Fund Managers

“What I find very interesting about the mutual funds managers is that here are people who are the new masters of the universe. They're managing billions, yet they're subject to this quiet daily tyranny of numbers.”  -  Ron Chernow


Fund Managers are professionals responsible for managing the finances of an individual or an organization. They usually do this by investing their client’s money in different types of ‘Funds’. In India, Fund Managers primarily deal in the ‘Mutual Funds’ market. A Mutual Fund is nothing but a jointly owned pool of money that is used by the owner/manager of the Mutual Fund to invest in other securities like debentures, bonds and securities. The profit earned from these investments is then divided amongst the people who have invested in the Mutual Fund. Mutual Funds charge a commission for providing their services. Fund Managers aim to make investments that will be financially profitable for their clients.

It is a well paying career that offers massive opportunities for growth. Fund Managers are generally hired by Investment Firms and Insurance Companies.

What do Fund Managers do?

Fund Managers are responsible for creating and managing a portfolio of investment options that can offer lucrative returns to their investors. Their reputation depends on how well their fund performs and how much profit does it make for its clients. They usually earn money by charging a commission on their dealings and profits.

One of the main functions of a Fund Manager is to constantly research the market and be aware of the dynamic world of finance. This helps Fund Managers spot opportunities to invest, and also predict future losses. They have to use their analytical and forecasting skills to study the market so as to be able to make sound financial decisions. They are also involved in Equity Research.

Fund Managers regularly deal with clients and potential clients who would be willing to invest in the fund. It is their duty to understand the needs and objectives of the client and then determine whether a particular Mutual Fund will be suitable for that client or not. This understanding of the objectives of the client helps Fund Managers satisfy clients and keep them happy through the required returns.

Fund Managers are also involved in the process of marketing their funds to potential clients and investors. This is an important part of their job as they need people to invest in the Mutual Fund to make it successful. However, it is important for a Fund Manager to only persuade those clients to invest in the fund who will actually benefit from it.

Risk Management forms a very vital part of the job of a Fund Manager. It is important for Fund Managers to protect the finances of their investors and ensure that there is minimum loss, if any. Fund Managers use various strategies and methods to ensure this such as investing in different types of securities rather than similar ones so that if there is a loss in one investment, the other can cover up for it.

The main part of a Fund Manager’s job is to decide where and how to invest the money that has been invested by his/her clients in the Mutual Fund. There various types of securities that Fund Managers invest in, such as stocks, debentures, bonds etc. It is this knowledge of knowing where and when to invest that makes Fund Managers very important in the world of finance.

Fund Managers are responsible for communicating all the important information regarding the Mutual Fund to the client, including potential risks. They also look after the documentation process and make sure that it takes place as per the regulations and rules.

Another important aspect of the job of Fund Managers is to keep coming up with new ideas for Mutual Funds that will attract investors and be beneficial for them. They have to think of new policies and schemes that will help them make profits and help the Investment Firm earn money as well.

Find out about the Top 7 Careers in Finance.

How to become a Fund Manager?

You normally start off at entry level positions and then move on to become a Fund Manager with experience.

To become a Fund Manager, you need to focus on your studies, especially subjects like Math and English. Once you complete your 10th, you should choose the Commerce stream and study Economics, Finance, Business Studies, Management and Accountancy in detail.

After your schooling, you will need to pursue a Bachelor’s in Commerce or Business administration from a reputed institute. However, you can become a Fund Manager with a Bachelor’s degree in other fields such as engineering as well.

For your Master’s program, you have two options. If you choose to study in India, you can pursue an M.B.A in Finance or a related field. However, this is not completely suitable as it will deal with aspects that are more management. Universities outside India (U.S. and U.K.) offer Master’s courses in Finance (M.S Finance), which is a much more suitable program if you want to become a Fund Manager. It will be helpful if you research about your program and see that it should offer sufficient knowledge about Equity research.

Find out more about Studying Abroad.

The job of a Fund Manager requires a lot of practical knowledge regarding how the financial market performs. This knowledge comes through experience. Therefore, it becomes necessary for an aspiring Fund Manager to gain as much experience as possible by working as an intern during your education period and then working in Entry level positions as a part of the Fund Management team.

Networking can help you achieve great heights of success as a Fund Manager. This is because most people put their faith in the abilities and reputation of the Fund Manager rather than the Mutual Fund. A good reputation developed through important contacts and good behavior will persuade people to believe in your knowledge and invest in your Mutual Fund.

Constant research and study of the financial markets is essential in order to become a Fund Manager. You will need to develop an interest in the world of finance from your school days itself. Study the stock market and other financial securities, try and analyze the rises and falls in these markets and research as much as you can about different companies. You will need to research like this for the rest of your career as a Fund Manager as it can be valuable while making important investing decisions.

Once you gain sufficient experience, you can also choose to open your own Investment Firm and work as a Mutual Fund Manager. You might require certain licenses to start this business. Once you obtain those licenses, you can use your forecasting and analytical skills as a Fund Manager to manage Mutual Funds and build a formidable reputation and career.


Though there are no specific programs in Fund Management or Finance in India, you can choose to pursue courses in Commerce, Economics and an M.B.A. in Finance. Colleges like the Shriram College of Commerce, Delhi and Loyola College, Chennai offer great B.Com courses. For your B.B.A course, the Symbiosis Center for Management Studies, Pune is a great option. For your M.B.A, any of the IIMs and F.M.S (Faculty of Management Studies), New Delhi are two great options.

What are the skills required to become a Fund Manager?

Fund Managers require exceptional financial, forecasting and analytical skills so that they can see opportunities and losses before they actually take place. This will help them make profitable transactions. They should also have great communication and interpersonal skills which will help them develop an effective relationship with their investors. Fund Managers need to be honest, hardworking and determined individuals who prioritize the financial health of their clients before anything else. They should have excellent numeric skills and should be able to judge market conditions so as to make profitable decisions. Fund Managers also need to have sufficient industry knowledge and experience which will help them in their investment decisions. Most importantly, Fund Managers should have the genuine desire to use their financial and analytical skills to benefit clients and help them earn profits.

Is this the right career for me?

The life of a Fund Manager is full of numbers, rates and fluctuations. The job involves constant learning and research as the world of finance is constantly changing. Fund Managers are required to work for long hours and their jobs can tend to be stressful due to the dynamic conditions and high risks involved. It is a career that comes with a high degree of responsibility as you are dealing with the funds that belong to other people. On the other hand, the job can be very well paying and is highly appreciated by investors if you manage to make them earn high profits.

It is a career that involves a lot of hard work and responsibility, and is not suitable for people who are not comfortable in dealing with numbers and constant research. However, it is a good career choice if your objective is to earn a lot of money and if the world of math, finance and stock markets fascinates you.

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