Portfolio Managers - Investment Banking, Financial Markets and Institutions - Notes | Study Financial Markets and Institutions - B Com

A portfolio manager is one who helps an individual invest in the best available investment plans for guaranteed returns in the future.

Let us go through some roles and responsibilities of a Portfolio manager:

• A portfolio manager plays a pivotal role in deciding the best investment plan for an individual as per his income, age as well as ability to undertake risks. Investment is essential for every earning individual. One must keep aside some amount of his/her income for tough times. Unavoidable circumstances might arise anytime and one needs to have sufficient funds to overcome the same.

   

• A portfolio manager is responsible for making an individual aware of the various investment tools available in the market and benefits associated with each plan. Make an individual realize why he actually needs to invest and which plan would be the best for him.

   

• A portfolio manager is responsible for designing customized investment solutions for the clients. No two individuals can have the same financial needs. It is essential for the portfolio manager to first analyze the background of his client. Know an individual’s earnings and his capacity to invest. Sit with your client and understand his financial needs and requirement.

   

• A portfolio manager must keep himself abreast with the latest changes in the financial market. Suggest the best plan for your client with minimum risks involved and maximum returns. Make him understand the investment plans and the risks involved with each plan in a jargon free language. A portfolio manager must be transparent with individuals. Read out the terms and conditions and never hide anything from any of your clients. Be honest to your client for a long term relationship.

   

• A portfolio manager ought to be unbiased and a thorough professional. Don’t always look for your commissions or money. It is your responsibility to guide your client and help him choose the best investment plan. A portfolio manager must design tailor made investment solutions for individuals which guarantee maximum returns and benefits within a stipulated time frame. It is the portfolio manager’s duty to suggest the individual where to invest and where not to invest? Keep a check on the market fluctuations and guide the individual accordingly.

   

• A portfolio manager needs to be a good decision maker. He should be prompt enough to finalize the best financial plan for an individual and invest on his behalf.

   

• Communicate with your client on a regular basis. A portfolio manager plays a major role in setting financial goal of an individual. Be accessible to your clients. Never ignore them. Remember you have the responsibility of putting their hard earned money into something which would benefit them in the long run.

   

• Be patient with your clients. You might need to meet them twice or even thrice to explain them all the investment plans, benefits, maturity period, terms and conditions, risks involved and so on. Don’t ever get hyper with them.

   

• Never sign any important document on your client’s behalf. Never pressurize your client for any plan. It is his money and he has all the rights to select the best plan for himself.