1. Market Research and Analysis:Building a portfolio requires a lot of market research for the fund manager to help them make investment decisions to select appropriate securities that will outperform the investors' return expectations.
2. Asset Allocation:Based on the market research and fund objective, the fund manager allocates funds to different asset classes. For instance, an equity-oriented fund will invest more than 70% of its assets in equity and the rest in debt.
3. Creating/Managing a Portfolio:Based on the market findings, the fund manager creates the portfolio. Also, they take periodical decisions on securities to buy, sell or hold.
4. Performance Review:The AMC is liable to provide the investors with information that directly impacts their MF holdings. Also, they must send regular updates on performance, sales, repurchases, NAV, portfolio details, etc. Thus, AMC is responsible for every investor and acknowledge their interests.