Insightful Article

Your cover story on a fund manager’s exit was quite insightful. However, I wish to know how to identify the likely impact of the exit of a fund manager. - Pravin Khatri.

Editor Responds : The exit of a fund manager is indeed one of the most important fundamental attributes which should not be ignored. However, it is not the only factor that should lead you towards the decision of exiting the fund. In order to gauge the impact, you first need to understand the investment philosophy of the AMC. Secondly, you must check the performance of the fund for the next four quarters after such an exit. If its performance is below the category average and benchmark, then exit or else continue.