I regularly invest in mutual funds after looking at Value Research ratings and and the fund manager of the scheme. I have invested In UTI equity and UTI midcap as Anup Bhaskar was the fund manager. Now he is moving away from UTI. My question is what should a mutual fund investor do in such a situation? Should they shift their investments to other top-rated funds? This may happen in other funds as well and may affect long term investment plans. Please advise.
- Suhas Vyas
There is no need for a mutual fund investor to hit the panic button when a fund manager leaves the fund house. The fortunes of the fund is unlikely to change overnight. The investor should keep a close watch on the performance of the scheme and wait for the appointment of a new fund manager. If the new fund manager is able to sustain the level of performance, the investor should continue investing in the fund. Most established fund houses tend to put a system in place where everyone follows a process. In such fund houses, the exit of an individual would not make a huge difference. However, some fund houses may allow a lot of freedom to the fund manager to run his fund. In such cases, the performance of the scheme may suffer.
For more read: Adapting To Fund Manager Changes.
This article was originally published on January 12, 2016.
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