Four tips for picking a Fund Manager

Four tips for picking a fund manager

1. Find out if the fund manager has a system. In other words, can the company run without the presence of the Managing Director (MD)? Put differently, if the MD is not around, can his subordinates take decisions on your investment? It may be time to change a fund manager if you have to deal with the MD all the time.

2. Does he invest his own profitability? You must ask for testimony. A fund manager who has done well with his own money is likely to pull the same magic in managing your investment. The reverse is also true: if he has no testimony he may be using you as a Guinea pig. It may be a costly adventure for you.

3. Be 100 per cent sure that his firm has a clean bill in terms of credibility and that his company has not been sanctioned by the regulatory authorities: Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE). You can obtain the information from the Exchange or SEC directly. Once there is no clean bill of health, it may be wise to look elsewhere.

4. Find out if the company you want to use has fulfilled all legal requirements in terms of registration with SEC, NSE and the Corporate Affairs Commission (CAC). Please demand registration particulars. Don’t ever compromise on this.

Wish you guys all the best.