Quant Mutual Fund: What investors should do after Sebi's action to probe front-running?

livemint.com:

Quant Mutual Fund Sebi news: India's fastest-growing mutual fund is currently under investigation by the Securities and Exchange Board of India (Sebi) for suspected front-running, an illegal practice wherein fund managers place their own orders before executing large trades to profit from the anticipated price movement. 

This Quant Mutual Fund news might have sparked concerns among investors about the safety of their investments. 

However, mutual fund experts say the Sebi's investigation might have little impact on them, given the fund's exposure to quality stocks. They said that mutual funds' performance hinges on the market. As Quant Mutual Fund has invested in quality stocks including Reliance, Jio Financial Services, HDFC Bank, Adani Power, Tata Power, SAIL, LIC, and Aurobindo Pharma, chances of any fall in the net asset value (NAV) due to the Sebi action are negligible.

Reacting to the news of Sebi's investigation into Quant Mutual Fund, Kartik Jhaveri, a seasoned professional with extensive experience in wealth management as the director at Transcend Capital, provided a reassuring perspective. He said such investigations had been carried out earlier as well, hinting that such a move was unlikely to affect the prospects of MF invetsors.

«This is not the first time a fund manager has been scrutinised by Sebi for front-running. Therefore, investors should not be unduly concerned about such investigations. Their investments are secure as mutual funds have diversified their portfolios with stocks, and a mutual fund's NAV price is influenced by market performance. Hence, this investigation is unlikely to impact the performance of Quant Mutual Fund.»

«The mutual fund has invested in leading stocks like Reliance