A mutual fund is usually administered by a portfolio manager with researchers assisting the manager on the best investments for the fund. The typical profile of a fund manager is a experienced financial expert with strong academic and professional credentials.
Qualifications and Training
Managers rely on academic training in statistics and finance, usually acquired through graduate business programs at elite schools. Another qualification many fund managers possess is the Chartered Financial Analyst’s degree, or CFA. In addition, fund managers often have many years of working experience in the financial market, as an analyst, broker or professional trader.
Role
A fund manager is usually assisted by a research team, together they rigorously analyze possible investments. Mutual funds allow investors to make well-informed purchases with a research team considering all details of a company before making the investment. The expert financial team evaluates the business strategy, annual performance, compares the company to competitors and investigates further than many investors would before purchasing. This eliminates the hassle for the mutual fund’s investors, and because the fund is a collection of many people’s money the manager is able to select many investments, diversifying the fund’s portfolio. The manager decides when to buy and sell the investments. This similarly relieves the investors of having to monitor investments and trade through often costly brokers.
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