How schemes of Quant Mutual Fund have performed after one month of Sebi’s raid

Mutual fund investors were left shocked when it was reported that Sebi has conducted raids at Quant Mutual Fund offices in a suspected case of front running. Since then, Quant Small Cap Fun, which has been consistently outperforming, has underperformed against its respective benchmark. The scheme gave 1.38% return compared to 2.68% by its benchmark (Nifty Smallcap 250 – TRI).Quant Mid Cap Fund lost around 0.26% since June 23 when Sebi’s raid was reported whereas its benchmark Nifty Midcap 150 – TRI offered 1.76% return. Quant Large & Mid Cap Fund delivered 1.45% return compared to 2.61% by its benchmark (NIFTY LargeMidcap 250 – TRI). Quant ELSS Tax Saver Fund, an ELSS fund, offered 1.09% return against 3.15% by its benchmark (3.15%).

Quant Focused Fund outperformed against its benchmark by offering 4.58% return in the said period against 3.15% return by its benchmark (NIFTY 500 – TRI). Quant Large Cap Fund managed to beat its benchmark by delivering 4.52% return against 3.55% by the benchmark (Nifty 100 – TRI).

Quant Business Cycle Fund and Quant Manufacturing Fund have also managed to outperform their respective benchmarks.

Quant ESG Equity Fund has offered the highest return of around 9.46% since Sebi’s raid. On the other hand, Quant Mid Cap Fund lost the most of around 0.26% in the said time period.

The fund house manages 27 mutual funds, out of which 12 funds outperformed their respective benchmarks whereas 15 funds failed to beat their benchmarks.

According to the June portfolio (the last available data in ACE MF), Quant MF’s total assets under management were recorded at Rs 90,625 crore. The AUM of Quant schemes has increased compared to May. Quant Small Cap Fund saw the highest increase in asset base, rising by Rs 1,724 crore to reach a total AUM of Rs 22,967 crore in June, up from Rs 21,242 crore in May.

The AUM of Quant Mid Cap Fund was recorded at Rs 8,747 crore in June, marking an inflow of Rs 794 crore from its May AUM of Rs 7,952 crore.

Quant Mutual Fund had a cash pile of around Rs 9,355 crore in May, which was around 12.41% of the total AUM. In June, the fund house decreased its cash holding to 7.17% from 12.41% in May 2024. The fund house was sitting on a cash pile of around Rs 5,861 crore in June.

Quant Mutual Fund was under Sebi’s radar in a front-running case. Quant Mutual Fund’s net equity outflows were reported at Rs 877 crore three weeks after Sebi’s raid, according to the fund house.

The assets under management and NAV of the fund house are at lifetime highs and it has been able to generate alpha for over 80 lakh investors, Sandeep Tandon, CEO of Quant Mutual Fund, told ET Now last week.

We considered all Quant schemes that are there in the market in the said period. We considered regular and growth options. We calculated returns from June 21, 2024 to July 25, 2024.

Note, the above exercise is not a recommendation. The exercise was done to find how schemes of Quant Mutual Fund have performed against their respective benchmarks since Sebi’s raid. One should not make investment or redemption decisions based on the above exercise. One should always consider their risk appetite, investment horizon and goal before making any investment decision.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)