When classifying fund management by client, fund managers are generally personal fund managers, business fund managers, or corporate fund managers.
The types of fund management can be classified by type of investment, type of client or management method. Fund management is sometimes called investment management. Types of investments managed by fund management professionals include mutual funds, trust funds, and pensions. Fund management companies can also handle the management of hedge funds and equity funds. A fund manager may also classify funds based on whether the client is a business or an individual.
Fund management uses a decision-making tool called portfolio theory to increase the value of the investment properties they manage.
When classifying fund management by client, fund managers are generally personal fund managers, business fund managers, or corporate fund managers. Generally, a personal fund manager manages investments for individual investors. Personal fund managers typically deal with much smaller mutual funds than corporate fund managers. A fund can be managed by a single fund manager or by a team of fund managers.
Hedge funds are generally only managed by exceptionally wealthy investors.
Professionals who manage hedge funds are called hedge fund managers, and they tend to make a lot of money. Hedge fund managers are typically paid an upfront fee for managing the fund, plus an incentive payment of a certain percentage of the hedge fund’s performance. In general, investors dealing with hedge funds are extremely wealthy.
Finding a good fund manager often involves trial and error, combined with the help of investors in a similar position to you. Generally, the investor allows a fund manager to manage a limited fund for a specified period of time and measures the success of the fund manager by the growth of investment properties. Sometimes an investor can save time by consulting fellow investors who can recommend a successful fund manager.
Fund management uses a decision-making tool called portfolio theory to increase the value of the investment properties they manage. Different types of portfolio theory are applicable in different investment situations. Sometimes a fund manager may use multiple portfolio theories to manage a fund, especially if the fund includes multiple types of investments.
Hedge funds are typically only managed by exceptionally wealthy investors, making hedge fund management an elusive but lucrative career goal because these jobs are hard to come by but pay an impressive salary. These managers deal with a complex system of various types of investments designed to protect the investor from risk. A hedge fund manager creates a balanced portfolio of different investments, some of which may be in competition, to protect the investor against losses in their portfolio.