Quant Mutual Fund: Mutual fund investors were shocked after the Securities and Exchange Board of India (SEBI) initiated a probe against AMC Quant Mutual Fund over charges of front running. The regulatory body has identified trading behaviours indicating potential front-running activities by an individual connected to the fund. In response to these findings, the Asset Management Company (AMC) has released an official statement acknowledging the situation and committing to complete collaboration with the ongoing investigation.
Front-running is a prohibited strategy where fund managers and dealers exploit advance knowledge of significant trades to profit from price fluctuations. This unethical practice undermines market fairness and investor trust. Regulatory bodies strictly monitor and penalize such activities to maintain market integrity and protect investors’ interests.
Quant Mutual Fund is a well-established investment company that has strategically invested in leading stocks such as Reliance, Jio Financial Services, Adani Power, Tata Power, LIC, SAIL, HDFC Bank, and Aurobindo Pharma. The fund’s portfolio comprises high-quality stocks, indicating a robust position in the market, unless unforeseen market disturbances occur due to external influences.
With a rise of over 250% in the last one year, Quant Mutual Fund’s assets under management (AUM) stood 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.
But the latest news of Sebi’s probe has put investors in a sticky position and many have been thinking about stopping their SIPs to avoid further loss. However, experts feel that investors should not panic and instantly sell their units due to the investigation news.
“Mutual fund investors should not react to news unlike stock investors. A negative news on stock can lead to an immediate fall in stock price but that logic is not applicable to a mutual fund. A mutual fund is a basket of stocks, and its performance depends on the underlying performance of stocks. Any negative news on AMC cannot impact the mutual fund performance if the underlying stocks continue to do well. As such, investors should continue to hold on to their investments in Quant AMC and can continue with their fresh purchase plans,” said Feroze Azeez, Deputy CEO, Anand Rathi Wealth Limited.
Financial advisor Morningstar too said panicking at this moment and rushed selling of units or stopping Systematic Investment Plans (SIPs) is not recommended at this stage. It further said that those who have already invested in Quant Funds, should maintain their current holdings.
However, new investors can wait for sometime before making fresh investments until the situation becomes clearer. This would allow investors to avoid potentially putting additional money at risk.
“Investors should avoid any knee-jerk reaction. A measured response is essential in dealing with such cases. Investors should stay informed about developments in this matter and monitor any directives from SEBI. Redemption is highly individual-driven and depends on various factors unique to each investor. However, an ideal approach is to hold on to existing investments, while investors can choose not to invest incremental money in these funds,” said Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research.
Here’s a listing of best-performing funds from Quant MF (ValueResearch data)
1. Quant Infrastructure Fund Direct has generated 84.82% in the past year, 37.73% in the last three years, and 38.92% returns in the last five years.
2. Quant Small Cap Fund Direct has achieved a total return of 68.53% over the past year. It is among the top-performing funds by Quant, delivering impressive returns over the three-year and five-year periods with 34.86% and 44.39%, respectively.
3. Quant Mid Cap Fund Direct has generated 75.61% returns in the past year, 35.18% in the last three years, and 37.42% in the last five years.
4. Quant BFSI Fund Direct has given a total one-year return of 70.61%, since it was launched in June 2023.
5. Quant Large and Mid Cap Fund Direct generated a total return of 69.79% in the past year, 31.97% in the last three years, and 29.90% in the last five years.
6. Quant Value Fund Direct has given 75.27% returns in one year. It was launched in November 2021.
7. Quant Quantamental Fund Direct gave a total one-year return of 63.99%, and 34.73% in the last three years. It was floated in May 2021.
8. Quant Flexi Cap Fund Direct has generated a total return of 63.65% in the past year, 27.96% in the last three years, and 34.41% in the last five years.
9. Quant Business Cycle Fund Direct has generated 70.86% returns in the past year, the fund was launched in May 2023.
10. Quant Dynamic Asset Allocation Fund Direct gave a total return of 62.14 per cent in the past year since it was established in April 2023.
| Name | 1 year | 3 year | 5 year | Benchmark |
| Quant Infrastructure Fund Direct | 84.82% | 37.73% | 38.92% | NIFTY Infrastructure Total Return Index: 57.62% |
| Quant Small Cap Fund Direct | 68.53% | 34.86% | 44.39% | 63.37% |
| Quant Mid Cap Fund Direct | 75.61% | 35.18% | 37.42% | NIFTY Midcap 150 56.86% |
| Quant BFSI Fund Direct (Launched in June 2023) | 70.61% | – | – | – |
| Quant Large and Mid Cap Fund Direct | 69.79% | 31.97% | 29.90% | NIFTY Large Midcap 250 Total Return Index 44.88% |
| Quant Value Fund Direct | 75.27% | Nifty 500 Value 50 Total Return Index 39.46% | ||
| Quant Quantamental Fund Direct | 63.65% | 27.96% | 34.41% | NIFTY 200 Total Return Index 36.64% |
| Quant Flexi Cap Fund Direct | 63.65% | 27.96% | 34.41% | NIFTY India Consumption Total Return Index 39.46% |
| Quant Business Cycle Fund Direct (Launched in May 2023) | 70.86% | NIFTY 500 Total Return Index 39.46% | ||
| Quant Dynamic Asset Allocation Fund Direct | 62.14% | CRISIL Hybrid 50+50 Moderate Index |