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Who is a Portfolio Manager?
Portfolio management exists to achieve results, not phases ~ Jeroen De Flander
A portfolio manager is a person or a group of people who are responsible for investing a mutual, exchange-traded or closed-end fund’s assets, implementing its investment strategy and responsible for the management of day-to-day trading. A portfolio manager is one of the most important people to consult when an individual is looking for fund investing.
In a career as a portfolio manager, one can be both active and passive, past records show that there are only a few active portfolio managers who consistently beat the market. They are the people who are behind the decision of the common man’s investments in financial assets like mutual funds. If you wish to know more about how to become a portfolio manager? or what qualifications do you need to be a portfolio manager? related jobs or portfolio manager work details, then continue reading this article.
Portfolio Manager in a Nutshell
The job of a portfolio manager is to assist his or her clients in investing for financial security. Depending on the type of portfolio management function, a portfolio manager may work for specific clients or as part of a larger or financially viable facility. The career as a portfolio manager is one which is surrounded by different types of financial assets and how they suggest their clients invest in them. To know more about how to become a portfolio manager or portfolio management job, and how long does it take to become a portfolio manager continue reading the article.
Quick Facts for Portfolio Manager
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Industry
Finance
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Suitable for
Male, Female
An individual from any section or gender can become a portfolio manager in India. It does not matter which gender he or she belongs to when it comes to taking up portfolio management jobs. Being a part of the finance industry in India is one of the most desired professions where an individual’s gender is insignificant. Portfolio manager jobs are opening up with new prospects which makes the field attractive to a growing number of students, including women.
Table of Contents for Portfolio Manager
What is the role of Portfolio Manager?
Portfolio managers spend most of their days researching current events along with the trends in the financial markets. Portfolio managers regularly meet with analysts to discuss market development results and current events. Both the buy-side as well as the sell-side analysts from investment banks meet to present their investment ideas to portfolio managers. Therefore portfolio managers need to plant information and make decisions about what financial assets they will buy or sell.
Not only do portfolio managers need to make investment decisions, but they are also responsible for meeting with investors, in person or by phone or email, to explain their research, strategy, and purpose with decisions. There is also a large portion of maintenance for portfolio management. Adding investment to a portfolio is not the end of the portfolio. Portfolio managers should continue to look after portfolio companies and investments after they have made their decision of whether to hold or sell.
Analysis
A portfolio manager plays an important role in determining the best investment plan for an individual based on his income, age and risk ability. Investment is important for everyone who leads. A person has to set aside a certain amount of his hard time. Inevitable situations can arise at any time and one needs to have enough money to overcome the same.
Client Awareness
The portfolio manager is responsible for making one aware of the various investment tools available in the market and the benefits associated with each plan. Make someone realize why they need to invest and what program is best for them.
Developing solutions
A portfolio manager is responsible for designing customized customer solutions. No two persons may have the same financial needs. It is important for the portfolio manager to first evaluate the background of his client. Know the profitability of each individual and his or her investment potential. Stay with your customer and understand his or her financial needs and needs.
Updated
A portfolio manager should keep abreast of the latest developments in the financial markets. Suggest a good plan for your client with less risk involved and higher returns. Make him understand the investment strategies and the risks involved with each plan in free language. The portfolio manager should be transparent with the people. Learn the terms and conditions and never hide anything from your customers. Be honest with your client in long-term relationships.
Types of a Portfolio Manager
There are several portfolio career options or types of portfolio manager available for aspirants. If you wish to make a career as a portfolio manager then the following portfolio management jobs are for you:
Stock Portfolio Manager: A stock portfolio manager aims at helping his or her clients with all the information, plans, or advice they require in order to invest in different kinds of stocks. Their specialisation area is the stock market. A stock portfolio manager listens to the client’s needs and advises him or her to invest accordingly.
Growth Portfolio Manager: A growth portfolio manager is one who assists his or her client with the maximum amount of growth rate with a minimum amount of input. A growth portfolio manager works for clients whose ultimate goal is to have a larger rate of return on investment than to earn a quick profit.
Income Portfolio Manager: There are several clients who invest in financial securities with the help of an income portfolio manager. In this case, the client invests in a particular kind of financial security for the long term and invests money into it on a monthly basis. The process is repeated for a fixed number of months.
What is the workplace/work environment of Portfolio Manager like?
In the career of a portfolio manager, individuals generally work in the portfolio management departments of large corporations. The nature of their work requires them to spend time on their work screen researching as well as analysing different financial securities. They make plans around which client can invest in which type of financial security.
They work in an office set up. They might have to go to meet their clients sometimes if required. Since a portfolio manager also gets a fixed percentage of a share in the client’s profit, he or she might go to meet some clients who will be good for the organisation in terms of generating revenue. But most of their time is spent in the office.
Does Portfolio Manager require travelling?
Likely
The job of a portfolio manager is mainly office limited but they may have to travel to meet their clients. It is not a full-time traveling job but there might be occasions when a portfolio manager has to travel from one place to another.
Employment Shifts
Full Time
The nature of work is full time in the career as a portfolio manager.
Employment Nature
Contractual, Permanent
If an individual fresh out of college is hired as a portfolio manager in some law firm then his/her job is permanent in nature. But if after gaining some experience in the career as portfolio manager, one begins to work on his own then different clients will give him work on a contractual basis.
Work Place
Office
A portfolio manager in India mainly works in an office environment. Their job involves researching different kinds of financial securities as well as analysing the client’s financial ability to invest in them. Therefore, the work is limited to one's desk.
Presence in Geographical Area
Semi-urban, Urban
The kind of industries or organisations in which portfolio management functions take place are located mainly in urban areas. A few might be located in semi-urban areas.
Time Pressure
Likely
In the career of a portfolio manager, individuals are generally required to work under a lot of time pressure. The job is filled with tight schedules, networking events, and product launches. Hence, account managers are required to manage all these things along with meeting their project deadlines. The work environment involves a lot of time pressure and stress.
Overtime Details
Typically, in a career as portfolio manager, individuals work for nine hours per day. But depending on the deadlines and current situation, they might be required to work overtime. During busy periods and urgency, they are required to put up some extra hours to the work.
Weekly Hours of Work
Min 40 Hours
In the career as portfolio manager, individuals are required to work for about 40 hours a week. A portfolio manager may have to work for extra hours depending on the workload.
How to become a Portfolio Manager?
Steps to become a Portfolio Manager
If you are someone interested in making investment decisions and helping people to build their financial investment portfolios then a career as a Portfolio Manager is the best option for you. We have mentioned below how to become a Portfolio Manager and what qualifications you need to be a portfolio manager.
What are the skills and qualities required to become a/an Portfolio Manager?
When it comes to portfolio management functions, an individual must possess some skill sets in order to carry out the job. The job of a portfolio manager requires the following skills:
Innovative: All portfolio managers look at the index and news. Different portfolio managers conduct outside-the-box research and know where to find information on investments that others may not. There is a huge potential benefit for investors who cannot afford the good money that others have failed to realize.
Critical thinking skills: Analysing reports from financial analysts and other research requires portfolio managers to have strong critical thinking skills. Portfolio managers should be able to take into account the strengths, weaknesses, opportunities and threats of all potential investment decisions.
Decision-making skills: Being a portfolio manager means making many investment decisions. There can be no more certainty in this field; Therefore, it is important for portfolio managers to be able to analyze options and make confident decisions.
Popular Online Finance Courses and Certifications
Which certifications and internships can be helpful in becoming Portfolio Manager?
| BCOC-131- Financial Accounting | MCO-05-Accounting for Managerial Decisions |
| Free Online Courses in Stock Market | Equity Derivative – NISM Series VIII |
Internship Availability
Internships are considered the best possible way for gaining experience in the career as portfolio manager. They provide real-world experience as well as give him or her an opportunity to apply theoretical knowledge in practical use. Not only that internships also enable the candidate to make connections in the portfolio management field for future use. If he or she performs well during the internship several companies or organisations could also hire the candidate on a full-time basis. The candidate can get an internship either through an online medium or he or she could also contact the organisation of choice directly.
Career Path Progression for Portfolio Manager
Junior Portfolio Manager: A Junior Portfolio Manager is a professional who works under a senior portfolio manager and works according to his or her instructions. Junior Portfolio Manager aims to meet the day-to-day target that is set by the Senior Portfolio Manager.
Senior Portfolio Manager: A Senior Portfolio Manager is an experienced professional who trains and guides the junior Portfolio Manager and leads the team. A Senior Portfolio Manager Understand client’s investment objective and keep in touch with clients and provides updates.
What is the job outlook for Portfolio Manager?
The field of portfolio management is expected to grow by six per cent by the year 2028 in terms of employment generation. People are increasingly investing in financial securities in the past few years due to several reasons. Therefore, more and more jobs are opening for portfolio managers in India. It is good news for people aspiring to make a career as a portfolio manager.
Although the recent pandemic of Covid-19 will stop people from investing in financial securities for a while once everything is back to normal the field is again going to gain pace as it has gained a lot of popularity. With more and more people investing in financial securities portfolio management jobs have a positive outlook. The industry needs more professionals as the number of clients has been increasing at a positive rate every year.
People with significant medium incomes are also investing in the market with the right kind of advice by a portfolio manager. Several individuals in their careers as portfolio managers also gain experience and move to other countries in order to earn more money. Developed countries like the United States of America, the United Kingdom, Japan and several other countries have a wider market for a portfolio manager to offer.
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Frequently Asked Questions for Portfolio Manager
Que. Do you need an MBA to be a portfolio manager?
Ans.If the candidate is still an undergraduate student who is considering a career as a portfolio manager, it is beneficial; to take courses in disciplines like business, economics, finance, accounting, and math. An MBA degree, in addition to an undergraduate degree, is essential in order to do better in the field but it is not compulsory. One could also gain experience of work for a couple of years and then he or she could do an MBA.
Que. Is portfolio manager a good career?
Ans.Portfolio management is a very popular career option in the field of finance as well as for business graduates. In order to be successful, it is important for the candidates to constantly be updated with market trends. They need to understand the concept of investing money. With the right education and experience, the field of portfolio management can be a good career path to go on.
Que. How long does it take to become a portfolio manager?
Ans.An individual begins working at the associate level after completing his or her graduation in the field of portfolio management. It depends on the individual, how long they would take in order to become a portfolio manager. Generally, it takes a graduate between two to four years to reach the designation of portfolio manager in an organisation.
Que. Do portfolio managers work after hours?
Ans.A portfolio manager may have to work after his or her shift is over depending on the workload. It is not an everyday thing but there might be days when the client’s requirements are to be fulfilled within the deadline.
Que. Do you need an MBA to be a portfolio manager?
Ans.If the candidate is still an undergraduate student who is considering a career as a portfolio manager, it is beneficial; tp take courses in disciplines like business, economics, finance, accounting, and math. An MBA degree, in addition to an undergraduate degree, is essential in order to do better in the field but it is not compulsory. One could also gain experience of work for a couple of years and then he or she could do an MBA.
Que. How much does a portfolio manager charge?
Ans.A portfolio management organisation charges between 0.5 two per cent of the return on investment gained by the client. The percentage is fixed by the company depending on the kind of financial securities.
Que. Is portfolio manager a good career?
Ans.Portfolio management is a very popular career option in the field of finance as well as for business graduates. In order to be successful, it is important for the candidates to constantly be updated with market trends. They need to understand the concept of investing money. With the right education and experience, the field of portfolio management can be a good career path to go on.
Que. How long does it take to become a portfolio manager?
Ans.An individual begins working at the associate level after completing his or her graduation in the field of portfolio management. It depends on the individual, how long they would take in order to become a portfolio manager. Generally, it takes a graduate between two to four years to reach the designation of the portfolio manager in an organisation.
Que. Do portfolio managers work after hours?
Ans.A portfolio manager may have to work after his or her shift is over depending on the workload. It is not an everyday thing but there might be days when the client’s requirements are to be fulfilled within the deadline.
Que. How much does a portfolio manager charge?
Ans.A portfolio management organisation charges between 0.5 to 2 per cent of the return on investment gained by the client. The percentage is fixed by the company depending on the kind of financial securities.
Que. Name some colleges suitable for portfolio management.
Ans.Some colleges suitable for portfolio management are:
SRM Institute of Science and Technology, Chennai
Jamia Millia Islamia, New Delhi
Maharaja Sayajirao University of Baroda, Vadodara
Guru Gobind Singh Indraprastha University, Delhi
Que. How long does it take to become a portfolio manager?
Ans.To become a portfolio manager you will need to complete your bachelor's degree and a master's degree. You can also take up a certification course and opt for an internship which may take five years and over five years of experience as a finance analyst or associate.
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Did you know?
Fact 1
The concept of ‘portfolio management’ came into the picture as the economist wanted to save the world from a situation like the Great Depression in the future
Fact 2
Why is it called ‘portfolio’? The term ‘portfolio’ is the combination of financial assets. The monetary value of each asset may influence the risk/reward ratio of the portfolio
Fact 3
Harry Markowitz is a Nobel Prize winning economist who is known for developing the modern portfolio theory in 1952
Fact 4
Back in 1938, John Burr Williams' book, ‘The Theory of Investment Value’, proposed that the value of a stock should equal the current value of its future dividends
Fact 5
Markowitz devised a formula in order to match an investor's risk tolerance and reward expectations to create an ideal portfolio that focuses on the diversification of asset classes and securities
