New Delhi: Quant Mutual Fund, a rapidly growing asset manager in Mumbai, is currently under regulatory scrutiny for alleged front-running activities. Despite this challenge, the founder and CEO, Sandeep Tandon, assured investors during a video call on Wednesday that their operations are running as normal. However, the fund has experienced significant redemptions amounting to $168 million (approximately Rs 1,400 crore) in just three days this week.
The redemptions represent 1.5% of the fund’s total assets, which have skyrocketed from Rs 240 crore in 2019 to Rs 93,000 crore today. In response to the investor concerns, the fund house released a set of FAQs assuring them that the redemptions should not impact performance. They emphasized that returns are a result of their research capabilities and unique management style, which focuses on dynamic risk management for superior risk-adjusted returns.
Tandon disclosed that they are fully cooperating with the regulatory inquiries, though no charges have been filed against Quant or its employees. He acknowledged that such regulatory visits are common in the fund industry, and many other mutual funds have undergone similar scrutiny in recent years.
Despite the challenges, Tandon remains optimistic about the fund’s performance and reassured investors that they are functioning normally. With a focus on maintaining their unique management style, Quant Mutual Fund aims to continue delivering at par returns for their investors.
