Fund Manager

Loading the player...

DEFINITION of 'Fund Manager'

The person(s) resposible for implementing a fund's investing strategy and managing its portfolio trading activities. A fund can be managed by one person, by two people as co-managers and by a team of three or more people. Fund managers are paid a fee for their work, which is a percentage of the fund's average assets under management.

Also known as an "investment manager".

BREAKING DOWN 'Fund Manager'

The individuals involved in fund management (mutual, pension, trust funds or hedge funds) must have a high level of educational and professional credentials and appropriate investment managerial experience to qualify for this position. Investors should look for long-term, consistent fund performance with a fund manager whose tenure with the fund matches its performance time period.

The whole point of investing in a fund is to leave the investment management function to the professionals. Therefore, the quality of the fund manager is one of the key factors to consider when analyzing the investment quality of any particular fund.

RELATED TERMS
  1. Sub-Advised Fund

    An atypical fund structure in which a fund, such as a hedge fund ...
  2. Layered Fees

    Two sets of management fees that are paid by an investor for ...
  3. Manager Of Managers - MOM

    A class of financial intermediary that hires professional investment ...
  4. Pension Fund

    A fund established by an employer to facilitate and organize ...
  5. Management Tenure

    The length of time that a manager(s) has been at the helm of ...
  6. Incubated Fund

    A fund that is offered privately when it is first created. Investors ...
Related Articles
  1. Mutual Funds & ETFs

    Are the Most Popular Mutual Funds Your Best Bet?

    Learn about the dangers that come with investing in the most popular mutual funds and discover how investors can better fill out their portfolios.
  2. Stock Analysis

    Wells Fargo's 3 Key Financial Ratios (WFC)

    Look at some of most important financial ratios for with Wells Fargo & Co. and understand why they are so important for analyzing the bank's core business.
  3. Mutual Funds & ETFs

    6 Blackrock Mutual Funds with Long Track Records

    Discover which BlackRock mutual funds have the longest track records, and learn about how well each of these funds has performed historically.
  4. Retirement

    Is a Vanguard Traditional IRA Account Right For You?

    Discover the characteristics that make an investment company ideal for IRA accounts, and learn about how well Vanguard fits these characteristics.
  5. Term

    What Fund Managers Do

    A fund manager is responsible for implementing a fund’s investing strategy and managing its trading activities.
  6. Mutual Funds & ETFs

    Choose A Fund With A Winning Manager

    We break down the key components of analyzing a fund manager's performance so you can find a winner.
  7. Professionals

    Making It Big On Wall Street

    Read about some of the most glamorous Wall Street jobs and what it takes to land one.
  8. Mutual Funds & ETFs

    Should You Invest In Rookie Funds?

    Taking a chance on a brand-new mutual fund can add some all-star quality to your portfolio.
  9. Mutual Funds & ETFs

    Picking Top-Quality Hedge Funds

    Narrowing down your choices is the first step to finding a winning fund.
  10. Active Trading Fundamentals

    Analyzing Mutual Fund Risk

    Find out whether a fund's performance is a result of the manager's abilities, or just a fluke.
RELATED FAQS
  1. Which mutual funds made money in 2008?

    Out of the 2,800 mutual funds that Morningstar, Inc., the leading provider of independent investment research in North America, ... Read Full Answer >>
  2. How do waivers, reimbursements and recoupments affect a fund's expense ratio?

    Waivers, reimbursements and recoupments can initially serve to keep a fund's expense ratio lower than it would be otherwise. ... Read Full Answer >>
  3. Where do most fund managers get their market information?

    Many fund managers, whether they manage a mutual fund, trust fund, pension or hedge fund, have access to resources that the ... Read Full Answer >>
  4. What is the performance cult?

    In the late '60s and early '70s, the bull market and media scrutiny of fund managers had made heroes of the so-called gunslingers ... Read Full Answer >>
  5. What is securitization?

    Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming ... Read Full Answer >>
  6. Are target-date retirement funds good investments?

    The main benefit of target-date retirement funds is convenience. If you really don't want to bother with your retirement ... Read Full Answer >>
Hot Definitions
  1. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  2. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  3. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
  4. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  5. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
Trading Center