In a communication sent to a few distributors, IDFC Mutual Fund has confirmed that Punam Sharma, Head of Research and Fund Manager will manage its flagship scheme - IDFC Premier Equity Fund.
An SMS sent to Kalpen Parikh, CEO, IDFC MF didn’t elicit response till the time of writing this piece.
According to the note, Punam has been assisting Kenneth Andrade in managing this scheme since inception. Andrade has recently put in his paper from the role of Head of Investment to pursue entrepreneurial opportunities in investment management. Currently, he is serving out his three month notice period.
Punam has over 12 years of experience in fund management and research activities. She is with the fund house since September 2001 (erstwhile Standard Chartered MF) and is currently responsible for equity research for companies across various market capitalizations and sectors. Prior of IDFC MF, she was associated with Kotak Mahindra MF where she was responsible for product planning and development.
Punam holds MBA degree in Finance and Bachelor’s degree in science.
In an article published in FundsIndia.com, Vidya Bala, Head Mutual Fund Research at the company advises investors to continue their SIPs. She points out a few reason in support of her stance - firstly, Punam has assisted Kenneth in managing this scheme since inception which makes her familiar with the fund and portfolio’s entry and exit strategies. Secondly, last year, the fund had undergone changes in the portfolio and shifted its focus to align with the structural changes in the economy. Any other shift is unlikely in the near future since the fund has maintained a low portfolio turnover. And finally, the fund’s core strategy of identifying leaders in the respective sectors and stringent filters such as capital efficiency and high return on equity ensures that the fund is process driven.
Hemant Rustagi of Wiseinvest Advisors is of the view that investors should give at least 6 to 12 months before taking a call. “Fund management has changed with time. Now, investment committee of the fund house has a key role to play in fund management of any scheme. Also, such a process ensure smooth transition. Though I believe that star fund manager has different capabilities, investors should not take a hasty decision at this juncture. They must give at least 6 to 12 months to this scheme.”
However, a few advisors have a different view. A Mumbai based distributor is of the view that advisers should do due diligence before advising their clients to stick to this fund. He said, “We need to do a due diligence of the new fund manager. Fund managers should have insightful knowledge and a sense of determining various phases of market. The fund house may have a process driven fund management strategy; however, a lot still depends on how the fund manager uses her skills and knowledge to manage the scheme.”
Another Mumbai based distributor is of the view that fund management cannot be driven by processes. “Though a good portfolio can be made on the basis of a few filters like earning potential of a company, management quality and attractive valuation, finally, the fund management is a game of art, skill and luck. It cannot be driven by processes. A song can have great lyrics and composition but every singer cannot do justice to the song.”
