01. Divisions of Use
The most common use of “fund management” refers to investment management or financial management, which are within the financial sector responsible for managing investment funds for client accounts. The fund manager’s duties include studying the client’s needs and financial goals, creating an investment plan, and executing the investment strategy.
02. Classifying Fund Management
Fund management can be classified according to client type, the method used for management, or the investment type. When classifying fund management according to client type, the fund managers are either business fund managers, corporate fund managers, or personal fund managers who handle investment accounts for individual investors. Personal fund managers cover smaller investment portfolios compared to business fund managers. These funds may be controlled by one fund manager or by a team of many fund managers. Some funds are managed by hedge fund managers who earn from an upfront fee and a certain percentage of the fund’s performance, which serves as an incentive for them to perform to the best of their abilities.