A fund manager is a job that is highly coveted, but varied in terms of stress levels, responsibilities and influence. If you have been looking at becoming a fund manager, there are a lot of things that you will need to look into first. Consider the following suggestions on what to know about being a fund manager to get you started.
Be Prepared for a Decade of Education After High School
You cannot just receive your high school diploma and expect to get a position as a fund manager. Unfortunately, there is a lot that goes into fund management, and one of the big things is a ton of education. To be a good fund manager, you will need at least eight to ten years of education in subjects such as finance and investments. If you want to make even more money and widen your management net, you have the option of taking additional certifications. This is not a job for people who want to immediately enter the workforce, and it will be grueling to get to where you want to be.
The Competition is Stiff
If you are looking to start from the bottom and work your way up to fund manager, you will have to go head to head with a lot of competitors that come from various backgrounds. Due to the nature of the job, there are a lot more people who either inherited the businesses and have access to trade secrets that nobody else can get due to the advantage of nepotism, or they come from ivy league schools. For instance, Christopher Sarofim graduated from Princeton and was picked up by Goldman Sachs before eventually working for his father’s company. For you to be going up against such strong players will take a lot of grit and a lot of work so you do not fall off the radar of potential employers.
It Cannot Just Be About the Money
Though fund managers make a lot of money and you would pretty much be set if you became a successful fund manager, the money cannot be your only focus. Fund managers are entrusted with the money of real people living real lives, and sometimes things can get tough. To become a truly successful fund manager, you have to have the passion for helping people. The subject of personal finances is a sensitive one in most households, and most of that information is kept guarded by potential clients. You have to show that you are earnest about wanting to help them and show that you are capable of taking good care of their finances before they will even think about allowing you to help them.
You also have to be prepared to work a lot of hours. Fund management is one of those jobs that takes up the majority of one’s life while trying to masquerade as a normal nine to five. If you have a spouse or a family, you will need to prepare them ahead of time so any potential tension can be cut off at the start, or at least reduced.
The Responsibility is Indescribable
As previously stated, you are working with the hard-earned money of real people. They allowed themselves to be financially vulnerable with you and have put their trust in you to manage their funds in a way that benefits everyone across the board. If you make a huge mistake with that money, you are automatically held responsible. While different employers have different rules, there will be consequences for everyone involved. You may not receive your management fee, cutting into your income. Your clients will lose money, which might make them reconsider doing business with you and your employer, which will then result in even more of a loss after they go do business with someone else.
Being a fund manager can be an incredibly rewarding experience, but you need to know what you are doing and be prepared to struggle a bit. Keep this article in mind and hopefully you will find yourself in a fund management position before long.