Veteran fund managers of Kotak Mutual Fund (Pankaj Tibrewal) and Franklin Templeton (Anand Radhakrishnan) stepped down in November 2023.
Naturally, this sparked worry among investors, who wanted to know if fund manager exits could affect their investments.
To ease their worries, we studied the impact of 32 fund manager exits across 18 fund houses in the last 10 years.
- In 58% of cases, fund performance remained unimpacted - In 32% of cases, manager shifts improved fund performance - In 10% of cases, the fund's performance fell
It is best to wait and then decide. Exiting a fund in haste will only incur capital gains tax, which can be avoided.