blog Bonorum et Malorum

Role of a Fund Manager and How You Can Get Into It

Written by Fmi.Online

A fund manager is an investment professional responsible for investing and managing a company’s portfolio of funds. This can include mutual funds, pensions, hedge funds, equity funds and so on. 

Fund managers are typically classified as active or passive managers. Active managers are involved in buying, selling, and holding investments actively in order to outperform the fund’s stated benchmark or index. Passive managers, on the other hand, try to achieve the existing returns of the benchmark by applying the same weight to the funds they are managing. 

​​

How you can become a fund manager

A fund manager must have certain technical and transferable skills to excel at their job. Their role is highly analytical and strategic, hence, requires sharp thinking, attention to detail, superior communication skills, and a focused approach. If you are looking to work in the investment banking industry and have an interest in capital markets, you can consider becoming a fund manager. Here are some skills and qualifications that can help you along the way:

1. A background in finance, mathematics, or economics

An education in finance, accounting, mathematics or economics can give you the requisite background and knowledge to work in the IB sector. While this is not specific to becoming a fund manager, it will create your foundation for working in this industry. If your undergraduate education is not in one of these fields, you can take introductory online courses in finance to build your knowledge base. 

2. A knack for studying and tracking market trends

3. Financial Modelling

4. A niche

Fund managers have multiple options to choose from in terms of both the funds and their investment strategy. Examples of funds are small-cap, midcap, large-cap funds, funds for emerging markets, balanced funds, sectoral funds, and pure equity funds. As an aspiring fund manager, you should direct your interest and time towards one or two categories of funds and advance your knowledge in those. This will help you become a specialist in the chosen niche. 

Conclusion

If you’re looking to become a fund manager, you can gain significantly by starting early and regularly keeping pace with how markets operate. This is a highly skilled role, which requires special training and a financial analysis acumen. A finance or related education is highly recommended. Further, 

  • a real-time understanding of how markets function either through an internship or job or simulations, 
  • learning financial modelling, and
  • choosing a niche can set you apart and prepare you well for the role of a fund manager. 

More Articles

Asset Management

The Art of Cracking Technical Interviews for an Asset Management Role at Top Banks

Asset management is the practice of studying, acquiring, and trading investments with an aim of increasing total wealth over time. The sector offers lucrative opportunities with sizable salaries for you to pursue. Asset managers are often referred as portfolio managers or financial advisors as they perform this service for their clients. Asset management companies are […]

Read more
Asset Management

Top 5 Asset Management Career Paths and How to Get Into Them

In an era of wealth preservation, product innovation, and creation of alternative asset classes, asset management (AMC) is emerging as a promising career path. The global asset management industry is estimated to grow and reach a value of over a trillion dollars, $1,113 billion, by 2028, growing at a CAGR of over 23% for 6 […]

Read more

What maketh an Analyst?

Last August, I got the chance to mentor a student based in Singapore and he’s waiting for his graduation. We started on which type of career he wants, and I asked him about his background. Fortunately, he was trading Foreign Exchange.  It’s a good thing that he already understands Technical Analysis, and we got connected […]

Read more

3 Ways Finance Simulations Can Help You Acquire Skills and Knowledge Quickly

If you have tried working with any aspects of financial markets, be it professionally or by investing in stocks, you would know that this field isn’t the easiest to understand theoretically. What you need is to learn by doing. This is possible through finance simulations.  These are mockups of a financial concept, created using mathematical […]

Read more

Understanding the Difference Between Tangible and Intangible Assets

An asset is something of value which is owned by a company. For companies, assets can be classified in different ways. For example, assets owned by a company can be current assets or non-current assets. Another way to classify assets are as tangible assets and intangible assets. This second way of classifying assets is the […]

Read more
Investment Banking

Sell side Vs Buy side

We often hear roles described as either “sell side” or “buy side.” This article aims to demystify the language around these terms and explain specific roles on the sell-side.

Read more
Our Courses are designed to boost your career

Launch your career with Fmi’s Learning Pathway

Choose a learning pathway that best meets your needs and ambitions. Not sure which Fmi learning pathway is right for you? Explore our CareerBuddy videos for help and advice.

Investment banking pathway

Investment banking pathway

Monthly Subscription
  • courses-clock60+ hours
  • courses-desktop9 courses

Investment banking offers many exciting career opportunities for students. From Financial Analysts to Investment Management, and Sales & Trading to a wide range of roles in infrastructure such as IT, Risk or Compliance. This pathway is designed to help you understand the investment banking industry, the roles investment banks are recruiting for, and most importantly, help you to develop the practical skills you need to get into the industry and your preferred role whether this be as part of a school leaver, intern or graduate program.

FMI Online Student join-student-img2 FMI Online Student
55,000+ students currently enrolled
Global markets pathway

Global markets pathway

Monthly Subscription
  • courses-clock70+ hours
  • courses-desktop10 courses

Global markets provide a range of important products and services to corporates, institutions and governments worldwide from executing trades and managing risk to providing quality research content. A key business area in all investment banks, global markets offers a wide range of career paths for students to consider across all functions and at all levels from school leavers to internships through to graduate programs.

FMI Online Student join-student-img2 FMI Online Student
85,000+ students currently enrolled
Asset management pathway

Asset management pathway

Monthly Subscription
  • courses-clock50+ hours
  • courses-desktop8 courses

The asset management industry is a global industry worth over 100 trillion US dollars. It plays a crucial role in managing the assets of retail and institutional investors, offering a wide range of exciting careers in doing so. If you’re looking to forge a career in asset management, our Asset management pathway is perfect for you. We help you build the skills all asset managers are looking for and explore everything you need to know about the industry and the wide range of roles available in the sector

FMI Online Student join-student-img2 FMI Online Student
100,000+ students currently enrolled