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IFIC Mutual Funds Licensing Practice Exam · Question

Scenario 63: What is the primary role of the Investment Fund Manager (IFM) in a mutual fund?

The Investment Fund Manager (IFM) is responsible for the overall operations of the fund, including appointing the portfolio manager, valuing the fund, managing

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Question: Scenario 63: What is the primary role of the Investment Fund Manager (IFM) in a mutual fund?

Answer options:

  • To custody the fund's assets.
  • To market and distribute the fund's units.
  • To provide investment advice directly to unitholders. ✅ To manage the fund's portfolio and make investment decisions.

Correct answer: To manage the fund's portfolio and make investment decisions.

Explanation: The Investment Fund Manager (IFM) is responsible for the overall operations of the fund, including appointing the portfolio manager, valuing the fund, managing expenses, and ensuring compliance. The portfolio manager (often a part of the IFM) specifically handles investment decisions. The correct answer is "To manage the fund's portfolio and make investment decisions.". This capacity-fill scenario 63 reinforces the same competency for the ific bank and follows the certified explanation standard.

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