What does an investment manager do?
Investment manager does one of several things depending on the type of manager. In some situations, the investment manager supervises a large amount of money aggregated from many different clients and allows this money to various investments. In other situations, the manager advises individuals about what to invest in, but does not actually collect and invest money.
The term investment manager is most often used in the first situation. Investment managers can manage a hedge fund or a mutual fund. In both cases, a large group of investors will combine their money together. The manager then uses all this money to invest in various shares, bonds or other investments.
Many mutual funds can be purchased on the stock exchange or stock market. Funds often have specific goals or invest in specific types of shares. For example, the growth fund invests in shares of companies prepared for growth and expansion. In such cases, the investment manager of the emerging market or men selectsthe aid companies that can enlarge and expand.
Hedge funds, on the other hand, often invest money only for selected investors. Hedge fund administrators, as well as mutual fund managers, take money fund investors and manage all these investments. Hedge fund managers also have specific goals for the fund that dictates in which shares will be invested.
Investment manager often works for a large brokerage company. For example, Vanguard Bokerage offers mutual funds that investors can buy at the stock index. These mutual funds are managed by investment managers who have experience in investing.
Managers are evaluated on the basis of the way the fund performs. If the Fund provides a good return on investment or earns enough money for investors, managers can receive bonuses and will be allowed to continue the administrationFund. If the fund works badly, the manager can be released.
Because many mutual funds and hedge funds can handle millions of dollars of investment capital, managers have a great responsibility. They must conduct a sufficient market research to select stocks or bonds that are likely to work. In general, the licensed brokers must be for the purchase of shares on behalf of investors in the fund. The advantages of investing in such a fund is that more capital is available for investment than an investor, so the investor can own a piece of large portfolio with diversified investments and benefit from the performance of these investments as a whole.