InvestorQ : What should you do with mutual fund investments when a fund manager quits?
vaishnavi mhatre made post

What should you do with mutual fund investments when a fund manager quits?

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Rohan Bhadani answered.
1 year ago
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As an investor, you needn’t be worried about anything immediately. The Asset Management Company (AMC), will appoint a new CIO to the position that was just vacated. As long as there is a tailored system and operational process that is followed, the change will be smooth and it will be business as usual at the end of the day. Having said that, if you notice a consistent decline in performance post the change of guard, then maybe it's time to review your options. This could probably mean that the performance was solely driven by the strategies applied by the previous CIO.

Secondly, this also signals that the management and AMC were not competent enough to dilute the key man risk. All these are red flags and you will be smarter to cut your losses and shift to another scheme. But this doesn’t happen quite often. So you can breathe easily.

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