Learning the Key Responsibilities and Effects of Fund Management

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Learning the Key Responsibilities and Effects of
Fund Management
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Influence of investment banking on businesses
From time to time, we have all heard about
investment banking companies and their various
roles that they play for a business. Namely,
overseeing the mergers and acquisitions of their
client, research and analysis of the market in
order to support their clients next big step,
merchant banking, risk management, underwriting,
structuring the derivatives, credit management,
procuring and management assets and wealth and so
on. when a corporation decides to go for an
investment banking, they in a way hire all these
services too.
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What is fund management?
Asset management, also known as fund management
investment banks perform is that of the fund
management. In simple words, fund management
involves over looking and ensuring the smooth
handling of cash flow within a financial
institution. It makes sure that the demand for
loans is in sync with the schedule of deposits.
Therefore, for this, the fund manager will have
to look at both liabilities and assets that are
influencing their ability to issue credit.
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Types of assets they deal with
This fund management includes any kind of system
that strives to maintain the entity value of the
firm or the client. This goes for all times of
assets such as tangible and intangible assets.
Tangible assets include property, real estate and
machinery. In tangible assets include
intellectual property, good will etc. Fund or
asset management is a seamless process involving
operating, deploying, disposing, maintaining and
upgrading assets in the most sustainable manner
possible.
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Role of fund manager
What role does the fund manager play in all this?
The fund manager is responsible for implementing
the fund and investment strategy of the company.
They are also key players responsible for
managing trading portfolios. It does not have to
be the work of a single fund manager. All the
duties can be done by a single person or as a
team as well, depending upon size of the task and
the urgency on the same.
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How fund managers can turn the funds?
While not much can be done in how the fund that
the manager has advised their client to invest in
eventually works out, yet the calculation and
judgement of the fund manager regarding the same
is very important. A fund manager at any of the
investment banking companies who is highly
trained, will have the potential to surpass their
competitors and lead the respective fund towards
the set benchmark. This kind of aggressiveness is
what makes the fund managers alpha/active
managers whereas the ones that take a little back
set approach are known as passive fund managers.
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Thank You
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