Fund Manager vs. Portfolio Manager: What Are the Differences?

When it comes to investing, there are many different ways to do it. Two common job titles in this field are fund manager and portfolio manager. Though both positions involve overseeing investments, there are several key differences between them.

In this article, we discuss the differences between a fund manager and a portfolio manager, and we provide additional information on other types of investment management jobs.

What is a Fund Manager?

A Fund Manager is a professional who is responsible for managing a fund, such as a mutual fund, hedge fund, or pension fund. They make investment decisions on behalf of the fund, and are responsible for the overall performance of the fund. Fund managers typically have a team of analysts and researchers who they work with to make investment decisions. They also meet with clients to discuss the performance of the fund and answer any questions they may have.

What is a Portfolio Manager?

Portfolio Managers are responsible for overseeing a group of investments and making sure they are performing well. They work with clients to understand their investment goals and then create a plan to achieve those goals. Portfolio Managers conduct research on potential investments and make decisions on which ones to buy or sell. They also monitor the performance of existing investments and make changes to the portfolio as needed. Portfolio Managers typically work for banks, investment firms or insurance companies.

Fund Manager vs. Portfolio Manager

Here are the main differences between a fund manager and a portfolio manager.

Job Duties

A fund manager oversees the entire investment process for a particular type of fund. They research potential investments, select suitable candidates and make final decisions about which companies to invest in. A portfolio managers’ job duties are more focused on the day-to-day management of the investments within a specific portfolio. They monitor current performance, evaluate past results and develop strategies for future success.

A fund manager may also perform some of the duties of a portfolio manager. For example, they might create and implement portfolio rebalancing strategies or make adjustments to an existing portfolio based on changing goals or circumstances. Conversely, a portfolio manager may occasionally take on some of the responsibilities of a fund manager by evaluating new opportunities for their department or proposing changes to the overall investment strategy.

Job Requirements

Fund managers and portfolio managers typically need at least a bachelor’s degree in business, economics or another related field. Some employers prefer candidates to have a master’s degree as well, but it is not required for entry-level positions. Additionally, many fund managers and portfolio managers pursue certifications through the Chartered Financial Analyst (CFA) Institute or the Financial Industry Regulatory Authority (FINRA). These organizations offer training programs that teach professionals how to use investment software and other tools they might need on the job.

Work Environment

A portfolio manager typically works in an office setting, but they may also travel to meet with clients. They often work full time during regular business hours and have a lot of responsibility for their team members. A fund manager can work in an office or on the road, depending on where their funds are located. They may work long hours when necessary to ensure that their funds perform well.

Skills

Both fund managers and portfolio managers need to have excellent analytical skills to evaluate investments and make decisions about where to allocate funds. They also both need to be able to think strategically, as they need to develop long-term plans for their portfolios and make decisions that will benefit their clients in the future.

Fund managers tend to focus on a specific type of investment, such as stocks, bonds or mutual funds. As a result, they need to have in-depth knowledge about the investment vehicles they are working with. Portfolio managers, on the other hand, oversee a variety of investments and need to have a more general understanding of the financial markets.

Both fund managers and portfolio managers need to be able to effectively communicate with their clients. They need to be able to explain their investment strategies and answer any questions that their clients may have. They also need to be able to build relationships with their clients and gain their trust.

Salary

Fund managers and portfolio managers both work in the financial industry, but they have different responsibilities. Fund managers are responsible for managing a fund, while portfolio managers are responsible for managing a portfolio. Fund managers earn an average salary of $92,932 per year, while portfolio managers earn an average salary of $96,423 per year.