How do I Become a Fund Manager?

You can become a fund manager by majoring in business, economics or finance at the university level. Most financial careers require individuals to earn a bachelor’s degree, with many positions requiring a master’s degree. Upon obtaining employment in the industry, you can become a fund manager by assisting another investment manager while you learn the ins and outs of the business. Ultimately, in order to become a fund manager, you must be willing to work long hours, demonstrate proficiency in fund investing and obtain a reputation within the industry that will assist in you in applying for an available position as either a mutual fund manager or hedge fund manager.

It is important to be proficient in math as well as business if you intend to become a fund manager. Managers must have a good understanding of the business world, as well as the financial world to be successful in fund investing. When applying at a company interested in hiring a new investment manager, you must be able to show a strong business background, in addition to your financial training.

Depending on where you work and what kind of funds you intend to specialize in overseeing, a license may be required before you can become a fund manager. For instance, a mutual fund manager generally oversees different stocks currently trading in the market. If you plan to become a fund manager in the United States, a Series 7 license is required before you can become a mutual fund manager.

If you plan to become a hedge fund manager, however, a license may or may not be required. A hedge fund is essentially an investment vehicle that covers an investor or hedges the investor against a risk, hence the name. If you plan to become a fund manager over this type of vehicle, a license may be needed if you will manage stocks, but may not be needed if the fund consists of other types of investments. If needed, a license is generally acquired by individuals after completing a college degree and may even be earned while working in the industry. A license helps demonstrate your competency in a variety of financial areas and, in particular, illustrates your understanding of various investment vehicles, strategies, terms and laws.

In order to become a fund manager, you must also have a personality that can work well with other people. You should be confident speaking to executives as well as investors and be able to clearly explain investment objectives to them. It is also important to maintain a good reputation within the financial industry and to always conduct business in an ethical fashion.