How to prepare for a career in Fund Management (2024)

FAQs

How to prepare for a career in Fund Management? ›

Obtain an education in finance: A bachelor degree in finance, economics, accounting, business administration, or a related field is the best starting point. You can consider getting a master's degree in finance or related education such as CFA or CAIA.

Most employers require that investment fund managers have a bachelor's degree in accounting, business administration, finance, or statistics. Other possible majors include economics, international business, and public administration.

Get a degree in Finance: Gaining access to a great asset management career requires you to have two basic skills – the knowledge of accounting and financial management and the use of statistical models. Your daily job would be to look through the spread-sheets and dig in the earning reports.

Fund management requires special skills, training and knowledge, which is only obtainable through an academic certification. The first step to becoming a fund manager is a finance course in investment services. Most students apply for an MBA in finance.

Being a portfolio manager can be stressful, as it involves making decisions that can impact the financial performance of a portfolio and the clients it represents.

Fund Manager salary in India ranges between ₹ 3.0 Lakhs to ₹ 93.0 Lakhs with an average annual salary of ₹ 28.7 Lakhs. Salary estimates are based on 282 latest salaries received from Fund Managers.

Investment fund managers are enterprising and conventional

They also tend to be conventional, meaning that they are usually detail-oriented and organized, and like working in a structured environment. If you are one or both of these archetypes, you may be well suited to be an investment fund manager.

Fees: the fees charged by hedge fund managers to investors for managing the fund can be up to 40% Bonuses: hedge fund managers can make up to 25% of the profits they bring in at a hedge fund as a bonus.

The hard skills such as financial analysis, quantitative skills and risk management enable you to analyse the markets accurately, predict trends and ensure the minimisation of risks. These skills allow you to take informed decisions and optimise returns for your clients.

The Path to Fund Management

To qualify for a position in fund management—mutual funds, pension funds, trust funds, or hedge funds—individuals must have a high level of educational and professional licenses and credentials and appropriate investment managerial experience.

What makes a successful fund manager? ›

Fund managers must possess the expertise to conduct research on companies and monitor market and economic trends, as well as track securities in order to make informed investment decisions. They should also have strong analytical and problem-solving skills, along with the ability to work effectively under pressure.

Postsecondary Education

Hedge fund managers often have a master's degree or even a Ph. D. in finance, mathematics, economics, financial engineering, quantitative finance, programming, marketing, or business administration. Others have advanced degrees in a specialty such as engineering or accounting.

Hedge Fund Analyst Hours and Lifestyle

At smaller, single-manager funds, the average might be 10-12 hours per day, for a total of 50-60 hours per week (weekend work is rare). As you move to larger, multi-manager funds, the hours and stress get worse, so the average may be more like 60-70 hours per week.

Fund managers may need to acquire additional FINRA licensing depending on the size of the fund and type of assets invested in. Additionally, professional and educational credentials, such as a CFA charter or graduate degree in a relevant field, will come in handy.