What is fund management?

Fund management in my view….  is the professional selection of correlated securities and allocation of funds. to invest in these securities. Investment goals of investors are considered in each investment decisions.

Other related terms to fund management.

  1. Asset management.
  2. Investment management.

Features of fund management.

  • Fund management is complex.
  • Fund managers pool funds from many investors.
  • They create a common fund and decide how to divide the funds.
  • Funds are diversified into various securities based on correlation and liquidity.
  • Fund managers watch over the fund and respond according to the prevailing market conditions.
  • Investors are charged a service fee. And can withdraw funds at any time subject to contractual agreement.


Fund management companies in the United States of America


  1. JP Morgan Asset management
  2. BNY Mellon investment management.


Gains from asset management

Investors have a chance to grow wealth when fund appreciate in value. Fund managers share out profits or losses to investors on pro rata basis.

Each investor receives part of profit equal to her contribution.

How to contract fund management services

 

Let’s assume you have conducted your preliminary market research.  And found an appropriate asset management company.

       STEP I. Visit your chosen fund manager.

       STEP 2. Discuss these matters with the fund manager.

  1. Fees chargeable and the next date of charges.
  2. The least fund contribution and contribution interval.
  3. Securities invested in.
  4. How profits are paid out.
  5. How they deal with losses.
  6. How to pull out from the fund.

    STEP 3. If all your questions re clarified, fill in the registration form

         Register me now form

    STEP 4. Start to contribute at the agreed interval and amount.

          Build wealth!!!

Fund managers are the right people to invest your hard earned money.


Fund management services are for the following people.

  • Busy individuals who do not have enough time to plan investments.
  • Less investment savvy individuals who cannot invest on their own.
  • Individuals who would rather have their money invested by a professional fund manager.
  • But, you do not need fund management services if..
  • By any chance you are a trained finance professional.
  • You know how to invest from your own experience and exposure.


Perhaps you are wondering how to choose a fund manager.

Well, have this check list.

  1. Reputation of the asset management company.
  2.   Do they have a clean track record?
  3. Capital base of the asset management company.
  4. It must have over $500,000 worth of capital.
  5. Look at the terms of service.  It should be realistic to you.
  6. Always ensure that is a public listed company.   I prefer this. Listed fund management companies declare their financial standing every fiscal year.


Fund management concepts you will learn at business school.

  • How the financial markets work.
  • Concept of assets and asset management,
  • Accounting for assets.
  • Financial management.
  • Capital budgeting.
  • Fund management is an interesting topic. It is one of my favorite.

Over $10 billion is transacted daily in fund management. That shows that it is a booming business.

Learn more from Old mutual. A top asset management company.

      Click here to get an even better analysis of fund management.