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Mix-up of mutual funds: Quantum MF clarifies it is different from probe-hit Quant MF
Quantum Mutual Fund has issued a statement distancing itself from the similarly-named Quant Mutual Fund after the latter came under Sebi scanner
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Quantum Mutual Fund has issued a statement distancing itself from the similarly-named Quant Mutual Fund after the latter came under Sebi scanner over allegations of front-running. In the last three days, Quant Mutual Fund investors have redeemed investments worth ₹1,400 crore as the market regulator reportedly started a probe over allegations of "front running”.
“Quantum MF and Quant MF are separate entities,” Quantum MF posted in an “important update” for its investors on social media yesterday.
“This is to clarify that Quantum Mutual Fund and Quant Mutual Fund are two different mutual fund houses,” the mutual fund house posted. “Quantum MF follows an investor First approach and has initiated many best practices which the industry has adopted years and decades after Quantum MF adopted them. Quantum MF has a robust research and investment process, and offers simple investment solutions for sensible, long-term investing,” it added.
In a separate graphic, the mutual fund house also said “a suit has been filed in the Mumbai High Court against Quant MF, restricting the use of the Trade Name Quant Mutual Fund which creates confusion with the Trade Name Quantum Mutual Fund.” The suit is pending in the High Court.
Take a look at the clarification below:
The clarification led to much amusement among investors and social media users. The comment section of Quantum Mutual Fund’s post was filled with laughing face emojis.
According to Reuters, the Securities and Exchange Board of India (SEBI) has begun investigating allegations of "front running"- or dealing on price-sensitive information before its general release - at Quant MF.
In the three days since, net redemptions were 1.5% of its 930 billion rupees in assets under management (AUM), "which is a small figure," Quant told investors in an email seen by Reuters.
It said its "operations are running smoothly" even as the SEBI's investigation was ongoing.
(With inputs from Reuters)
