Axis Mutual Fund: After Viresh Joshi, Axis Mutual Fund fires second fund manager under investigation for early loading

Axis Mutual Fund has fired Deepak Agrawal, the second fund manager facing investigation for preloading and insider trading. Last Wednesday, India’s seventh-largest asset manager by pooled cash under management fired its top dealer Viresh Joshi over the same charges.

The fund house, however, did not specify the nature of the compliance issues that Agrawal had been flouting.

Axis Mutual Fund had to change fund management of seven schemes after accusations of anticipation emerged.

In front-running, an illegal market practice, a mutual fund (MF) dealer, trader or employee hears of a large order (to buy or sell shares) that will be placed through the funds or a large investor and gets ‘in front’ of the trades. Large orders usually affect the stock price.

The fund had been conducting an internal investigation since February 2022. whether with Axis AMC and Axis Mutual Fund. As a result, (Agarwal) ceases to be a key person in Axis AMC,” the MF said.

Since the beginning of the month, there have been rumors of inappropriate behavior by at least two Axis MF fund managers, including sudden changes in their lifestyle over the past few months. One of the two money managers was rumored to be driving around town in one of the most luxurious imported cars available. It was also reported that the behavior of these two resulted in substantial losses for investors in the funds they managed.

Dolores W. Simon