Special reviews are advised and should be done over and above normal yearly review of your investments in three cases - 1) When a fund manager changes, 2) When two or more schemes are merged or 3) When an AMC is taken over by another AMC just like what happened recently. This is certainly a special case when one must review his investment in Fidelity which has been acquired by L&T. Fidelity manages over Rs 60 billion of equity funds whereas L&T manages only Rs 2.4 billion of equity funds. The size itself is too big and one has to be cautious about investment in Fidelity. With the transfer of funds to the new AMC fund managers will also change. It has been reported that old fund managers will continue for some time till L&T`s fund managers` team takes over the entire responsibility. The question still arises is, how long will this take? The performance of all present eight equity schemes of L&T is pathetic. This raises doubt in mind whether to continue with the Fidelity schemes or not. Looking at fund performance it is definitely not advisable to continue in equity schemes after the deal is approved by the SEBI. The performance of debt schemes is satisfactory. The investors should note that they will be given 30 days notice after SEBI approval to redeem their investment without any exit load if they so wish. The investors of Fidelity Tax Saver who have not completed minimum lock-in period of 3 years will not be allowed to exit till 3 years are complete. The tax saving scheme will be merged with L&T Tax Saving Fund. Before exercising the option one has to wait till the final notice of 30 days is given.
Views are first appeared at faaida.com on 4th April'2012. below is the link
http://faaida.com/index.php?url=SFA&id=FTA_20120404155450
Views are first appeared at faaida.com on 4th April'2012. below is the link
http://faaida.com/index.php?url=SFA&id=FTA_20120404155450
