InvestorQ : How do fund managers decide what stock to buy and what not to buy?
Nikita Damle made post

How do fund managers decide what stock to buy and what not to buy?

Answer
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Dilmini Mercia answered.
2 years ago


This is a question that many mutual fund investors have in their mind. How do fund managers decide what stocks to buy and sell and how do they execute them? What are the approaches that they follow to allocate to stocks, themes and sectors? Broadly, there are 4 key decisions that fund managers need to take when they allocate money to equities. These 4 decisions form the cornerstone of how they allocate your money across stocks. The final portfolio that you get to see in the MF disclosures has a series of decision steps that lead to the final portfolio.


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2 years ago


Fund Managers are people who are basically tracking stocks and developing predictive models which in a way help them chart the future performance of stocks based on historical data and sector performance indicators.