financialtreat – will explain the Definition of An Investment Manager, and Tips for Choosing It which you will get in the following article. let’s look at this article carefully!
Under the Capital Market Law, an investment manager is a party who manages a portfolio of influence for customers. Here are the tasks and how to choose an investment manager. Well, for that this article will discuss about investment managers.
The term investment manager may be familiar to some people, especially for those who invest in mutual funds. The reason is, investment managers are mutual fund managers who have financiers. Here’s the full review.
Get to Know the Definition of An Investment Manager, Tasks, and Tips for Choosing It
Definition of Investment Manager
The provisions of Article 1 number 11 of the Capital Market Law explain that an investment manager is a party whose business activities manage an impact portfolio for customers or manage a collective investment portfolio for a group of customers, except insurance companies, pension funds, and banks that carry out their own business activities based on applicable laws and regulations.
Based on this definition, a simple fund manager or investment manager is a party who is authorized to manage investments. One form of investment that is managed is mutual funds.
What is an investment manager?
Based on the previous explanation, an investment manager is an entity that is hired for services by investors to manage investment funds in a mutual fund portfolio. A mutual fund portfolio is an investment data containing investment instruments, the nominal amount of investment, and also the overall profit in an exclusive period of time.
Every investment manager will certainly do their best in order to provide additional maximum profits to investors. The profit definitely depends on the ability and performance of the investment manager himself.
In order, in a mutual fund portfolio, the investment manager has the authority to regulate and choose investment instruments. If it is profitable, then the funds will be retained on the instrument. On the contrary, if the movement is bad, then the manager has the right to transfer funds to other instruments
Duties of the Investment Manager
Based on the news extracted from the Ojk website, investment managers have at least four main tasks as follows.
Manage customer assets
The investment manager is in charge of managing the investment funds that have been deposited by the investor. The funds will be allocated by the manager according to the type of mutual fund chosen.
Choosing and deciding on investment instruments
The fund manager has the task of choosing and determining which stocks, bonds, deposits, or securities to buy. The rules are taken on the basis of the analysis carried out. The selection of this instrument aims to provide additional maximum profit for investors.
Making provisions in releasing investment instruments
The investment manager is also in charge of deciding when investment instruments whose performance is not good should be released. This is done so that the invested portfolio can produce a profitable performance and satisfy investors.
Report on investment returns
Not only responsible for managing, the investment manager is also in charge of making reports and delivering the results of the investments managed. This report is generally displayed through a manager application and can be accessed by investors.
Obligations of Investment Managers Regarding Investment Management
The obligations that must be carried out by investment managers are contained in the Financial Services Authority Decree Number 43 / Pojk.04 / 2015 of 2015 or summarized by POJK 43/2015. The obligations in question are as follows.
Cost of an investment manager
In practice, investment manager fees are always included in the mutual fund package that you have purchased. The fee discount has been submitted when you first buy a mutual fund and is automatically included in the report.
For example, OCBC NISP friends buy money market mutual funds at Investment Manager A. Investment Manager will manage your funds and provide additional reports every day. After performing their duties, the manager’s fee discount will be immediately visible in the report.
The discount is also not large. Usually, the fund manager will set a fee of less than 1Persen
What are the reports provided by the investment manager
As previously explained, an investment manager is an entity that adds financial statements to each investor. In general, the financial statements provided are divided into 3 parts, including
Statements of assets and liabilities
This report provides news about the position of assets, liabilities, all participation units, and also the net Asset Value for each Company Participation Unit.
- Operating profit and loss statement
- The report describes the recorded income and also the investment burden borne by mutual fund investors.
- Operating profit and loss statement
- This report describes every subscription and redemption transaction in the investor’s mutual fund portfolio.
How to become an investment manager
Are you interested in working as an investment manager? If so, there are 4 ways to become an manager that you can apply. These methods are:
Every credible investment manager certainly has a formal certificate from the certification process. Therefore, the first way to become an manager is to follow the certification process. OCBC NISP friends can look for various certification services as well as exams that you must do before you can become an investment manager.
Create a company or independent
In the end, the way to become an investment manager is to decide whether you want to create your own financial company or work independently. This definitely depends on the business capital you have.
Registration and data verification at OJK
In order to run their business, investment managers must have a business license from the Financial Services Authority (Ojk). This is very necessary because all financial companies must be checked first by the OJK before running their business.
Friends of OCBC NISP can check various nicknames of formal managers who have been allowed and also supervised by the OJK for a long time.
Well, here are tips for choosing an investment manager that you need to know
1. Investment Manager Companies must be registered with the Financial Services Authority (Ojk)
Before you choose an investment manager, make sure mi has obtained permission as an Manager Representative from the Ojk. This is done to avoid your loss of fraudulent implications, because there are many irresponsible parties out there who collect funds from the people and promise profits, uh, you know nipu.
Permission from the OJK indicates that MI is already legally owned and its performance is directly supervised by the OJK. Not only that, you can check the problematic MI data on the OJK web directly, you know. All MI who are friends of tanamduit have been registered and supervised by the OJK and even have a very good reputation.
2. Management Experience and Professionalism
You can see the experienced and professional MI one of them by seeing how long the MI has been operating. The length of the age of the MI company indicates that the MI has passed the good times and bad times in the capital market.
You also need to observe the management behind the MI, whether its performance is good or has a poor record in the capital market industry. You can understand the MI profile through the Fund Fact Sheet and Mutual Fund Prospectus through the tanamduit application.
3. Check the Asset Under Management (Managed Fund) of the Investment Manager Company
It is important for you to see how much managed funds from the MI company you will choose. The larger the managed funds of a Mi, indicating that many people entrust their funds to be managed by the MI company. That is, so much of the resident’s money has been entrusted to the MI. This can be a consideration for you too when choosing an investment manager.
4. Investment Manager’s Investment Style
Although in general, mutual fund products consist of 4 types, namely money market mutual funds, fixed income mutual funds, mixed mutual funds, and stock mutual funds; generally, MI also has a variety of investment styles. For example, MI A and MI B invest their funds into stock mutual funds. MI A has the tactic to invest its managed funds into blue chip stocks, while MI B combines bluechips with 2nd or 3rd liner stocks.
The investment style of an MI can be seen in general through the Prospectus for its investment reference and fund fact sheet to see the allocation of funds and portfolios of impacts owned on each mutual fund product on a regular basis.
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5. Ensuring the quality of investment manager services
Trust is a major factor. However, we certainly wouldn’t be that easy sure without first trying it, right? Therefore, one way is to show trust itself. Try to invest in mutual funds by applying the manager selection tips above.
Tanamduit collaborates with investment managers who are selected, professional, and have a good track record in the capital market. Through the tanamduit application, you can choose various models of superior mutual fund products from a variety of competent Managers, you know. Come on, start investing in mutual funds in the tanamduit application.
Thus the presentation of the article above that deals with investment managers hopefully useful from me, thank you for your attention.