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Jagpreet
16 August, 2024
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Most of us have thought at least once in our lives about a scenario where we are not working, and money works for us, right? You have also seen many people who win the lottery and become millionaires, or property investors and stock marketers who make millions. But how do you go from dreaming to doing? This is where an investment manager comes in.
Here is an example to give you a broader perspective. You have a hard-earned pile of cash sitting in the bank. It is believed to be 100% safe, but it is also losing value due to inflation. You want to make it grow, but you are not sure where to start. You could buy shares, but which ones? You could invest in property, but where and how?
To answer these questions an investment manager is responsible. They are the financial experts who take your money and invest it on your behalf. They study the market, analyse companies, and make informed decisions.
According to a report published by Recruiters , the job outlook for Investment Fund Managers has been growing positively since 2004. Vacancies in this career have seen a nationwide growth of 32.37% over that period, with an average annual growth of 2.02%. It is estimated that the demand for investment fund managers will increase, with around 152,930 new jobs expected to be filled by 2029.
An investment manager can be described as an individual who takes charge of people’s money especially within the financial world. It saves part of it in a responsible manner to fund specific aims and objectives like in creation of a retirement fund or college saving.
Let’s say you are an entrepreneur who has built a successful business and accumulated significant wealth. However, you do not have the time or expertise to manage your investments. That is where an Investment Manager comes in. They will understand your financial goals, risk tolerance, and time horizon. They will help you with a personalised investment plan and continuously monitor and adjust the portfolio to align it with your goals.
Now you can focus on your business without worrying about your financial risks, as they are in expert hands.
To become an investment manager, you should be aware of the following aspects of the occupation. As a result, your working day is typically packed with activities.
Generally, you would review the relevant economic and business developments in the morning. In the middle of the day, you would assess companies’ trends, and in the afternoon, consult clients on their strategies for managing their finances. This could include investment choices, portfolio evaluations, or attending manufacturing industry conventions.
Basically you will follow these responsibilities:
Understand your financial goals: You will sit down with client to understand their goals like what they want to achieve with their money. Are they saving for a house, retirement, or their child’s education?
Create an investment plan: Once you get the input regarding the clients goals, you will prepare an investment plan. That will include deciding where to invest your money – stocks, bonds, or other assets.
Manage your investments: You will keep a close eye on clients investments, making adjustments as needed. This will involve buying or selling assets based on market conditions.
Provide financial advice: You will offer your guidance on financial matters, helping them make informed decisions.
Get the right education: A degree in finance, economics, or a related field will be a good starting point for you. It will give you the base knowledge you need to understand how markets work. You can get an Online MBA in Banking or Investment, or a Diploma as well, to kickstart your career
Master the maths: As an Investment manager, you will need to play with numbers a lot. So, you should be good at maths and statistics.
Learn to talk: You will need to explain complex financial ideas to common man. Good communication skills will help you alot.
Start at the bottom: You can start your career by getting some practical experience. You can begin as an investment analyst or assistant. This will give you hands-on experience and will help you learn the ropes.
Get qualified: Aim for certifications like the CFA (Chartered Financial Analyst) or CAIA (Chartered Alternative Investment Analyst).
Build your network: Networking is the most practical way to open new opportunities for your career. You should talk to people in the industry. You can even go to industry events to build new connections.
Understand the market: You should keep up with economic news and trends. You should know what’s happening in the world of investments.
Build strong relationships: Trust is very important in finance. You should be honest, reliable, and good at building relationships with clients.
Manage risk: Investments have risks. You should learn how to assess them and make smart choices to protect people’s money.
Look for opportunities: You can lookout for the opportunities out there in the market. You can explore Investment banks, fund management companies, and wealth management firms as they hire investment managers.
Show what you can do: You can use your skills and experience to get noticed. You should highlight your achievements in your CV and interviews.
| Skills Required | Description |
| Financial Analysis | You should have ability to assess and interpret complex financial data. It will include financial statements and performance metrics, to make informed investment decisions. |
| Investment Strategies | You should have knowledge of different investment options (stocks, bonds, mutual funds, etc.) and strategies to create effective investment plans. |
| Risk Management | You should have skills of identifying, assessing, and mitigating financial risks to protect investments. |
| Market Research | You should have expertise in analysing market trends, economic indicators, and industry conditions to anticipate changes. |
| Communication Skills | You should have the ability to clearly communicate complex financial concepts, strategies, and updates to clients. |
| Problem-Solving Skills | You should have problem-solving skills to diagnose financial problems, develope solutions, and implement strategies to optimise investment performance. |
| Attention to Detail | You would require this skill to ensure precision in managing and analysing detailed financial data. It will ensure accuracy in financial reports and maintain meticulous records. |
| Client Relationship Management | You will have to maintain strong relationships with clients, understanding their financial goals, and providing personalised advice and support. |
| Decision-Making Skills | You should have ability to make sound financial decisions based on analysis, research, and client objectives. |
| Regulatory Knowledge | You should have an understanding of financial regulations, compliance requirements, and industry standards to ensure all investment practices adhere to legal and ethical guidelines. |
According to AmbitionBox , Investment Managers in India typically earn between ₹2.8 lakhs and ₹35 lakhs a year. The average paycheque sits at around ₹6.8 lakhs.
Now, this is just a starting point. Your actual salary depends on a few things:
Experience: Your experience will help gradually increase your salary. The more years you spend in the field, the higher your salary will be.
Qualifications: If you have degrees and certifications like CFA or MBA in Investment management, it can increase your earning potential.
Company Size and Location: If you are joining any bigger firm in metro cities, they will usually pay more.
Role and Responsibilities: If you are managing a larger portfolio or taking on extra duties can mean better salary.
In the world of finance, as an investment manager, you will play a role, as architects of success for both individuals and organisations. You will leverage your knowledge and skills to explore market, spot opportunities and mitigate risks. Your contribution will be the key in assisting individuals in reaching their goals be it planning for retirement funding education or creating a legacy. To excel in this profession a solid grasp of finance fundamentals along with prowess, strategic acumen and effective communication skills are indispensable.
An investment manager is a person who is an expert in Finance, who can help you grow your money. They do not just buy and sell stocks, they do everything which can help you to save and grow your money. They research different investment options, study market trends, and create strategies so that your money can grow. They also keep a track of your investments and handel risks.
An investment manager is responsible, for handling, planning and overseeing investment portfolios for clients, both individuals and organisations. They play a role in determining the investment opportunities making strategic decisions and ensuring that investments are growing in line, with the clients objectives.
Yes, being an investment manager can be stressful and demanding sometimes. It often involves working long hours and spending a lot of time analysing the markets to make informed decisions.
