Quant Mutual Fund, one of India’s oldest and fastest growing asset management firms, is facing a probe by capital market watchdog SEBI in an alleged front-running case. Front-running is an illegal practice in which fund managers and dealers place orders based on prior information of upcoming large trades and earn profit from the price movement on eventual trade execution.
In response to the SEBI investigation, the AMC in a statement said that Quant Mutual Fund is a regulated entity and it is fully committed to cooperating with the regulator. The MF house said that it will provide all necessary support and continue to furnish data to SEBI on a regular and as-needed basis.
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How will SEBI investigation impact the fund house and its schemes?
Mutual fund industry experts are of the view that this probe will have little impact on the AMC because it has substantial holdings in quality stocks. Quant Mutual Fund has invested in top-tier stocks like Reliance, Jio Financial Services, Adani Power, Tata Power, LIC, SAIL, HDFC Bank, and Aurobindo Pharma. With such quality stocks in its portfolio, the fund is most likely to be on a strong footing unless there are some major market disruptions due to other factors.
Quant Mutual Fund AUM
The AMC has seen its assets under management (AUM) rise by over 250% in last one year, standing at Rs 84,000 crore at the end of May. Many of its schemes have yielded bumper returns for investors, outperforming the benchmark. Its AUM was Rs 225 crore in May 2019.
Top 5 Quant mutual funds with returns up to 75%
Quant Mid Cap Fund – Growth
Quant Mid Cap Fund Growth has delivered 75% returns in the last one year, the highest in the category. In the midcap segment, the next best performers are ITI Mid Cap Fund Regular Growth (71%) and JM Midcap Fund (70%). The overall returns in the category stood at 54%. The benchmark index showed a return of 56% during this period.
Quant Large & Mid Cap Fund
In the large and midcap fund category, Quant Large & Mid Cap Fund with 68.33% return in 1 year has outperformed the average category return. During this period, the benchmark has grown by 44%. In the large and midcap fund category, this Quant fund is followed by Bandhan Core Equity Fund and Invesco India Large & Mid Cap Fund. Both these funds have delivered 56% and 55% returns in the last 1 year.
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Quant Small Cap Fund Growth
Quant Small Cap Fund Growth has given investors 68% returns over a one-year period, the second highest in this segment after Bandhan Small Cap Fund, which has given a return of 72% during this period.
Quant Focused Fund – Growth
In the focused fund category, Quant Focused Fund – Growth has delivered 50% returns over the last one year. The fund has given better returns than the category’s and scheme’s benchmark 38% each. The fund is followed by Invesco India Focused Fund, which has given a return of 65% in the last one year.
Quant Large Cap Fund Regular Growth
Quant Large Cap Fund Regular Growth has delivered 49% growth in the last one year, logging the highest growth rate in the category. In this category, the second best performer is Bank of India Bluechip Fund Regular Plan Growth with 44% return.
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