The Role of a Fund Manager in Mutual Funds
Fund Manager – The Role
Taking yourself as an investor meaning investing in mutual funds which clearly involves building a portfolio of securities. The fund manager based on analysis and research makes the decision on buying & selling. Your portfolio can be either active or passive.
Being an Active Portfolio: The fund manager picks the overall components of the portfolio.
Being a Passive Portfolio: Based on an established index & the component are selected by keeping the underlying index in mind.
Role of Fund Manager in Mutual Funds
- The Reporting Requirements: Meeting the reporting requirements as per the regulatory guidelines is one of the duties of a fund manager. The building of the fund takes a few of the objectives of the investor(s), expenses, risks, strategies, and other policies. Also, the fund manager is responsible to ensuring that the investor(s) is aware & abide by these rules and details.
- Regulatory Authorities: The fund operation(s) must be followed according to the rules as set by SEBI, and other authorities.
- Wealth Protection: It is the duty of the fund manager to protect the money and wealth of the investor. The decision must be based on extensive research & due diligence. Also, to address any risk, the fund manager must ensure there is adequate diversification in asset portfolio(s).
- Monitoring the Fund: The duty of the fund manager is also to take care of the growth of the fund, and also, keep the check on the fund performance regularly.
- Hiring and Oversight: The responsibility of a fund manager is being extensive; thus, they have to get assistance from different professionals & also, firms to deliver. Duties such as getting capital, negotiating with brokers, issuing annual reports, etc. This way the fund manager ends up transferring some regulations & responsibilities to a third party. In the end, the fund manager alone is responsible for the working of the fund.
How to Judge a Fund Manager?
Take a Look:
- Does the fund manager keep track on all your investments?
- Are they experienced with high compensation?
- Are they able to outperform the benchmark in perpetuity?
- Are they easily able to identify scripts ahead of their peers?
Where to Invest – As Decided by the Fund Manager
- Detailing the analysis of the company’s annual results that the fund manager is thinking to invest-in.
- Checking for the shifts in the stock-market for analyzing the shifts volume.
- Analyzing every minimal detail of the fund performance and its competitors.
Investing in direct mutual funds is not a tedious job, especially with Gulaq. Offering the funds that will meet your goals and objectives. Also, the fund manager should not be the reason to redeem or switch from one fund house to another. The composition of a portfolio and the expense ratio of a fund are some of the factors that might impact your returns.
Furthermore, get in touch with the team to know more about the funds as per your requirements.
*Disclaimer: investment in securities market are subject to market risks, read all the related documents carefully before investing