Quant Mutual Fund Hits All-Time High in AUM and NAV, Assets Cross Rs 94,000 Crore

Quant Mutual Fund’s net asset value (NAV) for most of its schemes and its assets under management (AUM) have reached record highs, the company informed its investors on Saturday. As of July 12, 2024, the mutual fund house’s total AUM surpassed Rs 94,000 crore, marking an all-time high. The Quant Mutual Fund is under Sebi’s investigation for a probable front-running case.

Quant MF’s Clarification on Sebi Investigation

This announcement followed an earlier communication from Quant Mutual Fund addressing details about the market regulator Sebi’s ongoing investigation into front-running allegations. The mutual fund house clarified that the data collected by markets regulator Sebi was not part of any regular process but was part of a court-approved search and seizure operation with respect to any ongoing investigation initiated by Sebi.

Record Highs Despite Net Outflows

Despite facing net outflows of Rs 696 crore and net equity outflows of Rs 877 crore over the past three weeks, which is less than 1 per cent of its current AUM, Quant Mutual Fund’s AUM remains at an all-time high of over Rs 94,000 crore.

The mutual fund house emphasised that its liquidity situation is “extremely healthy with more than 54% assets are very liquid, which includes Large-cap stocks, T-bills, G-Secs, Gold and Silver”.

‘Superior Risk-Adjusted Returns’

“Our superior risk-adjusted returns generated by our schemes are in line with our dynamic style of money management,” it added.

In June, Sebi conducted search-and-seizure operations in the Delhi, Mumbai, and Hyderabad offices of Quant MF, reportedly linked to alleged profits estimated at Rs 20 crore.

Front-running refers to an illegal practice in the stock market where an entity trades based on advanced information from a broker or analyst before the information has been made available to its clients.

Quant Mutual Fund on Friday said its Chief Financial Officer Harshal Patel has resigned, and Shashi Kataria has been appointed to replace him with effect from July 1, 2024. It, however, said that the rejig was done on February 19, way before the Sebi action in June, and the last day of Patel was May 19.