There are many different types of Fund Managers that an investor can hire, depending on his or her specific needs. Investment management is the expert management of various financial securities, such as stocks, bonds, and other investments, for the benefit of other investors so as to meet certain investment objectives. Fund managers are highly experienced individuals who have had years of experience dealing with different types of securities and financial markets.
Mutual Fund Managers are professional investors who have acquired a thorough understanding of how different kinds of investments perform relative to one another. These investors are adept at identifying which investments are performing well, and which ones are performing poorly. With this knowledge, they are able to create a portfolio of investments which is ideal for achieving specific investment goals. Commonly, mutual fund managers have invested their own money in stocks, bonds, property, and other similar investments. They may also hire other professionals such as investment advisers and financial experts to provide additional advice on investments.
Institutional Investors: These are large financial institutions such as hedge funds, money management companies, and pension funds. Institutional investors typically purchase larger amounts of securities than individual buyers, as they rely heavily upon the advice of institutional investment managers. When purchasing these securities, the managers will make recommendations on which stocks to buy, what security to buy (for instance, penny stocks), and how much of a risk should be involved. For instance, when buying a major national company through a mutual fund, the Manager may view that company’s financial position and overall growth prospects in the long term, as well as its competitors, its employees, and its industry outlook.
Hedge Fund Managers: These are professional investors who have purchased and sold stocks based on their collective understanding of where a particular investment may go over the long or short term. Some hedge fund managers also serve as financial experts or consultants to other professional investors. Many hedge fund managers are well-respected within the investment community for their solid record of success. Because of the high stakes and the specialized nature of hedge fund investing, most investors must work closely with fund managers.
Other types of professional investors include investment advisers, who are employed by firms to advise clients on which stocks to invest in, as well as companies that they might want to consider investing in. Some advisers provide their clients with stock recommendations based on research and market analysis. Other advisers make recommendations based solely on their own personal knowledge of investing and their own personal investments. Brokers are other types of professional investment managers, who provide advice and assistance directly to their clients, as well as facilitating transactions between their clients and other professionals. There are many other types of stock market professionals such as bankers, corporate attorneys, financial planners, insurance underwriters, mortgage brokers, patent law firms, and others.
The typical duties of Fund Managers and other professional investors include providing general guidance to their clients on what to buy, when to buy, and how to get the most return for their money. They also analyze the performance of their clients’ investments and determine what tactics will produce the most positive results. Since many successful investors rely on a variety of tools to keep their portfolios balanced and exposed to the most important aspects of market fluctuations, these professionals may be called upon to provide additional advice to their clients or to make recommendations about what stocks or options to choose. Many times, these individuals are also asked to conduct primary research on their own behalf, to spot certain issues or trends that could help their clients make better decisions for themselves.