Quant Mutual Fund: The Securities and Exchange Board of India (SEBI) is currently investigating Quant Mutual Fund for allegations of front-running. This investigation is part of SEBI’s ongoing efforts to maintain market integrity and protect investors’ interests.
Front-running is a malpractice where fund managers buy securities for their personal accounts before executing large orders for their clients, thereby driving up prices. According to a report by Moneycontrol, SEBI is scrutinizing this practice at Quant Mutual Fund.
SEBI officials have reportedly conducted searches at Quant Mutual Fund’s offices, which manage approximately Rs 80,000 crore in assets.
In light of the ongoing inquiries, Quant Mutual Fund issued a statement to its investors on Sunday, aiming to address any concerns and clarify their stance:
“Recently, Quant Mutual Fund has received inquiries from SEBI, and we want to address any concerns you may have regarding this matter. We want to assure you that Quant Mutual Fund is a regulated entity, and we are always fully committed to cooperate with the regulator throughout any review. We will provide all necessary support and continue to furnish data to SEBI on a regular and as-needed basis.”
The fund house emphasized its commitment to delivering superior risk-adjusted returns to its investors despite the investigation.
Rapid Growth and Unique Investment Strategy
Quant Mutual Fund has seen remarkable growth in recent years, largely driven by retail inflows. The fund’s assets under management (AUM) skyrocketed from Rs 233 crore in March 2020 to Rs 80,470 crore currently. The fund is renowned for its unique investment approach, which heavily relies on analytics, allowing it to rapidly expand its market presence.
Founded by Sandeep Tandon, Quant Mutual Fund received its mutual fund license from SEBI in 2017. Since then, it has become the fastest-growing mutual fund in India, with its assets surging from around Rs 100 crore in 2019 to over Rs 90,000 crore today.
Quant Mutual Fund: Diverse Portfolio Holdings
Quant Mutual Fund boasts a diverse portfolio that spans large, mid, and small-cap stocks across various sectors. Below is a detailed breakdown of its top holdings:
Top Holdings
| Company Name | % of AUM |
|---|---|
| Reliance Industries Ltd. | 8.75% |
| Adani Power Ltd. | 4.66% |
| JIO Financial Services Ltd. | 4.52% |
| HDFC Bank Ltd. | 3.11% |
| Aurobindo Pharma Ltd. | 2.39% |
| Tata Power Company Ltd. | 2.36% |
| Steel Authority Of India Ltd. | 2.21% |
| Life Insurance Corporation of India | 2.20% |
| Samvardhana Motherson International Ltd. | 2.06% |
In addition to these, the portfolio includes significant shares in companies like Britannia Industries Ltd., Jindal Steel & Power Ltd., and Container Corporation Of India Ltd.
Sector Diversification
The fund’s investments are diversified across multiple sectors, ensuring a balanced portfolio. Below is a sector-wise breakdown of the fund’s holdings:
| Sector | % of AUM |
|---|---|
| Energy | 12.1% |
| Financials | 11.3% |
| Industrials | 9.5% |
| Healthcare | 7.8% |
| Consumer Staples | 6.7% |
| Information Technology | 5.4% |
| Materials | 4.9% |
| Utilities | 3.2% |
| Real Estate | 2.6% |
| Communication Services | 2.4% |
Quant Mutual Fund: Small-Cap and Mid-Cap Holdings
Quant Mutual Fund also holds notable small-cap stocks such as IRB Infrastructure Developers Ltd. and Aegis Logistics Ltd. For mid-cap investments, the fund includes companies like HFCL Ltd. and Poonawalla Fincorp Ltd., further diversifying its investment base.
Small-Cap Holdings
| Company Name | % of AUM |
|---|---|
| IRB Infrastructure Developers Ltd. | 1.2% |
| Aegis Logistics Ltd. | 1.1% |
| Linde India Ltd. | 1.0% |
| Gujarat Fluorochemicals Ltd. | 0.9% |
| Rain Industries Ltd. | 0.8% |
Mid-Cap Holdings
| Company Name | % of AUM |
|---|---|
| HFCL Ltd. | 1.5% |
| Poonawalla Fincorp Ltd. | 1.4% |
| Indian Hotels Company Ltd. | 1.3% |
| Cummins India Ltd. | 1.2% |
| Endurance Technologies Ltd. | 1.1% |
Quant Mutual Fund: Final Conclusion
Quant Mutual Fund, despite facing scrutiny from SEBI, continues to assure its investors of its commitment to transparency and cooperation. With a solid and diverse investment portfolio, the fund aims to maintain its growth trajectory and uphold its promise of superior returns. As the investigation unfolds, Quant Mutual Fund’s proactive approach in addressing regulatory concerns highlights its dedication to maintaining trust and integrity in the market.
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