How to become a portfolio manager

Is becoming a portfolio manager right for me?

The first step to choosing a career is to make sure you are actually willing to commit to pursuing the career. You don’t want to waste your time doing something you don’t want to do. If you’re new here, you should read about:

Overview
What do portfolio managers do?

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How to become a Portfolio Manager

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

Bachelor’s Degree
Portfolio managers typically hold a Bachelor's Degree in Finance, Accounting, Economics, or a related field, such as business administration or international business. Some portfolio 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
Aspiring portfolio managers usually need to gain relevant work experience in finance or investment management. This could involve working as a financial analyst, stock trader, or in another related role.

Professional Organizations and Certifications
As the field of finance and portfolio 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 portfolio managers hold professional certifications offered by these organizations, which demonstrate expertise in investment analysis and portfolio 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) – 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.

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

Advanced Education
While not always required, pursuing an advanced degree such as a Master of Business Administration (MBA) or Master of Finance (MFin) can be helpful when seeking employment as a portfolio manager.

Online Resources
There are several online resources available for portfolio managers to stay up-to-date with the latest industry trends, news, and research. Here are some examples:

  • Financial Times - The Financial Times provides news and analysis on global financial markets, economics, and business. It offers a wealth of information and insights that can help portfolio managers make informed investment decisions.
  • Morningstar - Morningstar is a leading provider of independent investment research, including mutual fund and ETF analysis, stock ratings, and portfolio tools. Portfolio managers can use this platform to research investment opportunities and track the performance of their portfolios.
  • CFA Institute - The CFA Institute offers a range of educational resources and professional development opportunities for portfolio managers. This includes online courses, webinars, and research publications that cover topics such as ethics, investment analysis, and portfolio management.
  • Bloomberg - Bloomberg is a comprehensive financial platform that provides real-time market data, news, and analysis. Portfolio managers can use Bloomberg's tools to monitor market trends, research companies, and analyze investment opportunities.
  • Investopedia - Investopedia is a popular online resource for financial education and information. It offers a wide range of articles, tutorials, and videos on topics such as portfolio management, asset allocation, and risk management.