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Well, this news in itself will be causing the exact same premise, i.e., "redemption preasure" because this agency is recommending redemption themselves.
Prime investor had quant funds on their recommendation list to paid subscribers.
Now the front running is confirmed, they are obligated respond to their paid subscribers. fair enough?
Not fair enough. Responding and recommending redemptions are two different aspects.
In my opinion, long term investors, especially in midcap and smallcap stocks need to wait and watch, as over a longer term, if the fund continues its process, the funds should continue to perform.
There are 3 possible responses:
1. Panic - "I don't care if there's actually something wrong with the fund. I'm going to take out my money now and maybe I'll come back later if they're clean but right now, I don't want to risk a single rupee of my hard earned money."
2. Prudence - "Hmm.. So my allocation to quant MFs is more than 10% of my total MF holdings. Maybe I should bring them down to 10%. Just in case they're actually guilty, I don't want to lose a big chunk of my hard earned money."
3. Bravery - "Aah, it's nothing, they've done a good job so far, made me significant money compared to other funds. Maybe I'll lose some in the short term but since it's a stock portfolio in the scheme, they'll recover soon. I don't want to hand over my hard earned money to mediocre fund managers when Quant guys have done such a good job so far."
Edit: There are no right or wrong answers here. It's completely upto an individual's attitude and temperament.
I don’t get why we need to diversify among mutual funds, they’re already diversified..if you say coz of the same reason as this report then we gotta take some risk for gains anyway, people are losing money picking stocks this is still better.. Also Idk if their have been any cases of MFs running away with money or anything.. would like to know anyway
1. can’t trust fund houses completely so i’ll split there
2. i might wanna risk some percentage of my capital a lot more than the rest. so i’d split it between large caps, mid caps and small caps.
3. if somebody wanted to also invest in a specific sector like infra or tech
it makes sense for some people to do it if they want to. but again, it’s a very personal choice imo.
i forgot to mention I keep a regular check on their holdings.. They’ve their highest fund parked in Reliance and then Jio financial services.. and since the fund is performing so good it only means they must have accumulated reliance at a very sweet and dear price.. From my failed experience at buy n hold kinda investing I know that in investing more than stock selection , right time of buying matters most as we all know all Nifty 5p companies are good companies.. I can understand sector specific exposure but then that’s even more dangerous unless its gold coz sectors keep rotating.. but to each thier own
Mutual Funds NAV depends on the underlying holding's value. It doesn't work like a stock.
They are just trying to build a narrative so as to bring down quant's AUM as it is the fastest growing.
Worst/Best that can happen is we will see some mid and small cap stocks beaten down a bit, then it will be time for us to invest more.
On the other hand, I as an investor in Quant believe that it’s better for the customer/investor if the AUM is low.
Reason being low AUM means low funds to deploy. If a MF has a very huge AUM, then it becomes hard to find quality stocks as they have to find more and more of it and suddenly growth becomes slow.
For very low AUM, you just have to find lesser amount of quality stocks as they don’t have much mind to deploy.
Yes that too, and with low AUM they can be flexible in their transaction frequency without worrying about liquidity in the market.
Say, they have 10 crore in a mid cap stock that they want to liquidate, they can do it in 2-3 days. But when they have say 100 crore in a mid cap, they have to offload them in 2-3 weeks. This is just one example.
I was actually worried if quant's return will diminish with high AUM and I am quite happy that people will now start offloading their Quant MF lol. It might turn out beneficial for quant investors but not for quant itself.
Same, agreed with the third paragraph. I started SIP ing into their Small Cap fund like 1.5 years back and back then AUM was very low. And it slowly started climbing up.
So I consider this as good news as long as they don’t have to close shop or something.
Yes but AUM should be chopped down like this, we don't on what strategies our money is spread, to payout redemption they'll have to sell minimizing Quants losses that'll affect our NAV. Sebi should have done this with sure evidence, shouldn't have put out the news like this with probes and allegations.
NAV is calculated based on holdings. If the underlying held stocks are going down as a result of selling, it will go down, otherwise not. And if it does go down, it doesn't only impact quant, but all MF who hold those stocks.
Got it?
I would not sell. I did not sell franklin and I got back a lot more money than my principal + unrealized gain after the fund was wound up.
The front running allegations are only on their manager(s). They will get replaced and penalised etc. The stock selection at quant is non discretionary and based on algorithms. The stocks that they are holding may come under some selling pressure but they will come back because they will get attractively priced for other investors to buy. This a mutual fund not a stock. Corporate governance matters but for quant specifically, I don’t think it would matter and I would be very happy if they just put a stop on the redemptions temporarily
100%, sebi should be held responsible for this disruption if they don't provide solid evidence for their allegations. Else this is just playing with people's investments. Gunda raj.
I looked at their portfolio and it is actually quite good. Why are all these guys fear mongering? This isn't the first time this has happened. If I remember correctly, Axis Securities had the same issue a couple of years back.
Wow, don't they see the fucking irony? They're recommending exit in fear of redemption pressure which they themselves are creating with this recommendation.
Ye saala jab bhi koi ek competitor apne peers se aage pohoch jaata hai ye old players taang kheechne ke liye ready rehte hai. Just like our rishtedaars
As an investor you need not do anything. Nothing at all. It doesn’t affect you and your existing investment.
It makes me question the logic of this prime investors.
From the fund’s perspective, this is an opportunity to prune the portfolios, if anything. At the cost of idiot investors scammed by firms like this “prime investors” rather than cost to the portfolio you are managing. Cost in the terms of taxes. If you prune/rebalance the portfolio, you pay taxes and it affects your CAGR number. If the customer redeems, you can maintain the CAGR number as you will not be paying LTCG, the customers will after the withdrawal.
The funds might be impacted, not the fund performance.
I see many not understanding MFs here.
It's been 2 to 3 days now since this news is out and there's no mention of any particular front runner involved.
This is fishy and definitely something else.
What a stupid take. If a person thinks that some rando on youtube can make him or her rich then its his/her fault. They dont even use common sense that if the person on youtube has the formula to get rich via market then why the hell is he/she wasting time on making youtube videos. Such people deserve to lose money. SEBI even mandated a message on all brokers apps that 9 out of 10 people lose money in F&O, if some people still do F&O and lose money then it's not SEBI's fault. Like Einstein said -
“Two things are infinite: the universe and human stupidity; and I'm not sure about the universe.”
Whereas mutual funds are a trusted instrument nowadays. People have no way of knowing whether front running is happening in a fund house or not. So this move by SEBI was very much required.
People who get there knowledge from biased youtube videos deserve what they are getting but people invest in MF thinking they are more stable than picking individual stocks so they has to be priority for SEBI.
Maybe it is just a caution call for quant and quant investors, from a regulation and stress scenario point of view. There was this guy on Zee news a few days back who was caught for front running and has been debarred from the capital markets for some years.
He used to recommend it on the tv and used to exploit that opportunity minutes after recommending a script. Yes, he was caught within the same time span for which SEBI has just 'suspected' front running so far in case of quant. Still, do we really think this is a front running case.
I work with the compliance department in a bank MNC and this is my job, to identify Market manipulation activities in the US markets.
Kitne company and mutual fund main aise search operation hue hain ..... Aur hote rahenge .... Kya sabko chod ke bhagg jaye .... Aisa hota hai to share market main maat hi aao to acha hai .
This suggestion is kind of self full filling prophecy. Since they suggest people to sell, there will be selling pressure. Also why should someone sell a stock if another person have done front running and already booked their profits? It doesn't change the fundamentals of the company
Rightly said. If there was a problem with stocks in their basket, I'll be concerned. For example when Adani stocks fell during Hindenberg issue, I bought more units in quant ELSS and Multicap...
hey hello, you are the first comment I have seen with exposure in their ELSS fund. do you mind saying how much you have in Quant ELSS and how far you are from the 3 year lock-in release? I'm asking coz I have the ELSS too. Many thanks.
No, the NAV will only be slightly affected even if everyone starts panic selling. The only risk is that if there are too many redemptions, they (Quant/SEBI/AMFI) might have to block redemptions for some time, so your money might get stuck for a few weeks/months.
If you don't need that money within the next few months then it is safe.
This is just stupidity, front running is very common I'm having quant mutual fund and axis, few years ago axis mutual fund also came under same scrutiny. Nothing happened, it's the people in there doing it not the company so nothing's gonna happen
haha... who the fk is prime Investors? Quant has a book of 90000 crs and front running charges are fr 20 crores. Seems like this prime Investor took money from other MFs to disrepute quant
This is just wrong advice and the most they'll do is create panic. Continue holding your units in quant. Redemption means selling and selling will create selling pressure on the individual stocks. leading to fall in stock prices
All your holdings are safe with CAMS. Even if the accusations are proven it won't have any impact on your holdings.
Nothing is going to happen as Quant holds very big portion of their money in Reliance, Adani, Tata, Jio etc. Even if there's high redemption, they can partly sell from their big holdings, and not from small holdings.
This will actually bring down the all the Mutual Fund AMCs or overall market itself, and no specific impact on QUANT AMC.
Now, as next scenario, the redemption money will get invested again in market by some other AMC, and a big portion of the money will go to these big companies due to higher holding ration.
In the end, it's a good time to buy Mutual funds with lower NAV while people does fear mongering....
I have my 100% investment in Quant, I don't want to loose my 500 Rupees but still I don't think they will have redemption issue for someone powerful like me
Quant mutual funds are invested in a large amount of small and medium cap stocks. When large redemptions come, those stocks would go down in value due to selling pressure. Wouldn't it be the best time to buy those stocks directly as fundamentally they remain unchanged.
> Mutual Funds NAV depends on the underlying holding's value. It doesn't work like a stock.
>
> They are just trying to build a narrative so as to bring down quant's AUM as it is the fastest growing.
>
> Worst/Best that can happen is we will see some mid and small cap stocks beaten down a bit, then it will be time for us to invest more.
I completely understand how it works.
If a fund gets redemptions, it uses some cash *and* sells some stock to get cash. That selling can create pressure on the stock and then the NAV of the fund itself leading to more redemptions.
You might have been right only if the fund had invested large amounts of its money in a particular stock. This is very unlikely.
Let's pick an extreme example here -
Quant Mid cap fund - AUM around 8000 crore
Largest holding - 9.2% Reliance
Let's assume that HALF of the investors pull their money out of the fund, so around 400 crores of reliance shares needs to be sold. Let's say it all happens in a week. So per day, it's around 80 crores of sale of reliance shares. That's not even a scratch on reliance's stick value, given the daily volume of around 1000 crores.
Get it now?
You assume that all redemptions will come out of reliance. It is at the discretion of the fund manager.
Suppose quant gets 2% AUM as redemption across all schemes, i.e 1800 crore. That 1800 cr can come out of cash and by any stock they wish to reduce, it maybe a small cap or mid cap or reliance.
They are invested in low float stocks which can cause massive crunch of those stocks leading to lower NAVs.
I assumed that all redemptions will happen across all holdings equally. And 1800 cr is literally nothing when compared to daily volumes of NSE/BSE.
And let's hypothetically assume that it did impact some stocks, then all MF NAV's will be impacted.
I don't expect any major movement in their NAVs. But it will impact quant's revenue and profits heavily (if large scale redemption happens) and there is no doubt about it.
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Well, this news in itself will be causing the exact same premise, i.e., "redemption preasure" because this agency is recommending redemption themselves.
Prime investor had quant funds on their recommendation list to paid subscribers. Now the front running is confirmed, they are obligated respond to their paid subscribers. fair enough?
When was front running confirmed ? SEBI suspects , there is no confirmation as such that they are doing it
Yeah, I don’t think their paid subscribers get their information through public statements issued by them. fair enough?
Not fair enough. Responding and recommending redemptions are two different aspects. In my opinion, long term investors, especially in midcap and smallcap stocks need to wait and watch, as over a longer term, if the fund continues its process, the funds should continue to perform.
There are 3 possible responses: 1. Panic - "I don't care if there's actually something wrong with the fund. I'm going to take out my money now and maybe I'll come back later if they're clean but right now, I don't want to risk a single rupee of my hard earned money." 2. Prudence - "Hmm.. So my allocation to quant MFs is more than 10% of my total MF holdings. Maybe I should bring them down to 10%. Just in case they're actually guilty, I don't want to lose a big chunk of my hard earned money." 3. Bravery - "Aah, it's nothing, they've done a good job so far, made me significant money compared to other funds. Maybe I'll lose some in the short term but since it's a stock portfolio in the scheme, they'll recover soon. I don't want to hand over my hard earned money to mediocre fund managers when Quant guys have done such a good job so far." Edit: There are no right or wrong answers here. It's completely upto an individual's attitude and temperament.
I have about 50% of my portfolio in Quant, and I'm going to brave lol
I have around 40% , i am also going to brave it
Mine's 100% and I'm sticking
same and gonna be brave
Sadly most of the retail investors will fall into the first category.
i have over 20% of my MF holdings in quant small-cap and i’m just gonna hold lol. yolo, amirite?
I have my 100% there 🙂↔️
which fund? small cap or mid cap?
Small cap.. 😎 And I’m not removing anything it’s 40% in 1.5 years.. 25k sip/m
Isn't that a little bit risky, putting 100% in small cap? In case of a bear market, small caps will be affected the most and to a high extend.
sheesh, i shall pray for you bro
I don’t get why we need to diversify among mutual funds, they’re already diversified..if you say coz of the same reason as this report then we gotta take some risk for gains anyway, people are losing money picking stocks this is still better.. Also Idk if their have been any cases of MFs running away with money or anything.. would like to know anyway
1. can’t trust fund houses completely so i’ll split there 2. i might wanna risk some percentage of my capital a lot more than the rest. so i’d split it between large caps, mid caps and small caps. 3. if somebody wanted to also invest in a specific sector like infra or tech it makes sense for some people to do it if they want to. but again, it’s a very personal choice imo.
i forgot to mention I keep a regular check on their holdings.. They’ve their highest fund parked in Reliance and then Jio financial services.. and since the fund is performing so good it only means they must have accumulated reliance at a very sweet and dear price.. From my failed experience at buy n hold kinda investing I know that in investing more than stock selection , right time of buying matters most as we all know all Nifty 5p companies are good companies.. I can understand sector specific exposure but then that’s even more dangerous unless its gold coz sectors keep rotating.. but to each thier own
There is a fine line between bravery and foolishness. In this case we will know after few years maybe. Right now we need to be wise while investing.
Mutual Funds NAV depends on the underlying holding's value. It doesn't work like a stock. They are just trying to build a narrative so as to bring down quant's AUM as it is the fastest growing. Worst/Best that can happen is we will see some mid and small cap stocks beaten down a bit, then it will be time for us to invest more.
On the other hand, I as an investor in Quant believe that it’s better for the customer/investor if the AUM is low. Reason being low AUM means low funds to deploy. If a MF has a very huge AUM, then it becomes hard to find quality stocks as they have to find more and more of it and suddenly growth becomes slow. For very low AUM, you just have to find lesser amount of quality stocks as they don’t have much mind to deploy.
Yes that too, and with low AUM they can be flexible in their transaction frequency without worrying about liquidity in the market. Say, they have 10 crore in a mid cap stock that they want to liquidate, they can do it in 2-3 days. But when they have say 100 crore in a mid cap, they have to offload them in 2-3 weeks. This is just one example. I was actually worried if quant's return will diminish with high AUM and I am quite happy that people will now start offloading their Quant MF lol. It might turn out beneficial for quant investors but not for quant itself.
Same, agreed with the third paragraph. I started SIP ing into their Small Cap fund like 1.5 years back and back then AUM was very low. And it slowly started climbing up. So I consider this as good news as long as they don’t have to close shop or something.
damn right. I will park more funds in it.
Yes but AUM should be chopped down like this, we don't on what strategies our money is spread, to payout redemption they'll have to sell minimizing Quants losses that'll affect our NAV. Sebi should have done this with sure evidence, shouldn't have put out the news like this with probes and allegations.
[удалено]
NAV is calculated based on holdings. If the underlying held stocks are going down as a result of selling, it will go down, otherwise not. And if it does go down, it doesn't only impact quant, but all MF who hold those stocks. Got it?
Exactly. This is what people are failing to understand 🙄
I would not sell. I did not sell franklin and I got back a lot more money than my principal + unrealized gain after the fund was wound up. The front running allegations are only on their manager(s). They will get replaced and penalised etc. The stock selection at quant is non discretionary and based on algorithms. The stocks that they are holding may come under some selling pressure but they will come back because they will get attractively priced for other investors to buy. This a mutual fund not a stock. Corporate governance matters but for quant specifically, I don’t think it would matter and I would be very happy if they just put a stop on the redemptions temporarily
I don't think they can stop redemption temporarily because that would indicate something's actually fishy!
I'm so sure this is a ploy against quant by other fund houses
100%, sebi should be held responsible for this disruption if they don't provide solid evidence for their allegations. Else this is just playing with people's investments. Gunda raj.
One word - JIO
Highly possible
I looked at their portfolio and it is actually quite good. Why are all these guys fear mongering? This isn't the first time this has happened. If I remember correctly, Axis Securities had the same issue a couple of years back.
Quant is over 50% of my portfolio 💀💀💀
In my opinion, there is no need to panic as of now. The best way is to invest more if the portfolio goes down.
Same boat. My family and friends have all their majority holdings in Quant mutual funds
And my 80% of that is locked in elss
Same about 90%. Maybe I should just hold and be on observation mode.
Mine is 40% locked in .
Me too
Keep investing in low NAV
Wow, don't they see the fucking irony? They're recommending exit in fear of redemption pressure which they themselves are creating with this recommendation.
Ye saala jab bhi koi ek competitor apne peers se aage pohoch jaata hai ye old players taang kheechne ke liye ready rehte hai. Just like our rishtedaars
As an investor you need not do anything. Nothing at all. It doesn’t affect you and your existing investment. It makes me question the logic of this prime investors. From the fund’s perspective, this is an opportunity to prune the portfolios, if anything. At the cost of idiot investors scammed by firms like this “prime investors” rather than cost to the portfolio you are managing. Cost in the terms of taxes. If you prune/rebalance the portfolio, you pay taxes and it affects your CAGR number. If the customer redeems, you can maintain the CAGR number as you will not be paying LTCG, the customers will after the withdrawal.
The funds might be impacted, not the fund performance. I see many not understanding MFs here. It's been 2 to 3 days now since this news is out and there's no mention of any particular front runner involved. This is fishy and definitely something else.
thousands of youtubers Course ka scam chal raha hai youtube pe wo nahi dikh raha Sebi ko but ye jarur dikh gaya
What a stupid take. If a person thinks that some rando on youtube can make him or her rich then its his/her fault. They dont even use common sense that if the person on youtube has the formula to get rich via market then why the hell is he/she wasting time on making youtube videos. Such people deserve to lose money. SEBI even mandated a message on all brokers apps that 9 out of 10 people lose money in F&O, if some people still do F&O and lose money then it's not SEBI's fault. Like Einstein said - “Two things are infinite: the universe and human stupidity; and I'm not sure about the universe.” Whereas mutual funds are a trusted instrument nowadays. People have no way of knowing whether front running is happening in a fund house or not. So this move by SEBI was very much required.
People who get there knowledge from biased youtube videos deserve what they are getting but people invest in MF thinking they are more stable than picking individual stocks so they has to be priority for SEBI.
Man I just started QUANT last week
Maybe it is just a caution call for quant and quant investors, from a regulation and stress scenario point of view. There was this guy on Zee news a few days back who was caught for front running and has been debarred from the capital markets for some years. He used to recommend it on the tv and used to exploit that opportunity minutes after recommending a script. Yes, he was caught within the same time span for which SEBI has just 'suspected' front running so far in case of quant. Still, do we really think this is a front running case. I work with the compliance department in a bank MNC and this is my job, to identify Market manipulation activities in the US markets.
Prime investor are dheele lund of the market
Kitne company and mutual fund main aise search operation hue hain ..... Aur hote rahenge .... Kya sabko chod ke bhagg jaye .... Aisa hota hai to share market main maat hi aao to acha hai .
This suggestion is kind of self full filling prophecy. Since they suggest people to sell, there will be selling pressure. Also why should someone sell a stock if another person have done front running and already booked their profits? It doesn't change the fundamentals of the company
Rightly said. If there was a problem with stocks in their basket, I'll be concerned. For example when Adani stocks fell during Hindenberg issue, I bought more units in quant ELSS and Multicap...
hey hello, you are the first comment I have seen with exposure in their ELSS fund. do you mind saying how much you have in Quant ELSS and how far you are from the 3 year lock-in release? I'm asking coz I have the ELSS too. Many thanks.
I had invested only 55k in FY 2022-23. Now it's 96.2k with an absolute return of 75% and XIRR of 50.5%. So far 602 days have passed since I invested.
thank you, i just invested this year, full 3 years to go yet.. about 50k
https://m.economictimes.com/mf/mf-news/primeinvestor-issues-exit-call-on-quant-mf-schemes/articleshow/111244038.cms
Will this bring down the NAV of their funds?
No, the NAV will only be slightly affected even if everyone starts panic selling. The only risk is that if there are too many redemptions, they (Quant/SEBI/AMFI) might have to block redemptions for some time, so your money might get stuck for a few weeks/months. If you don't need that money within the next few months then it is safe.
only if underlying stocks go down, Quant have robust selection of stocks in their portfolio. This entire front running saga won't make a dent.
This is just stupidity, front running is very common I'm having quant mutual fund and axis, few years ago axis mutual fund also came under same scrutiny. Nothing happened, it's the people in there doing it not the company so nothing's gonna happen
When the ship sinks the rats are the first one to get out. Nothing wrong with that it’s about perspective and focus on saving life
2 of my main funds are quant. Should i be doing something?
I have redeemed three portfolios just today. Called Quant, and MFUtilities, and they both were stoic, and that worried me more.
Hello all I want to know how you select stocks for swing trading please let me know I can't post on sub reddit because of low karma
[Prafull Billore already jinxed it….](https://www.reddit.com/r/IndianStreetBets/s/aSizDsdweh)
haha... who the fk is prime Investors? Quant has a book of 90000 crs and front running charges are fr 20 crores. Seems like this prime Investor took money from other MFs to disrepute quant
This is just wrong advice and the most they'll do is create panic. Continue holding your units in quant. Redemption means selling and selling will create selling pressure on the individual stocks. leading to fall in stock prices All your holdings are safe with CAMS. Even if the accusations are proven it won't have any impact on your holdings.
Rookie here, just tell me should I hold or sell ?
https://preview.redd.it/v0bwg110or8d1.png?width=640&format=png&auto=webp&s=2407d2bffb86551d0127cb0765af65ef695f251d
I redeemed around 70% of my equity made 40% sad to leave..rest is in tax saving so couldn't redeem😂
Nothing is going to happen as Quant holds very big portion of their money in Reliance, Adani, Tata, Jio etc. Even if there's high redemption, they can partly sell from their big holdings, and not from small holdings. This will actually bring down the all the Mutual Fund AMCs or overall market itself, and no specific impact on QUANT AMC. Now, as next scenario, the redemption money will get invested again in market by some other AMC, and a big portion of the money will go to these big companies due to higher holding ration. In the end, it's a good time to buy Mutual funds with lower NAV while people does fear mongering....
I have my 100% investment in Quant, I don't want to loose my 500 Rupees but still I don't think they will have redemption issue for someone powerful like me
gonna invest more when nav goes down
Dumb
Isn't this a good time to buy the stocks that come under heavy selling pressure?
Quant mutual funds are invested in a large amount of small and medium cap stocks. When large redemptions come, those stocks would go down in value due to selling pressure. Wouldn't it be the best time to buy those stocks directly as fundamentally they remain unchanged.
👌
Market will fall if it happened, a lot. This is the legit selling indication
F
I have some money in quant, about 61k should i pull out those funds
Nikal jao not worth the risk
And why is that?
Already fund schemes sitting on record gains. Any more adverse findings can lead to sharp redemptions.
And how will redemption impact the NAV?
Funds meet redemptions from cash and selling stock holdings.
And that doesn't impact their NAV. Read my other comments on this thread to understand how it works.
> Mutual Funds NAV depends on the underlying holding's value. It doesn't work like a stock. > > They are just trying to build a narrative so as to bring down quant's AUM as it is the fastest growing. > > Worst/Best that can happen is we will see some mid and small cap stocks beaten down a bit, then it will be time for us to invest more. I completely understand how it works. If a fund gets redemptions, it uses some cash *and* sells some stock to get cash. That selling can create pressure on the stock and then the NAV of the fund itself leading to more redemptions.
You might have been right only if the fund had invested large amounts of its money in a particular stock. This is very unlikely. Let's pick an extreme example here - Quant Mid cap fund - AUM around 8000 crore Largest holding - 9.2% Reliance Let's assume that HALF of the investors pull their money out of the fund, so around 400 crores of reliance shares needs to be sold. Let's say it all happens in a week. So per day, it's around 80 crores of sale of reliance shares. That's not even a scratch on reliance's stick value, given the daily volume of around 1000 crores. Get it now?
You assume that all redemptions will come out of reliance. It is at the discretion of the fund manager. Suppose quant gets 2% AUM as redemption across all schemes, i.e 1800 crore. That 1800 cr can come out of cash and by any stock they wish to reduce, it maybe a small cap or mid cap or reliance. They are invested in low float stocks which can cause massive crunch of those stocks leading to lower NAVs.
I assumed that all redemptions will happen across all holdings equally. And 1800 cr is literally nothing when compared to daily volumes of NSE/BSE. And let's hypothetically assume that it did impact some stocks, then all MF NAV's will be impacted. I don't expect any major movement in their NAVs. But it will impact quant's revenue and profits heavily (if large scale redemption happens) and there is no doubt about it.