How to Become a Portfolio Manager

Save

Portfolio managers are responsible for investing the funds individuals contribute to mutual funds, exchange-traded funds (ETFs) and closed-end funds (CEFs). Mutual funds, as the name implies, are open-ended companies that invest money on behalf of their clients; ETFs are funds that are traded on a stock exchage, CEFs are traded on stock exchanges but have a finite number of shares. Portfolio managers navigate these investment opportunities, acting as stewards of their clients' investment money. The job requires significant education and experience, not to mention a little luck and economic savvy.

Becoming a Portfolio Manager

  • Enroll in college. Most portfolio managers earn undergraduate degrees in accounting, finance, economics or business administration and fill-out the ranks of entry-level portfolio managers, according to the U.S. Bureau of Labor Statistics (BLS). While in college, get into the financial management industry by earning an internship. Try to forge a relationship with a company in a larger city and financial center such as Tokyo, London or New York City, because most securities analysis and portfolio management jobs are with firms headquartered near a country's financial center.

  • Gain work experience and build analytical skills. New recruits usually begin their careers by completing an on-the-job training program that familiarizes them with the complexities of securities analysis past their college education. After completing their training, most would-be portfolio managers work as securities analysts and specialize in a specific investment product, region or geographic region, according to BLS; the most successful new analysts are given greater responsibility by their firms, eventually being promoted to portfolio manager. At this level, unsuccessful analysts may even be asked to leave their firms.

  • Seek advanced training. After four years of work experience, people working as financial managers should earn a certification such as Chartered Financial Analyst (CFA), which is sponsored by the CFA Institute. The Charter is a worldwide professional designation to which securities professionals, especially those planning to be portfolio managers, should aspire. It is the most recognized and respected professional designation for investment professionals, according to CFA Institute. Unlike a lot of graduate degree programs in business and finance, the CFA designation is a self-study program that allows people to keep working while furthering their education.

  • Earn recognition and advanced responsibilities at work. Financial professionals who attain the title Portfolio Manager often have advanced educational credentials as well as a repertoire of work experience. Negotiate promotions and extended responsibilities when necessary, bearing in mind that you are your own best advocate when you climb the corporate ladder. However, with the long hours and extreme competitiveness comes a rewarding career in a field that is growing and is as diverse as the people who populate it.

References

  • Photo Credit Medioimages/Photodisc/Photodisc/Getty Images
Promoted By Zergnet

Comments

You May Also Like

  • Average Salaries for a Hedge Fund Manager

    Hedge fund managers have been described as many things, both positive and negative, but essentially they are simply investment managers who try...

  • How to Make a Photography Resume

    Your photography resume is a final product. The way you present it speaks volumes about your work ethic. Potential employers and clients...

  • How to Become a Money Manager

    Money managers serve the financial needs of individuals, financial institutions and groups such as pension funds. A money manager's job can be...

  • How to Be a Hedge Fund Manager

    Hedge funds are sometimes called "the new American Dream." The news reports on managers who make billions a year and because they're...

  • How Do I Become a Mutual Fund Manager?

    Mutual fund managers tend to be well-compensated, generally taking home a percentage of the fund's total assets. They frequently also receive an...

  • How to Become a Model Manager

    The most important part of being a model manager is letting the client know that they are always being fully supported. Learn...

  • How to Become a Manager

    To become a manager, it is important to first make absolutely sure that it is right for you. Find out if you...

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!