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What are the major challenges fund managers face when they try to raise money? 

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kshaw0613 | eNotes Newbie

Posted June 24, 2013 at 10:09 PM via iOS

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What are the major challenges fund managers face when they try to raise money? 

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readerofbooks | College Teacher | (Level 2) Educator Emeritus

Posted June 25, 2013 at 7:44 PM (Answer #1)

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One of the goals for all fund manager is to raise money. Often this is not an easy thing to do for several reasons. 

First, if the fund or the fund manager does not have a reputation or a proven track record, people may not want to invest their hard earned money. In short, people want proof of past success. Moreover, there are other funds out there that people can invest in. 

Second, competition can be intense. There are so many funds out there that do extremely well. So, often times these funds win out. 

Third, if the fund is just starting, then that person needs contacts. Contact are hard to make. Finally, in a difficult economic environment, liquidity is limited. 

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