One of the most popular jobs in the financial sector is that of a portfolio manager. Individuals who work as portfolio managers enjoy a lot of respect among their peers due to the huge influence they have in the financial industry. Here is a quick overview of who portfolio managers are, their key responsibilities, job outlook and how to succeed as one.
Portfolio Managers
Portfolio managers are individuals who are responsible for investing the money other people have placed under their control. They decide where to invest the money collected, formulate investment strategies and control the day-to-day portfolio trading. They usually collaborate with analysts and researchers to execute their duties effectively. Other responsibilities include managing assets, preparing reports on the overall portfolio and ensuring the organization complies with the regulatory standards.
Important Characteristics of Portfolio Managers
All portfolio managers should possess certain qualities in order to succeed in their endeavors. The first quality is the ability to generate ideas on their own. They should be able to have original insights of possible investment opportunities and select the best option. In addition, portfolio managers should have strong research skills. This is important because they need to research different markets and select the ones that can generate maximum profits for the investors. Portfolio managers also need to make quick and wise decisions in response to various conditions. This requires the ability to project into the future based on the past information and facts.
How to Become a Portfolio Manager
Those who aspire to become portfolio managers should obtain a bachelor’s degree in finance, accounting, economics or statistics. These degrees usually take four years to complete. A master’s degree is an added advantage, as it will open more doors for career advancement. It is also advisable to enroll in internship programs to obtain some work experience.
How Portfolio Managers’ Day Looks Like
A portfolio manager usually performs different tasks throughout the day. One constant task is checking how the financial markets are performing and staying updated on the current events. He also organizes regular meetings with his analysts to discuss the current market developments and trends and to address the contentious issues in the organization. In case the portfolio makes trades, the manager will direct all the proceeds by making the final decision on the securities involved. He also meets and talks with high-level investors and holds interviews with the media to give an overview of the economic situation in the industry.
A typical day in a portfolio manager’s life has a lot of challenges. However, the experience offers him great financial and intellectual rewards.
Job Outlook for Portfolio Managers
Portfolio managers fall under the category of financial analysts. Their role in the financial industry is expected to increase significantly in the future. The increase will be driven by the change in people’s perception about investment funds. More people are beginning to put their money in mutual investment funds to expand their investment portfolios. According to Bureau of Labor Statistics, portfolio managers earn an average salary of $81,760 per year.
Related Resource: What is an Insurance Underwriter?
Investment portfolio managers continue to play a key role in helping people put their money in investment plans that have huge returns. They are highly influential individuals in the financial industry because of their in-depth knowledge of the market. The items discussed above will provide you with everything you need to know about an investment portfolio manager, including how to become one and the job outlook.
