One of the most coveted careers in the financial industry is that of the fund manager. As a fund manager, who can also be called a financial analyst, you are fully responsible for helping clients, such as businesses or individuals, to make investment decisions.
Your job is to research the financial situation, to find the best investment trends and deals, and try to predict the best investments for your clients. However, before you work in this not-so-easy field, you need to know where to start your journey. You need to know how to become a fund manager.
First Step: The right education
Be sure to take advantage of internship opportunities abroad, or in your own country. There are many opportunities, many exchange programs and internships available. Use this great chance. Starting from high school time, look for internships at a bank or financial investment company, or at least do some day-shadow work. This helps to ensure that you are really interested in becoming a portfolio or fund manager, as you learn in practice what this job means.
Get Your Bachelor’s Degree
Enter a college or university where you could study major finance-related areas, such as finance, accounting, economics or business administration, planning and managing cash flow. The bachelor’s degree takes at least four years. Also take a variety of science classes as you may evaluate pharmaceutical, medical, chemical, and mining companies for your clients. And they will help you in your future career. To be a good specialist, it helps to be well rounded in different spheres. You may not know what you will have to deal with. Private investment firms and investment banks are very positive about the time you spend studying risk management, accounting, and finance. Knowledge of a foreign language will help you advance in your future career, especially if you speak Chinese, German, French or English ‒ says resumeget.com.
Do an internship in the finance area
Your college or university should help you get an internship or summer job. This is the best way to get experience, even if you work for free. The next step is a Master’s degree in finance. A Master’s degree program takes approximately two years to finish, depending if you attend part or full time.
The second step: Find Your First Job
Seek an entry level financial analyst job. This can be at an investment bank or a portfolio management firm. The position of a financial analyst is the starting point for becoming a fund manager. It is not realistic to get a high-ranking position when you are a young specialist. Search the job on websites online or search the job ads in the newspapers. Attend meetings with employers.
An informational interview is when you ask someone to tell you about your work and the education and experience you need. This differs from the interview where you apply for a job. Write a great CV and cover letter. Include your job experience and internships, even if you have not been paid. In your cover letter, describe how your experience and ideas would relate to a financial analyst position, as well as your personal qualities such as drive, determination, attention to detail, and more.
Be bright on the interview! We are not talking about shiny clothes. Dress appropriately a jacket and tie for men and a skirt and blouse for women. Say hello and look the interviewer straight in the eye. Describe your personal qualities by giving examples from past work experience. Describe how your knowledge and skills are ideally suited to the job title.
Third Step: Career Development
Earn a Chartered Financial Analyst (CFA) designation. The Chartered Financial Analyst Institute offers this because it would significantly improve your career as a manager. Also, if you sell securities, you would need to obtain a federal license. You will need to take three exams to qualify for the CFA certification. Exams are conducted on topics such as risk management, professional ethics, portfolio management and quantitative analysis. In order to be licensed to sell securities, you need to spend many months training before you can pass this exam.
And only then, the transition to the position of a fund manager is waiting for you. This usually requires years of experience in the field. However, if you do a great job as a financial analyst, offer better ways to analyze data, or find good companies to invest in, only then you will have a great chance of promotion.
Of course, there are other ways to get better position in a company. You can be proactive, volunteer in additional projects, work with a team or lead a team to develop new programs, and choose investments that bring increase the amount of clients. Before you become a fund manager, remember that fund managers make the final investment decisions about a fund or asset management mechanism.
A Day in the Life of a fund manager
The fund manager’s day is always varied, but one thing remains constant it is a checking the state of the financial markets. He should always stay up-to-date the last news. The fund manager regularly meets with his/her analysts to discuss market developments and current trends. This person directs all transactions performed by the investment fund during the day, he/she makes the final decisions on the securities involved. He or she meets with analysts familiar with the securities and institutions that issued them. Based on their recommendations, the fund manager makes the final decision whether to buy securities or sell them.
Summarizing all of the above, we can conclude that A Day in the Life of a fund manager is full of challenges, but it also offers financial and intellectual rewards. The day starts early and often ends late, but there are many exciting challenges and opportunities throughout the day. If you have an analytical mind, love financial markets, and ever-changing events, then the fund manager career is right for you!