Impact of Managerial Change

If I had to answer that in a few words, I would say "wait and watch". It is very natural to be concerned, but there is no need to act rashly and sell or even terminate your systematic investment plan (SIP). Here are a few guidelines to follow. Don't view any of them in isolation. But taken in conjunction, you would get a fairly good idea on what your next move should be or at least what you need to keep an eye on. Check the fund's mandate Some funds are very vulnerable to a fund manager's exit, others are not. If it is a fund that very closely tracks the benchmark (like an index fund) or has a very specific investment universe, then there should not be any cause for alarm. So funds that tap into the "top 100" or even "top 200" stocks by way of market capitalisation would not face too much of problem with a fund manager change. Neither would a fund that relies on a quant model for its stock picking process. Even

This article was originally published on June 21, 2012.