What To Do If Your MF Manager Quits?
Bangalore: What if your MF managers quits? Do you have any clue about how to manage the performance of your Mutual fund? Morningstar.in has come up with five considerations to estimate the impact on your investment after your manager leaves.
1. Activity of the Fund Manager
Monitoring various parameters and numbers to base decisions on is a delicate task done differently by individuals. Some of these actions may be defined as standard procedure by several companies and cannot always reflect the manager's unique contributions. Since company procedures are mostly a trade secret, higher activity by the manager does warrant some concern.
2. Is The Manager a One Man Army?
If the manager worked with a team, chances are the team may be resilient to changes. If the successor also worked with or for the manager, the same strategies and working styles pursued previously may be implemented.
In funds where most of the decisions are taken by the manager, possibility of changes is high. The change can however turn out to be for the better as well.