Who is the fund manager? Know about their roles, responsibilities in a mutual fund – CNBC TV18

Who is the fund manager? Know about their roles, responsibilities in a mutual fund – CNBC TV18

/ Finance / By



Over the years, mutual funds have emerged as a promising and profitable investment option. When it comes to selecting suitable mutual fund schemes or making certain decisions, there are a lot of parameters to consider including return expectations, risk tolerance and investment horizon. This is where a fund manager comes into play.

Index Fund Corner

sponsored

name of the scheme 1-year return invest now fund category expense ratio
Axis Nifty 50 Index Fund +32.80% invest now Equity: Large Cap 0.12%
Axis Nifty 100 Index Fund +38.59% invest now Equity: Large Cap 0.21%
Axis Nifty Next 50 Index Fund +71.83% invest now Equity: Large Cap 0.25%
Axis Nifty 500 Index Fund , invest now Equity: Flexi Cap 0.10%
Axis Nifty Midcap 50 Index Fund +46.03% invest now Equity: Mid Cap 0.28%

In simple terms, fund managers are financial professionals who are responsible for managing investments on behalf of their investors. They also execute investors’ buying and selling decisions to optimize the portfolio.

Read further to understand in detail.

About Fund Managers

Fund managers are professionals or investment specialists who are responsible for managing mutual funds along with other pension funds, hedge funds, and even portfolio management services on behalf of investors. Their job is only to take necessary investment decisions and fulfill the future objectives of the fund investment.

Subsequently, it is essential for investors to thoroughly research and evaluate the investment approvals adopted by fund managers before committing to a mutual fund.

Here are the rules and responsibilities undertaken by fund managers in a mutual fund:

  1. The fund manager looks after the portfolio of securities that the mutual fund holds, carefully selecting a mix of bonds, stocks or other assets to achieve investment goals.

  2. They also take necessary decisions based on market trends, economic conditions and investment strategies which directly impact the fund’s performance and returns for investors.

  3. Carrying out thorough research and analysis is an important task by the fund manager. They need to study market trends, company financials and any other market indicators to identify investment opportunities.

  4. Managers also attempt to balance the risks and returns associated with relevant investments to ensure that the fund is stable and that investors’ interests are protected.

  5. On top of this, they also regularly track the performance of the funds, even taking key decisions such as exiting any underperforming securities. The goal is to generate better returns than the benchmark.

  6. The fund manager is tasked with ensuring compliance with the regulatory guidelines of the Securities Exchange Board of India. They have to formulate policies and regulations for mutual funds in line with SEBI guidelines.

(edited by : sudarshan mani,

,

Must Read