What are the Various Integral Job Descriptions of a Fund Manager?
May 4, 2019
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The job of a fund manager entails handling financial investments of individuals, organizations, and large businesses. The investments can be in a wide array of options, ranging from mutual funds, stocks, bonds, to real estate, etc.
Managing investments is not an easy job. Fund managers need to know the pulse of the market and ensure that clients get good returns on their investments. Engaging in extensive market research is an integral part of the job.
Some individuals or firms specialize in certain kind of investments like equities, bonds, etc. Large private investors also hire fund managers and refer to them as wealth managers. The basic objective of these professionals is to invest money for the clients and make them a profit.
Fund managers are mostly employed by asset management companies, financial institutions, and specialist stock investing firms. Eligible candidates who have an educational background in business schools and have certification from the American Academy of Financial Management will be preferred.
Fund managers are in demand, especially during these times of economic turmoil. The job description can vary a bit for the different specialties. Here are a few.
Hedge Fund Manager
Hedge funds are unregulated and therefore have large sums of money invested in low risk and high risk return options. Keen market acumen, an ability to predict market trends, and doing lots of research is the main task of the hedge fund manager.
The salary, according to statistics, can be upto 280,000 USD. A person working as a hedge fund manager also needs to track global interest rates and the changing economic policies of different countries. You need to at least have a degree from a business school with a major in finance to be eligible for the job.
Mutual Fund Manager
They are mostly hired by asset management companies to take care of investments made on behalf of the clients in mutual funds.
As mutual funds are professionally-managed collective funds, managers will have to carefully invest these funds in stocks, securities, commodities, etc. They will also have to keep track of the international market and prevailing political conditions that might affect the financial markets.
Investment Fund Manager
Organizations and individuals hire investment fund managers for financial advice and to wisely invest their money to make a profit. Investment fund managers will have to research the stock market to find opportunities to profit, by investing in company shares.
They will also identify real estate, which can be bought and sold later to make a profit. These managers will also have to liaison with clients and managers from different companies to investigate investment opportunities.
Equity Fund Manager
This job profile requires individuals to manage the funds within one or multiple equity funds. They will also have to interact with investors and liaison with clients for financial planning. They will also have to implement strategies that will help manage the organization's investment portfolio.
Monitoring the markets and preparing reports regarding the performance of equity funds on a quarterly basis or as stipulated by the firm, is one of their tasks. They will also have to oversee international equity funds and keep an eye on foreign policies and international political environment.
Basically, the job of a fund manager entails wisely investing funds for organizations and large private investors to make them a profit. They will have to research and find opportunities in the stock market, mutual funds, startup ventures, real estate, etc.