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What are the Different Types of Fund Management Systems?

Article Details
  • Written By: H. Bliss
  • Edited By: W. Everett
  • Last Modified Date: 24 November 2018
  • Copyright Protected:
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    Conjecture Corporation
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Also called investment management systems, fund management systems are generally classified by the types of investments they manage or by the platform used to perform fund management tasks. Software fund management systems can be standalone or fund management models used on common computer software. Fund management systems can also be classified by the type of client paying for fund management services, and whether the client is an individual or an organization. Though a fund managing system usually refers to a system of managing investments, fund management can occasionally describe financial management for an organization than handles funds.

Choosing the right type of management system is important for managing different varieties of investments. Personal fund management systems help fund managers who handle investment management for individuals. Business fund management specialists usually handle investment portfolios for business clients like corporations. Typically, business fund managing systems help corporate fund managers increase the value of investment assets.

One low-cost fund management system is a fund management designed for use within a common spreadsheet program. Fund management systems for professional fund managers often have additional features that help a professional operate more efficiently. Accelerated functions include those that help manage multiple fund accounts and track multiple types of investments.

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Other fund management systems can be classified by the type of investment that the system handles. Common types of funds include hedge funds and mutual funds. Mutual fund management and hedge fund management involve different processes that can be streamlined by specialized software dedicated to managing that type of fund. Management for hedge funds is a specialized practice normally dealing only with extremely wealthy clients.

These types of systems are tools used by fund managers to raise the value of managed investments. Each system has different features that allows the user to apply a variety of fund management techniques to his managed portfolios. Techniques used within different types of fund management systems include diversification, active trading, and risk and return.

Fund management is a type of asset management. A fund manager is a professional who uses financial education and experience to make well-informed decisions about investment funds. Fund management systems can also be used by amateur investors managing their own funds.

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