Portfolio Management Career

Portfolio Management Career Path

Portfolio management career relates to creating the investment portfolios for clients and manager is responsible for proper structure of assets and liabilities and making strategy for best investment returns and less risk where career in portfolio management is started by having proper knowledge of equity research and of financial analysis

Portfolio managers can be called investment managers, financial analysts, asset managers, wealth managers, etc. And they manage an entire gamut of funds and investments like hedge funds, mutual fundsMutual FundsA mutual fund is an investment fund that investors professionally manage by pooling money from multiple investors to initiate investment in securities individually held to provide greater diversification, long term gains and lower level of risks.read more, pension plans, investments with private companies, etc.

Now there are two aspects of the portfolio manager career. One aspect is the selling side, and another is facilitating the true analytical part of the investment. A professional who is truly a portfolio manager would be more focused on the analytical side of the investments than the selling side.

Portfolio Management Career

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Portfolio Manager Job Description

Portfolio manager job descriptions

source: indeed.com

In this section, we will look at the portfolio manager’s job description. Looking at these will give you a clear idea of whether this profile is right for you.

  • Purpose of Portfolio Manager Career: The actual purpose of portfolio managers is to help clients achieve their investment objectives. Portfolio managers work with both institutions and individual clients. The primary task of a portfolio manager is to sit with her client and understands what the client needs and then accordingly, allocates the funds to the right investment opportunities.
  • Investment Policy Statement (IPS): For portfolio managers, this one statement is quite important. An investment policy statement is a document that is created to serve the client of the portfolio manager. This statement also acts as a document articulated by the facilitation of both the manager and the client. In this document, the goals and investment objectives of the client are clearly mentioned, and it also contains the strategy of the portfolio manager, the risk toleranceRisk ToleranceRisk tolerance is the investors' potential and willingness to bear the uncertainties associated with their investment portfolios. It is influenced by multiple individual constraints like the investor's age, income, investment objective, responsibilities and financial condition.read more level, liquidity requirements, how the portfolio manager will allocate the funds to various investment opportunities, etc.
  • Technical Expertise: As you can already understand, without having a clear understanding of market conditions, it would be impossible for the portfolio manager to predict or suggest anything to her clients. That’s why if you would like to be a portfolio manager, your forte should be technical knowledge and a detailed understanding of the financial market.
  • Client Relationship: Last but not least, every portfolio manager should have great interpersonal and effective communication skills. The job of a portfolio manager career demands the manager to build a cordial relationship with the client so that the client trusts the portfolio manager. If the portfolio manager doesn’t have the ability to persuade the client to follow what she is recommending, the actual purpose won’t be served.

Portfolio Manager Educational Qualification

Portfolio manager education qualification

The first to make a portfolio manager career is to get a graduate degree in finance, economics, or business. But in the market of fierce competition, only a graduate degree won’t suffice. Every portfolio manager needs to know much more about the financial market than the company leaders to be able to persuade them to invest in the funds that the former sees fit.

That’s why every portfolio manager should go for CFA and FRM CFA And FRM CFA (Chartered Financial Analyst) certification exam prepares you well for careers in Investment Banking, Portfolio Management, Financial Research, whereas FRM (Financial risk management) certification exam is suited for those who want to make a career in Risk management in Banks, Treasury Department or in Risk Assessments.read morecertification. Both of these certifications are quite tough and need advanced expertise to clear. Plus, the portfolio managers need applicable FINRA (Financial Industry Regulatory Authority) licenses Series 7 and Series 66 under NASAA Uniform Combined State Law Examination, for buying & selling securities on behalf of clients and recommending investment opportunities, respectively.

Portfolio Manager Salary

There can be a wide range of portfolio managers’ salaries. And it completely depends on the firm’s place in the market, assets under management of the firm, and the investment opportunities they’re dealing with.

As per Payscale.com, the average salary of portfolio managers is $84,054 per annum. The range of salary is $51,000 to $141,000 per annum.

The portfolio manager can also earn a bonus of up to $25,000 per annum on average.


To make a portfolio manager career, first, you need to have a knack for the financial market. After getting a graduate degree in Finance, Economics, or Business, you can go for an internship or two in a reputed firm. Then the firm may absorb you as a full-time employee. Along with pursuing a full-time job, you should complete your CFA and FRM certification. Doing these certifications will help you stand out among portfolio managers, and you would be able to earn a much better compensation in the market.

This has been a guide to Portfolio Manager Career. Here we discuss the Portfolio Manager job description, required education qualifications as well as average salaries of Portfolio Managers. You may also have a look at the following articles to learn more about Asset management –