Neil Borate’s Post

Quant has been mainly focusing on pro active management of funds this is known when you see the turnaround ratio of the funds which are almost 20-22 times higher than other peer AMC's. This style of managing funds have not been seen in the past. So, they are chances that SEBI had surprise inspection. As of now there is nothing much to worry. But, if any evidence is put out by SEBI then there might be some panic redemption in the funds.

My experience coming from a more conservative Banking sector--- In the financial sector, a smell of corruption or process failure run !!! Be ruthless. an instance of corruption in branch --- change the entire team.. This is like Balance Sheet in finance... In the end if assets not matching liabilities even if the difference is only some paise you can not leave it as such.. You re-work the entire thing and not rest till the reason for the difference is found.. Its not that the quantum of difference its just that B/S is not matching... The actual evidence for frontrunning was few crores or where did these guys got money for it. The fact is there was front running ... This time it was a small amount next time it will be higher if the rot is not cleared ruthlessly.. If the founder is under the lens higher an outsider with impeccable reputation..

Disclaimer: I have invested in quant MF and have not redeemed. Views are personal and not of the organisation. There has been a lot of news about quant MF in the media since the weekend due to the case of front running. However, there is not much information which has been made available in the public domain. There are 2 or 3 scenarios which can emerge. Is it the dealer or some employee of the fund house engaged in that activity or is it the broker where the deals are routed thru. Is the promoter involved. From the information based on what has been provided by Neil Borate it appears that the amount is Rs. 15-20 cr. If this is the amount, it is too miniscule for the promoter to risk his entire brand value for that amount. If it is an employee or dealer, he will face the consequences and the fund house may be levied a penalty (AMC, not the scheme). If you are invested and do panic redemption, you will be hurting your own Investments. You should wait and watch for more information to emerge. Please read the interview of Neil Borate and take a call; atleast he has spoken in person to Sandeep Tandon. https://lnkd.in/dWSaPvmU

Qunat is the fastest-growing AMC, with all its funds outperforming others. While front-running allegations are not yet confirmed. It's important to note that this wouldn't be the first AMC to face such issues; many AMCs have dealt with front-running in the past. If you have a short-term investment horizon, be aware that any evidence presented by SEBI could trigger panic redemptions in the funds. However, for long-term investors, there's no need to worry. Your investments should remain unaffected over the long run. Staying informed and maintaining a long-term view can help navigate any market uncertainties.

Appreciate your need of the hour reporting Neil Borate . You and your team have been known for responsible reporting which you have proved once again. Meeting Sandeep Tandon of Quant Mutual Fund now , hearing from the horse’s mouth and reporting the take aways in an unbiased manner shows your commitment and responsibility to your followers and the investors. I completely share your view and assessment about the situation. There are some set of social media influencers who have already gone too judgemental and spreading negative information which is completely irresponsible and unwarranted attention seeking exercise . Extremely sad to see even one or two advisors who actually were showing signs of intelligence and expertise asking customers to exit from the schemes of quant which is absolutely knee-jerk reaction not expected from matured experts. This is done even ignoring the exit load and short term gains tax impact (which is 5% more than long term capital gains tax). Even before any findings of the search is reported how can advisors be so judgemental?...Such advisors are harmful for advisors and they can get carried away by news reports without proper analysis. The net fall of the last 2 days in the NAVs of these schemes is hardly 0.5% or lesser(yesterday the NAVs of more than half of their schemes were positive) . It's understood that some uniformed investors, investors who are not advised by seasoned experts and some of those who have invested online without expect guidance would do panic redemptions which can impact NAVs for couple of days and will be covered up fast, if there is no proof of front-running. Quant MF is known for quick bounce backs even when NAVs has fallen sizably due to correction in certain stock holdings like the Adani group stocks impact in Jan 23. So we can expect them to cover the fall due to the current panic- driven redemptions faster. I also tend to believe, though not trying to give a clean chit before the findings are out, that Sandeep Tandon may not be that unwise to play with the fortunes of such a fast emerging company with unprecedented growth in the industry for the sake of front-running for 15-20Crs when his networth itself is estimated at 3000Crs. Comeon investors and advisors, let us use our prudent wisdom and be a little patient before getting judgemental. Let us give the benefit of doubt until any proof is reported. The money is in the hands of a stellar performing fund house which has created amazing wealth for investors in the last 5 years and it's just a matter of time that the temporary fall in the NAVs will be covered by their proven fund management capabilities.

In most cases knee jerk reactions are not warranted. In a general article it is not possible to cover your individual situation. If you stop an existing SIP into Quant where would you put it. Should you put fresh money into Quant. If you are an investor in Quant funds with a large allocation should you cut back or not. These are not easy questions to answer and as Neil Borate mentions front running allegations may or may not affect future performance of the funds. Tools such as the whats app 24x7 monitoring by Bharosa Club and Explore funds can provide you data on your situation on an ongoing basis. For Bharosa Members it is simple. If your Quant MF shows up as a potential improvement opportunity then consider acting on it. Till then do nothing. Bharosa Club does the math for you on the underperformance versus benchmark and the tax consequences of exiting. Knee jerk reactions based on headline news are not factors investors should considers. Traders thrive on getting sentiment and momentum right. As a mutual fund investor you should not be a trader.

The last few days have been a little chaotic. Not just from a work point of view but also as an investor!! Yes, I am referring to the recent SEBI investigation of the front-running happening in the Quant mutual fund house. This news has spread like wildfire specifically because Quant mutual fund’s journey has been a little “too good to be true”. It has delivered over 560% returns and increased its assets by 400 times! Unreal, right? However, the main question remains: What lies ahead and what should you do in such a situation? So, don’t worry, I’ve got the answers for you. What the heck is Front-Running? Let’s assume you are a fund manager and you know that your fund is about to buy 100CR worth of a particular stock. Now, you will personally buy shares of that stock first. When the fund's large purchase drives up the stock price, you can sell your shares at a profit. This is known as front-running and it is not only illegal but also an unethical practice. SEBI believes that Quant Mutual Fund is involved in such practices and thus the investigation has been initiated. What can be the potential impact? In the short term, this can have an impact on mutual fund returns because of two major reasons: Redemption Pressure As more and more people redeem their mutual funds due to this news, the NAV of the fund will keep falling as well. Moreover, there won't be many fresh investments to normalise this redemption pressure. Quant Stocks Under Radar The information on a mutual fund’s “holdings” is available in the open. Naturally, people will become aware of the stocks owned by the mutual fund. This will lead to selling pressure in such stocks and a further reduction in NAV. Moreover, it will also impact the independent investors of those stocks in which front-running is suspected. So, what should you do? First and foremost, don’t panic-sell immediately. See, the keyword here is “investigation”, it hasn't been proven yet that Quant was involved in it. Secondly, it isn't the first time this is happening. Previously, both Axis Mutual Fund and HDFC Mutual Fund were involved in such a case. However, it didn't have a great impact on their performance. Hence, there is no point in panic-exiting because we don't know for sure what lies ahead. Moreover, it would be wrong to completely ignore the fact that the fund has shown great performance. So, one of the best strategies would be to just wait and watch. However, as a cautious measure, one can avoid making fresh investments into the funds depending on their goals and risk-taking ability until we have more clarity. If you want to know how to select the best mutual fund for your goals, then DM. #sharemarket #stockmarket #nifty #sensex #investing #trading #nse #bse #stockmarketindia #stocks #indianstockmarket #investment #stockmarketnews #banknifty #finance #money #intraday #intradaytrading #investor #niftyfifty #dalalstreet #sharemarketindia

Quant's funds see Rs 2,800 cr net outflow. Here's what you should do The fund house has been under the pump following the front-running allegations Read here: https://vro.in/s201585 Follow us Value Research #quantamc #frontrunning

Hearing about the Mutual Fund Stress Test and wondering what it is about and how an AMC calculates that? Here we break it down for you. The Association of Mutual Funds in India (AMFI) is now providing crucial information to help you assess your small-cap and mid-cap fund investments. As per a recent SEBI mandate, AMCs (Asset Management Companies) will disclose stress test results every 15 days, starting today, March 15th, 2024. What is a stress test? This test helps understand how quickly a fund manager can sell holdings if there's a surge in investor redemptions during market downturns. Here's how it works: Scenarios: Imagine 25% or 50% of investors seeking redemption. The test assesses how many days it would take the fund manager to liquidate that portion of the portfolio. Focus on Liquidity:  The bottom 20% of illiquid holdings are excluded, reflecting a realistic scenario where less desirable assets wouldn't be sold first. Market Conditions Considered:  The test factors in 3-month average trading volume on both NSE and BSE, along with a buffer of three times that volume to account for potential volatility spikes. Selling Assumptions:  A 10% participation rate is assumed, meaning the fund manager can likely sell only 10% of the daily trading volume for each stock due to increased selling pressure. Why is this important? Stress test results empower you to: Gauge the liquidity of your fund. Understand how easily you can redeem your investments during market stress. Stay informed! Look out for stress test results from your fund AMC. This transparency promotes informed investment decisions. #SmallCapFunds #MidCapFunds #AMFI #StressTesting #InvestorEmpowerment (Disclaimer: This is for informational purposes only. Consult a financial advisor before making investment decisions.)

"I really like the fund, but we don't have a bucket to put you in... I might invest my own money though". We have heard versions of this comment a surprising number of times in conversations with large wealth managers, who still seem structurally wedded to daily dealing funds. But the tide is turning. The semi-liquid space is picking up pace with major private markets firms looking to access this channel, often by partnering with traditional asset managers. -KKR are partnering with Capital Group to launch mixed private and public asset funds. -CVC are partnering with UBS to distribute their semi-liquid private credit funds. - WTW are the latest firm to announce the creation of an LTAF. A large wealth manager who last year "had no plans to offer LTAFs" is now "closely monitoring the space". Another was “tempered by both the lack of choice right now but also the lack of track record of such funds...." Well.... RAW Capital Partners has been offering access to specialist private lending in a semi-liquid fund for 9 years, with positive returns every month since inception. If you are looking for something semi-liquid, but with a long track record - get in touch with me or James Armstrong. The semi-liquid offering is growing. 👇