Fund Management

Overview

The fund industry is a key financial intermediary in a an economy. Funds allow investors to pool their assets so that they can both reduce the impact of transaction costs on managing their money, but also, to give investors a way to have professional money managers manage their funds.

Types of Funds

• Mutual Funds
• Hedge Funds
• Private Equity

Fund Process

• Setting the Investment Parameters: includes setting the investment horizon, risk tolerance and return objectives.
• Asset Allocation Strategy:
• Asset Selection: Once the investment parameters have been chosen, the next st the first step to asset allocation is selecting the asset classes that the portfolio will invest in.
• Manager Selection: is the process of finding managers to manage various portions of the fund (if it is not entirely self managed.)
• Portfolio Monitoring and Rebalancing:

Legal Structures

The legal structure of a fund in the United States is governed by Corporate Law. The exact type of structure is generally tailored to the needs of the fund and its clients.

for funds that are structured such that they sell securities to the public are subject to Securities Law.