« NSE launches the Nifty Top 10 Equal Weight Index. Should you invest? The worst performing equity mutual funds post-COVID: are you invested in these funds? »

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
📢Join 3400+ readers on WhatsApp and get new post notifications!

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?

📚 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:

Did you know that we have a private Facebook group which you can join for free and ask your own questions? Please click the button below to join.

Also read
How long will your money last if you retire today?

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?

What's next? You can join the Arthgyaan WhatsApp community

You can stay updated on our latest content and learn about our webinars. Our community is fully private so that no one, other than the admin, can see your name or number. Also, we will not spam you.

For resident Indians 🇮🇳:

For NRIs 🇺🇸🇬🇧🇪🇺🇦🇺🇦🇪🇸🇬:

Share on WhatsApp:

To understand how this article can help you:

If you have a comment or question about this article

The following button will open a form with the link of this page populated for context:

If you liked this article, please leave us a rating

The following button will take you to Trustpilot:

Discover an article from the archives

Previous and next articles:

<p>This article discusses the Nifty Top 10 Equal Weight Index covering the 10 largest mega-cap stocks in India and whether these stocks are suitable for investors.</p>

Review

NSE launches the Nifty Top 10 Equal Weight Index. Should you invest?

This article discusses the Nifty Top 10 Equal Weight Index covering the 10 largest mega-cap stocks in India and whether these stocks are suitable for investors.

Published: 26 June 2024

11 MIN READ