One of the elements of a mutual fund scheme that many of us look at, before we pick a scheme to invest in, is the fund manager. It brings us a lot of comfort if the manager of a scheme that we’re about to invest in, comes with a long track record. Put it another way: if you’re already invested in a scheme for long and then one day your manager leaves, it could warrant you to exit the scheme.
One of the consequences of last week’s circular that the capital market regulator Securities and Exchange Board of India (Sebi) issued could be that the mutual fund scheme in which you’re invested, might either be merged into some other; or it’s characteristics may change. Both these situations can lead your scheme to lose its fund manager. What should you do?
