How to become a mutual fund manager

Is becoming a mutual fund manager right for me?

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Overview
What do mutual fund managers do?

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How to become a Mutual Fund Manager

Becoming a mutual fund manager typically requires a combination of education, experience, and professional certifications. Here is a snapshot of the pathway to the career:

Bachelor’s Degree
Mutual fund managers typically hold a Bachelor's Degree in Finance, Accounting, Economics, or a related field, such as business administration or international business.

Some mutual fund managers may hold a degree in a field such as engineering or mathematics, or computer science, especially if they specialize in quantitative investment analysis.

Work Experience
Mutual fund managers typically have several years of relevant work experience in the financial services industry, in roles such as analyst or portfolio manager.

Professional Organizations and Certifications
As the field of finance and asset management is constantly evolving, it is important to stay up to date with the latest technologies, industry developments, and best practices. Several industry organizations provide advocacy efforts, access to professional events, continuing education opportunities, and industry research and resources, as well as a network of like-minded professionals working in the field.

Many mutual fund managers hold professional certifications offered by these organizations, which demonstrate expertise in investment analysis and management, as well as a commitment to ongoing education and professional development. While they are voluntary, some companies may stipulate one or more of these certifications, described below, as a condition of employment, particularly in more senior roles.

  • Chartered Financial Analyst (CFA) – Offered by the CFA Institute, the CFA designation is a globally recognized certification program for investment professionals. It requires passing three levels of exams covering topics such as ethics, investment tools, portfolio management, and economics, and requires several years of work experience in investment management.
  • Certified Investment Management Analyst (CIMA) – The CIMA designation is offered by the Investment Management Consultants Association (IMCA). It requires passing an exam covering topics such as asset allocation, risk management, and investment strategies, as well as meeting other requirements such as work experience and education.
  • Chartered Alternative Investment Analyst (CAIA) – Offered by the Alternative Investment Management Association (AIMA), the CAIA designation is designed for professionals who specialize in alternative investments such as private equity, hedge funds, and real estate. It requires passing two levels of exams covering topics such as asset allocation, risk management, and alternative investment strategies.
  • Financial Risk Manager (FRM) – The FRM certification is awarded by the Global Association of Risk Professionals (GARP) and demonstrates expertise in risk management, including financial risk assessment, quantitative analysis, and risk mitigation strategies. The program consists of two levels of exams and requires candidates to have at least two years of relevant work experience.
  • Certified Private Equity Professional (CPEP) – Offered by the US Private Equity Council, the CPEP designation is a specialized certification focused on private equity. The program covers a range of topics related to private equity investing, including fundraising, deal sourcing, and portfolio management.
  • Investment Advisor Certified Compliance Professional (IACCP) – The IACCP designation is a professional certification for compliance professionals who work in the investment management industry. It requires completing a program of study and passing an exam covering compliance regulations, procedures, and best practices.

Networking
Building a network of contacts within the finance industry can be helpful when seeking employment as a mutual fund manager. This could involve attending industry events, joining professional organizations, and/or seeking out mentorship opportunities.

Advanced Education
While not always required, some employers may prefer candidates with an advanced degree, such as a Master of Business Administration (MBA) or Master of Finance (MFin). These programs can provide a deeper understanding of finance and investment principles and can be especially helpful for job seekers who want to specialize in a particular area of mutual funds, such as global funds or sector funds.