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How to Become a Mutual Fund Manager

Avadhut
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Updated on: May 18, 2020

If you want to know how to become a mutual fund manager, read this definition given by Investopedia,

A fund manager is responsible for implementing a fund's investing strategy and managing its portfolio trading activities. The fund can be managed by one person, by two people as co-managers, or by a team of three or more people.

Candidates with MBA, CA or post-graduate degrees 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. 14-20 lakh salary per annum. Mutual funds analysts in western countries like the US earn about $68,000 to $70,000 annually, according to SimplyHired.com.

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People having 10-15 years of experience in mutual fund analysis and equity research can look forward to becoming a mutual fund manager. People who manage funds are called Fund Managers.

How to become a mutual fund manager

Mutual Fund Manager Education, Job Responsibilities & Salary

Education

A bachelor's degree in economics, accounting, tax, and finance or investment analysis is a good starting point. A Master’s degree in investments or finance has additional benefits. If you have undergone internships or summer jobs, it will open to give better career opportunities in this sector.

Job Responsibilities

A mutual fund manager 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 mutual funds, the mutual fund manager 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 for students to start their long term careers.

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 qualifications, you can surely look forward to a long term career.

Read the detailed guide on asset management career path.

A typical mutual fund manager 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 the 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 the best investment options and intermittent risks. This helps to create a strong research database with fund recommendations and conclusions.
  • Remain updated about the 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.

Salary

The salary package depends on education, skills, and experience. The profile of a mutual fund manager 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 Mutual Fund Manager?

After years spent 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, analyze 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 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 of five years of work experience is mandatory. The knowledge of fixed income markets is a plus. The salary package and career growth depend 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.

Endnote

A practical career graph planning will help you become a successful mutual fund manager. If you are interested, click here to know the different mutual funds in the US, UK, Germany, Japan, Australia, and Brazil.

If you still have any queries about the mutual fund manager career, write to me in the ‘Comments’ section below.

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