Is our money safe? I have invested half of my savings in quant mf
Front-running suspected in Quant Mutual Fund
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oh oh never put all eggs in one basket
hmm important lesson to learn -> no offense, just here on think on how to divide and conquer
(half savings is kinda all eggs in one basket)
What's front running? Will investors lose their money ?
It has highest interest rates so suspicious from beginning.
Although I am not invested.
MF fund manager have access to information on which stocks will be picked by the MF house during the rebalance. When they illegally use this information to trade to obtain profits on their personal account, that's front running.
If this is happening on quant; it could also mean we are buying inflated price of these quant mutual fund units. No idea how this will affect our investment.
The highest return rates could also be because that these fund house employes machines to pick stocks rather then manual work of humans.
SEBI
Saheb paisa pahuch jaega kal sham tk
These days even Mutual funds are not safe. Then where to invest for long term?
"Mutual funds are subjected to market risks." line is written in the fine print. Every investment comes with risk.
We look for 30% profit, they use us as instruments. Ppl will look at charts, past performance etc b4 investing. How can I makeup those as fund management company?
I cannot run the business of the stock companies and their sustained growth beyond 12% is always doubtful.
What to do as fund management company with so much knowledge and competition around?
I had money I front run, influencers run behind and educated/ fat pocket fools follow looking at charts.
Who is smart in this entire game, if not quant, I run gaunt as long as I have brains behind.
I just withdrew most of my funds in quant ... kabhi SEBI KA BAN ayega overnight money will be stuck .
Bro that's not mutual funds work. They are invested in companies like reliance, adani, psus and many others.
So the NAV of the fund will only fall if their holdings are being hammered by continuous sell off which seems highly unlikely only due to the fact that a fund manager was suspected to be front running the trades.
These type of scams have been prevalent for a long time. The SEBI hardly ever takes any action (just like the RBI sleeps while banks get embroiled in scams) . And it's always the retail investors who end up feel the pinch while the big fish go scot-free.
In the US you hear about insider trading a lot. How is it that we hardly ever hear about that here? Whether legal action is taken is a different thing. Are we to believe that all the movers and shakers in the markets are totally honest and scrupulous.
Ya these insider trading i.e front running cant be controlled:) it can be managed but can't be controlled:) which is why RBI and SEBI does what they can and leave off rest that dont bother many, (its headache to track these things, if you close one way they will open another way to do this insider trading, so better to let the insider trading to a minimum without affecting general people much in my opinion)
if something is affecting many people, RBI and SEBI will be the first to stand if you noticed, for the welfare of major audience
From MoneyControl news article:
"One person said that the alleged profits from the transactions being probed by Sebi are close to Rs 20 crore."
What is 20 crore of front-running in front of a mutual fund company which manages 90,000 crore currently? It's nothing.
I bet we don't need to worry at all.
No need to worry for the investors even if Sandeep Tondon is accused, the funds are absolutely safe. And the main part is that SEBI just suspects him of front running, not that they have conclusive evidence as of now. But even if they do, the investors in this scheme should not be worried as their investments are totally safe.
Yes, Quant funds have outperformed naa. Crab mentality is not that uncommon among Indians. So, you know. 🙂🙂🙂
Mutual funds scams are on rise
Theoretically good rule. But practical implementation is nearly impossible. Because it's a kind of personal moral aspect thing which we can't expect from each and everyone. Better ignore such violations unless the earned profits are enormous.
Basically, there is no system which could prevent this. If you give me an order to buy 1000kg of onions and I know this will inflate the onions price I would buy some for myself too.
Who cares if they are front running or back running or not running at all if they are giving me the highest returns compared to others in the same segment?
I get returns book my profit and enjoy. You do you, I do mine.
Selling on the rise?
This is nothing new, it keeps happening in that industry but detection rates are fairly low.
What's front running? Will investors lose their money ?
It has highest interest rates so suspicious from beginning.
Although I am not invested.
MF fund manager have access to information on which stocks will be picked by the MF house during the rebalance. When they illegally use this information to trade to obtain profits on their personal account, that's front running.
If this is happening on quant; it could also mean we are buying inflated price of these quant mutual fund units. No idea how this will affect our investment.
The highest return rates could also be because that these fund house employes machines to pick stocks rather then manual work of humans.
What's front running? Will investors lose their money ?
It has highest interest rates so suspicious from beginning.
Although I am not invested.
front running means THE FUND MANAGER PUTS THEIR OWN MONEY OR RELATIVE MONEY AND BUY STOCKS IN THEIR OWN DEMAT OR RELATIVE DEMAT before buying THE SAME STOCKS for PORTFOLIO of Mutual Fund:)
under line the word SAME STOCKS
there by fund manager takes the share at low price in his own and releative accounts and if a MUTUAL FUUND PORTFOLIO BUYS THE STOCKS PRICE WILL INCREASE OBVIOUSLY BASED ON SUPPLY DEMAND and later the fund manager will sell their NOW AROUSED PRICE STOCKS FOR A PROFIT xD
which is a typical TECHNICAL SCAM since its front run by the fund manager for his own profits:)
hope this clears some basics:)
These days even Mutual funds are not safe. Then where to invest for long term?
"Mutual funds are subjected to market risks." line is written in the fine print. Every investment comes with risk.