Net equity outflows at Rs 1,398 crore or 1.5% of total AUM in last 3 days: Quant Mutual Fund

In response to media reports, Quant Mutual Fund, on June 23, informed investors that it had received inquiries from the SEBI and was cooperating with the regulator for any review.

“Over the last three days, our net equity outflows were Rs 1,398 crore (1.5 per cent of total AUM) only, despite so much noise,” Tandon said during a virtual call on Wednesday. He said while gross inflows still remain normal, gross outflows have increased.

The fund house has seen a substantial jump in its total AUM, from Rs 27 crore in 2018 to Rs 93,000 crore currently. It has 26 schemes and has 84 lakh investors.

Allaying investors’ concerns, Tandon said the liquidity position of the fund house has been good since the beginning of 2024.

“As of June 25, 2024, our liquid assets, which include large caps, stocks, cash, treasury bills (T-bills) government securities (g-sec), gold and silver, were approximately Rs 47,640 crore. This allocation represents 54 per cent of our total AUM,” Tandon said.

As per the latest stress test results, the fund house would take 9 days to liquidate 50 per cent of Quant Mid Cap Fund and five days to liquidate 25 per cent of the same fund. It will take 28 days to liquidate 50 per cent of Quant Small Cap Fund portfolio and 14 days to liquidate 25 per cent of it.

Besides, the fund house has borrowing lines of Rs 650 crore to manage any contingency situation, Tandon said.

Tandon said as a strategy the fund house has moved its exposure from mid and small-caps to large-caps. This decision is more from a risk management perspective and the fund house is not negative on mid and small-caps.

“We have moved from illiquid to liquid stocks and that is an important strategy we have played out,” Tandon said.