Fund Management

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Fund Management
Presented by

• The Forex Secret

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What is Fund Management?

• The process in which a company that-

• takes the financial assets of a person, company
  or another fund management company

• use the funds to invest in companies that use
  those as an operational investment, financial
  investment

To grow the fund post which, the returns will be
returned to the actual investor and a small
amount of the returns are held back as a profit
for the fund.
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Types of Fund Management

• The types of Fund Management can be classified by
  the Investment type, Client type or the method
  used for management.

• Mutual Funds
• Trust Funds
• Pension Funds
• Hedge Funds
• Equity Fund Management

The types of Fund Management can be classified by
the Investment type, Client type or the method
used for management.
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Types of Fund Management

• Offering Investment management services includes
  extensive knowledge of

• Financial Statement Analysis
• Creation and Maintenance of Portfolio
• Asset Allocation and Continuous Management

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Who is a Fund Manager?

• A fund manager is-

• Essential for the management of the entire fund
• Responsible for strategy implementation of the
• Asset Allocation and Continuous Management
• Finding a good fund management professional

• decided fund
• its portfolio trading activities

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Responsibilities of the Fund Manager

• The fund manager is the heart of the entire
  investment management industry responsible for
  investing and divesting of the investments of the
  client. The responsibilities of the fund manager
  are as below

• Asset Allocation
• Long-term Returns
• Diversification

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Asset Allocation

• Any successful investment relies on the asset
  allocations and individual holdings
• Common divisions are Bonds, Stocks, Real estates,
  and Commodities.
• The class of assets exhibits various market
  dynamics and a variety of interaction effects
• Makes the allocation of money amongst various
  asset classes leading to a significant impact
• The endurance of the fund in tough economic
• conditions will determine its efficiency.

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Long-term Returns

• Important to study the proofs of the long-term
  return-

• against a variety of assets
• against the holding period returns

For example, investments spread across a very
long maturity time period (more than 10 years)
have observed equities generating higher returns
than bonds and bonds generating greater returns
than cash. This is due to equities being more
risky and volatile than bonds which are in turn
riskier than cash.
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Diversification

• Going hand in hand with the aspect of asset
  allocation, the fund manager has to consider the
  degree of diversification
• Applicable to a client in accordance with their
  risk appetite
• A list of planned holding will have to be
  constructed deciding what percentage of the fund
  should be invested in a particular stock or bond.
• Effective diversification requires the management
  
• of the correlation between

• the asset
• liability return,

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