in How and What

Checklist When Selecting a Mutual Fund Manager: 4 Points to Look

Choosing the right portfolio manager for your mutual fund is one of the most important decisions to make when you decide to start investing. He is the one that makes the behind the scenes investments on your behalf.

Investing is a large undertaking and you have to have trust in the person managing your money. Knowledge is definitely power in this case; the more you have the better. Before you choose one you need to get information about his education, experience, investment style, and stability.


Look at the manager’s credentials. Two that are well respected and seen as exceptional are the designations of Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP).

Both of these programs include rigorous training and challenging exams. Neither of these programs are required to be a mutual fund manager; however, the programs are so highly regarded that choosing a manager with the CFA or CFP set of credentials is a given.


Though not required, the manager you choose should have five years of experience behind him. Over that amount of time he will have had a chance to manage a fund through a full market cycle. It will give you an idea of his overall performance.

Do not overlook a fund because it has a new manager. Do some research on his background and previous experience instead of relying on the mutual fund’s record.

While it may take some time, it is a necessary step.

Investment Style

Investing styles are different from manager to manager. One may buy when equities are at a rock bottom price while others will invest in equities that are gaining ground. The important thing to consider is if your potential manager has a disciplined approach. That doesn’t mean he does things the same way every day of the year, but changes his strategy depending on fluxuations in the market in a consistent way.

If he has a history of chasing short term trends and you are looking for long term stability, he will not be the right choice for you. He should have a solid strategy for long term investments. Make sure his strategy fits within your specific needs, as well.


As almost everyone knows if a place of employment has a high turnover rate it is likely that the company is not run well. Check the company’s track record and changes in management for any warning signs.

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