Think you’ve got what it takes to be a fund manager?

Julie Brownlee, Fsp Invest, 05 Dec. 2014

Tags: fund manager, fund manager job, job of a fund manager, us fund managers,

Have you ever given any thought to working as a fund manager? A job which revolves around you trying to pick the best stocks out there to get your fund performing well.

Let’s take a closer look…

How to be a fund manager

If you want to be a fund manager, then the Banker’s Umbrella blog has good news for you. The blog claims that it’s one of the easiest jobs out there.

This is the Banker’s Umbrella’s guide to becoming a fund manager…

Step 1: Pick a benchmark
You need to pick a suitable benchmark for your fund. Just as you compare other things in your life, you need something to compare the performance of your fund with.

You could pick the Johannesburg Stock Exchange’s Top 40 Index, for example.

Step 2: How to do your job
The goal of a fund manager is then to track his chosen benchmark. This means finding out what stocks are in the index and with what weighting. Then buy the stocks.

Step 3: How to get a bonus
To get a bonus, you need to outperform your chosen benchmark. One option is to invest in more volatile stocks, which come with higher risk. These stocks bounce around a lot, but have the potential to add significant gains.

If it all goes well, the higher risk stocks will perform and your fund will show better returns. If not, no bonus.

In the US, equity fund managers only stay in their jobs for an average of ten months. It’s easy to see why some bloggers can become sceptical of the whole fund investment arena.

Of course, to become a fund manager isn’t that easy. You would need the relevant financial qualifications and experience. And a good performance track record counts for a lot when you’re looking for a position.

So there you have it, what it takes to be a fund manager.

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