One of the most familiar names when entering the investment world is the fund manager. In this field, the fund manager is a hero. Let's look at what fund managers do, how they get their jobs, and why they are crucial.
Who is Fund Manger?
A Fund Manager is in charge of carrying out the fund's investing plan and monitoring the trading of its portfolio. The fund may be run by a single manager, two co-managers, or a group of three or more people.
A mutual fund scheme's portfolio is managed by a Fund Manager, who is a key person. He manages the corpus gathered from thousands of people and makes investments in accordance with the fund's goal.
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Debt fund managers invest in bonds and debentures, whereas equity fund managers purchase Stocks.
Fund Manger Salary
In India, a Fund Manager can earn anywhere from 25 lakhs to 10 Crore per year.
If you're interested in learning more about a particular fund house manager's income, go to their website or do a search for “Mutual Fund remuneration Disclosure.”
You must first confirm that you are an investor in that AMC and enter your folio information for salary details.
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How to become Fund Manger?
Most Fund House prefer candidate with major credentials, such as CFA, CFP, MBA, master's in accounting, finance, statistics, or mathematics, or certification in advanced investment analysis and portfolio management. Ideally, the courses should be in areas connected to investing.
Even undergraduates can start their careers as junior analysts in the field of financial analysis and progress to become qualified fund managers.
Type of Fund Manger?
Fund managers can be divided into two categories:
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- Active Fund Manager
- Passive Fund Manager
Active fund managers attempt to outperform their competitors and benchmark indices. Active fund managers keep up of corporate news, research market trends, and study economic statistics.
Active Fund Manager who manages large cap fund, mid cap fund, and sector fund etc.
Passive fund managers deal in assets that are included in a benchmark index. The portfolio weighting used by this type of fund manager is the same as that of the underlying index.
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Passive Fund Manager who manages Index fund, ETF etc.
Fund Manger Role in MF
A fund manager is responsible for many different tasks.
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Let's look at what a fund manager does.
They operate within the guidelines established by the fund house and the mandate of the schemes they manage. We underestimate how much of an impact they have on returns.
Stock selection, sectoral exposure, profit/loss booking, churning, and cash holding are all governed by processes and rules. Regulations impose some limits on investments.
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The scheme's mandate is another factor. For instance, the fund manager is not allowed to divert from the mandate, which specifies that the scheme would invest in large-cap equities, and instead buy mid-cap stocks. Naturally, they are free to acquire or sell assets as long as they stay within these parameters.
Monitoring and analyzing the markets-
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Most Notable Fund Manger in History?
The Magellan Fund of Fidelity Investments was piloted by one of the most famous fund managers in history. From 1977 to 1990, Peter Lynch oversaw the significant equity holdings of the company. Lynch advocated investing in companies in sectors in which he felt most at ease. During his time, Magellan's CEO generated impressive average returns of 29% annually and increased AUM from $20 million to $14 billion.
Albert “Ab” Nicholas, is one of the fund managers with the longest tenures. For 40 years, this fund manager has consistently outperformed the S&P 500.
