The career in portfolio management is regarded as one of the most desirable and rewarding careers in the financial industry. Portfolio managers are required to work in collaboration with a team of analysts and researchers. They are responsible for taking crucial decisions regarding making final investment decisions regarding various assets or securities.
A Portfolio manager usually has the exposure to diverse array of financial fields and project management scenarios.
The portfolio manager has to play diverse kinds of roles in the organisation. The position of a portfolio manager in an organisation depends on the following criteria:
Size of Fund: A portfolio manager may be assigned the responsibility of managing the assets for a comparatively small independent fund or big asset management institution. A portfolio manager is also accountable for managing the capital of a large business like bank or organization like college or university with huge donations.
A portfolio manager manages the assets for management institution with large sums of money while fund manager are responsible for managing the smaller fund assets. In cases, where a portfolio manager is assigned the tasks of managing the assets for a large business organization, he/she is called as a chief investment officer (CIO).
Type of Investment Vehicles: The management of the assets for the respective investment vehicle is the common task of various money managers. There is a wide range of investment vehicles comprising of commodity, hedge fund products, retail or mutual funds, high net worth investment pools, institutional funds, trust and pension funds, etc. Portfolio managers may also perform the asset management for equity or fixed-income investment vehicles. They may also specialize in one investment vehicle or multiple investment vehicles.
Investing Style: A portfolio manager may also specialise in various styles of investing apart from the specialization in equity or fixed income investing.
The range of investment styles incorporates the following.
· Hedging techniques
· Growth style of management
· Value style of management
· Small cap specialties
· Large cap specialties
· Domestic fund investing
· International fund investing
Roles and responsibilities of Portfolio Manager
A portfolio manager has a wide range of roles and responsibilities. He/she checks the status of dynamic financial markets and monitors the changes in the market economy. He/she should be aware of the various current events in the market and stay informed. A portfolio manager also engages in meeting with his or her analysts regularly for discussing the market developments and tracking the trends of applicable current events.
A day of a portfolio manager is governed by the beginning of the financial markets and they are among the first employees who come to the office in the morning. A portfolio manager also directs all the trades of fund or securities in the market by taking final decisions on the securities involved.
A portfolio manager has to work in team with his team members and analysts that conduct research on various securities. The final decisions are made by the portfolio manager after their recommendations about buying or selling of securities. In some cases, a portfolio manager communicates with the high-level investors or potential investors over the phone or by meeting them in person.