Those who love to see people make the most of their hard-earned assets often investigate how to become an investment fund manager. An investment fund manager works with investment analysts to gather financial information about the market, companies and industries that is used to make sound investment decisions for their clients. These financial service professionals require a combination of technical and interpersonal skills to assess client needs and identify opportunities and risks for them in the financial markets. Investment fund managers can be employed by individuals as well as groups like asset management firms, insurance companies and even non-profit charities. Here is the typical path that finance professionals take to become investment fund managers.
Education and Training
Most investment fund managers have at a minimum an undergraduate degree in finance, accounting, economics or business administration. However, many hold advanced degrees in one of those business disciplines depending on their employers’ preferences. Some examples of course topics that these future investment fund managers take during undergraduate and graduate school include risk management in financial institutions, investment strategies and financial statistical modeling. Some undergraduate finance degree programs offer popular investment management fund courses that allow students to manage an actual investment portfolio. An important part of students’ learning experience is the hands on training that most schools now offer in the form of internships at leading financial services companies. Students who want to become investment managers in large, high-profile firms must seriously consider the reputation and rank of their chosen business school.
Work Experience
The investment fund manager position is a senior level one that requires several years of experience in the financial services industry. Usually, investment fund managers begin their careers as newly minted undergraduates working in entry level financial analyst positions. During this time, they conduct investment research, analysis and financial reporting to a variety of stakeholders. Their job duties are often supplemented with study and preparation for the General Securities Representative Exam for professional licensure. Ambitious financial analysts also prepare to register with the Securities Exchange Commission which is a requirement levied on investment fund managers employed with companies that manage over $25 million in client investment assets.
Popular Certifications
Because the financial health of individuals and companies are directly impacted by the competency of finance professionals, there are a number of professional certifications that help investment fund managers distinguish themselves from their peers and show their clients that they have the skills to properly invest money. According to Investopedia, three of the most popular certifications that demonstrate portfolio management competence are Certified Fund Specialist (CFS), Chartered Financial Analyst (CFA) and Chartered Investment Counselor (CIC). Of these three designations, the CFA series of three exams are the most difficult to master, and candidates can only apply for the CIC if they currently hold an investment advisory position and a CFA designation.
Related Resource: MBA in Finance
Conclusion
Being responsible for the financial well-being of others can be a daunting task, but good investment fund managers do not rely on their own abilities alone. They often have access to teams of people with a variety of financial industry expertise who are available to support them whenever needed. They also have a lifelong learning mindset that keeps them abreast of financial current events and issues. The skills needed to become an investment fund manager allows finance professionals to ask the right questions, understand financial data and trends and determine the best investment solution for their clients’ particular needs.
