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 ?
According to Lemma 1, in the presence of SEC constraints on contracting, whether investors find it useful to employ fund managers depends on whether the value of managed funds is concave in fund performance (the sign of [beta]).
The Merrill Lynch May 1999 Fund Manager Survey found global optimism was continuing to rise and fund managers were increasingly bullish on the outlook for Asian commodity prices.
Use bigdough to quickly find the right institutional money managers, see who owns the stocks you're writing about, get info on hard-to-find hedge fund managers, and much more.
If fund managers feel the ride is over, they might be selling the stock.
So where did this financial culture of ours come from - this world where the stock market is a national obsession, and fund managers are minor celebrities - and how did it insinuate itself into our lives?
The best way to find out about the style and tenure of a fund manager is to read the prospectus, a formal written document required by the Securities and Exchange Commission, that provides background on the fund's managers, history, objectives and other essential data.
A recent study found that hedge fund managers who got married or divorced earned significantly lower fund alpha for several months around those events.
The survey showed 26 per cent fund managers fear inflation to be a key risk for the market while 16 per cent expect the twin deficits to be cause for concern.
Legal & General Investments (L&GI) today announces new fund manager arrangements for four of its unit trusts.
The researchers also identified and verified fund managers via Morningstar, Nelson's Directory of Investment Managers, and LexisNexis Public Records.
Sebi would specify non- applicability of certain provisions of portfolio managers regulations on eligible fund managers.

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