What Is A Fund Manager’s Duty?

Fund management is a very important financial aspect.be it in business or as personal investment, managing funds is more or less like an art that not everybody can master. Hence, you take help from outside. This outside help could be an asset management firm, or wealth management firm that studies the profile of the client thoroughly and guides them in investing the money into proper assets. They also help their clients in managing these funds. Fund management is basically overseeing and regulating the cash flow of the said party.

A typical fund managers duty is not just to guide the investors on investment of funds but it is also to make sure that the investor abides by the rules and laws laid down in case of investment. The rules that we are talking about, whether it be about long short fund, mutual fund or anything else, are set by SEBI (the Securities and Exchange Board of India). The fund manager also needs to be careful about the funds that have been invested in by the investor. They need to protect the investor’s money.

So, in case there is some kind of threat to the property or the fund that the investor has invested in then the manager should advice the investor to immediately withdraw their money or the asset and play safe. They need to constantly oversee the growth and transition of the fund. How well the fund performs depends on factors such as inflation, interest rates and so on. To decide what kind of investment is suitable for a particular investor, the fund manager needs to analyse and study the on going and past trends, in order to be able to gage whether a particular fund is risky to invest in or whether the risk is going to be worth the investment with good returns.