Taking the leap into investing in mutual funds can be exciting and rewarding but it does involve some level of risk. Knowing you have a qualified and experienced fund manager may give you the boost of confidence you need to ensure your risk is minimised as much as possible. SG Hiscock & Company is home to a team of multi award-winning fund managers based in Melbourne, specialising in high conviction, actively managed investment strategies and Managed Discretionary Portfolios. A quick search will reveal that there are many fund managers in Australia, so here’s a few things you should look for in order to find a good one.

The Role of a Fund Manager is Diverse

Fund managers try to ensure high returns but also draw investment strategies to get their clients those returns. To manage mutual fund portfolios, fund managers:

  • Buy and sell securities to maximise profits
  • Ensure fund growth rate
  • Perform extensive research and analysis
  • Allocate resources

The skill set and role of a fund manager becomes crucial to the performance of the fund. Fundamentally, the role of a fund manager involves construction of the portfolio based on the investment and targeted growth objectives of the fund.

Characteristics of A Good Fund Manager

They decide what assets and how much of the assets have to be owned within the portfolio based on the investment goal

Whether it’s a short-term, medium or long term investment or considering growth funds or balanced funds, debt funds or sectoral funds, a good fund manager decides what assets and how much of the assets have to be owned within the portfolio.

They take quick action and make fast decisions

The role of a fund manager involves portfolio construction, which is to buy and sell securities according to the goals of fund. To maintain good returns, the individual needs to take quick investment decisions, often in only a few seconds.

They strive to maximise returns for the investor

Through in-depth research, analysis and timely investment calls, they endeavour to build a portfolio that gives good returns. A good fund manager will never go ahead without an in-depth analysis of the performance of stocks or bonds held in the portfolio, understanding economic or industry-specific factors influencing their performance and the price to equity ratio of the stocks and dividends.

They perform strong risk-return analysis

Fund managers should also study the potential return on any investment versus the various risks involved like sudden changes or expectations of change in interest rates, volatility in market prices, and other industry-specific risks.

They are supported by a great team

Top fund managers are backed by qualified economists and analysts to help them with research and trend analyses to ensure they make informed decisions.

At SG Hiscock & Company, our high-conviction active management approach combines in depth valuation analysis with a forensic approach to company research, market fundamentals and insight. This enables us to buy great sustainable companies at attractive prices. As experienced Melbourne-based fund managers, we are the leaders in high-conviction investing. Get in touch with today to find out more.