Why is the fund's manager important?

Why is the fund's manager important?

Scott Leonard, CFP (President, Leonard Wealth Management, Inc.) gives expert video advice on: What should I look for in a mutual fund manager?; What factors should I consider in choosing a balance of mutual funds? and more...

If we're buying an actively managed mutual fund, it means that we're going to find a manager whose job is to predict which stocks and bonds we should own to beat the market, which is really what we're doing with that active management. The manager becomes very, very important to the mutual fund. It's that individual that we're relying upon to make those predictions, to buy the really good stocks for us, to try to beat the market.