An AMC doesn’t inform investors before changing a fund’s manager. Is there a SEBI guideline regarding this? I had invested in DSP BlackRock Focused 25 because it had a well-renowned fund manager, but now the fund’s manager has been changed. I haven’t received any kind of communication regarding this. I believe that 50 per cent of a fund’s performance is dependent on its manager.
-Rajneesh
We believe that it’s possible for a fund manager’s role to be even as high as 80-90 per cent in the performance of a fund. A fund manager plays an extremely important role, but under SEBI’s provision, an asset management company (AMC) is responsible for the management of your invested money. It is up to the AMC to ensure that a responsible person is managing its fund. At the same time, there is no provision that says that the same person will keep managing a fund. As far as communication is concerned, information about a fund manager change is made available in the public domain within 3 months through the fund company’s website and leading newspapers.
This article was originally published on March 05, 2012.
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