Fund managers are professional financial experts who invest on behalf of their clients or own private funds. They manage investments for their clients to earn a return on their invested funds. The returns are then paid to the client on an ongoing basis. There are many types of fund managers, each with its own distinct characteristics and roles in investment management.
Mutual Fund Managers – these professionals are responsible for the investment management of mutual funds. These funds represent a collective pool of capital that is managed by an experienced professional. They usually invest a portion of the funds in stocks and bonds and the remainder in alternative investments. Mutual funds are highly diversified and account for a large portion of an investor’s total wealth. In addition, these managers have the knowledge to pick stocks that are set to perform well and those that are likely to fall. They also are able to pick funds that will outperform the overall market, but they should never trade in stocks of any type that may fall and/or cease trading if the market takes a turn for the worst.
Fixed Income Fund Managers – these professionals are responsible for the management of fixed income funds. This typically involves buying and selling bond, stock, or mutual funds in order to ensure that the investor receives regular interest payments. They are often employed by pension funds or other large fixed income accounts. These fund managers have the experience and know-how to pick investments that will outperform the market. However, they must be careful to make sure that the interest earned is not excessive and that future returns remain solid. In order to make informed decisions regarding these issues, the manager must retain a broad range of knowledge about different types of securities.
Real Estate Fund Managers – these professionals are responsible for managing portfolios of property that are either being financed by the investor themselves, or being managed by another professional. These investments can include properties purchased for development or that have already been built. Real estate fund managers also help to oversee the liquidation of any properties when they are sold.
Analysis Specialists – these professionals are employed by investment banks, asset management firms, as well as independent financial planners. They possess the knowledge and ability to analyze various aspects of the financial markets and individual investments. They are also often involved in the creation of investment portfolio management plans. These include short and long term portfolios. Some of the time-consuming projects these analysts are engaged in include credit analysis, commodity markets, real estate economics, and insurance. Many times these specialists will need to be hired as part of a larger portfolio management team.
Private Placement Traders – these professionals are employed by investment companies to place buy or sell securities on behalf of institutional clients. They are responsible for placing trades on a variety of different securities such as cash deposits, preferred stocks, mortgage backed securities, and more. Many times these investors will be independent financial managers that work independently of a fund manager or other large investment firms.