12 Steps How To Become A Portfolio Manager

(doylc.com) How to Become a Portfolio Manager - As a portfolio manager, also known as a financial analyst, you are responsible for supporting clients such as companies or individuals in making investment decisions. They research financial information, look for investment trends and try to predict the best investment for clients. However, before you can work in this field, you need to know how to become a portfolio manager.

• How To Get the Right Education A Portfolio Manager

1. Take advantage of internship opportunities. Start with your high school diploma, do an internship at a bank or investment company, or at least do a one-day internship. This will help ensure that you are genuinely interested in becoming a portfolio manager as you learn what the job entails.

2. Earn a bachelor's degree. Enter college or university and study a finance-related major such as finance, accounting, economics, or business administration. A bachelor's degree lasts four years.

Also, take a variety of science courses as you may be evaluating pharmaceutical, medical, chemical, and mining companies for your clients.

Mastering a foreign language will help you advance in your future career, especially if you speak Chinese, Russian, French, Spanish or Japanese.

3. Do an internship in the financial sector. Your college career center should help you find a semester internship or summer job. It's a great way to gain experience even if you're working for free.

4. Earn a master's degree in finance or business administration. Take classes in option pricing, asset management, and bond valuation. If you can get a job at a financial investment firm with a bachelor's degree, they may pay you to earn your master's degree part-time.

A master's degree takes about two to five years, depending on whether you study it part-time or full-time.

• How To Find First Job A Portfolio Manager

5. Find an entry-level financial analyst position. This could be at an investment bank or a portfolio management firm. A financial analyst position is the most common path to becoming a portfolio manager.

6. Look for employment opportunities. Use college careers employment centers, or search online job sites like Monster or Indeed, or check newspaper job ads. Schedule briefings with financial industry professionals to learn more about the positions.

During an informational interview, ask someone to tell you about their job and the training and experience required. This is different from an interview where you are applying for a job.

7. Write a great resume and cover letter. Include any work experience and internships you have had, even if not paid. Emphasize if you've implemented a new program, saved money for a company, or managed cash. In your cover letter, describe how your background and experience would relate to a position as a financial analyst, as well as your personal qualities such as drive, determination, attention to detail, ability to work in a team, etc.

8. Stand out in a job interview. Dress appropriately with a jacket and tie for men and a skirt and jacket for women. Offer a firm handshake and look the interviewer straight in the eye. Describe your personal qualities again and give examples from previous work experiences. Describe how your background would be a perfect match for a financial analyst position.

9. Join a professional association. One example is the International Association of Quantitative Finance (IAQF). Many professional organizations welcome student members and offer discounted rates. This will help you to network and you will get pointers to jobs and professional training.

• How To Progress In Career A Portfolio Manager

10. Complete the training programs required by employers. You must also pass your license exam, e.g. B. the Series 7, 63 or 66. You usually do not have to pay for the exam as employers sponsor the licenses.

You must be sponsored by a member of the Financial Industry Regulatory Authority or FINRA (formerly the National Association of Securities Dealers (NASD)) to sit the Series licensing exams.

11. Earn the Chartered Financial Analyst (CFA) designation. Offered by the Chartered Financial Analyst Institute, this will greatly enhance your career as a portfolio manager. You may also need a federal license if you sell securities.

To meet the admissions requirements for the CFA certificate, you must have a combination of formal post-secondary experience, such as B. a university degree, and work experience. You also have to pass three exams.

The exams cover subjects such as risk management, professional ethics, portfolio management and quantitative analysis.

To obtain a license to sell securities, you must be sponsored by a broker-dealer and study for many months before you can take the licensing exams.

12. Advancement to a position as portfolio manager. This requires several years of experience working with a company. If you can do a great job as a financial analyst by suggesting better ways to analyze data or find good companies to invest in, you have a good chance of getting promoted.

Other ways to advance in your career include showing initiative, volunteering for additional projects, working with or leading a team to design new programs, and choosing investments that generate good returns for clients.