The terms portfolio manager and fund manager are used as synonyms since both are used to describe an investment professional who is responsible for generating and managing investment allocations for investors. These investment allocations depend on investors’ return requirement criteria, investment goals, risk appetite and market conditions. Thus, there is no difference between portfolio manager and fund manager. Some portfolio managers/ fund managers specialise in managing different types of funds.
CONTENTS
1. Overview and Key Difference
2. Who is a Portfolio Manager/Fund Manager
3. Side by Side Comparison – Portfolio Manager vs Fund Manager in Tabular Form
4. Summary
Who is a Portfolio Manager/ Fund Manager?
Portfolio manager/ fund manager is a highly educated professional, preferably who holds a higher investment qualification such as CFA (Chartered Financial Analyst) and is highly skilled and have extensive relevant financial experience. Portfolio manager/ fund manager manages a number of funds such as,
Hedge Funds
Hedge funds are professionally managed investments made up of a pool of funds collected from many investors who share similar investment goals. The collected funds are invested in a number of securities such as stocks, bonds, and money market instruments. Hedge funds are known for their aggressive investment strategies that are focused on making absolute returns.
Mutual Funds
Mutual funds are also largely similar to hedge funds; however, that take a less aggressive investment approach that is usually managed relative to an index benchmark.
Exchange Traded Funds (ETFs)
Exchange traded funds are marketable securities with underlying assets such as shares and bonds.
Since there are various types of funds as per above, many portfolio managers/ fund managers specialize in only a single type of fund. In that case, they are referred to as the managers of the respective type of fund.
E.g. A manager who is specialized in hedge fund management is known as a hedge fund manager.
What is the Difference Between Portfolio Manager and Fund Manager?
- Portfolio manager and fund manager are two terms that are used as synonyms.
- The term fund manager is used o refer to managers who only manage specialized investments.
Summary – Portfolio Manager vs Fund Manager
Portfolio manager and fund manager are two terms that are used to refer to similar types of investment professionals who manage investments on behalf of investors. When referring to managers who manage only specialized investment vehicles, the term fund manager is used instead of portfolio manager. For this reason, there exists a slight contextual difference between portfolio manager and fund manager.
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References:
“Portfolio Manager.” Investopedia. N.p., 25 Nov. 2003. Web. Available here. 07 July 2017.
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