DYK: What your mutual fund manager does2 min read . Updated: 29 Aug 2016, 08:28 PM IST
The investment objective of the scheme defines the universe in which securities can be picked. That done, the fund manager makes the buy and sell decisions on the basis of research and analysis
When you invest in a mutual fund scheme, you are buying a portfolio of securities. This portfolio can be either passive or active. If this portfolio is passive, it mirrors an established index and its constituents are picked in line with the underlying index. If it is actively managed, a fund manager picks the constituents of the portfolio. Fund managers are critical to the performance of active mutual funds. Here’s a look at what all your fund manager is responsible for.
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