Quant Mutual Fund is allegedly being investigated by the Securities and Exchange Board of India (Sebi) for front-running. Sebi’s continuous efforts to preserve investor safety and market integrity include the inquiry.
One of the main issues being looked into is front running, a practice in which managers purchase stocks for themselves before placing significant orders for their clients, so pushing up prices, according to a Moneycontrol article.
Sebi agents allegedly searched the offices of the investment house, which oversees assets valued at approximately Rs 80,000 crore. The report could not be independently verified by BT.
Late on Sunday, Quant Mutual Fund provided investors with an explanation in answer to their questions.
“We would like to address any concerns you may have regarding this subject. Quant Mutual Fund recently received queries from SEBI. Quant Mutual Fund is a regulated organization, and we firmly believe that we will work closely with the regulator during any assessment. We will continue to supply SEBI with data on a regular and as-needed basis, along with all essential support.”
Delivering excellent risk-adjusted returns is the fund house’s principal goal, it told investors.
Retail inflows have been the main driver of Quant Mutual Fund’s recent notable growth. Between March 2020 and the present, its assets under administration have increased from Rs 233 crore to Rs 80,470 crore. The fund, which is well-known for its distinct analytics-based investing approach, has quickly grown its market share.
In 2017, Sebi granted Quant Mutual Fund, which was founded by Sandeep Tandon, a mutual fund license. With assets rising from about Rs 100 crore in 2019 to over Rs 90,000 crore at present, it has since emerged as the mutual fund with the quickest rate of growth in the nation.
Large, mid, and small-cap equities from a variety of industries are included in the diversified portfolio of Quant Mutual Fund. Among their largest holdings are JIO Financial Services Ltd. (4.52%), Adani Power Ltd. (4.66%), and Reliance Industries Ltd. (8.75% of AUM). Significant holdings in HDFC Bank Ltd. (3.11%), Aurobindo Pharma Ltd. (2.39%), and Tata Power Company Ltd. (2.36%) are also held by the fund.
A few other noteworthy holdings are Samvardhana Motherson International Ltd. (2.06%), Life Insurance Corporation of India (2.20%), and Steel Authority of India Ltd. (2.21%). With holdings in businesses like Britannia Industries Ltd., Jindal Steel & Power Ltd., and Container Corporation Of India Ltd., the portfolio is well-balanced.
Quant MF’s mid-cap holdings include HFCL Ltd. and Poonawalla Fincorp Ltd., while its small-cap holdings include IRB Infrastructure Developers Ltd. and Aegis Logistics Ltd.
