While there are so many investment options people choose managed funds like mutual funds because these are convenient for the beginners. These are also great for people who have no time to spend on managing their portfolio. Given that there are numerous fund management companies out there, how do you pick the right one? How do you select the suitable fund manager or fund management company?
Managed funds are not just for the novices in investments. There are some managed funds that yield some great returns without requiring much of your time. And you cannot ignore the fact that an experienced and talented fund manager can give you the best investment advice.
Contrary to the common conception you do not always have to go to the most popular fund management companies or fund managers. They might be good in the field. There is no doubt about that. But they might also have large fees. If you are someone who is looking to invest a large fund and if you need some reliable name that is easy to work with then it makes perfect sense going to the big managers. But if you are an average investor there might be several small fund managers who actually manage to do a great job without charging you exorbitant fees.
- Keep the past as an indicator of the future
The past is definitely not the best indication of the future when it comes to investments. But considering the performance of the fund manager and the efficiency in portfolio management displayed in the past would be a good place to start. You would be able to understand what to expect from the manager.
Are there big names relying on the chosen manager? Are there some big companies that are seeking the services of the chosen fund manager? To know about an organization or a fund manager you should get to know about the clientele. Definitely, big names would not rely on a fund manager unless he is reliable.
- Keep your options open
It is not a bad idea to consider switching your fund managers if you find someone who might be better. Remember that no matter how good your fund manager is someone who does a great job for one investor might not always be liked by another investor. The decision here differs from one individual to another.