When classifying fund management by client, fund managers are generally personal fund managers, business fund managers or corporate fund managers.
Fund management types can be classified by investment type, client type or management method. Fund management is sometimes called investment management. The 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 company or an individual.
Fund management uses a means of making decisions 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 handles investments for individual investors. Personal fund managers typically deal with much smaller investment 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 usually paid an upfront fee for fund management, plus an incentive payment of a certain percentage of the hedge fund’s performance. Generally, investors who deal with hedge funds are extremely wealthy.
Finding a good fund management professional usually involves trial and error, combined with some help from investors in a similar position to yours. Generally, the investor allows a fund manager to manage a limited fund for a specified period of time and measures the fund manager’s success by the growth of investment property. Sometimes an investor can save time by consulting other friendly investors who can recommend a successful fund manager.
Fund management uses a means of making decisions 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 usually only run 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 his portfolio.