A specific kind of investment fund called a hedge fund uses a range of techniques and strategies to invest money raised from investors in various assets. Since the beginning of the twenty-first century, hedge funds have become one of the available investment options.
Hedge fund managers are responsible for raising capital and investing it for absolute returns. If their hedge funds perform well, their performance fees could be quite profitable. There are many businesses in India and abroad that hire hedge fund managers with a variety of abilities and experience. There is a growing need for experts in this field.
Chartered Financial Analyst (CFA)
The Chartered Financial Analyst (CFA) program is one of India’s most sought-after financial courses after graduation. The primary subjects covered in a CFA course are portfolio management, asset valuation, and similar subjects. It is a required course for students interested in investment management.
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Chartered Alternative Investment Analyst (CAIA)
There is also the Chartered Alternative Investment Analyst certification program for those seeking work in the hedge fund sector. The CAIA exam consists of two sections.
Financial Risk Manager (FRM) – fund indices
The Global Association of Risk Professionals (GARP), a US-based organization, provides the Financial Risk Manager (FRM) certification. Risk management experts’ primary responsibilities are analyzing and controlling potential market, credit, and liquidity risks.
Hedge Fund Roles
The hierarchy of positions in the hedge fund industry and career advancement opportunities will be covered in this section. The position regarded as entry-level in this industry is the junior analyst. With experience or promotions, a candidate may rise to the portfolio manager position. Let’s examine the following job descriptions:
Junior Analyst
- Roles and duties: Junior Analysts typically handle the majority of the work at a company, which includes finding new investment opportunities, generating leads, and monitoring the status of active funds.
- Work experience: Although this is an entry-level position in the industry, having an undergraduate degree and 1-2 years of relevant work experience is advantageous.
Analyst
- The duties of a Hedge Fund Analyst are more extensive than a Junior analyst. Creating financial models and investigating potential new investment opportunities are additional responsibilities of an analyst.
- Work experience: Most Junior Analysts are promoted to Analyst status after two to three years of employment.
Senior Analyst
Roles and responsibilities: A senior analyst’s responsibilities include monitoring and improving the performance of funds and analyzing the return on investment (ROI) of all active funds. Senior analysts need to think creatively and with a long-term perspective. Due to the frequent handling of client money, this position is hazardous and requires excellent concentration and seriousness.
Work experience: Candidates may be promoted to Senior Analyst after serving as an Analyst for 2-4 years.
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Portfolio Manager
- Roles and responsibilities: The majority of business decisions are made by a portfolio manager. The job description includes interacting with clients, raising money, managing risks, delegating work to staff members, and many other duties.
- Most portfolio managers have three to five years of senior analyst experience. But it varies from company to company.