The possible constrains for the Daly Capital may include as follows:

·         The organizational structure of the UK mutual fund may be not strong to the significant level.

·         The decisions makers may prefer to secure their personal interests.

·         The decision-makers may not be capable to the make the timely and affective decisions for making the investments in the diversified market places.

·         The management style of the UK mutual fund may not be effective.

·         The objectives and the goals might not be defined the way they need to be defined.

·         The financial strategies and the long-term objectives are desired to be based on the market conditions.

·         The scarcity of specialized talent in the field of mutual fund management.

·         The marketing of the UK mutual fund may not be effective.

·         The mutual fund investment units may have the increase to the nominal face value of the mutual funds.

·         The market analysis is not performed as per the need of the time.

·         The decision-making for the purchase or the sale of the securities and the stock may be based on only the subjective approach (Almazan, 2002) and (morningstar, 2019).

In UK mutual fund, these constraints are more common to occur in the following circumstances:

·         The higher proportion of the inside directors is a part of the board,

·         The management of the fund is in many hands rather than an individual,

·         The portfolio manager has the experience of many years in the same domain,

The funds are not the part of the large organizational complex (Simutin, 2018)

References of Constraints of Investment strategy and portfolio management

Almazan, A. &. B. K. &. C. M. &. C. D., 2002. Why constrain your mutual manager. Journal of Financial Economics, pp. 289-321.

Cuthbertson, K. D. N. a. N. O., 2008. UK mutual fund performance: Skill or luck?. Journal of Empirical Finance, Volume 15, pp. 613-634.

morningstar, 2019. Purchase Constraints. [Online]
Available at: https://www.morningstar.com/InvGlossary/purchase-constraints.aspx

Simutin, O. B. a. M., 2018. Leverage constraints and asset prices: Insights from mutual fund risk taking. Journal of Finnacial Economics, pp. 325-341.

Zhdanov, E. M. a. A., 2018. Product market competition and option prices. JStor, pp. 1-55.