Fund Management And A Fund Manager

When we discuss fund management it is inevitable to avoid discussing a fund manager for he is the one who manages and does this fund management job perfectly for his company. Apart from this, he is also responsible for designing and planning strategies related to the financial dealings of the company and he is the one who decides the portfolio trading activities. So in a broader sense, it is him who becomes and holds the responsibility of managing and advising any matter related to finances of a company and it is his decisions and final suggestions that gets accepted by the company when comes to fund management.

The challenges

Now that we have discussed what a fund manager does and what his major jobs and responsibilities are, the biggest challenge for a company is in finding the right fund manager for managing its funds. This mostly happens on a trial and error basis and the moment it manages to get one, it gets a good hold on its financial status. Generally, companies, at the beginning allocate a small portion of the company`s funds under the management of the fund manager to note his performance and thereby rate the financial performance and development of a company. It is based on this that a company rates the fund manager and appraises his fee or charges which is a percentage of the company`s assets that are under proper and regular management.

Generally, fund managers are taken on a permanent or temporary basis and the ones who come on a temporary note are generally awarded monthly fee which depends on the job delivered by them. The ones who get a permanent position in a company as a fund manager come under the regular payrolls of a company.

Fund manager`s style of working

Generally, a fund manager uses different theories and concepts in managing and handling the finances of a company. These theories are those based on the basic financial concepts and there is a different one used by him for different financial situations. When comes to investments that a company is interested in, he tries to use the best from the investment strategies and theories and in doing this, he tries all the related ones on a trial and error method and from the outcomes, tries to implement the best one that would suit the company`s plans at that point in time. So whether permanent or temporary, he becomes a part of the company he is working for when comes to such important and crucial decisions.