What is the Difference Between Portfolio Manager and Fund Manager?

The main difference between a portfolio manager and a fund manager lies in the type of investment vehicles they manage and their level of responsibility. Here are some key distinctions between the two roles:

Type of Investment Vehicles: A portfolio manager typically manages assets for large money management institutions, such as banks, business organizations, or colleges, while a fund manager manages smaller fund assets, such as mutual funds or hedge funds.
Size of Fund: Portfolio managers often manage assets for relatively large funds, whereas fund managers may oversee smaller, more specialized funds.
Responsibilities: Both portfolio and fund managers have similar functions, such as managing assets for their respective investment vehicles, making crucial portfolio decisions, and determining the underlying economic conditions that affect their investments. However, portfolio managers may have a broader range of responsibilities due to the larger scale of their investment vehicles.
Specialization: Some portfolio managers and fund managers specialize in managing different types of funds. For example, a manager specialized in hedge fund management is known as a hedge fund manager.

In summary, while both portfolio and fund managers are responsible for managing assets and making investment decisions, portfolio managers typically handle larger and more diverse investment vehicles, whereas fund managers focus on smaller, more specialized funds.

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What is the Difference Between Portfolio Manager and Fund Manager?

Comparative Table: Portfolio Manager vs Fund Manager

Here is a table comparing the differences between a portfolio manager and a fund manager:

Role	Portfolio Manager	Fund Manager
Definition	A person or group responsible for investing a fund's assets, implementing its investment strategy, and managing day-to-day portfolio trading.	A person who manages smaller fund assets, typically for a hedge fund or other smaller investment vehicles.
Responsibilities	Manages assets for large money management institutions, businesses, or organizations such as colleges or universities.	Manages smaller fund assets, often for hedge funds or other smaller investment vehicles.
Investment Strategies	Can be active or passive, with passive strategies mirroring a specific market index.	Often take a more active approach to managing investments, particularly in hedge funds.
Experience and Background	Usually experienced investors, brokers, or traders with strong backgrounds in financial management and track records of sustained success.	May have a more diverse background, including experience as a research analyst, and may transition from analyst to portfolio manager over time.
Team Work	Works with a team of analysts and researchers to make investment decisions.	Often work with a smaller team and may have more direct involvement in research and analysis.
Marketing and Fundraising	May have more involvement in marketing and fundraising activities, especially for larger funds.	Typically have less involvement in marketing and fundraising, as their primary focus is on managing investments.

In summary, portfolio managers generally manage larger assets for institutional investors, while fund managers often manage smaller funds and may take a more active approach to investment management. Portfolio managers typically have a stronger background in financial management, while fund managers may have more diverse experience, including research analysis.

Guilherme Mazui

Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.