Quant Mutual Fund SEBI News: The fastest-growing mutual fund is now being investigated by the Securities and Exchange Board of India (SEBI) for suspected front-running. This illegal practice involves fund managers placing their own orders before large trades to profit from expected price movements. This news might worry investors about the safety of their investments. However, mutual fund experts suggest that SEBI's investigation may have little impact on the fund, as it is invested in high-quality stocks. They also note that mutual fund performance depends on market performance. Since Quant Mutual Fund has holdings in quality stocks like Reliance, Jio Financial Services, HDFC Bank, Adani Power, Tata Power, SAIL, LIC, and Aurobindo Pharma, the chances of a drop in NAV due to SEBI's action are minimal.
Reacting to the news of SEBI's investigation into Quant Mutual Fund, Kartik Jhaveri, Director at Transcend Capital and a wealth management expert, provided a reassuring perspective. He stated, "This isn't the first time SEBI has scrutinized a fund manager for front-running. Investors shouldn't be overly worried about such investigations. Their investments are secure because mutual funds have diversified portfolios, and a mutual fund's NAV is influenced by market performance. Therefore, this investigation is unlikely to impact the performance of Quant Mutual Fund.
The mutual fund has invested in top stocks like Reliance Industries Limited (RIL), Jio Financial Services Ltd, Adani Power, Tata Power, SAIL, LIC, and TCS. None of these stocks will be affected even if SEBI's investigation proceeds. Therefore, Quant Mutual Fund investors are advised to stay invested and continue their SIP investments," said Pankaj Mathpal, Founder & CEO of Optima Money Managers. He further explained, "The Net Asset Value (NAV) of a mutual fund is the value of its assets minus its liabilities. It is the price at which investors buy and sell units of the mutual fund. The NAV is influenced by the performance of the stocks in the fund's portfolio, not by external factors like SEBI investigations."
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After the news about SEBI's investigation into front-running, Quant Mutual Fund issued a clear statement: "We want to assure you that Quant Mutual Fund is a regulated entity, and we are fully committed to cooperating with the regulator during any review. We will provide all necessary support and continue to furnish data to SEBI regularly and as needed, showing our commitment to transparency and integrity."
Front-running is an illegal practice where fund managers, dealers, or brokers, knowing about upcoming large trades, place their own orders first to profit from the expected price change when the large trade happens.
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