MUTUAL FUND ASSOCIATION OF TRINIDAD AND TOBAGO
"STRENGTHENING THE ENVIRONMENT FOR INVESTOR CONFIDENCE"

Mutual Fund Managers

Many investors often turn to mutual funds, also known as Collective Investment Schemes (“CISs”), as a means to save money for a variety of reasons. The term “save” is normally used when you accumulate funds in a bank account or a credit union. However, when you place your money in a mutual fund/CIS you are actually, investing. Saving is usually for a short-term, in a financial institution (bank) where you can easily access your money, with very little risk. Investing on the other hand, involves your money being invested in stocks, bonds and mutual funds – with the expectation that your money will work for you, i.e., will bring you returns. Investments are usually held for the long-term, not as easily accessible and involves some level of risk. With investments, over time, you can either make a gain, suffer a loss or remain with what you put in. There is risk involved. 

A mutual fund/CIS allows for the pooling of investor resources to create a more diversified portfolio and take advantage of the benefits of large-scale investment opportunities. Investors in mutual funds/CISs effectively own portions of the overall pool through units/shares, which are proportional to their investments/contributions. The mutual fund/CIS manager is responsible for managing the pool of resources. This is done by conducting market research and investing in securities which corroborate with the mutual fund/CIS’s investment strategy. For example, if the fund’s investment strategy is focused on energy products then the investments would be in assets aligned with the energy sector. This week’s article will focus on the CIS Manager, their responsibility and importance. 

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