Window to exit for Fidelity investors ends on 15th November
L&T Mutual Fund seems to be gaining the confidence from a growing number of distributors who are advising their clients to stay invested in Fidelity schemes.
After it received final approval from SEBI for the buyout of Fidelity AMC, Fidelity has given a 30 day window to its investors to redeem without paying any exit load which started on 15th October and ends on 15th November.
The situation is looking better for L&T now even as it pulls out all stops to ensure that they retain the newly acquired assets. It has strengthened its fund management team by roping in Soumendra Nath Lahiri to head its equity team. Soumendra has had a good track record in his previous assignments at Canara Robeco and DSP BlackRock.
According to financial advisors, the fund performance of Fidelity schemes has not slipped and the appointment of Soumendra could work well in the favour of L&T MF. “I’m not channelizing fresh investments but I’m not advising my investors to exit as we wish to wait and watch. The appointment of Soumendra Nath Lahiri is a positive. If we tell our investors to exit then it becomes difficult to convince investors to put the money in another scheme,” says a Mumbai based financial advisor.
Apart from IFAs, national distributors also seem to be advising their clients to continue with their existing investments. “We are comfortable with L&T merging with Fidelity and have not advised clients to redeem. We won’t take any action unless there is a major change in the fund performance,” said Sanjay Shah, Managing Director, Prudent Corporate Advisory Services.
