Career in fixed income

The spilt of assets under management (AUM) of the debt-oriented mutual funds is 55% institutional investors and 45% by individual investors. While equity-oriented funds are dominated by the retail/high net worth (HNI) investors by 87%, the liquid/money-market is dominated by institutional investors which use funds as cash management tools.  

Skills required for fixed income funds management

Roles available on the fixed income side are Chief Investment Officer (CIO), Fund Manager, Assistant Fund Manager, Trader, Junior Research Analyst. 

The technical investment skills required are –

Financial Modelling & Valuation, Being well-versed with all asset classes, Risk Management skills, Numeric abilities, Reading extensively, and keeping yourself updated about the financial industry. 

The soft skills required are – Communication, Negotiation, Listening, Co-ordinating, Attention to Details, Work Ethics.  

The table shows the level of Hard & Soft skills required for Traders, Portfolio Manager, Research analysts. 

How hiring is done

The hiring pool in asset management is usually through lateral hiring of professionals with experience. While some asset management companies (AMCs) look at campus hiring from the leading B-schools, most hiring is through industry and employee references.  

The presentation then covered how to prepare for an interview including how to analyze the job and skill sets for the position. 

For example, candidates should research about the company, what kind of things are troubling the company. While preparing for the interview be solution-oriented. Be yourself, show confidence, and be open to learning new things. Be passionate about the job profile, the passion will drive you to learn more skills. 

The summary was prepared by Vishal Vaya based on the webinar by Dwijendra Srivastava CFA at CFA Institute. 

https://www.cfainstitute.org/research/multimedia/2020/career-insights-fixed-income-fund-management-in-india

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