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SEBI scrutiny of Quant MF could impact investor trust

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In Short:

SEBI has taken action against Quant Mutual Fund for suspected front-running, causing concern among investors in the mutual fund industry. Quant MF, founded by Sandeep Tandon, has grown rapidly to reach assets of ₹90,000 crore. Despite the investigation, Quant MF assures investors of its commitment to cooperate with SEBI. Previously, SEBI had taken action against Axis Mutual Fund for a similar case.

SEBI Cracks Down on Quant Mutual Fund

Hey there folks! Big news in the world of investments – SEBI, the capital market regulator, has taken action against Quant Mutual Fund in a suspected front-running case. This development is sure to have an impact on investor confidence in the rapidly growing mutual fund industry.

Raid on Quant MF Offices

SEBI recently conducted search and seizure operations at Quant MF offices in Mumbai and Hyderabad. In response to this, Quant MF sent out an email to its investors confirming the inquiries from SEBI.

The email reassured investors, stating, “Quant Mutual Fund is a regulated entity, and we are fully committed to cooperating with the regulator at all times. We will provide all necessary support and continue to furnish data to SEBI as required.”

Background on Quant MF

Quant Mutual Fund, founded by Sandeep Tandon, has been a standout performer in the mutual fund space. The fund has seen remarkable growth, with assets skyrocketing to ₹90,000 crore from just ₹100 crore in 2019.

In 2017, Quant MF received approval from SEBI to enter the mutual fund business. By January, the fund had crossed the ₹50,000 crore mark with 26 schemes and 54 lakh folios.

Impressive Performance

The small-cap fund offered by Quant MF has been a star performer, delivering an annualized return of 45 per cent over the last five years, surpassing the industry average of 31 per cent. The fund currently has an asset under management of ₹20,000 crore.

Over the past year, the fund recorded a return of 69 per cent, outperforming the category average of 55 per cent.

Previous Actions by SEBI

It’s worth noting that SEBI has taken action against individuals and entities in the past for front-running cases. Viresh Joshi, a fund manager at Axis Mutual Fund, was barred by SEBI along with 20 entities linked to him in a similar case linked to the fund house.

Stay tuned for more updates on this developing story!

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