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The front-running allegations at Quant AMC caught the mutual fund industry off guard last week. Now, nearly two weeks after the news broke, it's time to assess what the investors have made of it.
We did a temperature check based on the weekly net flows in Quant's equity and hybrid categories between January and June 2024, and here's what we found:
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The AMC faced its first weekly net outflows of 2024 in June's final week, breaking a six-month streak of positive inflows.
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The period of June 24 - 30, 2024, saw a net outflow of about Rs 2,800 crore, approximately 3 per cent of the previous week's AUM.
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Quant's flagship
Small Cap Fund
, managing Rs 21,423 crore and representing a quarter of the fund house's AUM, suffered the highest outflows, accounting for 28 per cent of June's final-week exodus.
- Coming to outflows in funds based on their AUM, Quant's PSU fund saw the highest exodus, about Rs 80 crore, representing eight per cent of the fund's total assets on June 21, 2024.
Quant's five largest mutual funds have seen outflows due to the front-running allegations in the last week of June
A sea of red
Quant's five largest mutual funds have seen outflows due to the front-running allegations in the last week of June
| Fund name | AUM June, 2024 (in Rs cr) | Outflows after allegation (in Rs cr) |
|---|---|---|
| Quant Small Cap | 22,967 | -809 |
| Quant Active | 10,758 | -374 |
| Quant ELSS Tax Saver | 10,528 | -28 |
| Quant Mid Cap | 8,747 | -306 |
| Quant Flexi Cap | 6,885 | -338 |
| Note: Value Research estimates for equity and hybrid schemes. | ||
Recent shifts in portfolio
The most recent factsheets hint at shifts in Quant AMC's top holdings. Its top five funds have increased their stake in HDFC Bank and Reliance Industries (which has been their perennial favourite).
Quant funds increase their stake in HDFC Bank and Reliance
| Fund name | % change in Reliance Industries | % change in HDFC Bank |
|---|---|---|
| Quant Small Cap | 1.16 | 1.52 |
| Quant Active | 1.08 | 1.01 |
| Quant ELSS Tax Saver | 0.67 | 1.15 |
| Quant Mid Cap | 1.30 | 0.56 |
| Quant Flexi Cap | 1.21 | 3.27 |
| Note: Holdings from Quant AMC factsheet May through June, 2024. | ||
Secondly, Quant's small-cap fund has shifted 3 per cent of investor money towards large caps.
However, complete entries and exits can't be confirmed until the full monthly portfolio is disclosed..
What you should know
Despite SEBI's investigation into Quant's suspected front-running activities, withdrawals from the fund house remain low.
As such, investors should continue to maintain a wait-and-watch approach.
Also read: Quant's problems
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