Portfolio management has become a popular field as the economy is continuing to grow and allowing individuals and businesses to become more active in the market. Portfolio managers are just one of several professionals trained in finance and money. To be successful at managing portfolios, the individual or business must have the knowledge and skill to balance risk against performance, match investments with objectives, determine strengths and weaknesses and make appropriates recommendations and investments. Learn more this career right here.
What is Portfolio Management?
The answer to this question can actually be found in the title. It’s all about managing portfolios for an individual or a business in an attempt to help them make money. If an individual or couple needs some assistance in meeting their personal financial goals, they may often choose a portfolio manager to help them. Portfolio managers study investment opportunities and weigh the potential risks against the opportunities for growth and make recommendations to their clients. Portfolio managers can have very rewarding careers because, let’s face it, helping others realize their dreams and earn money can be extremely satisfying.
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What Jobs Are Available?
Working in this field can be accomplished through several avenues. There are several careers that fall under the title of portfolio managers. One example is a financial analyst. Financial analysts are also under the category of portfolio managers. They both follow, study and analyze the market and make financial investment recommendations. The U.S. News & World Report ranks financial analysts No. 15 among best business jobs, No. 16 among best STEM jobs and No. 74 among 100 best jobs. Here are some other examples of jobs that can be considered as portfolio managers.
- Financial controller
- Financial manager
- Personal financial analysts
- Securities, commodities and financial services agents
How to Become a Portfolio Manager
A portfolio manager seldom goes directly from college right to becoming a portfolio manager. He or she usually work their way up the ladder through both education and experience. It usually starts with college. Aspiring portfolio managers should have at least a bachelor’s degree in finance, accounting, economics or related fields. The individual will generally gain some experience working as a financial analyst or financial manager and work his or her way up to portfolio manager.
Once a candidate becomes a portfolio manager, he or she typically choose an area of specialization or asset class, such as fixed income, equities, high-yield bonds, stocks or blockchain-related startups. Generally, the more knowledge the portfolio manager has in the various investment types, the more successful he or she will be on the job. CNN Money ranks portfolio managers No. 12 among the best jobs.
Career Outlook
Portfolio managers have a good career outlook. CNN Money reported that they could expect a job growth of 30 percent for the next decade. They also listed the median annual pay for portfolio managers at $110,000 and the top pay at $215,000. The U.S. Bureau of Labor Statistics reports that financial analysts and financial managers could see employment growth of 11 percent and 19 percent, respectively.
Whether it’s an individual saving for retirement or a large corporation trying to remain profitable, it all comes down to managing a portfolio in a way that will make its revenue and profits increase. Individuals who want the satisfaction of knowing they’ve helped someone else make money often choose to work in the area of portfolio management.