A September 2026 report by DSP Mutual Fund titled 'NETRA – Early Signals Through Charts' revealed that long-serving fund managers are relatively uncommon in the equity mutual fund industry. According to the analysis, there were approximately 320 active fund managers across equity categories, but only 20 had more than 10 years of experience managing a scheme. Just eight managers had more than 15 years of experience managing a category, highlighting the transient nature of fund management roles.
The report found that average manager tenure ranges from 1.99 to 2.69 years across all categories analyzed, with no category averaging three years. Value funds had the highest average tenure at 2.69 years, followed by ELSS at 2.68 years and mid-cap at 2.60 years. Flexi-cap recorded an average tenure of 2.38 years, while small-cap and multi-cap stood at 2.34 years and 2.19 years, respectively. Banking had the lowest average tenure at 1.99 years.
The data showed mixed results across fund categories regarding manager tenure. Value funds had the highest number of managers with 5 to 10 years of tenure, at 14, followed by large & mid-cap with 11, while mid-cap and focused funds had 10 managers each in this tenure bracket. Flexi-cap had only three managers with 5 to 10 years of tenure but had the highest number of managers who had been managing their schemes for more than 10 years, with seven managers in this category. Banking and Business cycle funds each had just one manager with more than 10 years of tenure.
The study emphasizes that a fund's historical performance and its current manager's track record are not necessarily the same thing. As reported by DSP Mutual Fund, investors need to understand how much of a fund's record was generated under the current manager and how the fund has performed since the manager took charge. The analysis particularly highlights this concern for actively managed funds, where managers have greater discretion over stock selection and portfolio construction, making manager tenure an important consideration for investment decisions.
