Saturday, May 29, 2010

Internet Fund Managing

The Internet has shaped every way in daily life, including the way fund managers' operations. Traditional fund managers open their stores, recruit crews, investing fund, and report performance to clients quarterly and annually. The Internet provides a new platform for fund managers to communicate with their clients in very transparent form. But keep your eyes open while shopping.

Some Internet fund managers provide daily performance and trading history over in the past year or the fund life cycle. It is unknown what the deal is here for daily return. Does that mean the fund is a day-trading fund? You can tell from trading history that some do so.

Some fund managers have very high turn over rate. Not surprised about having daily trading performance lists. Some others, like value type fund managers, have very low turn over rate.

Most managers have fund below $25M under management. Investment types range from value, growth, income etc conventional styles. The Internet does provide a quick for clients to communicate with fund managers. Clients ask questions openly and get answered quickly about how trades were done.

Fund portfolios are transparent to clients and non-clients. You can simply duplicate the portfolio on your own risk. There is usually some minimum requirement to join funds. Managing fees are less than big brand funds, such as 0.75% or 1%.

Internet funds provide an option to conventional managing models. It is certainly still at a fledging stage.

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