Please enable JavaScript.
Coggle requires JavaScript to display documents.
How investor's respond to Mutual fund manager's change - Coggle…
How investor's respond to Mutual fund manager's change
What
Investors response is measured by fund flows
10-50% of Performance of fund is attributed to manager
Sensitivity to manager replacement varies with the nature of performance, fund family composition and management team composition
Fund hosted by a fund Family with meets timely redemption commitment and better governed , Investors of such funds are less responsive to manager change
Team managed funds are less responsive to manager change as they have better performance and lower risk
Well performing fund will experience greater outflows in comparison to under-performing funds as investors will exit the fund, with exit of well performing manager
Investors base their decisions on prior performance, manager, fund affiliation
Hence replacement of manager will have an impact
Where
Indian Equity-Oriented Mutual funds
Individual Managed and Team Managed
Top AMC managed fund
Well performing and Underperforming fund
When
Fund Experiences Manager Change
Who
Investors
Fund Managers
Fund Companies
Why
It affects fund companies choice of manager
Highlights key determinants for Investors choice
Fund Manager choosing funds to manage
How
Investors sensitive to performance, expense and Risk
Managers compete for maximizing capital
Fund Companies choose/fire managers