Quant Mutual Fund has attempted to assuage investors fear on redemption pressure and assured that it has enough liquidity to meet any eventuality.

Sandeep Tandon, Founder and CIO, Quant MF, in a conference call said the net outflow in the last few days was only ₹1,398 crore or 1.5 per cent of total asset under management (AUM).

As of Tuesday (June 25), he said 54 per cent of the fund house’s total assets are liquid, comprising of cash, G-securities, debt instruments and large caps, gold and silver.

“Our mid and small portfolio are fairly liquid but assuming you exclude mid and small caps, we have 54 per cent or ₹47,640 crore of liquidity today besides we have a borrowing lines of about ₹650 crore to manage any kind of contingency situation,” he said.

Equity schemes

Ever since the capital market regulator SEBI started front-running investigation, Quant has seen huge redemption, especially in its equity schemes.

As of May-end, the fund house had about 21 equity schemes. Of these, four had over ₹1,000 crore cash with Quant Small Cap Fund registering the highest cash holding of ₹1,607 crore. The total equity AUM of the small cap schemes was ₹19,635 crore as of May-end.

The Flexi cap and Active Fund had ₹1,411 crore and ₹1,055 crore in cash and had assets of ₹4,860 crore and ₹9,148 crore respectively.

The mid-cap fund had a cash allocation of ₹1,026 crore on asset size of ₹6,926 crore.

Changing tactics

“Since beginning of this year, we have observed that something has changed and realised that the easy phase of bull run is over. We are in decisive bull run,” said Tandon.

As a part of strategy, the fund house moved exposure from mid and small caps to large-caps in a big way and this does not mean that Quant is negative on mid and small-caps, but it is more from a risk management perspective, he added.

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

The fund house has generated one of the finest risk-adjusted returns and the asset under management has touched ₹93,000 crore from ₹27 crore in September 2020. It has about 84 lakhs of investors.