Kenneth Andrade, ace fund manager and CIO of IDFC Mutual quit the fund house to pursue external opportunities. This means the fund house’s flagship fund IDFC Premier Equity will come into our watch radar.
Kenneth was also managing IDFC Equity and closed-end fund IDFC Equity Opportunities –I.
IDFC Premier Equity, although has traditionally had a mid-cap tilt to its portfolio, does not have a mandated mid-cap strategy. As a result of the fund or rather the fund manager’s focus on identifying companies or sectors in the early stages of their growth cycle, the fund has, over the years, acquired a mid-cap bias.
The fund has been conscious of keeping its size compact and often times keeps only the SIP option (and not lump sum) open for investors; to ensure that it disciplines its inflows to ensure effective deployment.
As the new fund manager is yet to be announced by the fund, we shall have a ‘hold’ approach for now. We will also watch at least 2-3 quarters of performance even after the new fund manager takes charge.
Meanwhile, we will update you on whether to continue further SIPs or not, once the fund house provides more information on future plans. Until then, be watchful but not jittery.
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When there are many consistent performers in midcap funds is it worth to wait 2-3 quarters ?
Hello Anvesh, The question is whether this one will become inconsistent. Some times there can be some turbulence and them it settles. Would a investor want to pay the exit load and perhaps capital gains (if short term) or wait a bit to see how they manage? A consistent fund could also undergo volatility some times, even without a fund manager change.
What we can do is let you know whether to stop SIPs (not exit) based on new fund manager. The call on whether to exit a fund needs a little more patience, based on performance. regards, Vidya
When there are many consistent performers in midcap funds is it worth to wait 2-3 quarters ?
Hello Anvesh, The question is whether this one will become inconsistent. Some times there can be some turbulence and them it settles. Would a investor want to pay the exit load and perhaps capital gains (if short term) or wait a bit to see how they manage? A consistent fund could also undergo volatility some times, even without a fund manager change.
What we can do is let you know whether to stop SIPs (not exit) based on new fund manager. The call on whether to exit a fund needs a little more patience, based on performance. regards, Vidya