Axis Mutual Fund suspends two equity fund managers due to alleged wrongdoing – here's how it impacts existing Axis MF investors
- One of the largest in India, Axis Mutual Fund has suddenly suspended two fund managers from running any schemes because of serious violations.
- In an official statement, the asset management company said that it has been investigating potential irregularities and has zero tolerance towards any instance of non-compliance.
- The fund house has changed management of seven funds – Axis Consumption ETF, Axis Banking ETF, Axis NIFTY ETF, Axis Arbitrage Fund, Axis Quant Fund, Axis Technology ETF and Axis Value Fund.
- Here’s how the new changes could impact existing Axis mutual fund investors.
AdvertisementThe mutual fund industry is going through another round of irregularity after a fiasco at Franklin Templeton a few years back – two of Axis Mutual Fund managers have been suspended on allegations of wrongdoing.
Axis Mutual Fund has suddenly suspended two fund managers from running any schemes because of serious violations. Viresh Joshi, chief trader & equity fund manager and Deepak Agarwal, assistant equity fund manager are under investigation at present.
In an official statement,
“As part of the process, two fund managers have been suspended pending investigation of potential irregularities. We take compliance with applicable legal and regulatory requirements seriously, and have zero tolerance towards any instance of non-compliance,” the fund house said in a statement.
As a result, the Axis MF has changed management of seven funds under these managers and reassigned them to others – Axis Consumption ETF, Axis Banking ETF, Axis NIFTY ETF, Axis Arbitrage Fund, Axis Quant Fund, Axis Technology ETF and Axis Value Fund.
Axis MF is the seventh largest mutual fund house in the industry with an AUM of around ₹2.5 lakh crore.
Reportedly, the flamboyant lifestyle of one of the fund managers, who drives a limited-edition Lamborghini and owns several houses in Mumbai, caught the attention of the fund house, which began investigating the matter.
Also, reportedly the fund managers-cum-traders of the fund house have been placing orders at a value much higher or lower than the prevailing market price and receiving kick-backs from certain brokers for indulging in such unethical trading practice.
For investors who have put money in the schemes of Axis MF, nothing much has changed except the fund manager of some schemes. No details of the wrongdoing by the two fund managers are out yet.
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