How Are Mutual Funds Managed?
This technical note aims to clarify the processes of fund investment and management. An analysis is made of the three types of analysis used for both fixed income and variable income funds:
- Macro analysis (top-down)
- Micro analysis (bottom-up)
- Quantitative analysis
Particular attention is paid to the key points in any process of fund investment and management:
- Allocation of assets
- Optimal level of diversification
- Ideal number of assets
- Correct weighting and risk of each asset within a fund.
Bibliographic citation: Soley Sans, Jorge; Liechtenstein, Heinrich, "How Are Mutual Funds Managed?", IESE, FN-543-E, 03/2007