Archive for July, 2011

Fund Managers: What do they do?

 

If you were extremely rich, you’d be able to afford a team of private money managers – people who would watch the markets daily and seek out investment opportunities for you.The good news is that you don’t need to be rich to access this – it’s what fund managers do.

A managed fund is an investment that consists of a pool of funds from someone else etc. These funds combine to be in the millions, and are invested by professional fund managers.Financial Planners are good at being financial planners. We’re not fund managers. Our job is to recommend financial strategies that will help you achieve your long term goals. It’s what we’re good at.We choose to outsource the actual managing of your money to professional fund managers. It’s their job and it’s what they’re good at.

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Mutual Fund Prospectus

A mutual fund prospectus is a document that contains information about a given type of fund; its characteristics, fees, performance and the funds objectives as well as possible risks. This is a document that every prospective investor should strive to have before investing their money in the securities. It is through this document that investors can identify the fund manager so as get information on how to go about buying and redeeming shares.

The information that is contained on the mutual fund prospectus is diversified, but among the key information that will be on every prospectus is the date of issue. This should appear on the front page of the document. Prospectuses are renewed every year, and so the date helps you ensure that you are looking at the most recent prospectus.

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