Introduction:
Once the private players kick off their operations from September, the total headcount of analysts at all levels will be around 500. Depending on the government’s policies and growth rate of the industry, the demand for professionals is likely to rise at around 25-30 per cent annually. Currently, investment avenues for pension funds are restricted to central and state government securities, special deposit schemes, bonds of public sector undertakings and public sector financial institutions, and certificates of deposit with banks. Experts think that the plan to have multiple fund managers for the scheme will help generate higher returns and bring about greater professionalism. This is a very specialised domain and only the best and the brightest operate here.
Overview about Job prospects:
This is an exciting opportunity up for grabs in the financial services sector. The recent decision of the Employees’ Provident Fund Organisation (EPFO) to open fund management to three private sector fund managers—HSBC AMC (Asset Management Company), ICICI Prudential and Reliance Capital—has promised to deliver more jobs for fund managers and research analysts. Fund managers are in demand typically; pension funds invest long-term contractual savings in various financial instruments. As directed by EPFO, fund managers will not be able to invest in stocks. However, there is a proposal to allow fund managers to invest in equity
instruments as an option, thus, reducing the burden on the exchequer. The number of equity and debt researchers required by fund houses will largely depend on the government guidelines on the investment patterns. Until now, the state-run State Bank of India has solely managed EPFs, but the government now wants to foster competition and ensure higher returns for its 43 million subscribers. “Initially, the EPFO will ask the fund managers to manage the incremental deposits only.
Career Path: Research Analyst, Fund Manager, and Chief Investment Officer
Who’s hiring: Reliance Capital, ICICI Prudential, HSBC and SBI
Who’re they hiring?
1. Chartered Accountants (CAs),
2. Chartered Financial Analysts (CFAs), and
3. MBAs, preferably in Finance
At what levels:
· Junior Research Analyst,
· Research Analyst (over three years of work experience),
· Senior Research Analyst (5-6 years of work experience),
· Fund Managers (over 10 years work experience), and
· Chief Investment Officer (15 or more years of work experience)
Basic skills required:
· Graduation
· MBA (Finance) or Chartered Accountancy degree or Certified Financial Analyst
Remuneration:
Research Analysts can expect to start their career with a remuneration of about Rs.3-6 lakh per annum.
