As we all know, share markets are very volatile and one needs to dedicate considerable amount of time to keep a check on stock markets. One also needs relevant qualifications and experience to make an investment decision.
A portfolio manager is a person who takes care of all your investment needs. A person having the right blend of experience and qualification is designated as the portfolio manager in the asset management companies. They diversify your portfolio so that your investment can be secured against the frequent market fluctuations.
Top financial service companies pay great attention while hiring a portfolio manager. However, it will be useful for anyone to know some of the good qualities of an effective portfolio manager. Some of the qualities are:
Trustworthy - Make sure the person has a good reputation in the market. Nowadays it is easier to check their history and past records. You can also check with their current or previous clients about their performance and behavior. If you receive a positive review from them, you can make your final decision.
Consistency - The right way to invest sounds quite absurd when you talk about investments. Rather, look for someone who is more consistent and is unfazed by the ups and downs of market conditions. The more consistent the portfolio manager’s process, the better chances of a fund to perform well.
Diversification - A good portfolio manager is well aware of the volatility or the fluctuations of the stock market and diversifies the portfolio with different investment options such as funds, currency, bonds and gold. There are many more investment options. A diversified portfolio is well protected against the volatility as the money is invested into other options as well.
Investment Style - It is very important to know the investment style of your prospective portfolio manager. Whether it’s long term or value investing or its short term. The short term investments are quite risky and it’s often found that the portfolio managers who believe in short term investments are greedy sorts who can do anything for money. They might lose money and bring unethical practice. You can find many good portfolio managers who believe in long term investments.
Employment Record - A good employment record indicates that the person is competent enough to manage a successful portfolio. If a portfolio manager is associated or was associated with a reputed portfolio management company means the person has the necessary education, experience and the right skills. Top financial service companies always hire the best ones.
The task of choosing the right portfolio manager will be easier if you consider the above mentioned points.