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Role of a Mutual Fund Manager
05 Jan 2023

Looking to invest in a mutual fund? You can easily do so with a reputed brokerage like Motilal Oswal. The benefit of investing in a mutual fund is that a fund manager is assigned to your specific fund. Therefore, one of the key aspects of investing in mutual funds is the way the portfolio is managed, whether it constitutes stocks, bonds or any asset class. The fund is operated and run actively by a fund manager, and this takes away the headache of an investor who may have to manage any other kind of investment. Having a professional manage the fund has a significant impact on the fund’s performance, and consequently, on your financial portfolio over a period. It would be fair to state that the role that a fund manager plays is vital in making your investment prosper or fail. 

The Role Played By A Fund Manager

When you pick a mutual fund to invest in, you, the investor, thinks of growing and developing a portfolio of various securities. The mutual fund manager makes all the decisions pertaining to the purchase and sale of these securities. They are professionals who know the markets, either by dint of their experience or the large amount of research and analysis done before investments are made. Moreover, your portfolio is managed actively, but at times, passively too. Here are the two forms of management explained: 

  • Passive Management - This kind of management is undertaken by a set index, and parts of the portfolio are based on the index that is underlying.
  • Active Management - Here, the fund manager selects the components of the portfolio themself, not dependent on any other factors. These are the fund managers who generally play a frequently active role in determining the performance of any mutual fund investment. 

A Fund Manager’s Duties

To get the benefits of investments in mutual funds, you first have to open a Demat account with a dependable brokerage, and one like Motilal Oswal has you covered. The role played by a mutual fund manager does not merely extend to the overall management of your fund. This is the broad responsibility that mutual fund managers are tied to. Nonetheless, within the bounds of looking after your mutual fund investment, the duties of a fund manager are pivotal as they decide how a fund will ultimately be fruitful for you, the investor. Here are duties that are incorporated into the role of a mutual fund manager: 

  • Fulfilling Reporting Standards - Mutual fund managers need to design portfolios based on reporting requirements of guidelines set forth by regulatory authorities. The development of any mutual fund takes the aims of investors, risks, strategies, various policies and expenses into account. Fund managers ensure that investors are in-the-know about rules and abide by them accordingly. Moreover, fund managers see that all documentation is in accordance with regulations. 
  • Compliance with Regulatory Bodies - A mutual fund manager must see that any given operations of funds take place within the rules and laws laid down by given governing authorities, such as SEBI (the Securities and Exchange Board of India). The rules that such a body makes covers many aspects, right from the signing up of clients to the function of tackling redemptions. 
  • Wealth Protection - The wealth of investors has to be protected by fund managers at all times. Funds may be at risk of gaining profit, but fund managers cannot be reckless with investors’ wealth. The purchase and sale of assets that a fund manager undertakes to conduct is based on widely extensive research and due diligence strategies. 
  • Monitoring the Fund - A mutual fund investment is closely monitored by a fund manager, and this is done to make the most of market moves and sudden shifts. 

Involved Investment

If you wish to invest in a mutual fund, you can be rest assured of the best investments from Motilal Oswal. Besides mutual funds, offering you clear benefits of professionals handling your investment, you can also think of other asset classes at Motilal Oswal.

Related Aritcles:

How to Analyse Mutual Funds for Big Returns | Things to Know Before Investing in Mutual Funds | Mutual Fund - Need of Financial Plan | How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account 

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