📷 Image Credits: Moneycontrol
Quant Mutual Fund has recently announced that its assets under management (AUM) and net asset value (NAV) for most schemes have reached record levels. As of July 12, 2024, the total AUM has crossed Rs 94,000 crore, marking an all-time high for the mutual fund house. The announcement came after the fund house sent out a communication to investors addressing the market regulator’s investigations into front-running allegations. According to Quant Mutual Fund, the recent data collection by SEBI was not a regular process but part of a court-approved search and seizure operation related to an ongoing investigation initiated by SEBI.
Despite facing net outflows of Rs 696 crore and net equity outflows of Rs 877 crore in the past three weeks, which is less than 1% of the AUM, the fund’s AUM remains at a historic high. The communication highlighted that more than 54% of the assets are very liquid, including Large-cap stocks, T-bills, G-Secs, Gold, and Silver, ensuring a robust liquidity situation for the fund house.
The message reassured investors about the superior risk-adjusted returns generated by their schemes, aligning with the dynamic style of money management. Additionally, the fund mentioned that their Chief Financial Officer, Harshal Patel, has resigned, with Shashi Kataria appointed as the replacement effective from July 1, 2024, although the transition was decided on February 19, prior to the Sebi action in June.
Quant Mutual Fund is currently under SEBI’s scrutiny for a potential front-running case, with the regulator conducting search-and-seizure operations in multiple offices. Front-running is an illegal practice in the stock market where entities trade based on advanced information before it is available to clients. Despite the ongoing investigation, the fund house has affirmed its cooperation with SEBI and continues to focus on delivering value to investors amidst market volatility.
