fund manager

Fund Manager

The person responsible for investing a mutual fund's assets, implementing its investment strategy, and managing the day-to-day portfolio trading.

Notes:

The whole point of investing in a mutual fund is to leave stock picking to professionals. Therefore, the fund manager is one of the most important factors to consider when looking at a mutual fund. Researching a fund manager's past performance in the last 5+ years will tell you a lot have they had consistent performance, or have they bounced around from fund to fund? Do they have a history of underperforming?

See also: Gunslinger, Mutual Fund, Portfolio, Portfolio Manager, Window Dressing

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Fund manager

The person whose responsibility it is to oversee the allocation of the pool of money invested in a particular mutual fund. The fund manager is charged with investing the money to attain the returns and level of risk of the mutual fund investors.

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fund manager

The supervisor of a pool of investment capital such as that held by a mutual fund, pension fund, or closed-end investment company. The fund manager is charged with making investment decisions that adhere to stated investment objectives.

I choose a particular mutual fund both because I am impressed with its performance or potential and because it strengthens the diversity of my portfolio. Should I also add an assessment of the fund's manager to this equation? If so, what should I consider?

With some 8,000 (and climbing) mutual funds to choose from, it has become a daunting task for individual investors to figure out which is the right one for them. Check out the fees. Read the prospectus. Gather short- and long-term performance data. Compare a fund's historic rate of return against those of its peersmutual funds that invest in a similar asset class. And, yes, check out the fund manager. As every mutual fund prospectus tells us, past performance is no guarantee of future results. But at least you should know whether those total return figures were achieved by the current money manager or by someone who has moved on. What's more, experience matters in the world of money management, and investors should do a little digging to find out if a fund manager has weathered a bear market as well as a bull market.

Christopher Farrell, Economics Editor, Minnesota Public Radio, heard nationally on Sound Money^®