Career in Investment Management
- The Safe Heaven of the Financial Market


By

Mr. Vinaychandra M. Mahendrakar
Founder and Chairman
IBMR Group of Institutes of India
Institute of Business Management & Research
Gurgaon
 


In today's increasingly competitive world, where various factors - political, economic, competitive, cultural or regulatory - constantly complicate an organization's environment, the demand for properly skilled managers, who understand the industry and have the energy and courage to tackle difficult situations, is constantly on the rise.

In a country like India, where the investment sector is taking the market by storm, being creative, analytical, a good salesperson and a great communicator may not be just enough. Another factor that adds to a successful manager's essential traits is proper knowledge of money and the market. This is because when one has up-to-date knowledge of finance, this enhances his analytical techniques, institutional practices, financial theory and practical applications, and allows him to make effective decisions on fiscal policies and strategy.

While various institutes across the globe have entered the race to create successful managers, very few people understand which candidate is apt for which specialization. For a person who enjoys following the financial markets, understands the trends of the market and constantly updates himself with the shares and stocks prices through various media, an MBA in Investment Management is just the right option.

Specially meant for those people, who believe in independent functioning, rational thinking and taking calculated risks from time to time, investment management broadly affects households from all around the world and yet, offers one of the most stabilized careers when compared to other areas of finance like investment banking and others. Also known as asset management, investment management deals with professional management of assets, securities and bonds in order to meet the investment objectives of various investors.  In other words, an asset manager seeks to generate income and grow capital for its clients.

Asset managers do not just work on retail and institutional clients but also on hedge funds, where outside capital is combined with capital of the partners of the fund, and this money is invested using complex and at times risky methods, in order to receive extraordinary profits. They are immune to the unpredictability of the market because they are generally paid a certain percentage of the total amount they handle, whether the investment results in profit or loss.

Globally, the investment management industry has grown by 10% over the last decade. The clients are generally charged around 1.5-2% of the privilege on retail and industry investments. Hedge funds generally charge 2% management fees and up to 20% performance fees. The best part of being an investment manager is that, in the long run, the fees increases with the growth of the market, but the cost of managing the funds does not; which implies higher returns on lesser cost. Investment management, therefore, has become an increasingly important part of the financial services.

Career prospects

Owing to the increasing importance of investment management, the demand for trained personnel in this field has been constantly on the rise. The work involves meeting with clients, liaising with clients for gathering information, often over the telephone, and researching (from financial media and briefings provided by investment analysts) in order to maintain a comprehensive understanding of investment markets.

Candidates with excellent skills in accounting and finance—especially those with a master's degree or certification—should enjoy the best job prospects. An understanding of complex financial instruments, derivatives, and international finance is important. Like other managerial occupations, excellent communication skills are also essential because financial managers have to explain and justify complex financial transactions.

Job Prospects

Investment managers work for organizations, like pension funds or insurance companies, where huge sums of money are invested. Asset management may also involve unit trusts or investment trusts, products bought by individuals, which involve smaller sums as compared to institutional funds.

As banks expand their range of products and services to include insurance, wealth management, and investment products, branch managers with knowledge in these areas will be needed. As a result, candidates with expertise in management and finance have more favorable prospects. Vacancies may also arise with specialist fund management companies, also known as investment management and asset management firms.

Remuneration

Investment management offers can be a rewarding option even to the newest entrants of the industry provided that his analytical and communicative skills are strong enough to not only impresses the clients but also to read the financial market trends. Generally, a minimum remuneration of Rs. 12,000/- to Rs.15,000/- can be expected in the beginning. As the person climbs up on the hierarchy ladder and with increased experience, the earnings tend to increase, since fees increases with time and costs do not. According to estimates, some asset managers increase their fees by double digits as well, even up to 15% a year.

Eligibility Criteria

Minimum qualification for admission is graduation in any stream or its equivalent. Those appearing for graduation final or equivalent examination can also appear in the entrance examination conducted by many institutes which also include group discussion (GD) and personal interviews.

Duration

A full-fledged MBA degree course in this field takes two years, inclusive of a short term of industrial training. But there are various colleges that also offer Post Graduate Diploma courses (PGDM) of the same duration.

Today, investment management companies are centering on more than mere investing. Business decisions such as marketing, distribution, global growth, and technology integration are increasingly becoming vital factors in the success of investment managers. Considering the vast scope for growth in this industry, a number of B-schools across the country have started offering Investment Management as a specialization in their MBA and PGDM programmes.

Some of the institutes that offer investment management as specialization in their MBA curriculum are listed below: 

Institute of Business Management & Research (IBMR),
D-14, Infocity-2, Sector-33,Near Hero Honda Chowk, (NCR),Gurgaon -122 001, Haryana
Tel. 0124-3220833 / 0124-3221833/ (M) 9311180833 / 9311180834
E-mail ID - mba.gurgaon@ibmrbschool.org Website - www.ibmrbscool.org

Sikkim Manipal University,
5th Mile, Tadong, Gangtok, Sikkim.737132
Tel. +91-3592-232041,
E-mail ID - smuinformation@smu.edu.in
Website - www.smu.edu.in

Punjab Technical University,
Ladowali Road, Jalandhar, Punjab
Tel. 0181-2244002, 2244005
E-mail ID - ptumail@ptu.ac.in
Website - www.ptu.ac.in

Institute of Science & Technology,
V.P.O. Klawad, Ambala-Jagadhri Road, Near Thana Chhapar, Distt. Yamuna Nagar, Haryana
Tel. 01735-260300, 01735-260301 / 302
E-mail ID - info@istk.org
Website - www.istk.org

Rajdhani Institute of Information & Technology,
Plot No: 1109,Satabdi Nagar, Near Delta Square, Bhubaneswar
Tel. 0674-6451205, 0674-2385672
E-mail ID - info@riit.org
Website - http://www.riit.org

Kurukshetra University,
Kurukshetra-136119, Haryana
Tel. 01744-238410, 238196
E-mail ID - kuru@doe.ernet.in
Website - www.kuk.ac.in
 


Mr. Vinaychandra M. Mahendrakar
Founder and Chairman
IBMR Group of Institutes of India
Institute of Business Management & Research
Gurgaon
 

Source: E-mail March 11, 2011

          

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