Are Quant AMC funds underpeforming after the SEBI probe start?
This article discusses the performance of the biggest Quant Mutual Fund funds after the launch of the SEBI probe on 23-Jun-2024.
Are Quant AMC funds underpeforming after the SEBI probe start?
Posted on 30 Jun 2024 • Updated on: 21 Jul 2024
Author: Sayan Sircar
Tags: 
Mutual Funds
7 mins read
Mutual Funds
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This article discusses the performance of the biggest Quant Mutual Fund funds after the launch of the SEBI probe on 23-Jun-2024.
📚 Topics covered:
- What is the news on Quant Mutual Fund investigation by SEBI?
- How are Quant mutual funds doing after the start of the Quant Mutual Fund investigation by SEBI?
- What should Quant investors do now?
What is the news on Quant Mutual Fund investigation by SEBI?
On Sunday 23-Jun-2024 evening, Moneycontrol broke the news of a SEBI investigation at the offices of Quant Mutual Fund on allegations of front-running.
Front-running is when a trader uses inside information about client orders to make trades for personal gain.
Front-running is not new. The Axis Mutual Fund case, which was discovered in May 2022, faced the same type of investigation and led to the barring of the fund manager and other related entities.
How are Quant mutual funds doing after the start of the Quant Mutual Fund investigation by SEBI?
This is the return of the five biggest (in terms of Assets Managed almost ₹55,000 crores) Quant funds after the probe launch on Sunday 23-Jun-2024. Fund performance data is from AMFI and Category performance data is from Valueresearchonline.
Fund vs category returns = Fund returns - Category returns
A negative number here means that the fund is underperforming vs. the category.
1-day return one day after the probe start
We are comparing the change of Monday 24-Jun-2024 vs. the previous Friday 21-Jun-2024
| Funds | Type | AuM | 1D (fund) | 1D (category) | Fund vs. category |
|---|---|---|---|---|---|
| Quant Small Cap Fund | Smallcap | 21,243 | -0.66 | 0.64 | -1.30 |
| Quant Active Fund | Multicap | 10,204 | -0.68 | 0.24 | -0.92 |
| Quant ELSS Tax Saver Fund | ELSS | 9,860 | -0.46 | 0.25 | -0.72 |
| Quant Mid Cap Fund | Midcap | 7,953 | -0.93 | 0.48 | -1.41 |
| Quant Flexi Cap Fund | Flexicap | 6,272 | -0.57 | -0.01 | -0.56 |
1-week return one week after the probe start
| Funds | Type | AuM | 1W (fund) | 1W (category) | Fund vs. category |
|---|---|---|---|---|---|
| Quant Small Cap Fund | Smallcap | 21,243 | -0.30 | 0.71 | -1.01 |
| Quant Active Fund | Multicap | 10,204 | -0.65 | 1.09 | -1.74 |
| Quant ELSS Tax Saver Fund | ELSS | 9,860 | 0.11 | 1.25 | -1.14 |
| Quant Mid Cap Fund | Midcap | 7,953 | -0.56 | 0.54 | -1.10 |
| Quant Flexi Cap Fund | Flexicap | 6,272 | 0.31 | 1.27 | -0.96 |
We are comparing the change of Friday 28-Jun-2024 vs. the previous Friday 21-Jun-2024
2-week return two weeks after the probe start
| Funds | Type | AuM | 2W (fund) | 2W (category) | Fund vs. category |
|---|---|---|---|---|---|
| Quant Small Cap Fund - Direct Plan | Smallcap | 21,243 | 2.81 | 0.39 | 2.42 |
| Quant Active Fund - Direct Plan | Multicap | 10,204 | 2.18 | 1.51 | 0.67 |
| Quant ELSS Tax Saver Fund - Direct Plan | ELSS | 9,860 | 2.02 | 1.51 | 0.51 |
| Quant Mid Cap Fund - Direct Plan | Midcap | 7,953 | 2.23 | 0.88 | 1.35 |
| Quant Flexi Cap Fund - Direct Plan | Flexicap | 6,272 | 3.08 | 1.51 | 1.57 |
We are comparing the change of Friday 5-Jul-2024 vs. Friday 21-Jun-2024
1-Month return four weeks after the probe start
| Funds | Type | AuM | 1M (fund) | 1M (category) | Fund vs. category |
|---|---|---|---|---|---|
| Quant Small Cap Fund - Direct Plan | Smallcap | 22,967 (+8.1%) | 1.47 | 1.30 | 0.17 |
| Quant Active Fund - Direct Plan | Multicap | 10,758 (+5.4%) | 1.80 | 2.99 | -1.19 |
| Quant ELSS Tax Saver Fund - Direct Plan | ELSS | 10,528 (+6.8%) | 2.50 | 2.99 | -0.49 |
| Quant Mid Cap Fund - Direct Plan | Midcap | 8,747 (+10.0%) | 1.05 | 2.12 | -1.07 |
| Quant Flexi Cap Fund - Direct Plan | Flexicap | 6,885 (+9.8%) | 2.44 | 2.99 | -0.55 |
We are comparing the change of Friday 19-Jul-2024 vs. Friday 21-Jun-2024
Note: AuM numbers have been updated as per June 2024 disclosures.
Quant mutual funds return underperformance after the probe start
This table shows the fund minus category returns after the probe start date.
| Type | Smallcap | Multicap | ELSS | Midcap | Flexicap | Average |
|---|---|---|---|---|---|---|
| 1D return (%) | -1.30 | -0.92 | -0.72 | -1.41 | -0.56 | -0.98 |
| 1W return (%) | -1.01 | -1.74 | -1.14 | -1.10 | -0.96 | -1.19 |
| 2W return (%) | 2.42 | 0.67 | 0.51 | 1.35 | 1.57 | 1.31 |
| 1M return (%) | 0.17 | -1.19 | -0.49 | -1.07 | -0.55 | -0.63 |
| AuM change (%) | 8.1% | 5.4% | 6.8% | 10.0% | 9.8% | 7.8% |
AuM change is June 2024 vs. May 2024 filings. AuM for the five largest Quant AMC funds have increased by 7.8% at a combined basis.
Note: There is no pattern to be seen here and it is too early to draw any conclusions.
To understand what to do with these funds in your portfolio:
What should Quant investors do now?
We have covered this topic in detail in this article: Quant Mutual Fund investigation by SEBI: Is your money safe?
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