Digitalwisher Mutual Fund: What to do when the star fund manager leaves, stay in the scheme, or exit. -

Mutual Fund: What to do when the star fund manager leaves, stay in the scheme, or exit. -


The role of fund managers is important in mutual funds. And as an investor, we completely depend on our star fund manager. Our full attention is that how exactly they are managing the money of the investors.

Mutual Fund: What to do when the star fund manager leaves, stay in the scheme, or exit. -

When the fund manager leaves the fund house

Most investors select the funds in their portfolio only after seeing the fund manager managing the scheme. Then comes the problem. When the star fund manager leaves the fund house. Investors naturally get worried about what will happen next for their investments. What should they do and stay with the fund or leave?

What is the impact of the departure of the fund manager?

Each fund house has its own set of processes and procedures that it applies while managing the scheme. The entire structure consists of multiple analysts as well as research teams and other fund managers. Their inputs play an important role in the overall management of the portfolio and in such an arrangement the risk to the investor is reduced even after a fund manager leaves the job. The investor has full faith that the fund house will continue its work.

There is more than one fund manager in the scheme

Many times fund houses appoint more than one fund manager for a particular scheme. This is done by looking at the asset base and this formula is used to instill confidence in the investor that the management process of the particular scheme is going to continue on a continuous basis. It is assumed that there is a shared responsibility. And more than one person is involved in the decisions taken here. In such a case, even if a fund manager leaves, another one will take over his responsibility. And thus this system creates confidence that transactions will continue without any hindrance.

What is the type of fund, its big role

The nature of the fund also decides the risk involved in the steps taken by the fund manager and if it is a large-cap fund then the role of the particular fund manager is also limited after a completely unique portfolio is prepared. Similarly, there are specific strategies for any value fund or contra fund. About which attention is drawn to the fund feature. It is quite possible that the fund manager managing such a fund may not have a huge impact as compared to a mid-cap or small-cap. Because here the option of choosing stock is more important.

Don't be in a hurry to stay in or out of the fund

Eventually, such a process and system work. In which other fund managers associated with the fund house handle the impact on the scheme after the departure of a star fund manager. And on his part, investors should not be in a hurry to decide whether to stay in the fund or not. It's always better to wait. It should be seen how the fund is performing in the near future after the departure of the fund manager.

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