Fund Management Basics
Fund managers are professionals who invest on behalf of others. They have extensive experience in the field of fund management. Fund management includes investment strategy and planning, asset allocation, financial planning and asset protection. Fund managers are involved in the day-to-day management of funds, with an emphasis on investment performance and returns.
The primary function of Fund Managers is to make investments for their clients, providing a comprehensive, systematic service to individual investors or institutional investors. They also provide advice and recommendations to individual investors, as well as to financial organizations and securities markets. They are usually invested by sophisticated investors and are specialized in their field of expertise. Fund Manager’s jobs include shorting and long term investing for profit.
The responsibilities of a fund manager depend upon the type of fund he is managing. General fund managers provide investment advice to large institutional investors and specialize in specific areas of investments. Specialized fund managers manage a narrow but more concentrated range of investments, often within a single firm. Fund managers can be involved in day to day management, or in weekly or monthly meetings with other fund managers, or with investors.
Typical duties of fund managers include purchasing securities and selling them for profit. They must be able to analyze and evaluate investments. They are also responsible for maintaining records of investments, preparing financial reports, and analyzing the risks of investments. Other duties may include evaluating the performance of selected investment products, developing investment strategies, reviewing the financial statements of a company, and advising investment companies. They are expected to have strong knowledge in banking and accounting, and good relationships with investment management companies and fund providers. Fund managers will also need to have a background in finance and statistics.
While experienced fund managers are able to pick the right investments and make wise investment decisions, investors need to be cautious about selecting an inexperienced manager. Past performance results are not a reliable guide to future performance because investors do not know how managers will perform in the future, and investors usually have no way of evaluating how other investors have performed against a particular fund manager’s investment record. Some past performance results may also reflect only part of a portfolio’s history, so it is important to evaluate fund managers on a wide-range of investment products over many years before making a decision about their suitability for managing a given portfolio.
Most fund managers today are self-employed professionals. In some cases, some large mutual funds retain fund managers on a full-time basis, allowing them to build up considerable experience and build a reputation for success. On the other hand, many investors choose to invest in self-managed funds, allowing them more control over their investment management and additional fees. Self-managed funds are generally less expensive than managed funds, but allow investors more control over their money. Regardless of which type of fund manager is best suited for a given investor’s needs, keeping a close eye on key investment management factors, such as the fund manager’s record, can help provide necessary protection to investors.