3. Researching the New Manager

Studying up on the new person to determine if he falls within your risk profile is important. Unfortunately, past data can yield inconclusive results because those numbers may not apply specifically to his performance or abilities or even to his current job.

Srikanth Meenakshi, Director at FundsIndia advised that “Put the fund on a watch list but don't pull out immediately. Give the fund manager 3-6 months to prove his credentials”, as quoted by The Economic Times.

4. Firm’s Contingency Plans for Such Situations

How good is the firm when it comes to responsible planning and management? A Fund that does well will have systems in place to ease in new employees and inform customers of changes.  Certain companies have dedicated and independent teams to monitor stock positions and help bring the new manager up to speed.

5. Final Decision

When an investor chooses from the plethora of Mutual Fund options out there, it is in keeping with his personal interests in stock arrangement or ratios of equity versus money market funds or even exposure to certain sectors and geographies. The investor may not agree with the new manager's tastes and selection in stocks. Staying aware of such changes is a responsible thing to do for an investor.