Quant Multi Asset Fund NAV Gains 3.2% On Bumper Premier Energies Listing

Quant Multi Asset Fund saw a sharp one-day increase in its net asset value (NAV) of 3.23% on the back of the successful listing of Premier Energies on Tuesday.

Premier Energies' shares debuted on the exchanges with a 120% premium, as the IPO frenzy in the markets continued.

Several mutual funds basked in Premier Energies' solid listing gains, having been allotted shares as institutional investors. HDFC Mutual Fund, ICICI Prudential, Nippon India Mutual Fund, and Quant were some of the fund houses that were allocated 2% or more of the anchor book in the run-up to the offer.

Quant's Multi Asset Fund, in particular, emerged as a winner, with a Sept. 3 NAV increase of 3.23%, higher than any other schemes on the day.

With an Asset Under Management (AUM) of Rs 2,775 crore, Quant Multi Asset Fund is the best-performing scheme in its category over the past five years, with a compounded return of 29.5%.

As per Quant's August factsheet, Premier Energies had a 3.67% weightage in Quant Multi Asset Fund as of Aug. 31. This weightage would have risen after the bumper listing.

The Quant Multi Asset Fund, which divides its assets between equity, fixed income, and commodity exchange traded funds, had a lower allocation towards equity than most of its peers. As of Aug. 31, the scheme had AUM in equity and equity related instruments of 55.6%.

Most schemes in this category maintain equity allocation at over 65% to benefit from equity taxation. A reduction of allocation towards equity in such a scheme would normally indicate risk aversion by the fund manager.