Should fund manager exits signal concern among investors?

End of an era

Veteran fund managers of Kotak Mutual Fund (Pankaj Tibrewal) and Franklin Templeton (Anand Radhakrishnan) stepped down in November 2023.

Will it impact fund performance?

Naturally, this sparked worry among investors, who wanted to know if fund manager exits could affect their investments.

Impact of manager shifts on funds

To ease their worries, we studied the impact of 32 fund manager exits across 18 fund houses in the last 10 years.

Here's what we found:

- 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

So, should fund manager shifts bother you?

It is best to wait and then decide. Exiting a fund in haste will only incur capital gains tax, which can be avoided.

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