Fund Managers’ skills and abilities are influenced by their personal traits like age, gender, education, and experience. Undergraduate technical degrees and CFA certifications enhances the managerial skills, but age and experience diminish the same.
Authors
Sudipta Majumdar, Assistant Professor, Jindal School of Banking and Finance, O. P. Jindal Global University, Haryana, Sonipat, 131001, India; Vinod Gupta School of Management, Indian Institute of Technology (IIT) Kharagpur, West Bengal, Kharagpur, 721 302, India
Sankalp Bose, Vinod Gupta School of Management, Indian Institute of Technology (IIT) Kharagpur, West Bengal, Kharagpur, 721 302, India
Abhijeet Chandra, Vinod Gupta School of Management, Indian Institute of Technology (IIT) Kharagpur, West Bengal, Kharagpur, 721 302, India
Summary
Research on fund management aims to ascertain whether fund performance is attributed to fund resources or the skills of the manager. However, most of the earlier research makes assumptions about manager skills based on fund return as the return of the manager who manages multiple funds throughout their career.
In this paper, we examine the impact of fund managers’ personal traits, such as age, gender, education, and experience, on their managerial abilities. We compile an extensive dataset of returns attributable to managers by sampling fund managers of Indian origin. This dataset encompasses returns accumulated over the career trajectories of managers, amalgamating performance from the diverse range of funds they have overseen throughout their tenure.
The findings demonstrate that manager skills are enhanced by undergraduate technical degrees and CFA certification but are diminished by manager age and experience. This study presents findings on how fund managers’ individual traits in determining manager skills, which remains largely uncharted, particularly when viewed through the lens of emerging markets.
Published in: Financial Markets and Corporate Finance
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