What Does a Fund Manager Do?

Fund managers generally require a master's degree or above in finance related majors, have a good mathematical foundation and a solid foundation in economics theory. If they have overseas study experience or have obtained CFA certificates, they will be more competitive. Or a group of managers is responsible for determining the fund's portfolio and investment strategy. The investment portfolio is selected in accordance with the investment objectives of the fund's prospectus and is determined by the fund manager's investment strategy. The actual combat capability of an investment, that is, its investment performance, determines its influence and payback in the industry.

Fund manager

(Securities Industry Positions)

The first thing to consider is the ability of fund managers to continue to perform. Some studies have shown that in the ranking of fund managers in the United States, the top ten fund managers with a return rate of five years later, none of them is still in the top ten of the list. Looking at the ranking of Chinese fund managers in the past few years, it seems that only Wang Yawei can continue to rank in the top ten.

Second, risk-adjusted returns for fund managers should be considered. Profit and risk are always directly proportional. Therefore, when analyzing a fund manager, it is necessary to consider the risk that the fund assumes to obtain returns. The best comparison method is to consider the information ratio of the fund. The higher this ratio, the higher the risk-adjusted return of the fund manager and the more trustworthy it is.

Third, the investment philosophy of the fund manager and the consistency of the investment research team should be considered. Only investment managers who have achieved outstanding performance with a stable investment team and a consistent investment philosophy are worthy of entrustment.

Finally, the fees charged by the fund are also important. The more efficient the market, the more difficult it is to obtain excess returns, and the various expenses of the fund have a direct effect of lowering the fund's rate of return, which must not be ignored.

In short, "men are afraid of entering the wrong line, women are afraid of marrying the wrong man." Choosing a fund manager is also directly related to the financial interests of investors. You must be wise to see the hero, and you cannot be casually deceived by an accidental performance. ^[1]