Domestic fund houses have been moving towards a more process-driven investment approach as a safeguard against abrupt exits of fund managers.
The processes are typically pre-programmed strategies and stock filters that help fund managers in taking a disciplined approach in creating portfolios of stocks.
In recent years, there have been several high-profile exits of fund managers. Despite the exits, the performance of schemes of these fund managers hasn't seen any adverse impact. Rather, in some cases, the performance has improved, helping allay fears that an exit of a big fund manager is bad for the fund's performance. It has also raised questions whether a process-driven approach has made fund managers redundant. Industry executives say that processes are important but fund managers can't be done away with. Processes and fund managers are complementary to each other, they add.
