Mutual Fund Manager

One of the biggest advantage or rather the reason for selecting Mutual Funds is because they are professionally managed.

Since most small retail invstors do not have the knowledge about the markets and investing in them, it makes sense to use Mutual Funds because they are run by professionals.

Mutual Fund Schemes are being managed by Mutual Fund Managers.

These are the people who manage the money by investing them in the right securities in accordance to the mandate of the scheme.

They are responsible for placing orders for buying and selling underlying securities of the schemes.

A single mutual fund scheme can be run by one or more fund managers.

The roles and responsibilities of schemes with multiple fund managers will be clearly defined.

In rare cases, a committee of fund managers with one manager as the lead manager would be formed. This is pretty common in the US markets than in Indian markets.

Active funds or Passive funds, both require fund managers.

When a fund manager of a scheme is changed, it requires our careful observation of the scheme.

This is because there will be some turbulance in the scheme portfolio and returns because of a possible different approach that the new fund manager would take up.

Hence, it makes sense to keep a close eye for the first few years after the new fund manager assumes charge.