To provide functional member having magnetic insulative properties in one part and non-magnetic insulative properties in the other part without reducing the magnetic properties, and a method of manufacturing the member, and to manufacture the functional member at low cost.

Core particles (S1) that consist of a ferromagnetic is magnetized (S3), ferromagnetic insulative granular material is attached to the surface of the core particles 2, and the magnetic insulative particles are manufactured (S5). The surface of the core particles (S6), that consist of non-magnetic substance, is oxidized to form an insulation oxide layer (S7), and non-magnetic insulation particles on which the oxide layer is formed are manufactured (S8). Then the magnetic insulative particles (S5) and the non-magnetic insulative particles (S5) are formed and unified by pressure forming (S10), and the functional member 10, having magnetic insulation property in one part and non- magnetic insulation property in the other part, is manufactured.