Fund Manager
The individual responsible for making investment decisions within a scheme's mandate.
How it is identified
Test: the named person holds discretion over security selection within the limits set by the scheme document and by regulation
Unit
qualitative
In depth
A manager's discretion is narrower than usually assumed: scheme categorisation, concentration limits and liquidity rules constrain what can be held, so two large-cap funds are pushed toward similar portfolios by regulation as much as by judgement. Manager changes matter, and a fund's record under a departed manager tells you little about its future. Scale erodes flexibility, since a very large fund cannot take meaningful positions in smaller companies without moving their prices. Judging a manager requires a full cycle including a decline, because performance in a rising market separates managers far less than performance in a falling one.
Worked example
A fund's five-year record was built by a manager who left eighteen months ago. Only the last eighteen months reflect the current manager, which is too short a period to distinguish skill from chance.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Fund Manager” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.