Investors in Quantum Asset Management Co. Ltd’s mutual fund schemes—those who had invested through distributors—are in a tizzy. The asset management company (AMC) is asking them to switch to the distributor plans. If they don’t switch, they stay on direct plans.
Impact of switch
Initially, Quantum AMC did not pay distributor commissions. Still, a few distributors sold its mutual fund schemes, such as Fundsindia.com, one of Quantum AMC’s largest distributors. However, some of these distributors—like Fundsindia.com, who are also registered investment advisers (RIA)—have told their Quantum AMC customers to sell their existing units and then re-buy afresh. Mint has seen this email.
