- Wealth PMS (50L+)
Anoop Bhaskar, the head of equities at Sundaram BNP Paribas AMC, has resigned. Anoop used to manage Sundaram Select Midcap, one of the fantastic performers of the last year. Rumours are that he’ll join UTI AMC.
In his absence, N. Prasad, Chief Investment Officer of Sundaram BNP Paribas AMC, will manage the schemes Anoop used to manage.
What does this mean for you? If you call the AMC they’ll tell you everything is fine and that they have a transition plan in place. And that their investments are part of a discussed strategy and if the fund managers go the strategy will still continue as usual.
That’s a load of bull.
Fund managers are smart people that are hired to run mutual fund schemes. In fact, a fund manager is so important that you have to put his/her name in the offer document.
Managers are responsible for taking calls on buying and selling but usually don’t take their decision in isolation. While they will try and create a fall option, managers are usually well informed and will take the final responsibility of a strategy. When they leave, usually it takes a little bit of time for the next person to take the same kind of strategy forward.
SBI’s Sandip Subherwal was an excellent fund manager. But after he left, SBI funds have still done well. But there are a number of other cases where fund manager churn has been followed by lowered performance: Samir Arora from Alliance Capital, Nilesh Shah from Franklin Templeton etc.
But in this case, L. Prasad is a smart manager as well and you may not see too much of an impact. Either ways, stay invested but don’t buy any more until you can see the performance impact for at least two quarters, perhaps even a year.