INVESTMENT MANAGEMENT

One of the most important instruments of investment through stock market is the mutual funds. The companies or organizations which facilitate this type of investment are known as Asset Management Companies (AMCs). These AMCs are responsible for the investment made by investors and thereby MF agents are the key channels for apprising the large number of investors of options for investment. MF�s agents, distributors, bank employees handling Mutual Fund marketing have to be informed fund advisors.

Fund Managers are the people or experts who are responsible for managing the Asset Under Management (AUM) of any AMC which is contributed by the heavy amount of investment in equity and debt market. They not only manage the investment but also provide advice to their clients who may be institutional or individual. They have the responsibility to track the market returns and give good returns to their clients who have shown confidence in their expertise.

Simultaneously they keep on changing their capital structure i.e. debt-equity mix for balanced investment decisions. The criteria for becoming a fund manager depends upon the professional degree like MBA in finance and more important the inclination towards Mutual Fund risk-return analysis. Distributors are appointed by the AMCs who educate the investor sufficiently. Individuals form the largest segment in the distribution category. They perform critical role of marketing distribution channels and facilitate individuals to purchase some funds. Lead Managers are the functionaries who co-ordinate with intermediaries, campaign for the scheme and approach potential investors. Expert professionals having exposure to risk-return, a conceptual knowledge and practical skills are employed by these organisations. Dealers execute trades and usually act as intermediaries between the investors and the equity/debt markets. The dealers have to comply with all the formalities of sale and purchase. A person with a financial background, thorough understanding of stock market operations, communication skills and acumen can be a dealer.




There are some other positions available in stock market and its operations. These may be categorised into the fund accounting group, the custody group, the financial control group and the MIS and audit group.The fund accounting group calculates Net Asset Value of funds on a daily basis and maintains books. The custody group make a liaison with custodians appointed by the AMC. MFs buy and sell huge volumes of securities. The custodians appointed ensure the safe custody of these funds and ready availability. Therefore, the people are required to run these day to day operational activities.The skills, inclination and professional qualifications are very much desired. The Registrars, usually the agents process the applications and dispatch Unit certificates to unit holders within the Security and Exchange Board of India specified time-frames.



To regulate the capital market SEBI (Securities and Exchange Board of India) was constituted in 1992. As a regulator of stock market, mutual funds and derivatives, this body has expanded its business and operation which require professionals from varied backgrounds; finance, accounting, auditing, investment, credit rating, consultancy, mutual funds, law, derivatives products, etc. IRDA as a regulator of insurance business in India requires some investment experts for their valuable advises based on sound analysis of investment of their insurance products.

With the opening up of the insurance sector, private and foreign players have emerged on Indian insurance scene which also provides ample opportunities for professionals associated with investment management profession. Similarly, to advise the individual investors on their investment related to equity and debt based on respective ratings of the financial instruments, various credit rating agencies have been formed i.e. CRISIL, CARE, ICRA which are always in need of professionals in investment analysis such as; credit analysis, rating analysis, industry analysis, portfolio analysis, economic analysis, etc. CRISIL has started courses in financial planning for professionals too.



Investment/Financial analyst:Many business organisations and large pension fund firms usually require analysts to do the analytical work required before an investment is made. They provide advice on buying and selling of securities after analysing stocks, taking a view on their future outlook and circulating research internally. This is the entry level posting for bachelors degree holders. Work experience of 1-2 years as financial analyst, is an added advantage for applying to a top business school.

Investment manager/ portfolio manager: Investment manager should be a reservoir of knowledge about the market trends. Investment managers will rely heavily on the in-depth research done by analysts when deciding how to invest. They are responsible for investing clients' money in the most profitable ventures. Pension fund or money management firms hire portfolio managers to oversee investing for a group with specific investing aims.

Investment Advisory : They are the ones who provide investment advice, performance evaluation and quantitative analysis to the money management sector. They offer suggestions regarding where to invest money and when to sell securities. For this deep knowledge of financial market trends is necessary.

Portfolio Management Marketing: It is the marketing side in investment management. If you are mostly outgoing, knowledgeable and has excellent sales skill, then you might consider a sales position in portfolio management. Most companies usually want people who can make authoritative suggestions about their larger investments

Hedge Fund Principal/Trader: Hedge funds are private funds that involve large sums invested in currencies, bonds, stocks and the like. These funds hire analysts and traders and have exhibited rapid growth in recent years.

Securities brokers: They execute orders to buy and sell securities. Some act only as dealers while others are principally advisors. They work for both institutional clients and individuals. Their services are required by investment firms, pension funds, banks, insurance companies, etc.

Equity analyst: With the tremendous growth in the equity market scope for equity analysts is much more than earlier. Equity analysts are involved in continuous research of companies performance, financial management and risk return analysis of investment in equity shares.



Depositories are mainly the organisations responsible for recording, maintaining, authenticating and facilitating paperless trading of financial securities. These also act as clearing houses and provide services related to DMAT account and transactions clearance. Some of the depositories working in India are National Securities Depositories Ltd. (NSDL), Central Depositories Services Ltd. (CDSL) and Stock Holding Corporation of India (SHCIL). For running the business operations of such depositories CA/ICWAI/CS/CFA/MBA with some experience in stock exchanges, custodians, brokerage firms, banks and financial services companies from reputed institutes/universities are required.



Investment firms and institutions very much differ in the number of professionals they employ in the research and consultancy departments. Equity research can be a one man outfit or a department with a team of professionals drawn from diverse disciplines. Mutual Funds, FIIs, institutional investors, broking houses hire research specialists. Print and electronic media also offer opportunities for professionals� expert advice on stock investment and volatility.

Investment Management The following academic and personal prerequisites are essential for a career in investment management: Degree/diploma/course in investment management/stock market operations Knowledge of finance, business, mathematics, accounting, economics, computers Analytical ability and communication skills are very much expected. Acumen, interest and inclination towards investment market Knowledge of financial institutions, tax, financial planning,legal aspects of capital market Creative ability to take decisions based on sound analysis Zeal to learn latest development with persuasive traits and patience.

Investment management is quiet challenging yet a lucrative career option as well. Remuneration depends on the size and nature of the organization. A beginner can expect a salary between Rs10,000-Rs15,000 per month or more depending on the firm they work for. With experience you can expect a substantial increase in the remuneration.