A fund manager is an employee of investment management company which is responsible for the management of the fund’s assets. Most of the times, more than one person is involved in fund’s management but normally one person should be responsible for the results. If there are group responsibility that means there are no real responsibility for the results at all.
The manager of the fund has to decide when buy or sell investments in a mutual fund and what asset allocation should be as much as investment strategy allows to that for him. If investment strategy of the fund is very strict then fund manager have not much of freedom for actions and such investing is more close to passive investing. Managers of hedge funds have the most freedom for their actions. However, most of the times, more actions create just more costs and that destroys the value of fund investors’ by little.
Fund manager is similar term to a portfolio manager or investment manager, the main different that those two may manage any type of investment portfolio when fund manager usually is responsible for large investment funds (or pension funds) and is needed to be the most professional. Most of the fund managers are remunerated by stable salary and performance based compensation.
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