Individuals who want to advance their financial careers may wish to become portfolio managers. While doing so takes time and effort, it is an excellent way to move up the ladder. To pursue this career, individuals need analytical and personal skills to work with analysts and clients. This work involves creating financial goals and monitoring assets to boost client portfolios.
The Role of a Portfolio Manager
A portfolio manager oversees clients’ investment portfolios, including securities and other investment products. Managers may work for insurance companies, wealth management firms, or hedge funds and may take on many roles within the securities industry. The portfolio manager might oversee a team of analysts who conduct research and advise clients on their financial plans. The portfolio manager makes buy-and-sell decisions and reviews investment mixes to ensure they remain profitable.
Becoming a Portfolio Manager
Most portfolio managers begin their careers as financial or investment analysts. They learn about the investment decision-making process and gain skills before moving on. When ready to take on a new role, they may enroll in the Certified SAFe Lean Portfolio Manager course or pursue certification as chartered financial analysts. For many, this is the last step in their career progression. Other individuals, however, choose to take on senior leadership roles or start firms.
Portfolio Management Skills
Portfolio managers need excellent communication skills and investment expertise to succeed in this field. They’re tasked with overseeing investment strategies and creating financial forecasts; these skills help them do so. Furthermore, they are asked to mitigate risk while measuring the performance of portfolios. When portfolios perform poorly, the managers must adjust to fulfill their clients’ financial goals.
Portfolio Manager EArnings
The United States Bureau of Labor Statistics reports that financial managers made a median wage of $156,100 in May 2023. individuals in the top 10% of this field brought in more than $239,200; the lowest 10% brought home less than $82,870. This is significantly more than the median pay for all workers. Managers remain in high demand, allowing individuals to have ample job opportunities.
Becoming a Portfolio Manager
To become a portfolio manager, one must take several steps. First, one needs a bachelor’s degree in accounting, business administration, or a related field. Obtaining a master’s degree is wise but not necessary. Internships help people get hired and learn more about the industry.
With a bachelor’s degree, a person can serve as a junior financial analyst before moving up in the field. Becoming licensed and pursuing certifications will help a person advance in the industry. Many people choose to get a certified financial planner designation, while others prefer to earn licensure through the financial industry regulatory authority. Everyone should network through professional organizations to connect with others in the industry.
As people advance in the industry, they may need to take additional steps. Many individuals in the field must be licensed through FINRA. This license is required if they work with certain types of assets. Before becoming licensed, the individual must pass a general knowledge exam regarding the securities industry and a Series 7 exam. A person can only sit for the Series 7 Exam if their employer sponsors them. Completing these exams allows them to register as a general securities representative. Furthermore, portfolio managers responsible for managing over $25 million must be registered with the Securities and Exchange Commission.
Many dream of pursuing a career as a portfolio manager. Understanding what is required to work in this field is essential. Learn more about this industry to see if this fits you.
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