Quantitative mutual funds are one of the fastest growing mutual funds in the country. Quants have experienced phenomenal growth, with assets increasing tenfold. ₹100 crore in 2019 to nearly ₹90,000 crore now.The Sandeep Tandon-owned mutual fund, which came into existence after Quant Capital acquired Escorts Mutual Fund, is currently facing seizure and search operations on the orders of market regulator Securities and Exchange Board of India (SEBI).
Quantitative mutual funds: the beginning
SEBI issued the quant mutual fund license in 2017. As the 20th largest fund house in the country, the fund currently has ₹The company’s assets are worth Rs 9 trillion.Reliance Industries (8.75% of assets under management), Adani Power (4.66%) and JIO Financial Services (4.52%) are the quant’s top holdings, according to a BusinessToday report.
Also read: Data Models: How Quantitative Mutual Funds Invest
Harshad Mehta in his prime when Quant was losing money
Sandeep Tandon never took a salary when the fund was losing money. In 2018, Sandeep Tandon acquired Escorts Mutual Fund and gained full ownership of the fund.
Tandon said that during his college years, he saw the market soar 20% and then crash shortly thereafter, which prompted him to seize the opportunity and enter the world of investing.
“I was in college when stockbroker Harshad Mehta was at the height of his power and witnessed the market frenzy of that time. I managed to convince my father and uncle to sell all their equity investments. The market went up another 20 per cent but then crashed badly. After that incident, my father and uncle gave me their investment money and told me to invest it. That’s when I got into the markets in earnest. You could say that this is how I got my first capital,” he said.
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Sandeep Tandon: “I don’t try to copy anyone’s strategy”
The CEO of Quant Mutual Fund claims that the fund relies heavily on a data-driven investment approach. This strategy has helped the firm achieve a strong track record in six years. “Everyone wants to be India’s next Warren Buffett,” Tandon had told Mint in an interview for the Guru Portfolio series. “I’m not investing and I’m not trying to copy anyone’s strategy.” Long-term investment and cost performance were the driving forces behind Quant’s founding, he told Mint.
Related article: Long-term investment, investing in India: Quant founder Sandeep Tandon
Active Activities
Sandeep Tandon’s investment philosophy has been one of jumping into unknown territories and always looking for opportunities. CNBC TV Reportedly, regardless of market conditions, quant CEOs sought positive performance rather than aiming for a particular internal rate of return (IRR) within a stipulated time frame.
With Quant coming under SEBI scrutiny, the MF founder will likely be venturing into new and uncharted territory once again.
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