Mutual Fund Manager’S Role in an Investment Firm

A Mutual Fund Manager’s Role in an Investment Firm  

A Mutual Fund Manager’s Role in an Investment Firm. As a fund manager, I make decisions directly related in the returns of the fund and this decision could easily be tracked as performance based. I also need to make optimal decision since my salary and incentives are directly related to the outcomes of my decision. In addition, the performance of my mutual fund portfolio could easily be tracked by investors and the investment firm. With this information, they can make a comparison with other mutual funds in the industry. The investment firm could also track my progress by evaluating my performance with my counterpart in different management firms (Bar, Kempf, & Ruenzi, Chapter 15, 2011). The first step in my selection process is to conduct a SWOT analysis. SWOT stands for strengths, weaknesses, opportunities and threats. I will use it as a tool for auditing an organization and their environment and identifying key issues. Based on those information, I will make a decision on whether or not to invest in a company stock. Facebook is the perspective company whom I find as a good addition to the fund I am managing. Facebook with its recent initial public opening (IPO) is a prime candidate for my portfolio. As a fund manager, I need to ensure that this company is a sound investment for my stakeholders.

SWOT Anaylsis
In the planning stage of a business decision, the SWOT analysis is an appropriate tool to use by a mutual fund manager. This would help address key issues prior to committing a huge investment into a company. In addition, we will investigate the current situation of the company and look into its success in their industry. We will review its financial data and compare it with their competitors in the market. We will also look into their products that make the most profit and customer demographics that utilizes their service.
Lastly, we will look for opportunities for our stakeholders to make...