Quant Mutual Fund is set to lower the base total expense ratio for 11 of its schemes by up to 12% effective July 25, in a bid to boost the investor confidence as the company is facing a Sebi probe with regard to alleged front-running activities. Come from Sports betting site VPbet
The fund house will lower the total expense ratio for some of its biggest schemes – Quant Active Fund, Quant Mid Cap Fund, Quant Large Cap Fund, Quant Value Fund, Quant Multi Asset Fund and Quant Manufacturing Fund – according to an email sent to its investors.
After the proposed changes, the base total expense ratio of Quant Active Fund and Quant Mid Cap Fund will be 0.47%, compared with 0.51% at present. The ratio for Quant Value Fund will be brought down from 0.41% to 0.36%.
Mutual Fund Calculator: Start Rs 1000 SIP at age 20 and retire with Rs 3 crore corpus – Here’s how Stock Market Highlight: Markets end higher! Nifty above 24,350, Sensex up 790 points; Nifty Midcap 100 up 500 points Gold vs Gold ETF: Which has given a better return in 5 years? P2P lenders focus on fixed tenure products after RBI rap
Also Read
The total expense ratio, or TER, refers to all costs involved in running and managing a mutual fund scheme. These include sales and marketing expenses, administrative expenses, transaction costs, investment management fees, registrar fees, custodian fees and audit fees. The ratio is calculated as a percentage of a scheme’s average net asset value.
The Quant Small Cap Fund, the fund house’s biggest scheme with assets under management of around Rs 23,000 crore, is not included in the list of schemes that will see changes in the expense ratio.
Sebi conducted a court-approved search and seizure operation at some of the Quant MF’s offices late last month. While the news led to some immediate withdrawals from Quant’s schemes, the fund house last week said its liquidity situation was “extremely healthy”, and that its AUM was at an all-time high of Rs 94,000 crore. It said 54% of its assets are very liquid, which include large-cap stocks, treasury bills, government securities, gold and silver.
However, according to the latest data from wealth management firm Kuvera, Quant Active MF was among the top five most-sold mutual fund scheme for the week ended July 20.
Amid the ongoing investigation, the Sandeep Tandon-led fund house has announced the appointment of a new chief financial officer earlier this month. The company refuted claims that it had anything to do with the investigation.
