As the Securities and Exchanges Board of India investigation is ongoing in Quant Mutual Fund, on suspicion of front-running, Quant Mutual Fund founder and CIO Sandeep Tandon informed investors today on a call that Quant Mutual Fund has seen net equity outflows worth Rs 1,398 crore in three days.
Tandon however said that no "alarming redemptions" have taken place adding that gross inflows remain normal, as per a Money Control report.
Quant Fund: Outflows & Redemption Pressure
Tandon said the fund's portfolio is fairly liquid, adding that the fund has moved from midcaps to large caps, and from illiquid to liquid strategy in previous months.
As per the latest liquidity stress test findings Quant Fund would need 28 days and 14 days to liquidate 50 per cent and 25 per cent of its small-cap fund portfolio respectively. For Quant Mid Cap Fund, the liquidation period is estimated at 9 days for 50 percent and 5 days for 25 percent of the portfolio.
The fund house with around Rs 90,000 crore in Net AUM has a total equity AUM of around Rs 66,052 crore in 21 equity mutual fund schemes. Of these 21 schemes, four schemes are the larger ones. The details of outflows in the four funds are as follows.
Quant Small Cap Fund the third largest small cap fund in the industry has a total equity AUM of Rs 23,735 crore as of June 25, 2024, as per the latest available data on AMFI. As per AMFI data, this scheme had an AUM of Rs. 23,782 crore on June 21, 2024, and must have experienced an outflow of Rs. 47 crore during this period, if a change in NAV is taken as zero.
The next biggest equity fund from the fund house the Quant Flexi Cap Fund had an equity AUM of Rs 7,203 crore on June 25, 2024, and must have seen an outflow of Rs. one crore during this period, but change in NAV is not factored here.
The third biggest fund Quant Active Fund has an equity AUM of Rs 9,148 crore and Quant Mid Cap Fund has Rs 6,926 crore. The fund house's mid-cap scheme saw a marginal increase in AUM, from Rs. 9,071 crore on June 21, 2024, to Rs. 9,078 crore on June 25, 2024. The fund house's multi-cap fund called Quant active fund also saw a reduction in AUM from Rs. 11,147 crore on June 21, 2024, to Rs. 11,132 crore on June 25, 2024.
The NAV (net asset value) of the schemes has also declined marginally during this period. The NAV of Quant Small Cap Fund Growth Option - Direct Plan went down from Rs 287.5015 to Rs 285.544. The NAV of a similar variant of quant Flexi Cap Fund saw a 0.33 per cent dip from Rs 115.69 to Rs 115.36.
