Synopsis: Quant Mutual Fund, under SEBI investigation for front-running, is the fastest-growing mutual fund in India with over Rs 90,000 crore in AUM. Founded by Sandeep Tandon, the fund attributes its success to advanced analytical tools and a dynamic investment philosophy focused on relevance, active management, and diversification. Despite the regulatory scrutiny, Quant Mutual Fund continues to demonstrate impressive performance, highlighting its innovative approach in the competitive Indian financial market.
Quant Mutual Fund is currently under investigation by the Securities and Exchange Board of India (SEBI) for alleged front-running, an illegal practice where fund managers use advance information on large trades to profit from expected price movements. Despite these allegations, Quant Mutual Fund has achieved rapid growth, with over Rs 90,000 crore in assets under management (AUM).
Background and Success
Founded by Sandeep Tandon, Quant Mutual Fund secured its license from SEBI in 2017. It has become the fastest-growing mutual fund in India, now managing approximately $11 billion in assets. In terms of AUM, it ranks 18th among 44 asset managers in the country. The Quant Active Fund Growth, managed by Sanjeev Sharma, Vasav Sahgal, and Ankit Pande, has demonstrated impressive performance, delivering a compound annual growth rate (CAGR) of 31.36% over the past five years and 54.91% in the last year.
Philosophy and Strategy
Quant Mutual Fund attributes its success to a sophisticated suite of analytical tools focused on valuation, liquidity, risk appetite, and timing. Founder Sandeep Tandon emphasizes the importance of a predictive framework and behavioral strategies in navigating market bubbles and securing timely exits. The company's guiding principles are relevance, active management, and an unconstrained approach to investment, which Tandon believes are essential for enduring value and outperforming passive investment strategies.
SEBI Investigation
Quant Mutual Fund is under scrutiny by SEBI for front-running. The company has expressed its commitment to cooperating fully with the regulator and providing all necessary data. This investigation comes at a time when Quant's innovative investment approach and rapid growth have drawn significant attention.
Quant's Analytical Approach
According to Tandon, Quant's success is rooted in its predictive analytics and diversified investment strategies, which are critical in today's dynamic financial environment. The company's emphasis on diversification across asset classes and its active management style are designed to adapt to changing market conditions and optimize returns.
