Quant Mutual Fund lowers minimum redemption amount from Rs 1,000 to Re 1

Quant Asset Management Company Ltd, which has assets worth Rs 40,675 crore, has reduced the minimum redemption amount in all of its mutual fund schemes from Rs 1,000 to Re 1.

In an amount-based redemption, investors put in the sum they wish to take out and mutual fund companies then sell units corresponding to the Net Asset Value (NAV) on the redemption date. Investors can also sell by specifying the number of units they wish to redeem.

In the case of Quant Mutual Fund, the minimum amount for redemption was Rs 1,000 or the account balance, whichever is less. Upon processing of redemption or switch-out request, if the account balance in the fund was less than Rs 1,000, it used to be redeemed or switched out.

To a query from Moneycontrol, Quant Mutual responded, "We've decreased the redemption amount for two reasons: First, due to our significant retail investor base and T-30 business comprising approximately 30 percent of our volume, there's a demand from this segment to reduce it. This adjustment will facilitate that process.”

T-30 refers to the top 30 geographical locations in India and B-30 refers to the locations beyond the top 30.

“Additionally, with the increasing number of Demat accounts, which only allow redemption in units, we've opted to decrease the redemption amount in the broader interest of our retail base,” said Quant Mutual Fund.

The minimum redemption amount allowed by fund houses usually ranges between Re 1 and Rs 1,000.

According to experts, when you hold units in a Demat mode, while redeeming you have to input a whole number and decimals are not allowed. With this change, investors can redeem the decimal units too.

Quant Mutual Fund offers 27 schemes across asset classes. The fund house's biggest scheme is Quant Small Cap Fund, which had an AUM of Rs 17,193 crore at the end of February. It was followed by Quant Active Fund (Rs 8,467 crore) and Quant ELSS Tax Saver Fund (Rs 7,770 crore).

In the same notice, Quant Mutual Fund also announced that Khushboo Meshri has been appointed as the chief risk officer of Quant Money Managers Limited with effect from March 11.

Meshri replaced Prabhat Bhardwaj who resigned the position because of personal reasons.

Harshvardhan Bharatia has been appointed as Dealer-Equity of Quant Money Managers Limited with effect from March 15, replacing Nupur Mehta.