Axis MF fund manager scam broke out 6 months back. Axis AMC has also taken action against the fund managers who have minted money and were enjoying lavish lifestyle and driving luxurious sports car. All this is history, good, but why this article now? Is there something investors need to worry now. Yes, there are some observations now. How are the Axis Mutual Fund Schemes Performance in the last 1 year? Are there any interesting or scary observations investors need to worry about it?
Also Read: Which MFs generated highest SIP returns in last 10 years?
What is Axis MF scam all about?
Let me recap what happened in this case.
The axis mutual fund has found irregularities in February, 2022 that few fund managers were involved in allegations in the front running. Front running means a broker or fund manager has exclusive information about the stocks being purchased or sold in huge quantities and use such information for personal benefits. This front running is illegal in India.
Means, fund managers passed on this info to brokers who in turn gave hefty money to them. Brokers used this info to buy or sell stocks upfront before Axis MF was buying / selling the stocks. Means Axis MF were buying stocks at higher prices or selling at lower prices as prices would have already shot-up or fallen by then as people used this info on that day or week.
However, this news came out only in May-22 after 3 months of scam. Axis MF was hiding till then.
In August, 2022, IT has seiezed…
