Retail investors who have put in their hard-earned money in Axis Mutual Fund are in a fix. With the asset management company (AMC) terminating the services of its chief trader and fund manager, Viresh Joshi, investors are worried if they should hold or redeem their funds.
Experts believe investors should track the development and stay alert but refrain from taking hasty decisions.
As of March 31, Axis managed assets worth Rs 2.5 lakh crore under various schemes.
What’s happening at Axis Mutual Fund?
Axis Mutual Fund, which is the seventh-biggest asset manager in the country in terms of pooled cash under management, sacked its chief dealer Joshi on May 18 after suspending him and another fund manager Deepak Agarwal earlier this month for alleged irregularities, including front-running transactions on his personal account.
Although Axis MF did not provide a reason for the sacking, it said in a statement that the AMC had been conducting an internal investigation since February with the help of external advisors. Joshi’s employment was terminated further to the ongoing investigation, the statement read.
Front-running is an illegal market practice in which dealers, traders and mutual fund employees purchase a stock based on advance exclusive information about a large transaction that is likely to take place, affecting the price.
Market regulator Securities and Exchange Board of India (SEBI) has penalised several fund houses and fund managers for…
