it with marketable lot of underlying
physical gold.
Creation/Redemption of QGF Units for Cash Directly with the Fund
The Fund may in its own discretion allow Cash purchases of QGF Units in Creation Unit Size by large investors. Such
investors shall make creation request to the Fund/AMC where upon the Fund/AMC will arrange to purchase the underlying
physical Gold.
Also, the Fund may allow Cash Redemption of QGF Units in Creation Unit size by large investors. Such investors shall
make redemption request to the Fund/AMC whereupon the Fund/AMC will arrange to sell physical Gold on behalf of the
investor. Accordingly the sale proceeds of physical Gold after adjusting necessary charges/costs and prevailing exit load
will be remitted to the investor.
In case where cash redemption facility is available, the creation/redemption request for cash can be made to the Fund in
a duly filled application form. Application form for Cash Creation/Redemption for QGF Units can be obtained from the
office of the AMC, Authorised Participants, Registrar and Custodian.
The minimum number of QGF Units that can be created/redeemed for Cash directly with the Fund will be announced by
the Fund from time to time.
Although presently the Liquidity Window for direct subscription and redemption is open on all business days and only for
Authorised Participants and Eligible Investors, the Fund may in its own discretion and in the interest of the retail investors,
open the Liquidity Window for such period as it may decide from time to time to allow liquidity to investors.

59
Suspension of Sale and Redemption of Units and Right to Limit Fresh Sale & Redemption
In case the size of the Scheme increases to a level which in the opinion of the Trustees is not manageable, the Trustees
reserve the right to stop fresh sale of units and also redeem the units on pro-rata basis to investors in order to reduce the
size to a manageable level.
The Trustees reserves the right at its sole discretion to withdraw / suspend the allotment / sale of
units in the Scheme temporarily or indefinitely, at the time of NFO or otherwise, if the AMC views that increasing the size
of the Scheme may prove detrimental to the unit holders of the Scheme. A request or any order to purchase the units is
not binding on and may be rejected by the trustees or the AMC unless it has been confirmed in writing by the AMC and
/ or the payment has been received.
MINIMUM NUMBER OF INVESTORS AND MAXIMUM HOLDING BY SINGLE INVESTOR
As per SEBI circular dated December 12, 2003 ref SEBI/IMD/CIR No. 10/22701/03, each scheme and individual plan(s)
under the Schemes should have a minimum of 20 Investors and no single Investor should account for more than 25% of
the corpus of such scheme/plan(s). In case of non-fulfillment with either of the above two conditions in a three months
time period or at the end of succeeding calendar quarter, whichever is earlier, from the close of the New Fund Offer
(NFO) or on an ongoing basis for each calendar quarter, the Schemes/plans shall be wound up by following the
guidelines prescribed by SEBI and the Investor's money would be Repurchased/Redeemed at applicable NAV.
SEBI has, vide its Circular No. SEBI/IMD/CIR No.1/42529/05 dated June 14, 2005, further clarified that the aforesaid
Circular would be applicable at the Portfolio level. For determining the holding by single Investor above 25% limit, the
average of daily holding by each such Investor over the quarter would be considered. If the holding by such Investor
exceeds 25% limit over the quarter, rebalancing period of one month would be allowed and thereafter 15 days notice
shall be given to the Investor to Repurchase/Redeem his exposure over the 25% limit within 15 days. In case, if the
Investor fails to Repurchase/Redeem his exposure over 25%, it would lead to automatic Repurchase/Redemption by the
Mutual Fund on the applicable NAV on the 15th day of the notice period.
ALLOTMENT AND REFUND
All Applicants whose cheques towards purchase of Units have been realised will receive a full and firm allotment of
Units, provided that the applications are complete in all respects and are found to be in order. The Trustee retains the
sole and absolute discretion to reject any application. Subject to the receipt of the specified Minimum Subscription
Amount for the Scheme, full allotment will be made to all valid applications received during the New Fund Offer. The
units allotted will be credited to the depository account mentioned in the application form notwithstanding any difference
in names mentioned in the depository account and the names mentioned in the application form.
The process of allotment of Units will be completed within 30 days from the date of closure of the New Fund Offer Period.
No Interest will be payable on any subscription money refunded within 6 weeks from the closure of the New Fund Offer
Period. Interest on subscription amount will be payable for amounts refunded later than 6 weeks from the closure of the
New Fund Offer Period at the rate of 15% per annum for the period in excess of 6 weeks and will be charged to the
AMC. Refund orders will be marked "A/c. Payee only" and will be in favour of and be despatched to the first/sole
Applicant, by registered post.
The AMC reserves the right to introduce an option/s or investment Plan at a later date, subject to the SEBI Regulations.
The number of units allotted would be the total amount invested divided by the Allotment Price. Allotment price of Gold
units will be based on the investment of New Fund Offer proceeds in Physical Gold. The allotment price and the NAV of
the units of the Scheme would be different due to the fact that the allotment price is arrived at after considering the actual
purchase price of physical gold in case of investment of NFO proceeds whereas the NAV is calculated at the end of the
day based on the market price of physical gold as per the valuation policy.

60
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Example showing the calculation of premium during the New Fund Offer (NFO):
Nominal Value per QGF unit Rs. 100.00
Price of 10 grams of Gold Rs. 9,470.00*
Price of 0.5 grams of Gold Rs. 473.50
Allotment price during NFO Rs. 473.50
Premium (Rs. 473.50 - Rs. 100) Rs. 373.50
Amount invested Rs. 5,000/-
No. of Units allotted 5,000/473.50 = 10.56 units
*Closing Price of physical gold in domestic market as on September 18, 2007 - Source: Business Line, Mumbai Sept. 19, 2007 issue

The above example is for illustration purpose only.

Note:
1. The amount mentioned as "Premium" should not be construed in its strictest meaning. It is just a difference to
ensure that the price of 1 unit which is charged from the investor is approximately equal to half (½) gram of gold.
2. All subscription and redemption in the Scheme for ongoing subscription / redemption after NFO would be restricted
to Authorised Participants and Eligible Investors and will be at NAV based prices. Further, dividend, if any, would
be paid based on the nominal value and not on the NAV.
Systematic Investment Plan (SIP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP) are not
available under this Scheme.
Switching
During the New Fund Offer Period of the Scheme, investors have the option to switch-in, all or part of their investment
from any other open ended Scheme / Plan / Option of the Fund to the Scheme. After the NFO, the Fund may at its own
discretion, allow switch-in or switch-out into/from the Scheme. A switch has the effect of redemption from a Scheme/Plan/
Option and a purchase in the other Scheme/Plan/Option to which the switching has been done and all the terms and
conditions pertaining to redemption and purchase of the units of the respective Scheme shall apply to a switch, unless
otherwise specified. The switch should be made by redeeming existing Units and reinvesting the redemption proceeds in
another Scheme/Plan/Option at the applicable purchase price of the Scheme(s)/Plan(s)/Option(s) to which the switch is
made.
DIVIDENDS AND DISTRIBUTIONS
The income / profits received / earned would be accumulated by the Fund as capital accretion, aimed at achieving
medium to long-term and also short-term capital growth and reflected in the NAV. In the alternative and as may be
decided by the Trustees along with the AMC, the profits received / earned and so retained and reinvested may be
distributed as Income at appropriate rates (after providing for all relevant ongoing expenses, etc.) and at appropriate
intervals as may be decided and will be distributed to the unitholders who hold the units on the record date of declaration
of the Income. Guided by the philosophy of value-oriented returns, the Trustee Company may periodically capitalise net
earnings of the Scheme (including interest income and realised gains and losses on the Securities) by way of allotment/
credit of bonus Units to the Unitholders Accounts, the intent being to protect the Net Asset Value of the Scheme and
Unitholders' interests. The Fund does not assure any targeted annual return / income nor any capitalisation ratio.
Accumulation of earnings and / or capitalisation of bonus units and the consequent determination of NAV, may be
suspended temporarily or indefinitely under any of the circumstances as stated in the clause "Suspension of Ongoing
Sale, Repurchase or Switch of Units. Dividend if declared, will be compulsorily reinvested within the scheme at applicable
NAV of the ex-date without any entry load and units will be allotted in lieu of dividend. However such units will be subject
to applicable exit load.
The Trustees propose to follow the following dividend distribution policy:
Dividends, if declared, will be paid out of the net surplus of the Scheme/Plan to those Unitholders whose names appear
in the Register of Unitholders on the record date. In terms of SEBI Circular No. 1/64057/06 dated April 4, 2006, the

61
Trustees shall fix the quantum of dividend and the record date. The AMC shall, within one calendar day of the decision
by the Trustee, issue notice to the public, communicating the decision, including the record date. The record date shall
be 5 calendar days after the issue of notice and issued in accordance with the terms of the Circular. Declaration of
dividend is subject to the availability of distributable surplus. It must be distinctly understood that the actual declaration of
dividends under the Scheme and the frequency thereof will, inter-alia, depend upon the distributable surplus of the
Scheme. There is no assurance or guarantee to Unitholders as to the rate of dividend distribution nor that dividend will
be regularly paid. The dividend that may be paid out of the net surplus of the Scheme will be paid only to those
Unitholders whose names appear in the register of Unitholders on the notified record date. Unitholders are entitled to
receive dividend within 30 days of the date of declaration of the dividend. However, the Mutual Fund will endeavour to
make dividend payments sooner to Unitholders.
WHO CAN INVEST?
The following persons are eligible and may apply for subscription to the Units of the Scheme (subject, wherever relevant,
to purchase of units of mutual funds being permitted under relevant statutory regulations and their respective constitutions):
1. Resident adult individuals either singly or jointly (not exceeding three);or on an Anyone or Survivor basis
2. Karta of Hindu Undivided Family (HUF);
3. Minors through parent/legal guardian;
4. Partnership Firms;
5. Companies, Bodies Corporate, Public Sector Undertakings, Association of Persons or bodies of individuals and
societies registered under the Societies Registration Act,1860;
6. Banks & Financial Institutions;
7. Mutual Funds registered with SEBI;
8. Religious and Charitable Trusts, Wakfs or endowments of private trusts (subject to receipt of necessary approvals
as required) and Private trusts authorised to invest in mutual fund schemes under their trust deeds;
9. Non-Resident Indians (NRIs)/ Persons of Indian origin residing abroad (PIO) on repatriation basis or on non-
repatriation basis;
10. Foreign Institutional Investors (FIIs) registered with SEBI on repatriation basis;
11. Army, Air Force, Navy and other para-military units and bodies created by such institutions;
12. Scientific and Industrial Research Organisations;
13. Multilateral Funding Agencies/Bodies Corporate incorporated outside India with the permission of Government of
India/Reserve Bank of India;
14. Other schemes of Mutual Funds subject to the conditions and limits prescribed by SEBI Regulations;
15. Trustee, AMC or Sponsor or their associates may subscribe to Units under the Scheme;
16. Such other individuals/institutions/body corporate etc., as may be decided by the Mutual Fund from time to time, so
long as wherever applicable they are in conformity with SEBI Regulations.
WHO CANNOT INVEST?
It should be noted that the following persons cannot invest in the Scheme(s):
1. Any person who is a Foreign national.
2. Overseas Corporate Bodies (OCBs) shall not be allowed to invest in the Scheme. These would be firms and
societies, which are held directly or indirectly but ultimately to the extent of at least 60% by NRIs and trusts in which
at least 60% of the beneficial interest is similarly held irrevocably by such persons (OCBs).
3. Non-Resident Indians residing in the USA and Canada or an FATF (Financial Action Task Force) non-compliant
country/territory.

62
 QUANTUM MUTUAL FUND
Quantum Gold Fund

The Fund reserves the right to include/exclude new/existing categories of Investors to invest in the Scheme from time to
time, subject to SEBI Regulations and other prevailing statutory regulations, if any.
Note:
1. In case of application under a Power of Attorney or by a limited company or a corporate body or an eligible
institution or a registered society or a trust fund, the original Power of Attorney or a certified true copy duly
notarised or the relevant resolution or authority to make the application as the case may be, or duly notarised copy
thereof, alongwith a certified copy of the Memorandum and Articles of Association and/or bye -laws and/or trust
deed and/or partnership deed and Certificate of Registration should be submitted. The officials should sign the
application under their official designation. A list of specimen signatures of the authorised officials, duly certified/
attested should also be attached to the Application Form. In case of a Trust/Fund it shall submit a resolution from
the Trustee(s) authorising such purchases and Repurchase/Redemptions.
Applications failing to fulfill the above-stipulated conditions are liable to be rejected
2. Returned cheques are not liable to be presented again for collection, and the accompanying application forms are
liable to be rejected. In case the returned cheques are presented again, the necessary charges, if any, are liable
to be debited to the investor.
3. No request for withdrawal of application made during the New Fund Offer Period will be entertained.
4. RBI has vide Schedule 5 of the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident
Outside India) Regulations, 2000, granted a general permission to NRIs/Persons of Indian Origin residing abroad
(PIOs) and FIIs for purchasing/Repurchasing/Redeeming Units of the mutual funds subject to conditions stipulated
therein
HOW TO APPLY?
1) A common application form would be applicable for investment to all classes of Investors.
2) Application forms would be available at the Official points of acceptance of transactions. Official points of acceptance
during the NFO period shall be the AMC's registered offices, offices of Quantum Information Services Pvt Ltd.,
Investor Service Centres of Deutsche Investor Services Private Limited and the HDFC Bank and BNP Paribas
Collection Centres listed in the back cover of this offer document. After the closure of the NFO the Official points of
acceptance shall be as listed in the last page of the offer document.
3) Applications complete in all respects, may be submitted before closure of the New Fund Offer Period at the Official
points of acceptance of transactions, or may be sent by mail to the Registrar, Deutsche Investor Services Private
Limited, Prospect Chambers, G 02 B, D.N. Road, Fort, Mumbai - 400001 or at Quantum Asset Management
Company Private Limited, 107, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021. Kindly retain the
acknowledgment slip initialed/stamped by the collecting agency.
4) Applications must be completed in Block Letters in English.
5) On an ongoing basis direct purchases from the Fund would be restricted to only Authorised Participants and
Eligible Investors, subject to applicable loads, if any. The Authorised Participants and Eligible or Large Investors
can directly buy/sell with the Fund in Creation Units Size. Units of QGF can be bought/sold like any other stock on
the National Stock Exchange of India Ltd. (NSE) or on any other exchange where it is listed. Applications for Sale/
Repurchase/Redemption of Units made after the NFO period shall be forwarded to the applicable official points of
acceptance as specified in the back cover of this offer document.
6) In order to protect the interest of Investors from fraudulent encashment of cheques, the current SEBI Regulations
have made it mandatory for Investors to mention in their application/Repurchase/Redemption request, the bank
name and account number. Applications without these details will be rejected.
7) All investors are required to furnish a copy of the Permanent Account Number (PAN) Card duly attested by a
Judicial Authority/Bank Manager/ARN Distributor/Notary Public/Gazetted Officer.

63
 In case of joint applicants, PAN details of all holders should be submitted. In case the person making an application
is a minor, PAN details of the guardian must be submitted. In case of applications where the amount is Rs 50,000/-
or above the application should be accompanied by the KYC acknowledgement. For details on KYC please refer to
page no. 71.
8) Applications not complete in any respect are liable to be rejected.
9) The Trustee shall, have absolute discretion to accept/reject any application for purchase of Units, if in the opinion
of the Trustee, increasing the size of the Scheme's Unit capital is not in the general interest of the Unitholders, or
the Trustee for any other reason believes it would be in the best interest of the Scheme or its Unitholders to accept/
reject such an application.
MODE OF PAYMENT
Residents
All cheques and bank drafts must be drawn in favour of "Quantum Gold Fund" and crossed "Account Payee Only" and
payment must be made by a single Cheque/DD, payable locally.
Resident Investors
For Investors having a bank account with such banks with whom the AMC would have an arrangement from time to time:
Payment may be made for subscription to the Units of the Scheme either by issuing a cheque drawn on such banks or
by giving a debit mandate to their account with any branch of such banks with whom the AMC would have an arrangement
from time to time.
For Investors other than Resident Investors:
Payment may be made by cheque or bank draft drawn on any bank, which is situated at and is a member of the Bankers'
Clearing House, located at the place where the application is submitted.
No cash, money orders, outstation cheques, post dated cheques and postal orders will be accepted. Bank charges
for outstation demand drafts will be borne by the AMC and will be limited to the bank charges stipulated by the Indian
Banks Association, in case of a demand draft issued by a bank in a place where there is no Official Point of Acceptance
provided for the Investors. In all other cases, the AMC will not accept any request for refund of demand draft charges.
NRIs/FIIs
Repatriation Basis
In case of NRIs, payment may be made either by inward remittance through normal banking channels or out of funds
held in their Non - Resident (External) Rupee Account (NRE)/Foreign Currency (Non-Resident) Account (FCNR).
FIIs shall pay their subscription either by inward remittance through normal banking channels or out of funds held in
Foreign Currency Account or Non-Resident Rupee Account maintained by the FII with a designated branch of an
authorised dealer.
Non Repatriation Basis
In the case of NRIs, payment may be made either by inward remittance through normal banking channels or out of funds
held in their NRE/FCNR/Non-Resident Ordinary Rupee Account (NRO)/Non-Resident (Special) Rupee Account (NRSR).

64
 QUANTUM MUTUAL FUND
Quantum Gold Fund

CHEQUE BOUNCING
In cases where the cheque(s) given by the Investor for the application made by him/her in the Scheme, are bounced (i.e.
not realised) on presentation to the Bank on which it is drawn, the AMC/Trustee/Mutual Fund reserves the right to reject
the application and also restrain the said Investor from making any further investment in any of the Schemes of the
Mutual Fund. The AMC/Trustee/Mutual Fund will not be responsible in any manner whatsoever for any losses/damages
caused to the Investor as result of the AMC/Trustee/Mutual Fund rejecting the application on the basis of cheque
bouncing and also for restraining the Investor from making any further investment in any of the Schemes of the Mutual
Fund.
The Investor/Unitholder shall indemnify the AMC/Trustee/Mutual Fund at all times and keep the AMC/Trustee/Mutual Fund
indemnified, saved and harmless against any and all claims, losses, damages, costs, liabilities and expense (including
without limitation, interest and legal fees) actually incurred, suffered or paid by the AMC/Trustee/Mutual Fund (directly or
indirectly) and also against all demands, actions, suits proceedings made, filed, instituted against the AMC/Trustee/Mutual
Fund (by the Investor or any third party), in connection with or arising out of or relating to the AMC/Trustee/Mutual Fund
rejecting the application of the Investor on the basis of cheque bouncing and/or also for restraining the Investor from
making any further investment in any of the Schemes of the Mutual Fund.
SINGLE FOLIO FACILITY
As an Investor friendly measure, unless otherwise requested by the Unitholder, one Folio Number will be assigned for
one Unitholder having holdings in different schemes of the Mutual Fund. In such a case, one consolidated Account
Statement will be provided. The number of Units allotted/Repurchased/Redeemed will be reflected in his or her account
and a statement to this effect will be issued to the Unitholder. The AMC reserves the right to assign the existing Folio
Number against multiple applications and/or subsequent purchases under a new application form by an existing Unitholder,
with identical mode of holding and address.
ACCOUNT STATEMENT
As per SEBI Regulations an account statement reflecting the Units allotted in the New Fund Offer shall be despatched to
the Unitholder within 30 days from the date of closure of the New Fund Offer Period. Post the New Fund Offer Period, if
a request is received from the Unitholders, the account statement reflecting the new or additional subscriptions as well as
Redemptions/Switch of Units shall be dispatched within 30 days from the receipt of the request to the Unitholder.
The Account Statement shall not be construed as a proof of title and is only a computer generated statement indicating
the details of transactions under the Scheme and is a nontransferable document.
UNITS WITH DEPOSITORY
Units of the Scheme will be held with a Depository. Under such circumstances, Units will be transferable in accordance
with the provisions of Depositories Act, 1996 and the Securities and Exchange Board of India. (Depositories and
Participants) Regulations, 1996 as may be amended from time to time.
JOINT HOLDERS
In the event the account has more than one registered Unitholder the first-named Unitholder shall receive the account
statements, all notices and correspondence with respect to the account, as well as the proceeds of any Repurchase/
Redemption requests or Dividends or other distributions. In addition, such holder shall have the voting rights, as permitted,
associated with such Units as per the applicable guidelines.
The Unitholder must specify the 'mode of holding' in the application form as 'Jointly' or 'Anyone or Survivor'. In the case
of holding specified as 'Jointly', Repurchase/Redemptions would have to be signed by all joint Unitholders. However, in
cases of holding specified as 'Anyone or Survivor', any one of the Unitholders will have the power/authority to make
Repurchase/Redemption requests, without it being necessary for all the Unitholders to sign. However, in all cases, the
proceeds of the Repurchase/Redemption will be paid to the first-named Unitholder. In the event the account has more
than one registered Unitholder and the mode of holding is not specified in the application form, the default mode of
holding would be considered to be 'Anyone or Survivor'.
In case of death/insolvency of any one or more of the persons named in the Register of Unitholders as the joint holders
of any Units, the AMC shall not be bound to recognise any person(s) other than the remaining holders. In all such cases,
the proceeds of the Repurchase/Redemption will be paid to the first-named of such remaining Unitholders.

65
NOMINATION FACILITY
Pursuant to Regulation 29A of the SEBI Regulations, the AMC is providing an option to the Unitholder to nominate (in the
manner prescribed under the SEBI Regulations), a person in whom the Units held by him/her shall vest in the event of
his/her death. Where the Units are held by more than one person jointly, the joint Unitholders may together nominate a
person in whom all the rights in the Units shall vest in the event of death of all the joint Unitholders. By provision of this
facility the AMC is not in any way attempting to grant any rights other than those granted by law to the nominee. A
nomination in respect of the Units does not create an interest in the property after the death of the Unitholder. The
nominee shall receive the Units only as an agent and trustee for the legal heirs or legatees as the case may be. It is,
hereby, clarified that the nominees under the nomination facility provided herein shall not necessarily acquire any title or
beneficial interest in the property by virtue of this nomination.
Non-individuals including society, trust, body corporate, partnership firm, Karta of Hindu Undivided Family, holder of
Power of Attorney cannot nominate. The Nominee shall not be a trust other than a religious or charitable trust, society,
body corporate, partnership firm, Karta of Hindu Undivided Family or a Power of Attorney holder. A minor can be
nominated and in that event, the name and address of the guardian of the minor nominee shall be provided by the
Unitholder.
Nomination can also be in favour of the Central Government, State Government, local authority, any person designated
by virtue of these offices or a religious or charitable trust. A non-resident Indian can be a Nominee subject to the
exchange controls regulations in force from time to time. Nomination in respect of the Units stands rescinded upon the
Repurchase/Redemption of Units. Cancellation of nomination can be made only by those individuals who hold Units on
their own behalf singly or jointly and who made the original nomination. On cancellation of the nomination, the nomination
shall stand rescinded and the Mutual Fund/AMC shall not be under any obligation to transfer the Units in favour of the
nominee. The nomination facility extended under the Scheme is in accordance with SEBI regulations and subject to other
applicable laws. Transmission of the Units in the name of the nominee shall discharge the AMC from any liability towards
the successor(s)/heir(s) of the deceased Unitholder(s). However, the AMC may request the nominee to execute suitable
indemnities in favour of the AMC, and to submit necessary documentation to the satisfaction of the Mutual Fund before
transmitting Units to his/her favour. Nominations received in the form prescribed by the Mutual Fund alone shall be valid.
The AMC shall, subject to production of such evidence, which in their opinion is sufficient, proceed to effect the payment
to the Nominee. Transmission of Units/payment to the nominee of the sums shall discharge the Mutual Fund/AMC of all
liability towards the estate of the deceased Unitholder and his/her/their successors/legal heirs.
In case of joint holders all holders will have to sign on the Nomination Form and all holders will have to jointly
appoint only one nominee. There cannot be different nominees for joint holders.
Further, if either the Mutual Fund and/or the AMC incur any loss whatsoever arising out of any litigation or harm that it
may suffer in relation to the nomination, they will be entitled to be reimbursed absolutely from the deceased Unitholders'
estate.
Investors/Unitholders are advised to read the instructions carefully before nominating.
The AMC/Trustee can call for such documents from the nominee as the AMC/Trustee deems necessary.
In cases where the Units are pledged/charged, the nominee shall not be entitled to the transmission of Units in his/her
name until the entity to which the Units are pledged/charged provides written authorisation to the Mutual Fund to transmit
the Units to the nominee. Further the nominee on transmission shall not be able to redeem/switch Units that are pledged/
charged until the entity to which the Units are pledged provides written authorisation to the Mutual Fund that the pledge/
charge may be removed. As long as Units are pledged, the Pledgee will have complete authority to Redeem/Repurchase
such Units.
In case of Pledge of Units, the obligation of the pledge shall be transmitted to the nominee. The Units will be transmitted
to the nominee only on production of an NOC by the nominee
HOUSEHOLDINGS
When newsletters are sent to each Unitholder by post/courier it may result in certain households with one or more
members as the Unitholders of the Scheme getting multiple copies. In such cases the AMC will club the database and
send each such "household" a single newsletter. The AMC feels that this will not inconvenience the Unitholders. In case
it does, Unitholders may write to the AMC, for additional copies.

66
 QUANTUM MUTUAL FUND
Quantum Gold Fund

WEB TRANSACTIONS
The Mutual Fund may allow Subscriptions/Redemption/Repurchase of Units by electronic mode through the AMC's
website or the website(s) with which the AMC would have an arrangement from time to time. Normally, the subscription
proceeds, when invested through this mode, are directly credited to the designated bank collection account of the
Scheme. The Repurchase/Redemption proceeds, (subject to deduction of tax at source, if any) through this mode, are
directly credited to the bank account of the Investors who have an account at the designated banks with whom the AMC
has made arrangements from time to time. The intermediary will aggregate the data and forward the same to the AMC/
ISC for processing. Unitholders may request for change of address/bank account etc. through this mode provided, such
web-site(s) provide for this facility. The Mutual Fund, the AMC, the Trustee, along with its directors, employees and
representatives shall not be liable for any damages or injuries arising out of or in connection with the use of the
website(s) or its non-use including non-availability or failure of performance, loss or corruption of data, loss of or damage
to property (including profit and goodwill), work stoppage, computer failure or malfunctioning or interruption of business;
error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communication line
failure, unauthorised access or use of information. The system generated date and time of receipt of a confirmed
application from an investor for purchase/re-purchase/redemption, switch-in or switch-out shall be considered for the
purpose of determining the applicable NAV.
TRANSFER FACILITY
1. As the units of the Scheme will be issued in demat (electronic) form, the units will be transferable in accordance
with the provisions of SEBI (Depositories and Participants) Regulations, as may be amended from time to time.
2. Transfer would be only in favor of transferees who are capable of holding units. The Fund will not be bound to
recognize any other transfer.
3. The delivery instructions for transfer of units will have to be lodged with the DP in the requisite form as may be
required from time to time and transfer will be effected in accordance with such rules/regulations as may be in force
governing transfer of securities in dematerialized mode.
LISTING
After the allotment of units, the units of the Scheme will be listed, within the time limit prescribed under the Regulations,
on recognized stock exchange (s) having nation wide spread of trading terminals. The AMC would make an application
to the recognized Stock Exchange to list the units on the Exchange immediately after the allotment is completed.
Expenses of Initial Issue
The Initial Issue expenses for the Scheme will be met by the AMC.
Applicable NAV
The Fund creates/redeems units of QGF in creation (minimum) unit size by exchange of underlying physical Gold
(Portfolio Deposit) and Cash Component. The Fund will declare the Portfolio Deposit and Cash Component on its
website www.QuantumAMC.com daily morning and the same would be applicable for creating and redeeming unit size
for that working day.
However, a lien on the units so allotted will be created on the day of transaction and such units shall not be available
for Repurchase/Redemption until the payment proceeds are realized by the Scheme. In case the cheque/draft is dishonored
by the Bank, the transaction shall be reversed and the Units allotted earlier shall be cancelled and the Unitholder will be
informed accordingly.
Subscriptions made through Stock Exchanges/demat mode will be made by specifying the number of Units to be subscribed
and not the amount to be invested. The AMC reserves the right to change the basis for subscription through demat mode
from unit basis to any other basis.

67
PLEDGE OF UNITS
Pledge Of Units
The unit holders may pledge units of the Scheme in favor of banks/other financial institutions/non-banking financial
companies as a security for raising loans. As the units of the Scheme will be issued and held in Demat form, the rules
of Depository applicable for pledge will be applicable for Pledge/Assignment of the units of the Scheme. Pledgor and
Pledgee must have a beneficial account with the Depository. These accounts can be with the same Depository Participant
(DP) or with different DPs. Pledgor will instruct its DP to create a pledge request by submitting a "Pledge Form" with a
tick on "Create Pledge". Pledgor will inform the pledgee about the creation of pledge request by giving a copy of the
pledge report obtained from its DP. Pledgee may instruct its DP to confirm the creation of pledge by submitting a "Pledge
Form" with a tick on "Confirm creation of Pledge". The pledge gets created in favour of the pledgee only when the
pledgee's DP confirms the creation of pledge in the system. Pledge does not get created in the System until the
Pledgee's DP confirms the pledge. Pledgee may obtain pledge report from its DP and verify creation of pledge.
After the loan is repaid, the pledgor will instruct its DP to close the pledge by submitting the "Pledge Form" with a tick on
"Close Pledge". The pledgee will instruct its DP to confirm the closure of pledge by submitting the "Pledge Form" with a
tick on "Confirm Closure of Pledge".
The pledge is closed in the system on executing the instruction in the system by both the DPs. A pledgor's DP alone
cannot close the pledge. If the loan is not repaid, the pledgee, after giving notice to the pledgor as per the terms of the
agreement, may instruct its DP to invoke the pledge by submitting the "Pledge Form" with a tick on "Invoke Pledge". On
execution of this instruction, the securities are transferred into the pledgee's account. This does not require any confirmation
from the pledgor.
The pledgor will continue to receive dividend on the pledged securities. The pledgee will get the benefits only if a pledge
is invoked and on record date the shares are in the pledgee's account.
The Units under the Scheme may be offered as security by way of a pledge/charge in favour of scheduled banks,
financial institutions, non-banking finance companies (NBFC's), or any other body. The AMC and/or the ISC will note and
record such Pledged Units. A standard form for this purpose is available on request from any of the ISCs. The AMC shall
mark a lien only upon receiving the duly completed form and documents as it may require. Disbursement of such loans
will be at the entire discretion of the bank/financial institution/NBFC or any other body concerned and the Mutual Fund
assumes no responsibility thereof.
The Pledgor will not be able to Repurchase/Redeem Units that are pledged until the entity to which the Units are
pledged provides written authorisation to the Mutual Fund that the pledge/lien charge may be removed.
Bank Details
In order to protect the interest of Unitholders from fraudulent encashment of cheques, the current SEBI Regulations, has
made it mandatory for investors to mention in their Application/Repurchase/Redemption request, their bank name and
account number. The normal processing time may not be applicable in situations where such details are not provided by
Investors/Unitholders. The AMC will not be responsible for any loss arising out of fraudulent encashment of cheques and/
or any delay/loss in transit.
Redemptions by NRIs/FIIs
Credit balances in the account of an NRI/FII Unitholder, may be repurchased/redeemed by such Unitholder in accordance
with the procedure described above and subject to any procedures laid down by the RBI, if any. Payment to NRI/FII
Unitholders will be subject to the relevant laws/guidelines of the RBI as are applicable from time to time (subject to
deduction of tax at source as applicable) and will be made as under:
In the case of NRIs :
(i) Credited only to NRSR account of the NRI investor where the payment for purchase of Units repurchased/redeemed
was made out of funds held in NRSR account or
(ii) Credited, at the NRI investor's option, to his/her NRO or NRSR account, where the payment for the purchase of the
Units repurchased/redeemed was made out of funds held in NRO account or

68
 QUANTUM MUTUAL FUND
Quantum Gold Fund

(iii) Remitted abroad or at the NRI investor's option, credited to his NRE/FCNR/NRO/NRSR account, where the Units
were purchased on repatriation basis and the payment for the purchase of Units repurchased/redeemed was made
by inward remittance through normal banking channels or out of funds held in NRE/FCNR account.
In the case of FII's
Credit the net amount of Repurchase/Redemption proceeds of such Units to the foreign currency account or Non-
Resident Rupee Account of the FII investor. Pursuant to Government of India Notification No. GSR (381) E dated May 3,
2000, transactions which are not specifically prohibited under the Foreign Exchange Management (Current Account
Transactions) Rules, 2000 or which are not included in Schedule II (transactions specified in this Schedule require prior
approval of the Government of India) or Schedule III (transactions specified in this Schedule require prior approval of
Reserve Bank of India) may be permitted by authorised dealers without any monetary/percentage ceilings subject to
compliance with the provisions of Section 10(5) of the Foreign Exchange Management Act, 1999.
Right To Limit Repurchases/Redemptions
The AMC may, in the general interest of the Unitholders of the Scheme, keeping in view the unforeseen circumstances/
unsure conditions, limit the total number of Units which may be Repurchased/redeemed on any Business Day to 5% of
the total number of Units of the scheme then in issue (or such higher percentage as the AMC may decide in any
particular case). In addition, the Trustee reserves the right, in its sole discretion, to limit Repurchases/Redemptions with
respect to any single account to an amount of Rs. 2 crore on a single Business Day. Any Units which by virtue of these
limitations are not Repurchased/Redeemed on a particular Business Day will be carried forward for Repurchase/
Redemption to the next Business Day, in order of receipt. Repurchases/Redemptions so carried forward will be priced on
the basis of the Repurchase/Redemption Price of the Business Day on which Repurchase/Redemption is made. Under
such circumstances, to the extent multiple Repurchase/Redemption requests are received at the same time on a single
Business Day, Repurchase/Redemption will be made on pro-rata basis, based on the size of each Repurchase/Redemption
request, the balance amount being carried forward for Repurchase/Redemption to the next Business Day(s).
Official Points of Acceptance of Transactions
All applications for repurchase/redemption of Units should be submitted by investors at the official point of acceptance of
transaction as may be notified by the AMC from time to time. Present list of the official points of acceptance are listed on
the back cover of this offer document. Please refer to the application form and/or website of the Mutual Fund for the
updated list from time to time.
Unclaimed Redemption Amount
The Unclaimed redemption and dividend amounts may be deployed by the Fund in call money market or money market
instruments only and the investors who claim these amounts during a period of 3 years from the due date shall be paid
at the prevailing Net Asset Value. After a period of 3 years, this amount will be transferred to a pool account and the
investors can claim the amount at NAV prevailing at the end of the third year. The income earned on such funds may be
used for the purpose of investor education. The AMC will make a continuous effort to remind the investors through letters
to take their unclaimed amounts. Further, the investment management fee charged by the AMC for managing unclaimed
amounts shall not exceed 50 basis points.
SUSPENSION OF SALE/REPURCHASE/REDEMPTION/SWITCHING OPTIONS OF THE UNITS
The Mutual Fund at its sole discretion reserves the right to withdraw Sale and/or Repurchase/Redemption or Switching of
the Units in the Scheme temporarily or indefinitely, if in the opinion of the AMC the general market conditions are not
favourable and/or suitable investment opportunities are not available for deployment of funds. However, the suspension
of Sale/Repurchase/Redemption/Switching either temporarily or indefinitely will be with the approval of the Trustee.
The Sale, Repurchase/Redemption and Switching of the Units may be temporarily suspended under the following
conditions:
1. When one or more stock exchanges or markets, which provide basis for valuation for a substantial portion of the
assets of the Scheme are closed otherwise than for ordinary holidays.
2. When, as a result of political, economic or monetary events or any circumstances outside the control of the Trustee
and the AMC, the disposal of the assets of the Scheme are not reasonable, or would not reasonably be practicable
without being detrimental to the interests of the Unitholders.

69
3. In the event of breakdown in the means of communication used for the valuation of investments of the Scheme,
without which the value of the securities of the Scheme cannot be accurately calculated.
4. During periods of extreme volatility of markets, which in the opinion of the AMC are prejudicial to the interests of
the Unitholders of the Scheme.
5. In case of natural calamities, war, strikes, riots and bandhs.
6. In the event of any force majeure or disaster that affects the normal functioning of the AMC or the ISC or Registrar.
7. During the period of Book Closure.
8. If so directed by SEBI.
The AMC reserves the right in its sole discretion to withdraw the facility of Sale and Switching Option of Units into and
out of the Scheme, temporarily or indefinitely, if AMC views that changing the size of the corpus may prove detrimental
to the existing Unitholders of the Scheme.
In the above eventualities, the time limits indicated, for processing of requests for sale and Repurchase/redemption of
Units will not be applicable. Suspension or restriction of Repurchase/Redemption facility shall be made applicable only
after the approval of the Board of Directors of the AMC and the Trustee. The approval from the AMC Board and the
Trustee Board giving details of circumstances and justification for the proposed action shall also be informed to SEBI in
advance.
PERSONAL IDENTIFICATION NUMBER (PIN)
The PIN facility is proposed to be provided to only those Unitholders who indicate their desire to avail of this facility and
who also indicate their Bank Account No., name of the Bank and Branch in the application form for purchasing Units. As
and when this facility is offered the Registrar will, within 30 days of allotment of Units, mail to such Unitholders, the 'PIN
Agreement' together with detailed terms and conditions subject to which its usage is permitted. On receipt of the PIN
Agreement' duly signed, the PIN will be mailed to each Unitholder. Unitholders may use the PIN to transact online to
request a sale/subscription, Repurchase/Redemption, a switch or an address change or by calling the Investor Service
Centre as and when the telephone facility is made available. The Unitholder will be asked for the PIN before the request
is accepted. In the interest of the Unitholder, the Investor Service Centre officials reserve the right to ask for a fax
confirmation of the request and any other additional information about the account of the Unitholder.
This PIN should never be disclosed to any person or written down where any other person may discover it. Any such
disclosures or inadequate protection of the confidentiality of the PIN is entirely at the Unitholder's risk. All transactions
conducted with use of this PIN will be the responsibility of the Unitholder and the Unitholder will abide by the record of
the transactions generated. The Fund and the Registrar shall not accept any responsibility for the unauthorised use of the
PIN.
Prevention of Money Laundering
In terms of the Prevention of Money Laundering Act, 2002, the Rules issued there under and the guidelines/circulars
issued by SEBI regarding the Anti Money Laundering (AML Laws), all intermediaries, including Mutual Funds, have to
formulate and implement a Client Identification Programme, verify and maintain the record of identity and address(es) of
investors.
In order to make the data capture and document submission easy and convenient for the investors, Mutual Fund Industry
has collectively entrusted this responsibility of collection of documents relating to identity and address and record keeping
to an independent agency (presently CDSL Ventures Limited) that will act as central record keeping agency ('Central
Agency'). As a token of having verified the identity and address and for efficient retrieval of records, the Central Agency
will issue a Know Your Customer Compliance Letter (KYC Letter) to each investor who submits an application and the
prescribed documents to the Central Agency.
Investors who have obtained the KYC Letter can invest in the schemes of the mutual fund by attaching the KYC Letter in
lieu of submitting information and documents required under AML Laws.

70
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Know-Your-Customer Compliance Letter (KYC Letter)

Investors who wish to obtain a KYC Letter have to submit a completed Application Form for KYC Letter ('KYC Form')
along with all the prescribed documents listed in the KYC Form, at any of the Point of Service ('POS'). The KYC Form is
available at our website (www.QuantumAMC.com) and AMFI website (www.amfiindia.com). POS are the designated
centres appointed by the Central Agency for receiving application forms, processing data and issue of KYC Letter. List of
and location of POS is available at our website (www.QuantumAMC.com) and www.amfiindia.com. On submission of
application, documents and information to the satisfaction of the POS, the investor will be issued a KYC acknowledgement
across the counter. Subsequently, the Central Agency will scrutinize the information and documents submitted by the
investor and the Central Agency may cancel the KYC acknowledgement within 15 working days from the date of issue of
the same, in case of any deficiency in the document/information. Intimation on such cancellation will be dispatched by the
Central Agency to the investor immediately. No communication will be sent to the investor if the KYC acknowledgement
as issued is confirmed.
Presently, it is mandatory for all applications for subscription of value of Rs.50,000/- and above to attach the KYC
acknowledgement of all the applicants (guardian in case of minor) alongwith the application for subscription. Applications
for subscriptions of value of Rs.50,000/- and above without a valid KYC acknowledgement may be rejected.
In the event of any KYC Application Form being subsequently rejected for lack of information / deficiency / insufficiency
of mandatory documentation, the investment transaction will be cancelled and the amount may be redeemed at applicable
NAV, subject to payment of exit load, wherever applicable. Such redemption proceeds will be despatched within a
maximum period of 21 days from date of acceptance of application. (In case of an ELSS Scheme or a New Fund Offer,
allotment will be done only on confirmation from the Central Agency of the KYC registration is final and if the Central
Agency informs that the KYC acknowledgement is cancelled, the original amount invested will be refunded).
All investors (both individual and non-individual) can apply for a KYC registration. However, applicants should note that
minors cannot apply for a KYC registration and any investment in the name of minors should be along with a Guardian,
who should obtain a KYC registration for the purpose of investing with a Mutual Fund. Also, applicants / unit holders
intending to apply for units / currently holding units and operating their Mutual Fund folios through a Power of Attorney
(PoA) must ensure that the issuer of the PoA and the holder of the PoA must attach their respective KYC acknowledgement
at the time of investment above the threshold. PoA holders are not permitted to apply for a KYC registration on behalf of
the issuer of the PoA. Separate procedures are prescribed for change in name, address and other KYC registration
related details, should the applicant desire to change such information. POS will extend the services of effecting such
changes.
Applicants / Unit holders may contact our Official Points of Acceptance/Investor Service Centers (ISCs) for any additional
information/clarifications. Also, please visit our website www.QuantumAMC.com for any other related information.
IDENTIFICATION DOCUMENTS
The requisite identification documents should be submitted along-with the application form for subscription of Units such
as the identity documents as may be required by the AMC as specified in the earlier clause on the KYC Policy and in
case of application by non-individuals certified copy of resolution, list of authorised signatories, a certified copy of the
Memorandum & Articles of Association and/or bye-laws and/or Trust Deed and/or Partnership Deed and certificate of
registration or any other document, as the case may be. In case where the required documents are not submitted by the
Investor at the time of making the application, the AMC/Trustee/Mutual Fund reserves the right to withhold the Redemption
request/reject the application of the said Investor till the required documents are received by the AMC/Trustee/Mutual
Fund/its Agents from the said Investor. The AMC/Trustee/Mutual Fund shall not be responsible in any manner whatsoever
for any losses/damages caused to the Investor as a result of the AMC/Trustee/Mutual Fund/its Agents withholding the
Redemption request of the said Investor till the required documents are received by the AMC/Trustee/Mutual Fund from
the said Investor.
FREEZING/SEIZURE OF ACCOUNTS
Investors may note that under the following circumstances the Trustee/AMC may at its sole discretion (and without being
responsible and/or liable in any manner whatsoever) freeze/seize a Unitholder's account (or deal with the same in the
manner the Trustee/AMC is directed and/or ordered) under a Scheme:
a. Under any requirement of any law or regulations for the time being in force.
b. Under the direction and/or order (including interim orders) of any regulatory/statutory authority or any judicial
authority or any quasi-judicial authority or such other competent authority.

71
 SECTION IV

LOAD STRUCTURE
The maximum Load chargeable under SEBI (MF) Regulations is as under:
Type of Transactions As a % of NAV
Sales Load Upto 7%
Sales Load, if any, on issue of Units in lieu of dividends NIL
Contingent deferred sales load Upto 4%
Switchover load Upto 7%
Repurchase/redemption load Upto 7%
Current Load Structure
Currently the Fund intends to charge the following load to investors in Quantum Gold Fund:
Particulars During New Fund Offer period On an Ongoing basis*
(% of NAV) (% of NAV)
Authorised Eligible Retail Authorised Eligible
Participant Investor Investor Participant Investor
Sales Load Nil Nil Nil Nil Nil
Sales Load on issue of Units in lieu Nil Nil Nil Nil Nil
of dividends
Contingent deferred sales load Nil Nil Nil Nil Nil
Repurchase/Redemption load Nil 0.5% Facility Not Available Nil 0.5%
** Switch out load Nil 0.5% Facility Not Available Nil 0.5%
** Switch In Load Nil Nil Nil Nil Nil
* Direct Purchase/Redemption by Retail Investors with the Fund, on an on going basis is not permitted.
** Switch Out/Switch In Load: Please refer to the section 'Switching Option' on Page No.16 for further details on the
Switching Option.
The Repurchase/Redemption price shall not be lower than 93% of the NAV and the sale price shall not be higher
than 107% of the NAV and the difference between the repurchase price and sale price shall not exceed 7% on the
sale price.
Modification of the Load Structure:
Subject to the Regulations, the AMC reserves the right to modify/alter the Load structure if it so deems fit in the interest
of smooth and efficient functioning of the Mutual Fund. Any imposition or enhancement of Load in future shall be
applicable on prospective investments only.
At the time of changing the Load Structure, the AMC shall take the following steps:
I. The addendum detailing the changes will be attached to Offer Document and Abridged Offer Document. The
addendum will be sent alongwith the newsletter sent to the Unitholders immediately after the changes.
II. Arrangements will be made to display the changes/modifications in the Offer Document in the form of a notice in all
the Investor Service Centres of the AMC.
III. Changes in the load structure may be stamped in the acknowledgement slip issued by the Fund after the changes
in load structure. The Changes may also be disclosed in the Statement of Accounts issued after introduction of
such load.
IV. In case the Fund introduces an Entry Load, it shall not charge any additional management fee under the Scheme.

72
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Further, the Fund's policy on charging the Exit Load after the recovery of Initial Issue Expenses will be as per
Regulations. The introduction of the Exit Load alongwith the details will be disclosed in the Account Statement or
in the covering letter issued to the Unitholders after the introduction of such Load. However, the maximum load for
any of the Plans will not exceed the limits as prescribed under the Regulations.
Utilisation of Load
The Load collected from the Unitholders will be credited to a separate account under each Plan and will be offset against
distribution and marketing expenses. Surplus of Load, if any, charged over planned marketing and distribution expenses
to be defrayed will be credited to the respective Plans whenever felt appropriate by the AMC.
FEES AND EXPENSES OF THE SCHEME
INITIAL ISSUE EXPENSES
1. Present Scheme - QUANTUM GOLD FUND:
The AMC shall pay all expenses including but not limited to any fees payable for any advice required by it in connection
with the performance of its services hereunder including all remuneration and other sums payable for any reason to any
person, firm, company or institution to whom the whole or any part of the AMC's functions hereunder have been delegated
(such delegation shall always be subject to the approval of the Trustee and under supervision and at the responsibility
of the AMC).
Estimated Initial Issue Expenses (as a % of resources raised)
Initial Issue Expenses for the present scheme are estimated as under:
Expenses Estimated % of resources raised
Advertising, Marketing & Distribution Expenses 0.60
Registrar's Expenses 0.10
Printing, Postage & Miscellaneous Expenses 0.10
Legal Expense 0.20
Total 1.00
The entire amount subscribed by the investor in the Scheme in the New Fund Offer will be available for investment.
2. Old/Existing Schemes:
The following schemes were launched during the Financial Years 2005-06 and 2006-07:
"Quantum Long-Term Equity Fund" (QLTEF) was the first scheme launched in February, 2006;
"Quantum Liquid Fund" (QLF) was launched in April 2006.
Details of Initial Issue Expenses of QLTEF & QLF:
*QLTEF QLF
Particulars Estimated % Actual % Estimated % Actual %
Advertising Expenses 2.00 1.73 1.08 0.00
Registrars Expenses 0.10 0.05 0.05 0.03
Printing, Postage# 0.50 0.20 0.04 0.02
Marketing & Distribution Expenses^ 1.00 0.50 0.30 0.01
Fund Formation & Legal Expenses 0.90 0.08 0.03 0.02
Total 4.50 2.56 1.50 0.08
* The entire initial issue expenses of Rs 0.27 crores, constituting 2.56% of the amount mobilized during the New Fund
Offer, was borne by the Scheme;
# Includes Miscellaneous expenses in case of QLTEF;
^ Includes Miscellaneous expenses in case of QLF;
The entire initial issue expenses were borne by the AMC.

73
ANNUAL SCHEME RECURRING EXPENSES
Estimated Annual Scheme Recurring Expenses (as a % of Average Weekly Net Assets)
The AMC has estimated the expenses under the Scheme as per the table below:
Particulars % of Avg Weekly Net Assets
Investment Management & Advisory Fees 0.50
Trustee Fees 0.05
Custodian Fees 0.45
Registrar & Transfer Agent Fees 0.03
Marketing & Selling Expenses 0.05
Audit Fees & Other Expenses 0.17
Total Annual Recurring Expenses 1.25
Note : The purpose of the table is to assist the investor in understanding the various costs and expenses that an Investor
in the Scheme will bear directly or indirectly.
The above expenses are subject to change including inter-se changes and may increase/decrease as per actual and/or
any change in the Regulations. These estimates have been made in good faith as per information available with the
AMC and the total expenses may be more than as specified in the table above. However, as per the Regulations, the
total recurring expenses that can be charged to this Scheme shall be subject to the applicable guidelines, as stated
below. Expenses over and above the permitted limits will be borne by the AMC.
As per the SEBI Regulations, the maximum recurring expenses, including the Investment management and advisory fee,
that can be charged to the Scheme shall be subject to a percentage limit of average weekly net assets as given in the
table below. Subject to the SEBI Regulations and the Offer Document, expenses over and above the prescribed ceiling
will be borne by the AMC.
Average weekly net assets % limit
First Rs. 100 Crores 2.50%
Next Rs. 300 Crores 2.25%
Next Rs. 300 Crores 2.00%
Over Rs. 700 Crores 1.75%
However, the following expenses cannot be charged to the Scheme:
z Penalties and fines for infraction of laws.
z Interest on delayed payment to the Unitholders.
z Legal, marketing, publication and other general expenses not attributable to the Scheme.
z Expenses on investment/general management.
z Expenses on general administration, corporate advertising and infrastructure costs.
z Depreciation on fixed assets and software development expenses.
z Such other costs as may be prohibited by SEBI.
The recurring expenses of the Schemes, and the additional management fee, if any, shall be as per the limits prescribed
under Sub-Regulations(6) of Regulations 52 of the Regulations and shall not exceed the limits prescribed thereunder.
As per the SEBI Regulations, the AMC is entitled to an Investment Management and Advisory fee at the rate of 1.25%
per annum of the weekly average net assets outstanding in each accounting year for the Scheme(s), as long as the net
assets do not exceed Rs. 100 crore and 1.00% of the excess amount over Rs. 100 crore, where net assets so calculated
exceed Rs. 100 crore. For Scheme(s) launched on a no load basis, the AMC is entitled to collect an additional management
fee not exceeding 1% of the weekly average net assets outstanding in each financial year. However such additional

74
 QUANTUM MUTUAL FUND
Quantum Gold Fund

management fees shall only be chargeable till the actual initial expenses borne by the AMC, limited to the maximum
extent of 6% of the initial mobilisation, are recovered.
An example for calculation of NAV when the expenses of the Scheme are met from the Cash held by the Scheme and
if cash is not sufficient, then Gold held by the Scheme would be sold:
Year 1 2 3 4 5
Price of Gold per gram 947.00 947.00 947.00 947.00 947.00
Gram of Gold per each unit of the Scheme 0.495 0.495 0.495 0.490 0.490
Net Assets of the Scheme 94,700,000.00 94,226,500.00 93,755,367.50 93,286,590.66 92,820,157.71
No. of Units of the Scheme 200,000.00 200,000.00 200,000.00 200,000.00 200,000.00
Gold Held by the Scheme in Grams 99,000.00* 99,000.00* 99,000.00 98,000.00 98,000.00
Portfolio Value (i.e. Value of Gold held by the Scheme) 93,753,000.00 93,753,000.00 93,753,000.00 92,806,000.00 92,806,000.00
Cash 947,000.00 473,500.00 2,367.50 480,590.66** 14,157.71
NAV per unit*** 473.50 471.13 468.78 466.43 464.10
Annual Expenses
Expenses as a % daily Net Assets 0.50 0.50 0.50 0.50 0.50
Expenses (in Rs.) 473,500.00 471,132.50 468,776.84 466,432.95 464,100.79
Quantity of gold sold to meet expenses (in Grams) - - 1,000.00 - 1,000.00
Total Value of gold sold to meet expenses - - 947,000.00 - 947,000.00
* In initial year scheme envisages that cash component is sufficient to meet expenses. Hence gold may be sold for
recurring expenses in later years.
** In later years, say Year 4, cash component value also includes the value of gold sold for meeting expenses.
*** In the given example, NAV per unit reflects the Net Asset Value arrived at the beginning of the year.
The above example is to illustrate the effect of the expenses on the NAV of the Scheme. The following points have been
considered for the above example:
1. The Fund would be holding cash. So any expenses would be first met from the cash held by the Scheme.
2. When the cash is not sufficient to meet the expenses, then Gold would be sold.
3. As and when Gold is required to be sold, it would be sold in quantity of 1 kg.
4. For the purposes of this example and sake of simplicity, expenses considered are 0.50% per annum on the Net
Assets of the Scheme.
5. For the purposes of this example and sake of simplicity, Cash held in the Scheme in the initial year is taken as 1%
of the Net Assets of the Scheme.
6. As and when Gold is sold to meet the expenses, the balance amount remaining after meeting the expenses forms
part of the Cash held by the Scheme and is reflected in the Net Assets of the Scheme.
7. The NAV of the Scheme would increase or decrease if there is an increase or decrease in the price of Gold.

75
CONDENSED FINANCIAL INFORMATION:
Historical Per Unit Statistics Quantum Long-Term Equity Fund Quantum
(Growth and Dividend Option) Liquid Fund
For the Period For the Period For the Period
March 13, 2006 to April 1, 2006 to April 7, 2006 to
March 31, 2006 March 31, 2007 March 31, 2007
Date of Allotment March 13, 2006 April 7, 2006
NAV as on March 13, 2006 (Rs. per unit) 10.00 N.A. N.A.
NAV as on April 7, 2006 (Rs. per unit) N.A. N.A. 10.00
NAV as on April 1, 2006 (Rs. per unit) N.A. 10.23 N.A.
Net Income per unit (Rs. per unit) Nil 0.41 0.44
Dividends : (Rs. per unit)
Daily Dividend Plan Nil Nil 0.33986733
Monthly Dividend Plan Nil Nil 0.32896215
Transfer to reserves (if any) (Rs. in crores) 0.26 3.90 0.64
NAV at the end of the year (Rs. per unit):
Growth Plan 10.23 11.47 10.6875
Dividend Plan 10.23 11.47 N.A.
Daily Dividend Plan N.A. N.A. 10.00
Monthly Dividend Plan N.A. N.A. 10.0193
Annualised return (%) 2.30%* 12.12% 6.88%**
Benchmark:
QLTEF - BSE 30 Total Return Index 4.45%* 19.17%
QLF - CRISIL Liquid Fund Index 5.9988**
Net Assets at the end of period (Rs. in Crores) 11.26 30.45 30.00
Ratio of Recurring Expenses to net assets (%) 2.50% 2.50% 0.45%
N.A. - Not Applicable
* Absolute returns for the period March 13, 2006 to March 31, 2006;
** Absolute returns for the period April 7, 2006 to March 31, 2007.
Amount of Borrowings - Nil; Purpose of Borrowings N.A.
Notes:
1. "Quantum Liquid Fund" (QLF) has not completed a full year of operation. The information is furnished for the period
April 1, 2006 to March 31, 2007.
2. Since QLF has been launched during the year, the returns are computed in absolute terms from the date of the
launch of the Scheme.
3. Date of allotment is deemed to be date of launch.
4. Returns exclude exit load, if any; neither QLTEF nor QLF charges entry load.

76
 QUANTUM MUTUAL FUND
Quantum Gold Fund

SECTION V

UNITHOLDERS RIGHTS & SERVICES

INVESTOR SERVICES
The Fund believes in providing the Investor with a superior service to make the Investors' experience in dealing with the
Fund an efficient and satisfactory one. In order to achieve these goals, the Fund will endeavor to continuously establish
and upgrade systems to handle transactions efficiently and resolve any Investor grievances promptly.
EASE OF TRANSACTIONS
The Fund intends to make every transaction for the Investor a simple and convenient one. The Fund plans to provide the
following services:-
i) Investor Service Centres
The AMC has engaged Deutsche Investor Services Private Limited (DISPL) to perform the Investor Services function
on behalf of the Fund. The AMC will therefore be utilizing the vast branch network of DISPL to provide service to
the Investors. In addition the AMC may use its corporate office at Mumbai as transaction point and as an Investor
Service Centre.
In addition to the DISPL branch network, over a period of time, the AMC will endeavour to add further to its own
Investor Service Centres and/or sales offices in other cities. Unitholders can go to these Service Centres/Sales
Offices for enquiries and transactions during business hours.
Each Service Centre will provide Investors with requisite information and help in processing transactions in the
Scheme of the Mutual Fund. Adequate training will be imparted to personnel managing the Investor Service
Centres, with a view to early resolution of queries.
The list of Collection Centres for accepting applications during the New Fund Offer Period are given in the back
cover of the Offer Document. After the New Fund Offer Period, the requests for transactions in the Units of the
Scheme will be accepted at the official points of acceptance. The list of the official points of acceptance of transactions
is also given in the back cover of the Offer Document.
ii) Process transactions in a timely manner
Under the Regulations, the Fund/the Registrar/AMC shall despatch to the Unitholders the Dividend cheques/DD's
within thirty days of the date of declaration of Dividend and the Repurchase/Redemption proceeds within ten
Business Days from the date of acceptance/deemed acceptance of the request for Repurchase/Redemption proceeds,
as the case may be.
Under normal circumstances, the Fund will endeavour to complete all monetary transactions within 5 (five) Business
Days from the date of acceptance of a transaction request. Ordinarily, non-monetary transactions or requests will be
processed, within 7 (seven) Business Days. Investors should note that completion of monetary/non-monetary
transactions within 5/7 Business Days as indicated above would be done on "best efforts" basis and completion of
all such transactions are subject to the time limits as prescribed under the Regulations.

77
PROBLEM RESOLUTION
The Fund will follow-up with Investor Service Centres and Registrar on complaints and enquiries received from Investors
for resolving them promptly. For this purpose, Mr. Murali A. Krishnan has been designated the Investor Relations Officer
and can be contacted at the Corporate Office of the AMC.
The address and phone numbers are:
Mr. Murali A. Krishnan
Investor Relations Officer
Quantum Asset Management Company Private Limited
107, Regent Chambers, 1st Floor,
Nariman Point, Mumbai - 400 021
Phone : (91) (22) 22875923
Fax : (91) (22) 22854318
E-mail : investorrelations@QuantumAMC.com
INFORMATION ABOUT THE SCHEME
The Fund will mail the abridged Scheme wise annual report to all Unitholders, not later than six months from March 31
of each year. The abridged annual report shall contain such details as are required under the Regulations. It will also be
posted on the website of the Mutual Fund i.e. www.QuantumAMC.com. A full copy of the annual report shall be made
available for inspection at the Corporate Office of the Fund and a copy shall be made available to the Unitholders on
request, on payment of nominal fees if any.
The Fund shall before the expiry of 1 month from the close of each half year, that is as on 31 March and 30 September,
publish its unaudited financial results in one English daily newspaper circulating in the whole of India and in a newspaper
published in the language of the region where the Head Office of the Fund is situated and update the same on the
AMC's website at www.QuantumAMC.com and on AMFI's website at www.amfiindia.com, within 1 month from the close of
each half year, in the formats as prescribed by SEBI.
Further the Fund shall also disclose the half-yearly scheme portfolios on its web site at www.QuantumAMC.com and on
AMFI web site (www.amfiindia.com) in the prescribed format before the expiry of one month from the close of each half-
year.
The Fund shall before the expiry of one month from the close of each half year (31st March and 30th September) send
to the Unitholders a complete statement of the Scheme/Plans portfolios or if such statement is not sent to the Unitholders,
it will be published by way of an advertisement in one English daily circulating in the whole of India and in a newspaper
published in the language of the region where the head office of the mutual fund is situated.
NAV INFORMATION
The AMC will disclose the first NAV of the Scheme not later than 30 days from the closure of New Fund Offer Period.
Subsequently, the NAV will be calculated daily and announced by the Fund on each Business Day.
The Unitholders may obtain information on NAV on any day from the office of the AMC or on the website of the AMC at
www.QuantumAMC.com or on the website of AMFI www.amfiindia.com. The Fund will publish NAVs daily, in at least two
daily newspapers in accordance with SEBI Regulations.
The AMC shall update the NAVs on the website of Association of Mutual Funds in India AMFI (www.amfiindia.com) by
9.00 p.m. on every Business Day. In case of any delay, the reasons for such delay would be explained to AMFI and SEBI
by the next day. If the NAVs are not available before commencement of business hours on the following day due to any
reason, the Fund shall issue a press release providing reasons and explaining when the Fund would be able to publish
the NAVs.
Note : The Repurchase/Redemption price shall not be lower than 93% of the NAV and the sale price shall not be
higher than 107% of the NAV and the difference between the Repurchase/Redemption price and sale price shall not
exceed 7% on the sale price.

78
 QUANTUM MUTUAL FUND
Quantum Gold Fund

Register Of Unit-holders
A register of holders of the Units shall be maintained electronically or in any other mode at the office of the Registrar and
Transfer Agent and also at such other places as the AMC may decide and such register will be conclusive evidence of
ownership. The register may be closed for such time and for such period as the AMC may determine. In the event of
closure of the register for a period or periods, appropriate notice shall be given by way of publication in newspaper(s) or
other media. Requests for fresh/ongoing sales, repurchase, switching will not be accepted during the period the register
is closed and no NAV would be determined/declared.
RIGHTS OF UNITHOLDERS OF THE SCHEME
i) Unitholders of the Scheme have a proportionate right in the beneficial ownership of the assets of the Scheme and
in case of declaration of Dividend, for the receipt of the Dividend declared by the Fund under the Scheme.
ii) The Fund shall dispatch the Repurchase/Redemption proceeds to the Unitholders within 10 Business Days from
the date of acceptance of the request for the same. The AMC will be liable to pay interest to the Unitholders @
15% p.a. for the period of delay.
iii) The Trustee is bound to make such disclosures to the Unitholders as are essential in order to keep them informed
about any information known to the Trustee which may have an adverse bearing on their investments.
iv) The appointment of an AMC for the Fund can be terminated by a majority of the Trustees or by 75% of the
Unitholders of the Scheme and any change in the appointment of the AMC shall be subject to the prior approval of
SEBI and the Unitholders of the Scheme.
v) The Trustee is obliged to convene a meeting on a requisition of 75% of the Unitholders of the Scheme.
vi) 75% of the Unitholders of the Scheme can pass a resolution to wind up the Scheme.
vii) Unitholders have the right to inspect all the documents listed under "Documents Available for Inspection" in this
Offer Document.
viii) The Trustee shall obtain the consent of the Unitholders:
a) whenever required to do so by SEBI, in the interest of Unitholders
b) whenever required to do so on the requisition made by three-fourths of the Unitholders of the Scheme.
c) when the Trustee decides to wind up or prematurely Repurchase/redeem the Units.
(ix) The Trustees shall ensure that no change in the fundamental attributes of the Scheme or the trust or fee and
expenses payable or any other change which would modify the Scheme and affect the interests of Unitholders is
carried out unless
a) a written communication about the proposed change is sent to each Unitholder
b) an advertisement is given in one English daily newspaper having nationwide circulation as well as in a
newspaper published in the language of the region where the Head Office of the mutual fund is situated; and
c) the Unitholders are given an option to exit at the prevailing Net Asset Value without any Exit Load.
Subject to the Regulations and the guidelines issued by SEBI, the consent of the Unitholders will be obtained
through voting, by mail. Detailed modalities of the same, including the principles for entitlement of votes for each
Unitholder will be finalised in consultation with and after obtaining the approval of SEBI and the Trustee.
(x) Annual Report containing accounts of the AMC would be displayed on the website of the AMC (i.e.
www.QuantumAMC.com). Unitholders, if they so desire, may request for the annual report of the AMC.
DURATION OF THE SCHEME & WINDING UP
The duration of the Scheme is perpetual. The AMC, the Fund and the Trustee reserve the right to make such changes/
alterations to the Scheme (including the charging of fees and expenses) offered under this Offer Document to the extent
permitted by the applicable Regulations. However, in terms of the Regulations a Scheme may be wound up after
repaying the amount due to the Unitholders:

79
1. On happening of any event, which in the opinion of the Trustee, requires the Scheme to be wound up, OR
2. If seventy five percent (75%) of the Unitholders of the Schemes pass a resolution that the Scheme be wound up,
OR
3. If SEBI so directs in the interest of the Unitholders
Where the Scheme is so wound up, the Trustee shall give notice of the circumstances leading to the winding up of the
Scheme to:
1. SEBI and,
2. In two daily newspapers having a circulation all over India and in one vernacular newspaper with circulation in
Mumbai.
On and from the date of the publication of notice of winding up, the Trustee or the Investment Manager, as the case may
be, shall:
1. Cease to carry on any business activities in respect of the Scheme so wound up;
2. Cease to create or cancel Units in the Scheme;
3. Cease to issue or Repurchase/Redeem Units in the Scheme.
PROCEDURE AND MANNER OF WINDING UP
In the event of the Scheme being wound up the AMC shall proceed as follows: -
(1) The Trustee shall call a meeting of the Unitholders of the relevant Scheme to approve by simple majority of the
Unitholders present and voting at the meeting for authorising the Trustee or any other person to take steps for the
winding up of the Scheme.
(a) The Trustee or the person authorised above, shall dispose of the assets of the Scheme concerned in the best
interest of the Unitholders of the Scheme.
(b) The proceeds of sale realised in pursuance of the above, shall be first utilised towards discharge of such
liabilities as are due and payable under the Scheme, and after meeting the expenses connected with such
winding up, the balance shall be paid to Unitholders in proportion to their respective interest in the assets of
the Scheme, as on the date the decision for winding up was taken.
(2) On completion of the winding up, the Trustee shall forward to SEBI and the Unitholders a report on the winding up,
detailing the circumstances leading to the winding up, the steps taken for disposal of the assets of the Scheme
before winding up, net assets available for distribution to the Unitholders and a certificate from the auditors of the
Fund.
(3) Notwithstanding anything contained here in above, the provisions of the Regulations in respect of disclosures of
half-yearly reports and annual reports shall continue to be applicable, until winding up is completed or the Scheme
ceases to exist.
After the receipt of the report referred to above, if SEBI is satisfied that all measures for winding up of the Scheme have
been complied with, the Scheme shall cease to exist.
TAX BENEFITS/CONSEQUENCES OF INVESTING IN MUTUAL FUNDS
As per the taxation laws in force as at the date of the Document, the tax benefits that are available to the investors
investing in the Units of the Plans are stated as follows.
The tax benefits described in this Document are as per the provisions of the Income-tax Act, 1961 subject to relevant
conditions.

80
 QUANTUM MUTUAL FUND
Quantum Gold Fund

THE FOLLOWING INFORMATION IS PROVIDED FOR GENERAL INFORMATION ONLY. HOWEVER, IN VIEW OF THE
INDIVIDUAL NATURE OF THE IMPLICATIONS, EACH INVESTOR IS ADVISED TO CONSULT WITH HIS OR HER OWN
TAX ADVISORS/AUTHORISED DEALERS WITH RESPECT TO THE SPECIFIC TAX AND OTHER IMPLICATIONS
ARISING OUT OF HIS OR HER PARTICIPATION IN THE SCHEME.
I. TO THE MUTUAL FUND
The entire income of Fund registered under the Securities and Exchange Board of India Act, 1992 (15 of 1992) or
regulations made thereunder will be exempt from income tax in accordance with the provisions of section 10(23D) of the
Income-tax Act, 1961. Consequently, income received by the Scheme is not liable for deduction of tax at source.
The Mutual Fund will receive all income without any deduction of tax at source under the provisions of Section 196(iv) of
the Act.
Dividend Distribution Tax
Under Section 115R of the Income tax Act, 1961 Equity oriented mutual funds have been exempted from paying Dividend
Distribution Tax. As per the Explanation to Section 115T of the Income Tax Act 1961, "equity oriented funds" means "such
fund where the investible funds are invested by way of equity shares in domestic companies to the extent of more than
65 percent of the total proceeds of such fund". The percentage of Equity share holding of the fund shall be computed
with reference to the annual average of the monthly averages of the opening and closing figures. The QGF not being an
"Equity Oriented Fund" will have to pay dividend distribution tax as below:
If Unit holder is Individual/HUF 14.1625%*
If Unit holder is any other person 22.66%*
*inclusive of applicable surcharge and educational cess
TO THE UNITHOLDERS
A. IN RESPECT OF INCOME DISTRIBUTION:
Under the provisions of Section 10(35) of the Income-tax Act, 1961, income received by all categories of Unitholders from
the Scheme will be exempt from income tax in their hands. In view of this position, no tax needs to be deducted at
source from such distribution by the Scheme.
B. IN RESPECT OF CAPITAL GAINS
i) Long Term Capital Gains:
Individuals, Hindu Undivided Families, Partnership firms and Indian Companies : Long-term capital gains in respect
of Units (other than units of an Equity Oriented Fund, as defined in Section 10(38) of the Income Tax Act, 1961)
held for a period of more than 12 months will be chargeable under Section 112 @ 20% (plus applicable surcharge
and education cess), Capital Gain would be computed after reducing the aggregate of cost of acquisition (as
adjusted by cost inflation index notified by the Central Government) and expenditure incurred wholly and exclusively
in connection with transfer. An assessee will have an option to apply concessional rate of tax @ 10% (plus
applicable surcharge and education cess) provided the long term capital gain is computed without substituting
indexed cost in place of cost of acquisition. Further, in case of Individuals and HUF's, being resident, where taxable
income as reduced by long-term capital gain, is below the basic exemption limit, the long-term capital gains will be
reduced to the extent of the shortfall and only the balance long-term capital gain will be subjected to income tax at
20% (plus applicable surcharge and education cess) or 10% (plus applicable surcharge and education cess), as
the case may be.
Non-residents & Foreign Companies : Long Term capital gains will be subjected to income tax @ 20% (plus
applicable surcharge and education cess). However, no benefit of Cost Inflation Indexation is available.
Non-resident Indians : Under Section 115E of the Act, for non-resident Indians, income by way of long-term capital
gains in respect of Units, other than units of equity oriented fund, is chargeable at the rate of 20% (plus applicable
surcharge and education cess). However, no benefit of Cost Inflation Indexation is available.

81
 Foreign Institutional Investors : Long-term capital gains arising on sale/Redemption of Units, held for a period of
more than twelve months, would be taxed at the rate of 10 per cent under Section 115AD of the Act (plus
applicable surcharge and education cess). Such gains would be calculated without applying cost inflation index
and currency fluctuations.
Specified overseas financial organizations: As per the provisions of section 115AB of the Act, long-term capital
gains arising on sale/Redemption of Units purchased in foreign currency shall be liable to tax at the rate of 10 per
cent (plus applicable surcharge and education cess). However, such gains shall be computed without the benefit of
cost inflation indexation.
Other Unit holders: Long-term capital gains arising on sale/Repurchase of Units, held for a period of more than
twelve months, will be chargeable under Section 112 of the Act, at the rate of 10 per cent(plus applicable surcharge
and education cess).
Exemptions from long-term capital gains
(i) Long term capital gains arising on or after October 01, 2004 (i.e. after the date on which the STT came into
force) from the transfer of units of an Equity Oriented scheme (as defined u/s. 115T of the Income Tax Act,
1961) would be exempt from Income-Tax as per section 10(38) of the Income-Tax Act, 1961. The Mutual
Fund would recover STT @ 0.25% from the unitholder when units are re-purchased by the mutual fund/
redeemed by the investor
(ii) As per the provisions of section 54EC of the Act, long-term capital gains arising on Repurchase or sale of
unlisted Units shall be exempt from tax to the extent such capital gains are invested, within a period of six
months of such transfer, in acquiring specified bonds and remain so invested as specified.
ii) Short Term Capital Gains
Short term Capital Gains in respect of Units held for a period of not more then twelve months is added to the total
income. Total income including short term capital gains is chargeable to tax as per the relevant slab rates. The
maximum tax rates applicable to different categories of assesses are as follows: -
Resident Individuals and HUF: Short-term capital gains arising on sale/Redemption of Units would be taxed at 30
per cent and 10% if such short term capital gains is of the nature referred in section 111A of the Act. (plus
applicable surcharge and education cess).
Partnership Firms: Short-term capital gains arising on sale/Repurchase of Units would be taxed at 30 per cent and
10% if such short term capital gains is of the nature referred in section 111A of the Act. (plus applicable surcharge
and education cess).
Indian Companies: Short-term capital gains arising on sale/Repurchase of Units would be taxed at 30 per cent and
10% if such short term capital gains is of the nature referred in section 111A of the Act. (plus applicable surcharge
and education cess).
Non-Resident Indians: Short-term capital gains arising on sale/Repurchase of Units would be taxed at 30 per cent
and 10% if such short term capital gains is of the nature referred in section 111A of the Act. (plus applicable
surcharge and education cess).
Foreign Institutional Investors: Short-term capital gains arising on sale/Repurchase of Units would be taxed at 30
per cent and 10% if such short term capital gain is of the nature referred in section 111A of the Act. (plus
applicable surcharge and education cess).
Specified overseas financial organizations: Short-term capital gains arising on sale/Repurchase of Units would be
taxed at 40 per cent in case of foreign companies and 30 per cent in case of others. (plus applicable surcharge
and education cess).
Other Unit holders: Short-term capital gains other than referred in section 111A of the Act, arising on sale/
Repurchase of Units would be taxed at the applicable tax rate (plus applicable surcharge and education cess).
As per Section 111A of the Income Tax Act, short-term capital gains on sale of units of an equity-oriented fund

82
 QUANTUM MUTUAL FUND
Quantum Gold Fund

entered into on or after October 1, 2004, where such transaction of sale is chargeable to STT under Chapter VII of
the Finance (No. 2) Act, 2004, shall be subject to tax at a rate of 10 per cent (plus applicable surcharge and
education cess). Further, in case of resident individuals and Hindu Undivided Families, where taxable income as
reduced by short-term capital gains, is below the basic exemption limit, the short-term capital gains will be reduced
to the extent of the shortfall and only the balance short-term capital gains will be subjected to the 10% flat rate of
income-tax (plus applicable surcharge and education cess).
C. TAX DEDUCTION AT SOURCE
All Unitholders : No income-tax is deductible at source, on any income distribution by the Mutual Fund under the
provisions of Section 194K and 196A of the Act.
Under section 195 of Act, tax shall be deducted at source in respect of capital gains as under:
a. In case of a non-resident other than a company -
Long term capital gains on units of equity oriented funds Nil
Long term capital gains on units of funds other than equity oriented funds 20% plus applicable surcharge
and education cess
Short term capital gains on units of equity oriented funds 10% plus applicable surcharge
and education cess
Short term capital gains on units of funds other than equity oriented funds 30% plus applicable surcharge
and education cess
b. In case of a foreign company -
Long term capital gains on units of equity oriented funds Nil
Long term capital gains on units of funds other than equity oriented funds 20% plus applicable surcharge
and education cess
Short term capital gains on units of equity oriented funds 10% plus applicable surcharge
and education cess
Short term capital gains on units of funds other than equity oriented funds 40% plus applicable surcharge
and education cess
Under section 196B of the Act tax at 10% plus applicable surcharge and education cess shall be deducted at source
from long term capital gains on units other than the units of equity-oriented mutual funds earned by Overseas Financial
Organisations.
Under Section 196D of the Act, no deduction shall be made from any income by way of capital gains, in respect of
transfer of securities referred to in Section 115AD of the Act.
As per circular no. 728 dated October 1995 by CBDT, in the case of a remittance to a country with which a Double
Taxation Avoidance Agreement (DTAA) is in force, the tax should be deducted at the rate provided in the Finance Act of
the relevant year or at the rate provided in DTAA whichever is more beneficial to the assessee.
No income-tax is deductible at source from income by way of capital gains except as otherwise mentioned earlier under
the present provisions of the Act.
D. TAX TREATY
In the case of a non-resident Unit holder who is resident of a country with which India has signed a Double Taxation
Avoidance Agreement (which is in force) income tax is payable at the rate provided in the Act or at the rate provided in
the such agreement, whichever is more beneficial to such non resident Unit holder.
E. WEALTH-TAX
Units of the Mutual Fund are not treated as assets as defined under Section 2(ea) of the Wealth-tax Act, 1957 and
therefore would not be liable to wealth-tax.

83
F. GIFT-TAX
The Gift-tax Act, 1958 has ceased to apply to gifts made on or after October 1, 1998. Gifts of Units of the Mutual Fund
would therefore, be exempt from gift-tax. Where however the gift, exceeding Rs. 50,000/- is made on or after April 1,
2006 the same is to be included as income in the hands of donee under new sub-clause (xiv) inserted in section 2(24)
read with new section 56(2)(vi) by the Finance Act, 2007.
G. TAX TREATMENT IN SPECIAL CIRCUMSTANCES
Under the provisions of Section 94(7) of the Act, loss arising on sale of Units, which are bought within 3 months prior to
the record date (i.e. the date fixed by the Mutual Fund for the purposes of entitlement of the Unitholders to receive
income or additional units without any consideration, as the case may be) and sold within 9 months after the record date,
shall be ignored for the purpose of computing income chargeable to tax to the extent of exempt income received or
receivable on such Units.
Where any person purchases Units ('original units') within a period of 3 months prior to the record date, who is allotted
additional Units without any payment and sells all or any of the original Units within a period of 9 months after the record
date, while continuing to hold all or any of the additional Units, then any loss arising on sale of the original Units shall
be ignored for the purpose of computing income chargeable to tax. The amount of loss so ignored shall be deemed to
be the cost of purchase of the additional Units as are held on the date of such sale.
H. OTHER BENEFITS
Investments in Units of the Mutual Fund will rank as an eligible form of investment under Section 11(5) of the Act read
with Rule 17C of the Income-tax Rules, 1962, for Religious and Charitable Trusts. The tax benefits to the Mutual Fund
and Unit Holders is in accordance with the prevailing tax laws.
The above Statement of Possible Direct Tax Benefits/Consequences sets out the provisions of law in a summary manner
only and is not a complete analysis or listing of all potential tax consequences of the purchase, ownership and disposal
of mutual fund units. The statements made above are based on the tax laws in force, and as interpreted by the relevant
taxation authorities as of date. Investors are advised to consult their tax advisors with respect to the tax consequences of
the purchase, ownership and disposal of mutual fund units.

84
 QUANTUM MUTUAL FUND
Quantum Gold Fund

SECTION VI - OTHER MATTERS

OMNIBUS CLAUSE
Subject to SEBI Regulations permitting:
Besides the AMC, the Trustee/Sponsor may also absorb expenditures in addition to the limits laid down under Regulation
52 of SEBI Regulations.
Further, any amendment/clarification and guidelines in the form of notes or circulars issued from time to time by SEBI for
the operation and management of mutual fund shall be applicable.
UNITHOLDERS GRIEVANCES REDRESSAL MECHANISM
Investor's grievances will normally be received at the Corporate Office of the AMC or directly by the Registrar. All
grievances are generally forwarded to the Registrar for their necessary action. The complaints will be closely followed up
with the Registrar to ensure timely redressal and prompt Investor service
For this purpose, Mr. Murali A. Krishnan has been designated the Investor Relations Officer. He can be contacted at the
office of the AMC. The address and phone numbers are:
Quantum Asset Management Company Private Limited
107, Regent Chambers, 1st Floor,
Nariman Point, Mumbai - 400 021
Phone : (91) (22) 22875923
Fax : (91) (22) 22854318
E-mail : investorrelations@QuantumAMC.com
ASSOCIATE TRANSACTIONS
The AMC may, from time to time, for the purpose of conducting its normal business, use the services of the Sponsor,
subsidiaries or Associates of its Sponsors/associate companies of AMC. The AMC will conduct its business with the
aforesaid companies on commercial terms and on an arm's length basis and at the then prevailing market rates to the
extent permitted under the applicable laws including the Regulations, after an evaluation of the competitiveness of the
pricing offered by the associate companies and the services to be provided by them. Associate transactions, if any
carried out, will be as per the Regulations and the limits prescribed thereunder.
The Mutual Fund scheme shall not make any investment in;
1. any unlisted security of an associate or group company of the Sponsor; or
2. any security issued by way of private placement by an associate or group company of the Sponsor; or
3. the listed securities of group companies of the Sponsor which is in excess of 25% of the net assets of such
scheme.
The AMC will, before investing in the securities of the group companies of the Sponsor, evaluate such investments, the
criteria for the evaluation being the same as is applied to other similar investments to be made under the Scheme.
Investments under the Scheme in the securities of the group companies will be subject to the limits under the Regulations.
Name of Associate Companies of Quantum AMC:
Quantum Advisors Pvt Ltd
(Sponsor Company)
#103 Regent Chambers, 1st Floor,
Nariman Point,
Mumbai - 400 021

85
Quantum Trustee Company Private Limited
(Trustee Company)
#107 Regent Chambers, 1st Floor,
Nariman Point,
Mumbai - 400 021
Quantum Information Services Private Limited
(Associate of Sponsor)
15, Khetan Bhavan, 3rd Floor,
J. Tata Road, Churchgate,
Mumbai - 400 020
Helpyourngo.com India Private Limited
(Associate of Sponsor)
15, Khetan Bhavan, 3rd Floor,
J. Tata Road, Churchgate,
Mumbai - 400 020
Equitymaster India Limited
Personalfn Insurance Services India Limited
Mymakaan.com Private Limited
Menlo Oak Venture Investments
QIEF Management LLC
PENALTIES & PENDING LITIGATIONS
PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS OR INVESTIGATIONS FOR WHICH
ACTION MAY HAVE BEEN TAKEN OR IS IN THE PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY
1. All cases of penalties awarded by SEBI under the SEBI Act or any of its regulations against the Sponsor of the
Mutual Fund or any company associated with the Sponsor in any capacity including the Asset Management Company,
Trustee Company/Board of Trustees, or any of the directors or key personnel (specifically the fund managers) of the
Asset Management Company and Trustee Company. The nature of the penalty must be disclosed. For Sponsor and
its associates, other than the penalties as mentioned above, the penalties awarded by any financial regulatory
body, including stock exchanges, for defaults in respect of shareholders, debentureholders and depositors shall
also be disclosed. Additionally, penalties awarded for any economic offence and violation of any securities laws
shall be disclosed.
Quantum Advisors Pvt Ltd (Sponsor) : Nil.
Trustee Company : Nil
AMC : Nil
Associates : Nil
2. Any pending material litigation proceedings incidential to the business of the Mutual Fund to which the Sponsor of
the Mutual Fund or any company associated with the Sponsor in any capacity including the AMC, Board of
Trustees/Trustee Company or any of the directors or key personnel is a party. Any pending criminal cases against
the Sponsor or any company associated with the Sponsor in any capacity including the AMC, Board of Trustees/
Trustee Company or any of the directors to key personnel should also be disclosed separately
Trustee Company : Nil
AMC : Nil
Associates : Nil
Quantum Advisors Pvt Ltd (Sponsor) : Nil except the following:

86
 QUANTUM MUTUAL FUND
Quantum Gold Fund

The Sponsor has filed a suit against a Company by the name of Quantum Securities Private Limited (QSPL) in July,
2002 in the Mumbai High Court for passing of the Company's trademark "Quantum" as its own, resulting in
confusion in the minds of general public.
The Company could not obtain interim relief sought by it, on the ground of delay as QSPL was using the word
"Quantum" in its Company name since the year 1992. The said suit is however still pending for final disposal.
The mark "Quantum" has been registered by the Company in Class 16 under number 536926B since 14th September,
1990. The said registration has been continuously renewed and is presently in force. The Company has also
applied for registering the "Quantum" mark as a service mark under Class 36 for use in respect of financial
services.
3. Any deficiency in the systems and operations of the Sponsor of the Mutual Fund or any company associated with
the sponsor in any capacity including the AMC or the Trustee Company which SEBI has specifically advised to be
disclosed in the offer document, or which has been notified by any other regulatory agency, shall be disclosed
Quantum Advisors Pvt Ltd (Sponsor) : Nil.
Trustee Company : Nil
AMC : Nil
Associates : Nil
4. Any enquiry/adjudication proceedings under the SEBI Act and the Regulations made thereunder, that are in progress
against the Sponsor of the Mutual Fund or any company associated with the Sponsor in any capacity including the
AMC, Board of Trustees/Trustee Company or any of the Directors or key personnel of the Asset Management
Company shall be disclosed
Quantum Advisors Pvt Ltd (Sponsor) : Nil.
Trustee Company : Nil
AMC : Nil
Associates : Nil
POWER TO MAKE RULES
Subject to the Regulations, the Trustee may, from time to time, prescribe such terms and make such rules for the purpose
of giving effect to the Schemes and the Plans/Options thereunder with power to the AMC to add to, alter or amend all or
any of the terms and rules that may be framed from time to time, with the prior approval of the Trustees.
POWER TO REMOVE DIFFICULTIES
If any difficulty arises in giving effect to the provisions of the Schemes and the Plans/Options thereunder, the Trustee
may, subject to the Regulations, take any action not inconsistent with such provisions, which appears to it to be necessary,
desirable or expedient, for the purpose of removing such difficulty.
SCHEME TO BE BINDING ON THE UNITHOLDERS
Subject to the Regulations, the Trustee may, from time to time, add or otherwise vary or alter all or any of the features of
investment plans and terms of the Scheme after obtaining the prior permission of SEBI and the Unitholders (where
necessary), and the same shall be binding on all the Unitholders of the Scheme and the Plans/Options thereunder and
any person or persons claiming through or under them as if each Unitholder or such person expressly had agreed that
such features and terms shall be so binding.

87
DOCUMENTS AVAILABLE FOR INSPECTION
1. Memorandum and Articles of Association of the Trustee Company and the AMC
2. Custodian agreement between Trustee and the Custodian
3. Investment Management Agreement
4. Trust Deed
5. Mutual Fund Registration Certificate
6. Agreement with Registrar & Transfer Agents
7. Consent of Auditors to act in the said capacity
8. Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 and amendments thereof from time to
time.
9. Indian Trust Act, 1882
Notwithstanding anything contained in the offer document the provisions of the SEBI (Mutual Funds) Regulations,
1996 and the Guidelines thereunder shall be applicable.
Note: The Scheme under this Offer Document was approved by the Trustee on September 24, 2007.

For and behalf of the Board of Directors of

QUANTUM ASSET MANAGEMENT COMPANY PRIVATE LIMITED
Sd/-
Name : Devendra Nevgi
Designation : CEO & CIO

Place: Mumbai
Date: October 9, 2007

88
 QUANTUM MUTUAL FUND
Quantum Gold Fund

THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

89
THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

90
 QUANTUM MUTUAL FUND
Quantum Gold Fund

OFFICIAL POINTS OF ACCEPTANCE (Only During The New Fund Offer Period)
INVESTOR SERVICE CENTRES (Only During The NFO Period)
QUANTUM AMC's OFFICE -

QUANTUM ASSET MANAGEMENT COMPANY PRIVATE LIMITED

107, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021, Tel : 022-22875923; Fax : 022-22854318
Email : investorrelations@QuantumAMC.com, Website : www.QuantumAMC.com
For Information - Email : info@QuantumAMC.com
For Investor Grievances/Complaints - Email : investorrelations@QuantumAMC.com

QUANTUM INFORMATION SERVICES PRIVATE LIMITED

Corporate Office: 15, Khetan Bhavan, 3rd Floor, 198, Jamshedji Tata Road, Churchgate, Mumbai-400 020, India. Tel.: 91-22-6631 4055 Fax: 91-22-2202 8550;
Ahmedabad: 114/115, Sangini Complex, Nr. Doctor House, Navrangpura, Ahmedabad-380 009 Tel.: 91-79-6450 5215 / 6450 5216; Bangalore: 3rd Floor, Sai Satkar,
No. 2, Rest House Cresent Road, Behind ADC Bank Church street, Bangalore-560 001 Tel.: 91-80-6535 9899 / 6535 9900; Chandigarh: SCO-70, 2nd Floor, Sector
20-C, Tribune Road, Landmark-Above Toshiba Laptop Outlet. Chandigarh-160 034 Tel.: 91-172-653 5304 / 653 5305; Chennai: Shop No. 10, I Floor, Mookambika
Complex, 4, Lady Desika Road, Mylapore, Chennai - 600 004 Tel.: 91-44-6526 2621 / 6526 2622; Hyderabad: Flat No. 114, First Floor, Mittal Chambers, Opp: James
Street Bus stop, M. G. Road, Secunderabad - 500 003 Tel.: 91-40-6591 8423 / 6453 4424; Jaipur: O-9, 2nd Floor, Amber Towers, Sansar Chandra Road, Jaipur -
302 001 Tel.: 91-01410650 1396 / 650 1397; Mumbai (Head Office): 404, Damji Shamji Business Centre, Vidhyavihar (W), Mumbai - 400 086 Tel.: 91-22-6799 1234
/ 6799 7536; Mumbai (Kandivali): 17, Building No. 36, Evershine Millennium Paradise, Thakur Village, Kandivali (E), Mumbai - 400 101 Tel.: 91-22-6770 1712 / 6770
1713; New Delhi (NCR): 105, 1st Floor, Vardhaman Commercial Plaza, Near Omaxe House, Plot 8 & 9, Local Shopping Ctr, Kalkaji, New Delhi - 110 019 Tel.: 91-11-
6450 5302 / 6450 5303; Pune: Unit 3 & 4, Runwal Plaza, Opp. Sonal Hall, Karve Road, Pune - 411 004 Tel.: 91-20-6602 9448 / 6602 9732

DEUTSCHE INVESTOR SERVICES PRIVATE LIMITED

Prospect Chambers, G 02 B, D.N Road, Fort, Mumbai - 400001, Maharashtra, India.
Tel : 022-32583926 Fax : 022-22825681 Email: DIS.Mumbai@issl.co.in

* Bangalore: 104, Prestige Meridian, 29, M.G Road, Bangalore 560 001, Karnataka Tel: 080-41232264 Email: DIS.Bangalore@issl.co.in * Chennai: 1st Floor, Door
No.141, Pasla Foreign Exchange Building, Next to Tata Motors, AnnaSalai, Chennai 600 002, Tamil Nadu Tel: 044-42630104 Email: DIS.Chennai@issl.co.in * Kolkata:
Lords Building, 7/1 Lord Sinha Road, Block No.GF/D, Ground Floor, Kolkata 700071 Tel: 9903281441 Email: DIS.Kolkata@issl.co.in * Hyderabad: 6-3-1093/UG-3
(A&B), Vintage Boulevard, Rajbhavan Road, Somajiguda, Hyderabad 500 082 Tel: 040-66136307 Email: DIS.Hyderabad@issl.co.in * Mumbai: Prospect Chambers,
G 02 B, D.N Road, Fort, Mumbai 400 001, Maharashtra Tel: 022-32583926 Email: DIS.Mumbai@issl.co.in * New Delhi: 910A,9th Floor, Narayan Manzil, Barakamba
Road, New Delhi 110 001 Tel: 011 43516382 Email: DIS.New Delhi@issl.co.in * Pune: Shop No.7, Ground Floor, Jalan Corner, CTS No.538 & 539, Narayan Peth, N
C Kelkar Marg, Pune 411 042, Maharashtra Tel: 020-66209794 Email: DIS.Pune@issl.co.in * Vadodara: No.301,3rd Floor,Gokulesh-2, Opposite Ivory Terrace,
Sampatrao Colony, R C Dutt Road, Alkapuri, Vadodara 390005, Gujarat, Tel: 0265-6561648, Email: DIS.Vadodara@issl.co.in * Agra: Unit No.13/A, 1st Floor, Kailash
Tower, Block No. E 16/8, Sanjay Place, Agra 282004, Tel: 0562-4008316 * Ahmedabad: M-Square Building, First Floor, Near Swastik Char Rasta, Behind City Centre,
Off CG Road, Ahmedabad 380 009, Gujarat Tel: 079-26403080 * Aurangabad: Shop no 04, Alaknanda Complex, Adalat road, Aurangabad Tel: 0240-6611879 *
Bhubaneshwar: Metro House,Shop No 5, A 410, Vanivihar, Bhubaneshwar 751 004, Orrisa Tel: 0674-3202010 * Goa (Panjim): F-1 & F-2, Alfran Plaza, 1st floor, Near
Don Bosco High School, M G Road, Panjim 403 001, Goa Tel: 0832-2422665 * Gurgaon: Ground Floor, Vatika Atrium, Block B, Sector 53, Gurgaon 122 001, Haryana
Tel: 0124-3201197 * Kanpur: Office No.216 &217, 2nd Floor, Kan Chambers, 14/113. Civil Lines, Kanpur 208 001, Uttar Pradesh Tel: 9889262798 * Lucknow: F-1,
SkyHi Chambers, 1st Floor, Park Road, Lucknow 226 001, Uttar Pradesh Tel: 0522-4048614 * Patna: Hari Niwas, Shop No.209, Dak Bungalow Road, Corner of Fraser
Road & Exhibition Road, Patna 800 001 Tel: 0612-3204446 * Chandigarh: SCO 154-155, Sector 17 C, 2nd Floor, Chandigarh 160 017, Haryana Tel: 0172-4625793
* Cochin: 3rd Floor,Block B, BAB Towers, M G Road, Cochin 682 015, Kerala Tel: 0484-4029468 * Coimbatore: No.424-E, Red Rose Towers, D B Road,R.S Puram,
Coimbatore 541 001, Tamil Nadu Tel: 0422-4370807 * Cuttack: 1st Floor,Brajaj Bhavan, Badambari Link road, Opposite LIC Colony, Cuttack 753 012, Orissa Tel:
0671-3200054 * Dehradun: Shop No.25, Ground Floor, Radha Palace Shopping Complex, Rajpur Road, Dehradun 248 001, Uttaranchal Tel: 0135-3204334 * Guntur:
2nd Floor, Aditya Complex, 6-19-35, 13th Main Road, Arundalpet, Guntur 522 002, Andhra Pradesh Tel: 0863-3200035 / 36 * Guwahati: Ganapati Enclave, Ground
Floor, Ulubari, G S Road, Guwahati 781 007, Assam Tel: 99540 11181 * Indore: B-3, Aru Plaza, Lower Ground, 582, M. G. Road, Infront of Hukumchand Ghanta Ghar
Indore 452001 Tel: 0731 2533193 * Jaipur: No.605 &606,Plot No.15, Ashok Marg, C-Scheme, Green House, Jaipur 302 001 Tel: 9929358108 * Jamshedpur: Bharat
Business Center, Ground Floor, Ram Mandir Area, Beside Mithila Motors,Bistupur, Jamshedpur 831001, Jharkhand Tel: 0657-3200024 * Kolhapur: Shop No.84,
Gemstone Rai Bahadur Vichare Complex 517/2, New Sahupuri, Near S T Stand, Kolhapur 416 001, Maharashtra Tel: 0231-3200017 * Ludhiana: Fortune Chambers,
4th Floor, S.C.O 16-17, Feroze Ghandi Market, Opp Stock Exchange, Ludhiana 141 001, Haryana Tel: 0161-4615794 * Mangalore: "Manasa",2nd Floor,Above
Udayavan, Next To India Infoline Office, MG Road, Mangalore 575 003, Karnataka Tel: 0824-3200010 * Moradabad: Sai Sadan Complex, Ground Floor, Near Head
P.O, Jail Road, Moradabad 244 001, Uttar Pradesh Tel: 0591-3200002 *Mysore: Shop no. 7, Mythri Arcade, Door no. 2766 CH 50, New Kantharaj URS Road,
Chamaraja Mohalla, Mysore 570 009, Karnataka Tel: 0821-3200577 *Nagpur: Shop No.10, Prathiba Sankul, North Ambazari Road, Dharam Peth, Nagpur 440 010,
Maharashtra Tel: 071 26455660 *Nasik: Suyojit chambers, ground floor, G-2 Trimbak Naka, Near new cbs, Nasik Tel: 0253-6610196 * Ranchi: 22, AC Market, Ground
Floor, GEL Church Complex, Main Road, Ranchi 834 001 Jarkhand Tel: 0651-3200328 *Rourkela: Triveni Complex, 2nd Floor, Madhusudan Marg, Opp. Hotel Sukh
Sagar, Rourkela 769 001, Orrisa Tel: 0661-3200012 * Rajkot: l-1,puja commercial complex,Harihar chowk, Near Gpo ,Panchnath plot, Rajkot-360001 Tel: 9426671071
* Salem: VII A, Divya Towers, 2nd Floor, Plot no. 15i, Fort Main Road, Sevvaipet, Salem 636 001, Tamil Nadu Tel: 0427-3200014 * Sambalpur: Quality Mansion,
Ground Floor, Main Road, Nayapara, Gole Bazar, Sambalpur 768 001 Orissa Tel: 0663-3200005 * Surat: Shop No.G1/G12, Mezzanine Floor, Jolly Plaza, Opp
Atwagate Police Station, Surat 395001, Gujarat Tel: 0261-3230024 * Trivandrum: Annas Aracade, 2nd Floor, TC 26/15 (16) Spencer Junction, M G road, Trivandrum
695001 Tel: 0471-3013054 * Vizag: Shop No.1, Ground Floor, 2nd Lane, Redname Regency, Dwarka Nagar, Vizag-530 001, Andhra Pradesh Tel: 0891-3200233 *
Warangal: Shop No. F-40, Green square, Opposite Public Garden, petrol Pump area, Hanamkonda, Warrangal 506 001, Andhra Pradesh Tel: 0870-3200224 *
Varanasi: Kuber Chambers, 3rd Floor, Rath Yatra crossing, B C Towers, Varanasi-221010 Tel: 9212753420 * Gwalior: Ganpati Plaza, Plot no 40, Citi Center, Gwalior-
474011 Tel: 9358195334 * Erode: Property No 859, NSTV Complex, Brough Road, 1st Floor, Erode 638001 Tel: 9786005470 * Vijaywada: Door No 39-1-88,1st floor
, MG Road, Labbipet, Vijaywada-520010 Tel: 9949496348

91
 COLLECTION CENTRES (Only During The NFO Period)

(I) HDFC BANK LIMITED

* Agra: Shop No-11, Block No-17/2/4, Friends Plaza, Sanjay Place, Agra - 282002 Tel : (0562) 2524089 FAX 2524030 * Ahmedabad: HDFC Bank House, Near
Mithakali Six Roads Navrangpura, Ahmedabad 380 009, Tel : 079 55217163, 9327568070 * Ajmer: AMC No-13/10 & 14/10 Near Suchma Kendra, Adjacent to Swami
Complex, Ajmer-305001 Tel : 0145-5100123 * Allahabad: 54/1 S.P. Marg Civil Lines, Allahabad- 211 003, UP Tel : 09839517194/09839120335 * Amritsar: 39, The
Mall, Amritsar Tel : 0183-2564616 * Anand: 1st Floor, Sanket towers, Opp. Anand Arts College, Grid Road Anand-388001 Tel : 02692-247091,02692-311970 *
Asansol: CMS Dept, P C Chatterjee Market, G T Road Rambandhu Tala, Asansol- 713303 Tel : 0341-2214848 * Bangalore: 8/24, Salco Centre, Richmond Road,
Bangalore - 560025 * Bareilly: 154, Krishna Palace, Civil Lines , Opp Bm Compound Bareilly-243 001 Tel : (0581) - 3099631 09356119346 * Baroda: 5th Floor, 'Midway
Heights', Next to Panchmukhi Hanuman Temple, Lokmanya Tilak Rd, Kirti Mandir, Near Kala Ghoda, Raopura, Baroda - 390 001 Tel :0265-5585516, 09327585780 *
Bhavnagar: Gopi Arcade, Opp. Takhteshwar Post Office Tel : (0278) 5540340 * Bhopal: E-1/57,Arera Colony, Bhopal,462016(M.P). Tel : 0755-2461145/
5281616,5276007,5276008. * Bhubaneshwar: Junction of Janpath & Gandhi Marg, Hotel Jajati Complex, Kharvelanagar, Unit - III, Master canteen Square Bhubaneswar
- 751 001 Tel : 0674-2400986/95 * Chandigarh: SCO371/372, SECTOR 35-B, Chandigarh Tel : 0172-2711285/5088303 * Chennai: 751 - B Anna Salai, Mariam Centre,
Chennai - 600 002 Tel : 044-28420870/76 : Extn : 203/204 * Cochin: 2nd Floor, Elmar Square, M G Road, Ravipuram, Cochin- 682016 Tel : 0484-2359411 * Dehradun:
56, Rajpur Road, Dehradun - 248 001 Uttaranchal Tel : 0135-2745295 * Delhi: Fig-Ops 1st Floor, Kailash Bldg 26 K G Marg New Delhi- 110001 Tel : 011-51699418/
011-23312782 * Dhanbad: Sri Ram Plaza, 1st Floor, Bank More Dhanbad, Jharkhand- 826 001 Tel : (0326) 2308831 * Durgapur: A102 & 103, City Centre, Bengal
Shristi Complex, City Centre, Durgapur Branch, West Bengal - 713 216 Tel : 0343- 2549962- 65 * Gorakhpur: CMS Dept, Prahlad Rai Trade Centre, Ayodhya Crossing,
Bank Road, Gorakhpur- 273001 Tel : 0551-2342612 * Guwahati: HDFC Bank, Guwahati Branch, House No 126, Opp Times Of India Bhangagarh, Guwahati 781005
Tel : 0361-2461082 (D), 74/80/81 * Gwalior: Anand Deep Building, City Center, Gwalior Tel : 0751 5015007 * Hubli: T B Revankar Complex Vivekanand Hospital Road
Hubli- 580029 Tel : 0836-2217084/RIM- 3105688 * Hyderabad: 6-1-73 3rd Floor Saeed Plaza, Lakdikapul, Hyderabad-500004 Tel : 040-55666821/55630666/32347423/
32347412 * Indore: 3rd Floor, 9/1-A, U. V. House, South Tukonj, Indore - 452 001 * Jaipur: HDFC Bank House, 1st Floor, O-10, Ashok Marg, Ahimsa circle, C-Scheme
Jaipur Tel : 0141-2361900, 5115476 (D)-3947479/5105681/5107247 * Jalandhar: 911, G.T. Road, Near Narinder Cinema, Jalandhar Tel : 0181- 507164409316915509
* Bharuch: Near Octroi Naka, Link Rd Bharuch 392001 Tel :.222031 (02642) , 220108,222032 extn.23. * Jamnagar: Plot no 6, Park Colony, Opp. St Ann's School,
Bedi Bunder Road , Jamnagar - 361008 Tel : 0288 - 2662035 , 0288-3112594 * Jamshedpur: C/o Mithila Motors Ltd., Near Rammandir, Bistupur, Jamshedpur - 831
001 Tel : 0657-2420174 * Jodhpur: 57/B "Swapndeep", Chopasani Road Jodhpur-342003 (Raj.) Tel : 0291-5106400 * Kolkatta: CMS, Abhilasha II ,6 Royd Street, 1st
Floor, Kolkata-700 016 Tel : 033-22273760-65,2227 3761 * Lucknow: Pranay Tower,Darbari Lal Sharma Marg Beside Pratibha Cinema Lucknow - 226001 Tel : 0522-
3019124-27/3919811/3919813/3019132/3019136/3019140/9335088230 * Madurai: 7-A, West Veli Street, Opp To Railway Station, Madurai - 625 001. Tel : 0452-
2350707/093457 22518 * Mangalore: M.N.Towers, Kadri, Mangalore - 575002 Tel : 0824 - 2225405/2225410 * Morabad: Chaddha Shopping Complex, GMD Road,
Moradabad Uttar Pradesh- 244001 Tel : 0591- 2310508/09 * Mumbai: Maneckjiwadia Bldg., Nanik Motwani Marg, Mumbai 23 Tel : 0222 2705514/2701001 * Nagpur:
303 & 304 3RD Floor Wardh Road, Transactional Banking Group 12, Milestone, Near Lokmat Square, Nagpur - 440010 Tel : 0712- 5616867 (D), 09822577441 RIM-
0932607741 * Nasik: Archit Centre, 3rd Floor, Chandak Circle Link Road, Opposite Sandeep Hotel, Near Mahamarg Bus Stand, Nasik - 422 002 Tel : 0253-5647594/
97/98 * Navsari: Nandini Complex, Ground floor, Station Road, Sandh Kuva, Navsari-396445 Tel : 02637280901/240702/247896 * Panjim: Minum Residency, 18Th
June Road, Panjim-Goa 403001 Tel : 0832-2421955/44 * Patna: Rajendra Ram Plaza, Exhibition Road,Patna-800 001 Tel : 0612-2206161,2224332,3116348 * Pune:
5th floor ,Millennium Tower , Bhandarkar road, Shivajinagar, Pune 411 004 Tel : 9372499500 / 0952025651304 * Raipur: Chawla Complex, Near Vanijya Bhawan, Sai
Nagar, Devendra Nagar Road, Raipur - 492 009, Chhatishgarh Tel : 0771 - 252 9110 (D), 0771 - 505 8901/02/03 Ext. 201/202 * Rajkot: Opp Alfred High School, 2nd
Floor, Panchratna Building, Jawahar Road, Rajkot, Tel : 0281-5595553 09327568105 * Ranchi: Ranchi Club Shopping Complex, Apt No .11, Main Road, Ranchi 834001
Tel : 0651-2308148 * Rourkela: Bisra Road, Dwivedi Bhawan, Dwivedi square, Rourkela 769001 Tel : 0661- 2500666/2511666/2522666/2514666 * Salem: 5/241-F,
Rathna Arcade, Omalur Main Road, Salem-6360004. Tel : 0427-2331604, 03 * Siliguri: 3 No. Ramkrishna Samity Building Sevoke Road, Pani Tanki More, Siliguri -
734 401 Tel : 0353-2640726., 0353 2642566 Extn. 112/114 * Trichy: A-10, " Lakshmi Arcade", 11Th Cross Main Road, Thillainagar, Trichy 620 018, Tamil Nadu, Tel
: 0431- 2742204 * Trivandrum: Kenton Towers, Vazhuthacaud, Trivandrum 695 014 Tel : 0471 2337615 * Varanasi: D 58/2 Kuber complex, Rathyatra crossing,
Varanasi- 221010 Tel : 0542-2226203 * Vijaywada: 40-1-48/2, M.G. Road, Labbipet, Vijayawada-520 010 Tel : 0866 2490400 * Vishakapatnam: Potluri Castle,
Dwaraka Nagar, Visakhapatnam, Tel : 0891-5571123.

(II) BNP PARIBAS

* Mumbai: French Bank Building, 62, Homji Street, Fort, Mumbai 400 001 Tel - 91-22- 66501300 Fax - 91-22- 2266 0913 * New Delhi: East Towers (Sood Towers),
1st Floor, 25, Barakhamba Road, New Delhi 110001 Tel - 91-11- 4179 6600 Fax - 91-11- 2332 4188 / 2373 1110 * Chennai: Prince towers, 3rd Floor, 25/26 College
Road, Chennai 600006 Tel - 91-44- 2821 1969 / 1970 /5445 Fax - 91-44- 2821 1968 /6320 * Pune: Unit Number 5, Godrej Millenium Park, 9 Koregaon Road, Pune
411001 Tel - 91-20- 2613 0142 / 45 Fax - 91-20- 2613 4079 * Kolkata: Stephen House,Ground Floor, 4A B. B. D. Bagh East, Kolkata 700 001 Tel - 91-33- 2248 0917
/2166 Fax - 91-33- 2243 5250 * Bangalore: 3rd floor, Landmark, 21/15, M. G. Road, Bangalore 560 001 Tel - 91-80- 2559 6777 / 6794 Fax - 91-80- 2559 6787 *
Ahmedabad: 203, Sakar II,Ellis Bridge, Off Ashram Road, Ahmedabad 380006 Tel - 91-79- 2657 9880 Fax - 91-79- 2657 9881 * Hyderabad: Venkat Plaza, 2nd floor,
6-3-883/5 Punjagutta, Hyderabad 500 082 Tel - 91-40- 66511003/ 009 Fax - 91-40- 2341 0842

OFFICIAL POINTS OF ACCEPTANCE (AFTER THE NEW FUND OFFER PERIOD)

QUANTUM AMC's OFFICE -
QUANTUM ASSET MANAGEMENT COMPANY PRIVATE LIMITED
107, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021, Tel : 022-22875923; Fax : 022-22854318
Email : investorrelations@QuantumAMC.com, Website : www.QuantumAMC.com
For Information - Email : info@QuantumAMC.com
Orient Press Ltd.

For Investor Grievances/Complaints - Email : investorrelations@QuantumAMC.com