To multiply your hard earned money equities are the best option. But to solely invest in stocks carries a huge degree of risks and for these reason financial experts suggests diversification of your investment portfolio. Direct mutual fund investment ceases to be viable option for diversification with maximum returns and less losses. The main reason for choosing mutual funds over stocks is he guidance provided by the fund managers. Rather than taking the trouble to analyse and conduct a research of stocks at their own fund, customers prefer the choice of mutual funds that are hand – picked by financial managers.
- The role of fund managers in the choice of mutual funds stands beyond comparison. In fact promotion of mutual fund occurs with the help of companies where the track record of managers comes into consideration. The period usually considered is between 3 to 5 years.
- At certain times a customer relies on the track record of a fund manager and cut a sorry face when things fall flat. Sometimes there are chances where the fund manager has quit. For various consumers this has happened as in the case of various mutual funds. Be aware that the role of a fund manager in the movement of a fund is limited. You need to be alert with your mutual fund scheme and be on top of the tracking process. This is going to make up for any changes where the manager is not in the scheme of things.
- For an investor who fears that a fund manager may walk out for them index funds are a viable option. Here the expertise of the fund managers hardly comes into picture with the choice of funds.
- The role of a fund manager to popularize and manager a mutual fund is important. To be statistically sound, it is important that the role of the fund manager in the last 10 years has achieved new heights.
- In comparison to the various types of mutual funds the role of actively managed funds is on the higher side. This means customers are on the verge of opting for funds where the role of a fund manager has a huge say. Yes the role of a fund manager is important, but the fluctuations of the market have the first say when it comes to dealing with funds.
- The fund management companies are pretty much well aware of the roles and responsibilities of a fund manager in the choice of a fund. For this reason companies choose a an active pool of fund managers and in case if someone departs there is another one to take care. Most fund managers are aware that customers tend to depart with the change of a fund manager.
To conclude, it is not that a fund manager has a paramount say in the preferential set up of a client. A research states that in spite of the change of fund managers customers stick to a company and track record.
