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What are your main responsibilities and challenges as an Investment Fund Manager?
What are your main responsibilities and challenges as an Investment Fund Manager when managing an individual's portfolio?
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Aleks’s Answer
What are your main responsibilities and challenges as an Investment Fund Manager?
Hey Josh,
Your main goal as a fund manager is to beat your benchmark e.g. the S&P 500 if you manage a US equity fund. This is both a responsibility and a challenge - if you consistently underperform your benchmark, your fund will likely suffer outflows and your company will lose business. Most of active fund managers don't beat their benchmarks.
Key responsibilities:
- track your portfolio performance
- track individual investments and news that affect them
- control risk
- communicate to investors
- analyze new investments
- execute trades
Good luck!
Hey Josh,
Your main goal as a fund manager is to beat your benchmark e.g. the S&P 500 if you manage a US equity fund. This is both a responsibility and a challenge - if you consistently underperform your benchmark, your fund will likely suffer outflows and your company will lose business. Most of active fund managers don't beat their benchmarks.
Key responsibilities:
- track your portfolio performance
- track individual investments and news that affect them
- control risk
- communicate to investors
- analyze new investments
- execute trades
Good luck!
Updated
PRASANJIT’s Answer
Responsibilities:-
A fund manager is responsible for implementing a fund's investment strategy and managing its trading activities.
They oversee mutual funds or pensions, manage analysts, conduct research, and make important investment decisions.
Risk Advisory:-
Strategic & Reputation Risk.
Sustainability & Climate.
Regulatory Risk.
Financial Risk.
Operational Risk.
Cyber Risk.
A fund manager is responsible for implementing a fund's investment strategy and managing its trading activities.
They oversee mutual funds or pensions, manage analysts, conduct research, and make important investment decisions.
Risk Advisory:-
Strategic & Reputation Risk.
Sustainability & Climate.
Regulatory Risk.
Financial Risk.
Operational Risk.
Cyber Risk.
Kenneth Romanowski
CFP Board Emeritus (R), CTFA (Ret.), Instructor and Researcher of Financial History
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Kenneth’s Answer
Hello, Josh. Excellent question. I assume that when you use the term "Investment Fund" you are referring to an individual's portfolio? The term "Investment Fund" could also imply a mutual fund, which is an investment product. My experience as an investment manager was a bit different than Harnoor's experience. Indeed, an investment manager has a great deal of responsibility on his or her hands, and stress can be considerable. You are also within an environment where you are making decisions and getting results over which you don't have full control. Your decisions can influence your outcome, but not totally. I would also add that, depending on the relationship you have with your client, you may be the person to reduce the stress felt by a client when the market goes down substantially. If you serve as a fiduciary, you MUST act in the client's best interest, and you are subject to scrutiny at all times. If you have a financial certification, you will likely be required to maintain it through continuing education, so not only are you keeping up with markets, you are also keeping up with changes in your industry. Finally, as Harnoor indicates, clients will look at your returns and make comparisons with the returns of other people. Returns are typically a function of risk, and your client's profile may not be the same as the other person for that reason. It will be your job to explain that to your client, and if necessary, justify your decisions.
On a different note, if you do a good job, you can make a major, positive impact on the lifestyle of your client. You will earn a great deal of personal satisfaction when you do. Good luck going forward!
Ken Romanowski
Get a solid education and earn a bachelor's and master's degree in business, with a concentration in finance.
Speak to as many people in the industry as you can. Understand that the client approach will vary from company to company.
On a different note, if you do a good job, you can make a major, positive impact on the lifestyle of your client. You will earn a great deal of personal satisfaction when you do. Good luck going forward!
Ken Romanowski
Kenneth recommends the following next steps:
Updated
Harnoor’s Answer
Your job as an investment fund manager will be a stress inducing and fast-paced. Your day will start with a brief on the latest in the capital and money markets. You will also need to be aware of global news as the financials of the fund you're managing will be corelated to global events in some form or fashion. You will probably have multiple algorithms working alongside you to make predictions. You're job will be to address the risk profile of your fund and ensure it stays in the realm of digestible risk appetite for the returns it offers. Also, the returns will need to be competitively high for your supervisor to justify the sustenance of you as an employee.