fund manager


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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 returns consistent with the level of risk outlined in the mutual fund prospectus.

Fund Manager

A bank, business, or, less often, a person that makes investment decisions for a mutual fund. Fund managers make these decisions in accordance with the parameters set by the fund's prospectus. The goal is to make the most profit for the fund as possible. Unlike brokers, fund managers are not paid on commission but by a percentage of the total amount of money under the fund's management. This gives the fund manager an incentive to work for shareholders' profit because the more money the manager accumulates, the more he/she/it makes. See also: Markowitz Portfolio Theory.

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 peers—mutual 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®
References in periodicals archive ?
A mutual fund manager betting it all on a volatile, risky stock is something most of us have come to understand and appreciate in our bones.
For fund manager Schonberg, the key to success is the strong relationship between relative company earnings growth and relative stock performance, noting that the former drives the latter
Jon Hale, Morningstar's director of manager research, North America, said, "Investors experienced more volatile equity markets and a decline in bond yields in 2014, yet our nominees for the Fund Manager of the Year awards achieved excellent performance and aptly maneuvered through the year's surprises.
The survey shows no fund manager expects the index to fall below 24,000 in next six months.
Guy is a fund manager on the UK Equity desk and is responsible for the analysis of the support services and general financials sectors.
Instead, a lot come from inexperienced or frankly inept UK equity sales people who think they are doing their job properly by calling a fund manager to point out the bleeding obvious.
Depending on a fund's asset class, a fund manager can follow a number of other substyles.
A fund's turnover ratio - whether the fund manager buys and sells a lot - also determines the amount of capital gains taxes an investor pays.
Her mission as a Prudential fund manager, she says, is to provide her clients with above-average returns and to contribute to long-term capital appreciation.
Article after article anointed this or that hot young fund manager as the new Peter Lynch, the legendary manager of Fidelity Magellan, the most successful mutual fund of the modern age.
Publicly involving fund managers and Wall Street gurus in the effort, working closely with government representatives, will do much avert the wrong impression.
Unlike most of his fund manager colleagues, who select stocks on the basis of rigid formulas, such as price/earnings ratios, internal growth rates, comparative-store sales, sales-per-employee, or even overall profitability, Appleton believes in only buying stocks with names or principal lines of business involving acronyms.

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