Axis Mutual Fund Changes Fund Management Responsibilities In 7 Schemes

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Axis Mutual Fund (MF) has made personnel changes in seven of its funds. Axis Consumption ETF, Axis Banking ETF, Axis NIFTY ETF, Axis Arbitrage Fund, Axis Quant Fund, Axis Technology ETF and Axis Value Fund are seven funds that have seen the management change.

Ashish Naik has been given the responsibility of three schemes which are Axis Consumption ETF, Axis Banking ETF, Axis NIFTY ETF.

Meanwhile, Ashish Naik, Devang Shah & Sachin Jain will be handling Axis Arbitrage Fund, further Axis Quant Fund will be handled by Naik & Hitesh Das. Axis Technology ETF by Jinesh Gopani and Axis Value Fund by Jinesh Gopani & Hitesh Das, Axis MF said in a release.

Two fund managers Viresh Joshi and Deepak Agarwal are no longer reflecting as fund managers of the any of the above mentioned schemes.

A Mint report suggests that markets regulator SEBI is investigating a case of serious violations in the running of Axis MF. The fund house has in turn briefed the board of Axis Bank that it has removed the two fund managers from managing any of its funds pending investigations. The officials involved in the case under investigation are Viresh Joshi and Deepak Agarwal.

The suspected violation is a practice called front-running, which can involve a fund manager buying or selling securities through their personal accounts ahead of the fund itself making those transactions. Because funds deal in large volumes, their actions tend to have an impact on the price and a front runner can make gains or avoid losses, the report added.

In a statement, the asset manager said: “Axis AMC has been conducting a suo moto investigation over the last two months (since February 2022). The AMC has used reputed external advisors to aid the investigation. As part of the process, two fund managers have been suspended pending investigation of potential irregularities. We take compliance with applicable legal/regulatory requirements seriously, and have zero tolerance towards any instance of non-compliance.”

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