What do mutual fund managers do?
A mutual fund manager is a financial professional entrusted with the task of overseeing the investment portfolio of a mutual fund. These skilled individuals are responsible for making investment decisions that align with the fund's objectives and generating returns for investors.
Mutual funds make money by charging investors a percentage of assets under management and may also charge a sales commission (load) upon fund purchase or redemption. Fund fees, called the expense ratio, can range from close to 0% to more than 2% depending on the fund's operating costs and investment style.
Fund managers are investment experts responsible for managing mutual funds, hedge funds, pension funds, and portfolio-management services on behalf of investors. A fund manager's job is to make investment decisions and accomplish the fund's investment objectives.
The fund of funds manager performs due diligence and manages the selection process and oversight of the funds under their company's management.
Fund Manager salary in India ranges between ₹ 3.0 Lakhs to ₹ 93.0 Lakhs with an average annual salary of ₹ 36.4 Lakhs.
| Fund Manager Names | Fund Name | AUM |
|---|---|---|
| Shreyash Devalkar | Axis Mutual Fund | ₹58,601 Cr |
| Aniruddha Naha | PGIM India Mutual Fund | ₹12,503 Cr |
| R. Srinivasan | SBI Mutual Fund | ₹1,14,343 Cr |
| Sankaran Naren | ICICI Prudential Mutual Fund | ₹1,23,053 Cr |
Who Is the Richest Hedge Fund Manager? Ken Griffin of Citadel is both the richest hedge fund manager and the highest paid. In 2022, he earned $41. billion, and by the beginning of 2023 his net worth was estimated at $35 billion.
The fund manager's main duties include meeting with their team, as well as existing and potential clients. Since the fund manager is responsible for the success of the fund, they must also research companies, and study the financial industry and the economy.
Long hours, intense competition, divorce, stress, and even substance abuse – these are some of the issues that can typically affect portfolio managers. In the office, they face volatile global markets, increased regulation, and client demands; outside, they're expected to be reliable spouses and good parents.
Most mutual fund managers get a base salary each year, plus other forms of compensation that bring them well beyond that. Compensation comes from a base salary, fulcrum fees, deferred compensation plans, equity and stock options, performance bonuses for the company and teams, and nonmonetary benefits.
What is a fund manager in simple terms?
A fund manager is someone whose job involves investing the money contained in a fund, for example, a mutual fund, on behalf of another person or organization.
Professional fund managers get paid a lot of money to take charge of billions of dollars in assets for investors. They tend to have a certain level of education and expertise, which should give them a leg up on the average Joe investing at home. Unfortunately, most professionals aren't worth the price.
In the financial world, the term "fund management" describes people and institutions that manage investments on behalf of investors. An example would be investment managers who fix the assets of pension funds for pension investors.
To meet the challenge, investment fund managers typically obtain a master's degree in a financial or business field, and often work more than 40 hours a week.
Becoming a fund manager requires a trifecta: strong academic foundation (finance, economics, etc.), relevant experience (analyst roles, portfolio management) to prove your chops, and professional certifications (CFA, CIMA) to build trust and expertise.
Postsecondary Education
Hedge fund managers often have a master's degree or even a Ph. D. in finance, mathematics, economics, financial engineering, quantitative finance, programming, marketing, or business administration. Others have advanced degrees in a specialty such as engineering or accounting.
- Complete a bachelor degree in finance, accounting, economics or business.
- Look to secure a placement in an internship program while studying.
Mutual fund expense ratios are typically between 0.25% and 1% of your investment in the fund per year. Actively managed funds are usually more expensive than passively managed funds.
| Fund Manager Name | Mutual Fund Name | Total Experience |
|---|---|---|
| Sohini Andani | SBI Mutual Fund | 23 years |
| Manish Gunawan | Nippon India Mutual Fund | 20+ years |
| Harsha Upadhyaya | Kotak Mahindra Mutual Fund | 23 years |
| Chandraprakash Padiyar | Tata Mutual Fund | 19 years |
A robust literature describes the incentives and stewardship practices of the “Big Three” asset managers (BlackRock, Vanguard, and State Street Global Advisors), often referring to these asset managers as “passive.” This is so common that the “Big Three,” “index fund,” and “passive manager” are used almost ...
What is the richest investment firm in the world?
BlackRock, Inc. is an American multinational investment company. It is the world's largest asset manager, with $10 trillion in assets under management as of December 31, 2023. Headquartered in New York City, Blackrock has 78 offices in 38 countries, and clients in 100 countries.
Successful hedge fund managers routinely pocket millions of dollars in total compensation, with the top fund managers earning paychecks in the billions of US dollars[1]. This doesn't include how much they personally stand to benefit from their own investments in the funds they manage.
Hedge Fund Analyst Hours and Lifestyle
At smaller, single-manager funds, the average might be 10-12 hours per day, for a total of 50-60 hours per week (weekend work is rare). As you move to larger, multi-manager funds, the hours and stress get worse, so the average may be more like 60-70 hours per week.
Investment fund managers score highly on extraversion, meaning that they rely on external stimuli to be happy, such as people or exciting surroundings. They also tend to be high on the measure of conscientiousness, which means that they are methodical, reliable, and generally plan out things in advance.
Being a hedge fund manager is a highly-paid job, but also calls for long hours of intensive work. Work days do tend to follow somewhat of a routine, with market open and close being the most critical.
