Capital Market Players: Retirement and Other Fund Managers

Category Overview

Fund Managers

Most Americans hire professionals to manage their portfolios

Professional portfolio managers control a major part of the money that flows to the U.S. capital market.

Overview: Capital Market Players: Retirement and Other Fund Managers

Fund managers manage other people's money for a fee.

Generally, the larger the portfolio, the higher the fee, although management costs are not closely related to the size of a portfolio.

The way fund managers' performance is judged depends on the type of portfolio they manage:

The SEC does not require open-end fund administrators to provide information to long-term investors that might help them judge the intrinsic value of fund portfolios, nor does the manager bear responsibility as to the appropriateness of the investor's initial asset-allocation decision.

Unsophisticated mutual fund investors with unquestioning acceptance of the Common Stock Legend have been a major force behind the long bull market in stocks since the early 1980s.



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