SEBI’s recent actions have stirred concerns among 79 lakh retail investors of Quant Mutual Fund, following search operations at the fund house’s Mumbai and Hyderabad offices related to a front-running case.
Dealers and associates have been questioned, raising apprehensions among investors.
Guidance for Investors
Despite SEBI’s investigation, retail investors are advised not to panic.
Quant Mutual Fund’s cooperation with SEBI signals a proactive approach toward resolving the issue transparently, reassuring investors about the fund’s commitment to compliance and transparency.
Growth and Fund Details
Quant Mutual Fund manages 27 funds with a significant growth trajectory.
Starting from ₹166 crore in AUM and 19,829 folios in December 2019, it has expanded to over ₹84,000 crore in AUM and 79 lakh folios by May 2024.
The fund’s growth is evident across various schemes managed by Sandeep Tandon,
including flagship schemes like Quant Multi Asset Fund and Quant Flexi Cap Fund.
Historical Context of Front-Running
Front-running allegations, while concerning, are not unprecedented in the mutual fund industry.
Several cases, including recent settlements with Aditya Birla MF and Axis Mutual Fund, highlight SEBI’s ongoing efforts to uphold market integrity.
Regulatory Measures to Prevent Front-Running
SEBI’s recent amendments to mutual fund regulations in April 2024 aim to strengthen safeguards against front-running and fraudulent activities.
These measures are designed to enhance market fairness and protect investor interests.
By structuring the information into these sections,
the content remains clear and comprehensive while addressing the key aspects of the Quant Mutual Fund case and its implications for investors.
