Quant Funds Hit by Rs 3,000 Cr Outflow Amid SEBI Front-Running Probe

Published: 04th July 2024 By: Value Research

Streak broken

[{"selector":"#anim-34df62f9-f88a-4d48-8b55-bbe943161616","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d16af04f-9bc6-4232-93a2-be9c5bcb2adf","keyframes":{"transform":["translate3d(0px, 78.33488%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-147426d5-3c33-4891-b74c-189c33861f3b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5bc4d76c-c0e1-4ec4-b094-5e18a3d85e90","keyframes":{"transform":["translate3d(0px, 181.70939%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Quant MF saw its first weekly net outflows in June's final week, breaking a six-month streak of positive inflows. This coincides with SEBI , the regulator, investigating Quant for alleged front-running. What is front-running?

Net outflows at 3% of Quant AUM

[{"selector":"#anim-e856734c-09a3-481a-952b-6d011f7f456b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5fda222e-4d65-4c72-b72f-3aba0393d7ca","keyframes":{"transform":["translate3d(0px, 60.22905%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-57a6abf2-bc81-48a1-a44e-438ef4748c3b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6789aab6-d050-4c48-a647-5c26b5adde82","keyframes":{"transform":["translate3d(0px, 183.79081%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] 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.

Exit from flagship fund

[{"selector":"#anim-42b988df-d384-4f79-88a2-ce8181160db5","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-575ee60e-7f16-4a21-a1dc-d696899914ef","keyframes":{"transform":["translate3d(0px, 66.07861%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6e924cc4-ce8a-4584-a251-485b27ff220c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5c06dade-eed6-4965-9c85-00129b2bbd6c","keyframes":{"transform":["translate3d(0px, 144.01709%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Quant's small-cap fund, which oversees Rs 21,423 crore and represents a quarter of the fund house's AUM , suffered the highest outflows. It comprised 28 per cent of June's final-week exodus.

Other big funds are impacted, too

[{"selector":"#anim-f1088251-ce0c-435b-8726-9084c7e5b4b3","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c996d05a-c731-4b73-b7c1-b68ac6be4918","keyframes":{"transform":["translate3d(0px, 50.75829%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d3e2fa35-9fc1-44f6-93b7-9ef9dd6d4dbf","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b3e11e23-b812-4f2e-993d-8a44f9b76950","keyframes":{"transform":["translate3d(0px, 203.41878%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The four other big funds have also seen redemptions. The table here shows that. Fund name AUM Outflows after allegation (in Rs cr) June, 2024 (in Rs cr) Quant Small Cap 22967 -809 Quant Active 10758 -374 Quant ELSS Tax Saver 10528 -28 Quant Mid Cap 8747 -306 Quant Flexi Cap 6885 -338 Note: Value Research estimates for equity and hybrid schemes.

Portfolio tinkering

[{"selector":"#anim-6e1c5938-13dd-4608-89cb-8cf1610ae2b9","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a9ac8eb1-a7f3-4f33-9604-0bbacf2ca5fb","keyframes":{"transform":["translate3d(0px, 73.32095%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9ae76376-47bb-4a8b-981f-903c366d39fb","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d80754b0-8ca6-4c63-94d4-ebe0e2c19c95","keyframes":{"transform":["translate3d(0px, 197.42798%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Quant funds have also bought a large-cap banking company recently. To know the company name and whether you should remain invested in Quant funds, click on the link below. Quant's funds see Rs 2,800 cr net outflow.

Other Webstories

[{"selector":"#anim-fd614939-c182-44cb-b5f6-1b4cd02d6a12","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8b938f9f-30f3-4b28-a78a-32173189d6fe","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a0e1414f-89c3-41d3-8ba7-e9ba2037af46","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0397ff94-74d3-4733-8b6b-8a4750025313","keyframes":{"opacity":[0,1]},"delay":400,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2d314873-ecb0-4f21-9adf-b45c5b6e4057","keyframes":{"transform":["translate3d(-194.52735%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-84c326eb-bfee-41bc-a4ee-6d8d363863f6","keyframes":{"opacity":[0,1]},"delay":800,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bebf2745-7be4-49df-8eb2-096464f0021e","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":800,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1438786a-ee32-4998-9905-fd85d44d1066","keyframes":{"opacity":[0,1]},"delay":900,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c01917e1-41aa-4316-8abf-2fcbfcb62a30","keyframes":{"opacity":[0,1]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c3b54753-51d4-4c38-a79f-c890096b4f67","keyframes":{"transform":["translate3d(-194.52735%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-00dbf33a-dccf-484d-bfd3-a0fc0cd15bd8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1014b475-9e17-437b-b06a-44409d2b0ae2","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4fd5a99b-a934-49d4-ab6c-ead9412da72b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9ba33651-1ee3-4a2f-9776-cb09b2aebf62","keyframes":{"transform":["translate3d(-125.51724%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] ValueResearchOnline.com