A fund manager oversees the day-to-day and long-term operations of an investment fund, making decisions on how to invest available cash and balance the portfolio. They often have extensive experience in finance and are compensated based on performance. A stable management team is important for successful funds.
A fund manager is a financial professional responsible for an investment fund. A person in this position must manage the funds they oversee in a manner consistent with their stated objectives while working to maximize returns for the benefit of investors. People working in these senior positions often have extensive experience in the finance industry, including experience at various levels of the fund management hierarchy.
Funds can be structured in many different ways and for many purposes. The fund manager is responsible for managing the day-to-day and long-term operations of the fund. He decides how the fund should invest the available cash, how to balance the portfolio, and how to handle other aspects of fund management. This can include things like marketing the fund to potential investors, implementing office procedures and policies, and establishing ethical standards for the business.
It is not uncommon for a fund manager to have an advanced degree, such as an MBA, in addition to industry experience. He or she may have worked for banks and other financial institutions, as well as funds such as hedge funds or mutual funds. This extensive experience often includes activities in different aspects of fund management, as a novice fund manager learns about accounting, balancing portfolios, responding to market changes and financial ethics.
Typically, fund managers are supported by a large team. This can include entire departments to focus on issues such as monitoring stock values and maintaining ethical standards, as well as personal assistants who help the manager with administrative tasks. Business hours can be long as there may be times when a fund manager needs to arrive early or stay late to meet by phone with people in other time zones or to respond to emerging market trends; a fund manager who sleeps through a market crash will be out of a job.
A good fund will have a stable management that includes many long-term employees. The fund manager is usually compensated in the form of a performance-based fee, incentivizing the manager to manage the fund well because his compensation is linked to returns. Funds with high staff turnover may be experiencing problems that investors could do better to avoid, and it’s wise to consult a fund’s track record before diving into an investment.
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