A Mutual Fund Analyst is a person who tracks the functioning and performance of the mutual fund industry. The profile is highly in demand and requires sound knowledge of Equity and Debt markets.
Candidates with MBA, CA or post-graduate degree in finance or management are suitable for this profile.
The typical work profile of a mutual fund analyst includes tracking debt market trends, tracking mutual fund manager’s performance, interacting with fund managers, preparing sector reports, preparing reports on mutual funds and new offerings, and meeting new clients. Mutual funds offer long-term career options.
The salary range of a mutual fund analyst varies based on experience. Candidates possessing 1-2 years of experience in financial analysis can expect Rs. 5-6 lakh per annum in Mumbai, India. Candidates having 5-6 years of experience in this field can expect Rs. 12-15 lakh salary per annum. Mutual funds analysts in western countries like the US earns about $68,000 to $70,000 annually, according to SimplyHired.com.
People having 10-15 years experience in mutual fund analysis and equity research can look forward to manage a fund. People who manage funds are called Fund Managers.
Mutual Fund Analyst Education, Job Responsibilities & Salary
A graduate degree in economics, accounting, tax, and finance or investment analysis is a good starting point. A Masters’ degree in investments or finance has additional benefits. If you have undergone internships or summer jobs, it will open give better career opportunities in this sector.
A mutual fund analyst needs to fulfill varied roles and responsibilities, beginning with the management of equity, debt and diversified fund with the support of research desk, taking accountable investment and exit decisions for the fund, delivering superior returns compared to the benchmark returns and monitoring investments regularly to find newer investment propositions.
Apart from working with the mutual funds, the mutual fund analyst can work with mutual fund research websites like Value Research Online. Some of the current openings for fresh graduates in India offer an excellent platform to students to start their long term career.
There are 35+ Asset Management Companies (AMC’s) in India having thousands of mutual funds in the market. As such, there is a huge talent crunch in the market for such roles. So, if you want to make a career in mutual fund analysis, have required skill sets, right attitude with educational qualification, you can surely look forward to a long term career.
A typical mutual fund analyst has the following responsibilities:
- Develop clear opinions on mutual funds based on research that goes beyond mere performance and risk evaluation.
- Conduct quantitative and qualitative analysis using databases, monitoring regulatory information and interviewing portfolio managers.
- Monitor important developments in the fund industry, markets and the broader economy.
- Author columns, articles and special reports.
- Develop expertise in the mutual fund industry, specific fund families, various market sectors and corporate stewardship issues.
- Represent the fund by speaking to the media, regulators, industry associations and conference delegates.
- Adhere to the company investment policies for recommending mutual fund investment options to individual or firm investors.
- Keep in mind the long-term investment strategy of the company and communicate the same in tandem with the company’s marketing staff, decision-making support staff and financial advisors with the intention to work towards a common goal.
- Deeply coordinate and collaborate with the fund research time to identify best investment options and intermittent risks. This helps to create a strong research database with fund recommendations and conclusions.
- Remain updated about latest trends in the mutual fund market industry to solidify investment presence and by default, investment profits.
The work life of a mutual fund analyst does not follow a conventional timing routine. A typical day’s work depends on the fulfillment of sales quotas. Late night work hours or weekend meetings with potential clients are a common occurrence.
The salary package depends on education, skills and experience. The profile of a mutual fund analyst pays anywhere between $40,000 to $120,000 annually in the United States while in India, the same profile will earn you anywhere between Rs. 180,781 and Rs. 880,684 annually.
How to Become a Fund Manager?
After years spent in working as a mutual fund analyst, you can climb yet another step and become a mutual fund manager.
Becoming a fund manager is a celebrated status but has a lot of duties and responsibilities attached to it. A fund manager needs excellent financial acumen. Expert fund managers like Peter Lynch and Benjamin Graham have become legendary for their acute financial market understanding and the ability to procure high profits for their investors.
The major responsibility of the fund manager is to invest the investor’s money in profitable ventures like bonds, stocks and other financial securities. The manager needs to perform detailed market research, monitor existing investments, analyse other investment options, review and revise investment strategies as per the market performance and study various industries for profitable investments.
To become a mutual fund manager, you need to have both the necessary skills and the qualifications. A graduate degree is a must, an MBA in Finance or CFA/CFP designation is desirable. The fund manager needs to possess knowledge of Portfolio Management, along with a passion for investing and helping individual investors make better investment decisions. Accountability is an important trait too.
The fund manager needs to have the ability to work independently, but also within an interdisciplinary team that includes investment experts, data analysts and software developers. A minimum five years of work experience is mandatory. The knowledge of fixed income markets is a plus. The salary package and career growth depends on the asset size under his direct management and the performance of those assets.
Last but not the least; the fund manager should have excellent written and verbal communication skills.
A practical career graph planning will help you become a successful mutual fund analyst. If you are interested, click here to know the different mutual funds in US, UK, Germany, Japan, Australia and Brazil.
If you still have any queries about mutual fund analyst career, write to me in ‘Comments’ section below.