Types Of Fund Management

 

Fund management as all of us know is the management of cash flows of a company. This is primarily done by the fund manager of a company who is the authorized person for this duty. He holds the duty and responsibility of taking a note of all the deposits received, note the dates of all the dues and send reminders to all the clients from whom money is to be received etc…

At the same time, he also holds the duty of paying off all the expenses incurred by the company on time and also send reminders to the concerned departments regarding such expenses to be made on time. So on the whole, all the incomes, and expenses of a company are completely managed and controlled by this fund manager who plays a very crucial role in the active functioning and performance of company financially.

Fund management is not just restricted to this but it also holds good for a system or a company that values and maintains an entity irrespective of whether it is a tangible or an intangible asset. So this way, it is also called investment management.

Types of fund management

There are many different types of fund management and all of them depend upon the company type, the client type and the type of business they are into. Now let`s take a look at what these different types of fund management types are:

  • Mutual funds
  • Trust funds
  • pension funds
  • equity funds
  • hedge funds

Though we have these many types of fund management, the two major ones of these are mutual and hedge funds. These two are the ones that are discussed very often and it is mostly this that are managed and operated by the companies and organizations.

The multi-faceted fund manager

As all of us know, it is the fund manager who takes care of and manages funds of a company well and it is him with whom the responsibility of fund management vests with. Now is this the only job and scope of a fund manager? No, he also plays a very important and crucial role in

  • Financial statement analysis which is something important and essential for all types of companies.
  • Creation and maintenance of a portfolio
  • Asset allocation and managing the same.

These are some of the most important sectors or sections of a company`s performance that requires and demands proper allocations and management of funds and this is amply done and fulfilled by the fund managers.