27-Jun-2024
2 mins read
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Quant Mutual Fund investors had given redemption due to raising concerns over the SEBI investigations in the front-running case. Investors withdrew Rs 1400 crore in the last three days. They are worried and confused about whether they should start a fresh investment.
Market experts believe that current redemption is normal and individual-driven, depending on various factors unique to each investor. However, the right approach is to hold the existing investment and choose not to invest additional money.
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Quant Mutual Fund Performance
Quant Mutual Fund has remained the topper among different time periods across equity categories. Quant Small Cap Fund has delivered impressive returns over the last five years. The fund delivered around 495% absolute return in the same time period. Quant Mid Cap Fund has offered a 348.65% return in the same time frame.
Investors are also concerned that the ongoing investigation will impact the performance and investments. Market experts replied that Quant Mutual Fund takes a different approach to investing. They follow a quantitative method rather than going by fund managers' decisions.
Quant Follows Algorithm-Based Investment
SEBI has mentioned that they are only investigating. There is no judgement as yet on the front running. Quant's method of investing is very different. They are not based on the fund manager's discretion but follow the quantitative investing method. So, even if fund managers are changed in the future, the impact will be much less as the investment method will still be based on their algorithm.
On Wednesday, June 26, 2024, the NAV of schemes managed by Quant Mutual Fund declined by 0.25%, the NAV of Quant Healthcare Fund declined by 0.25%, the NAV of Quant small cap Fund was up by 0.52%, and the NAV of Quant Mid Cap Fund went down by 0.17%.
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