The art and science of selecting and managing a bucket of investments consisting of different assets which meet the needs of the client, company or institution for long-term financial objectives and risk tolerance is portfolio management. It is an integral part of any stock market institute in Noida.
A portfolio manager who has done stock market paid course online designs a tailor-made investment plan, invests on behalf of their clients and understands the basis of their financial needs on income and risks. Therefore, they are the most influential and wise people to consult when investing if one can’t attend best stock market courses.
This blog will explain the qualifications required to become a fund manager and advisor.
Who Are Portfolio Managers?
Portfolio managers are often called asset managers, investment counselors, or investment managers. SEBI norms state that any person under the arrangement in the form of a contract or advises firms or undertakes administration of clients’ funds on their behalf should register themselves as a portfolio manager from SEBI.
What are the types of Portfolio Managers?
- Discretionary Portfolio Manager: A portfolio manager is given complete control of the funds to be transformed into a portfolio. They are free to adopt any strategy. The higher involvement in decision-making justifies higher fees associated with discretionary portfolio management. It is one of the best options for clients with limited time, investing knowledge, and unwillingness to learn stock markets from best stock market courses in Delhi.
- Non-discretionary Portfolio Manager: This portfolio manager will only suggest investment ideas. At the same time, the investor will be responsible for choosing the recommendation and timing. They employ a role in advisory, as the decision rests with the investor instead of the portfolio manager.
- Growth Portfolio Manager: These managers are experts in the stock market and help clients to allocate funds among several securities or assets depending on the client’s risk tolerance. These professionals actively invest money in assets with high growth rates. However, they work for clients with higher risk tolerance and seek to generate a quick profit.
- Income Portfolio Manager: Here, these portfolio managers work towards providing a safe and decent investment return over a long period.
Who can apply for registration?
- LLP
- Company
Role of Portfolio Managers:
- Identification of the objectives and Constraints: To build a good investment portfolio, the investor has to discover all the objectives and goals by themselves. It provides decent return or appreciation on the invested capital, which can be done with the help of a portfolio manager. Risk assessment is also an analysis on the investors’ part, which one can easily do with stock market free webinar.
- Analyses of Capital Market: A company’s past performance and future expectations are analyzed to identify its track records for expected returns and associated risks.
- Strategic Asset Allocation: The manager allocates strategic assets to ensure less risk and good return. Securities are analyzed based on their price, risks attached to them, expected return, etc.
- Execution of Portfolio: After selecting securities, the next step is to manage the securities by investing, including the buying and selling of securities.
- Revision of Portfolio: After the execution, constant supervision regarding the portfolio returns to check if it is providing a good return on investment. Revision of portfolio means purchasing, selling or shifting stocks, bonds, mutual funds or Government Securities. This is also taught in stock market institute in Noida.
- Evaluation of Portfolio: It is important to constantly evaluate the financial market to provide a good return on investment, risk factors, and future projections of the company. It also includes an assessment of the advantages and disadvantages of the portfolio. It is also taught in Stock market paid course online.
Eligibility Criteria for Becoming a Portfolio Manager
To seek a Portfolio Manager license from SEBI, one needs to get registered with the authority first. The applicant must send a registration application to SEBI along with the required documents. After receiving the application, the regulatory board scrutinizes it on the following criteria to determine whether the applicant is eligible for registration:
- A corporate body must be the applicant. Individuals are restricted from applying for registration posts.
- The applicant must have the necessary infrastructure to support portfolio managers’ activities. The infrastructure includes necessary equipment, essential human resources, and office space.
- The principal officer of the applicant’s entity must possess any of the qualifications mentioned below:
1. At least ten years of experience in activities related to a portfolio manager, securities market, stockbroker, or fund manager.
2. CFA charter from CFA Institute.
3. A professional qualification earned from a recognized institution or university in accountancy, law, finance, and business management.
- The applicant must be fit and proper.
- The applicant’s objective should indicate their work to be in the general interest of the investors.
- The organization must have atleast two employees with a minimum of 5 years of experience in activities like stockbroking and fund/investment management.
- At least a net worth of Rs. 2 Cr
- The application will be considered rejected in the following cases:
1. If there is a past application from the same applicant that was rejected by the board earlier.
2. If the board has conducted disciplinary action against any person who has an indirect or direct connection with the applicant.
3. If PO or any other administrative officer from the applicant’s organization is involved in litigation.
4. Convicted or found guilty in any financial offense/s or anything that involves moral turpitude.
But if you want to avoid starting your entrepreneurial venture. But you want to take up a job as a portfolio manager. The average base salary is Rs 12,00,000, but as you get more experienced, or learn from Stock market paid course online, the salary goes up to Rs 36,00,000.
Some of the famous portfolio managers in India are
Here you can see the names of famous portfolio managers like Nimesh Shah, Prashant Jain and Rajeev Thakkar. This data is from 2016, so there can be some variations.
Suppose you want to get into the role of advisor. It is easier than becoming a portfolio manager.
Who is an Investment Advisor?
An Investment Adviser is any person engaged in providing investment advice relating to buying, selling or holding securities or any other investment product and also an investment portfolio containing investment products and securities.
Who can apply for registration?
• Individual
• Partnership Firm
• LLP
• Company
Education Qualification
An individual investment advisor should have the following minimum qualification at all times:
• A post-graduate degree, professional qualification, or post-graduate diploma (which shall be a minimum of two years in duration) in accountancy, finance, business management, commerce, economics, insurance, capital market, banking, or actuarial science from a university or an institution, which is recognized by the Central Government or any State Government, or which is recognized by a foreign university or institution or association.
or
• A professional qualification earned from completing a Post Graduate Program in the Securities Market. (Investment Advisory) from NISM of a duration not less than one year
or
• A professional qualification by obtaining a CFA Charter from the CFA Institute.
Experience
An investment advisor must have a minimum experience of five years in activities associated with advice in financial products, securities, funds, asset or portfolio management.
Certification
1) An individual investment adviser or principal officer of a non-individual investment adviser registered under SEBI (Investment Advisers) Regulations, 2013 and persons associated with investment advice are required to pass both levels to satisfy the requirements under SEBI (Investment Advisers) Regulations, 2013.
• NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination and
• NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination to fulfill the requirements under SEBI (Investment Advisers) Regulations, 2013.
Or
2) Any other organization or institution, including the Financial Planning Standards Board of India or any recognized stock exchange in India, provided such certification is accredited by NISM.
Net worth Requirement
| Category | Net worth |
| Individual | 5 Lakh |
| Non-Individual | 50 Lakh |
A Chartered Accountant shall obtain the net worth certificate and be attached to the form while applying with SEBI.
Infrastructure
Investment advisors should ensure adequate infrastructure, including office space, office equipment, furniture and fixtures, communication facilities, research capacity, and research software for undertaking investment advisory services.
But if you want to avoid starting your entrepreneurial venture. But you want to take up a job as an investment advisor. The average base salary is Rs 7,00,000, but as you get more experienced, the salary goes up to Rs 29,00,000.
We hope that this blog, will help you in taking the right career decision. Although, if you simply want to learn investing and trading for yourself, then its best to opt for one of Top 5 Online Stock Market Courses in India. A stock market courses online free with certificate isn’t sufficient tostart advising all by yourself.
