A capital investment manager, also known as an investment manager, manages investment portfolios for companies or high net worth individuals. These managers are most often found managing mutual funds, which are diverse investment portfolios pooled together by different investors. Investment managers may also work for a commercial bank, an insurance company, or a trust company.
As an important member of the capital financial adviser team, a capital investment manager needs to have a notable educational and experiential background. The position requires higher education, with courses such as economics, finance, and business. After achieving a bachelor's degree, experience in a prestigious investment bank is usually the preferred position. Some may choose to gain experience in a smaller boutique firm. With three to four years of real world experience, the aspiring capital investment manager often obtains a Master of Business Administration (MBA) degree from a recognized graduate business school.
Training on the job is also required. Within the first two years of work experience, financial professionals such as investment managers are expected to take and pass the Certified Financial Analyst (CFA) exam. Passing the CFA exam solidifies their skills as an investment professional.
The goal of any capital investment manager is to grow the investment fund over time and make money for the investors. He or she does this by choosing high-growth stocks, securities, and other assets. Deciding on which assets will lead to an increase in capital over time requires a great deal of analysis and intuition backed by experience. A good capital investment manager is one who is able to determine which assets present the greatest opportunity for profit. Such investment managers are highly sought after by competing capital investment firms.
Representing those who invest in the fund is a significant part of what a capital investment manager does. Funds are owned by many different entities. They require singular supervision in order to represent all the interests tied to the fund. In some funds, shareholders have much leeway in how investments are made. For the rest of the funds, investment managers act as the key decision makers when it comes to investments.
Investment decisions are made by contemplating a variety of factors. Where to allocate assets is one such factor. The manager must choose whether stocks, bonds, real estate, or other securities are more appropriate for their investors. Researching the assets' long-term returns is also critical to determining whether the assets will be able to deliver in the future.