The Allegations against Quant Mutual Fund
Quant Mutual fund is a relatively new Mutual Fund AMC that came to existence around 2017 and before that it was used to be called Escorts Mutual Fund AMC and this Mutual Fund AMC was giving out some crazy returns on their investment in almost every single category wether it was Large Cap, Mid Cap or Small Cap Mutual Funds.
As you can see this Mutual Fund has given crazy returns in their investment ranging from 49.51% in Large Cap Mutual Fund all the way to 74.21% in Mid Cap Mutual Funds. Part of the reason for their high return on investments were due to the fact that the AUM managed by the Mutual Fund was quite small and that enabled them to buy stocks freely without any constraints especially for the small and mid cap stocks.
But it seems there are some black clouds circling around this Mutual Fund AMC as SEBI is currently investigating this Mutual Fund AMC for Front Running suspicion. Now it is very important that you know the fact that the Mutual Fund AMC is just under suspicion and nothing has been proven yet but if you ask me there is definitely going to be a rush to redeem a bunch of Quant Mutual Fund Units and the NAV might decline for the time being. But if all the suspicion is lifted then I hope that this Mutual Fund AMC will make a grand comeback.
What Am I Doing?
I don’t really have a lot of holdings in Quant Mutual Fund AMC and the only holding I have is in their Tax Saver ELSS fund which requires me to hold it for a minimum of 3 years so I have nothing I can do about it.
But if I had some Money that I could liquidate I would look out for two points. First is the amount of Money I have invested in this Mutual Fund and is that amount something I am ok with taking a Hit and the second point is that is the Mutual Funda Units that I have purchased passed the one year period as that would allow me to get some tax benefits and if it is the latter I would definitely sell my Mutual Fund Units and put the Money somewhere else.
What would you have done in such a Situation?
