[ashvek3141]

Pardon my question as I'm not quite in sync with the recent updates with MF's. - Why is the Quant MF on a 'serious' decline these days?

Quant Tax saver fund was a top performing fund in my portfolio of 6 funds. However, off late it has slipped to 4th which is alarming!

Same is the case with Quant Multi asset fund.

[DigitalOne]

Originally Posted by ashvek3141

Pardon my question as I'm not quite in sync with the recent updates with MF's. - Why is the Quant MF on a 'serious' decline these days?

Quant takes concentrated bets, and more recently their portfolio is very heavy on Reliance and Adani shares. Even their so-called Small Cap fund has ~16% Reliance stocks (Reliance Industries and Jio Financials) and ~5% Adani stocks. So their performance is closely tied to the stock performance of these two groups. Just see all Quant funds 1 week rank vs their 1/3/6 month ranks .

[ashvek3141]

Originally Posted by DigitalOne

Quant takes concentrated bets, and more recently their portfolio is very heavy on Reliance and Adani shares. Even their so-called Small Cap fund has ~16% Reliance stocks (Reliance Industries and Jio Financials) and ~5% Adani stocks. So their performance is closely tied to the stock performance of these two groups. Just see all Quant funds

Should this ring some bells? (Read=sell off) I know there was this phase a few months ago during the enquiry from SEBI; but I think even then it had not dropped so much. And hence I held onto these funds even then. But his time the drop seems too much to digest.

[DigitalOne]

Originally Posted by ashvek3141

Should this ring some bells? (Read=sell off) I know there was this phase a few months ago during the enquiry from SEBI; but I think even then it had not dropped so much. And hence I held onto these funds even then. But his time the drop seems too much to digest.

Personally, I have stopped SIPs in 2 Quant funds (Quant Absolute fund, and Quant Momentum Fund). These funds form only a small % of my MF portfolio so will wait and watch the funds for a few more months before taking a redemption decision.

[DaptChatterjee]

Originally Posted by ashvek3141

Pardon my question as I'm not quite in sync with the recent updates with MF's. - Why is the Quant MF on a 'serious' decline these days?

Quant Tax saver fund was a top performing fund in my portfolio of 6 funds. However, off late it has slipped to 4th which is alarming!

Same is the case with Quant Multi asset fund.

That's what happens to all high flying AMC's. Look at the 1/2 year performances of Mirae/Axis/PGIM etc. On the other hand, AMC's like HDFC, Nippon which underperformed for years, have done very well in the last couple of years. Active funds will go trough these cycles of underperformance and over achievement vis-à-vis benchmark.

Of course, Quant was also raided by SEBI a few months back (check previous posts in this thread) and since then, have been trying to play it safe.