We often come across phrases like money manager, investment manager, or portfolio manager. All of these managers are the investment managers or more accurately, investment management professionals. Governments regulate the activities correlated to investment management by means of Securities Legislation.
A proficient investment manager can work for some large and reputed financial institution. These financial establishments are insurance companies, banking companies, broking houses, third party investment service providers, etc.
Money management and investment planning for third party clients is termed as investment counseling. Only registered organizations can provide this type of service. The investment counselor must be licensed from a competent and accredited authority. Also, there are educational and experience requirements specific to this purpose.
When an investment manager manages portfolios without formal client approval, it is termed as discretionary management of money. This again requires some specific and robust skill set. A proficient investment manager who can manage a given portfolio independently must have some concrete market oriented investment policy. This testifies his knowledge and reliability.
In this segment of lucrative monetary markets, a specialization in the mutual fund is perhaps one of the most sought after. Actually, a clever investor hates delinquency. Hence, diversification becomes a preferred way of portfolio management. This diversification is abundant in mutual fund schemes. Both managers and their clients look for profitable mutual fund schemes.
In order to procure superior fund performance, diversification of invested money in correct proportions is always a coveted strategy. The investment manager has to have a decided knack in this subject. By alleviating market risks in this way, both the manager and the client become a winning economically active unit. Hence, companies specializing in the mutual fund segment possibly adore the investment management professional most.
Qualifications That an Investment Management Professional Must Have
All modern day world class business schools have incorporated assets management or investment management in their academic syllabi. Actually, most of the reputed business schools are rivaling each other in producing competent investment managers. The two celebrated and internationally revered accrediting agencies are ACBSP and AACSB. A qualification recognized by these agencies is industry standard and rather admired.
To be honest enough, a bachelor’s degree is not enough in this field. Internship under some competent authority matters a lot. In order to procure that, condensed and specialized training is necessary that would provide the student with a real time exposure. Higher education is an adorable alternative. A master’s degree is what one can go for. Students from finance, business, and economics backgrounds can catch the concepts rapidly in this field. The discussion will remain incomplete if the qualifications like those of CFMP and CFA are not mentioned contextually. These qualifications, awarded by Management Laboratory, can augment the novel manager a lot.
The real challenge is to create a risk-weighted, superior, and long term funds performance in the challenging markets of the contemporary world. An investment manager has to keep this in consideration all the time. Even, it has been seen that when the right talent is exposed to a real time market environment, formal qualifications are not absolutely required.