Let's dig into mutual funds a little more. Mutual funds are managed by people called mutual funds managers. If you leave your money to an investment broker, your money would be managed somehow to make more money. It is natural for you to have curiosity where the money goes and who manage your money, right?
Who Are They?
A mutual fund manager is someone who is responsible for a fund's investing strategy and managing its portfolio trading activities. A fund can be managed by one person, or maybe two, it can be multiple people in a team to monitor the pool of money. Technically they are the ones who manage the portfolio of stocks, bonds and other assets for you. As you know, they get paid for what they do. They receive a percentage of the fund's average AUM (Asset Under Management)
*Assets under management (AUM) is the total market value of assets that an investment company or financial institution manages on behalf of investors. It gets a little complicated because the definition of AUM can be varied by company.
Basically, a fund manager will function as a stock-picker, based on data such as price-to-earnings ratios, price momentum, sales, earnings, dividends and other various metrics. On a daily basis, the fund manager will often be in charge of actually placing orders and buying/selling individual stocks/bonds from the portfolio.
The Best Mutual Funds Managers Known
Benjamin Graham- He is known to the father of value investing, also the mentor of Warren Buffet. He published the most revolutionized book "Security analysis" and "The Intelligent Investor"
Sir John Templeton-according to Forbes Magazine, Templeton is the "dean of global investing" and was knighted by the Queen of England for his contributions.
T. Rowe Price, Jr.
Rowe Price entered Wall Street in the 1920s and founded an investment firm in 1937. He is commonly quoted as saying, "What is good for the client is also good for the firm.
The bottom line, for you to add mutual funds to your portfolio, the fund manager is the key to controlling your money and decide which fund to select. By functioning as stock- or bond-picker, the fund manager is responsible for making sure the portfolio is earning a market-beating return.
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