Choosing The Right Investment Fund Manager

An investment fund manager plays an important role in the success of your investments. They will help you plan your overall investment strategy as well as manage your portfolio for you. Choosing the investment fund manager is a major decision. Because they have access to your account, and can make your decisions for you, you should take time and consideration when you choose a manager. Here are some steps to help you with making this decision.

Check for Long Term Results

There are several different fund managers that can easily show a lot of short term success stories. Helping people make some money on a short term basis can be done with some quick moves and lucky decisions. However, that is not going to help you with your overall investing.
Look for an investment manager that can show long term experience in consistently managing portfolios that grow and continue to reap profits. Whatever your investment vehicle is, mutual funds, pensions, trust funds, or hedge funds, they should be able to show documented growth.

Check References

Before making any decision you should know the people that the manager is already serving. Ask for names and check the references personally. It is better to check with the people personally so that you can hear from them, instead of a testimonial letter, in order to see if they are truly happy with the manager.

Interview Prospective Manager

While the investment fund manager will want to meet with you to get your overall goals and investment ideas, you should also ask him. However, do not do it all on the same day. Have your first meeting the manager to talk over your goals, and then set up another appointment to interview the manager. Look for his ideas on how you should invest your money. Check to see if they really know what they are talking about and if they can come up with a sound investment idea. Look for how his ideas will fit in with your goals and how they will contribute to a sound investment portfolio.

Determine If Your Best Interests Are First

Investment firms make their money when they can acquire new clients and make trades for them. These fees are given whether or not you make money. While you are checking out other aspects of the fund manager, make sure that what they do is for their clients not their own bottom line. A fund manager should be able to continually stimulate your investments with growth no matter what area of investing you are in. If they are just making moves to make them, then they are not having your best interests in mind.

Make Your Decision

With all of this information at hand, you will be able to make a decision on the fund manager for you. Do not make a permanent decision however. Start with a small amount to see if they can perform over a period of a few months and gradually move investments for them to manage. Over time, if you see consistent growth, then you can house all your investments with that manager.

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