Hedge Fund Career Path: Roles, Salaries & Progression

A hedge fund is a kind of investment fund in which capital is raised from investors and invested in different types of assets using multiple techniques and strategies. Hedge funds are one of the investment instruments available in the market and have become quite popular in the advent of the 21st century.

Hedge Fund Managers are responsible for raising money and investing it for absolute returns. If their hedge funds work well, they earn a good amount of money as their performance fees. Various companies in India and abroad hire Hedge Fund Managers with varying skills and expertise. There is a rising demand for experts in this field. 

This blog will discuss the best certification courses to become a Hedge Fund Manager, various job profiles, and hedge fund career salary. You can learn more about exciting career options in finance in our blog: Finance Professions That Have Great Demand Overseas.

Professional Certification Courses to Become a Hedge Fund Manager

There are various courses available for aspirants looking to build a thriving career in finance. Hedge fund management also falls in the purview of finance, but very few courses are helpful in this field. Let’s look at some professional courses one can opt for to become a Hedge Fund Manager:

1. Chartered Financial Analyst (CFA)

Chartered Financial Analyst (CFA) is one of India’s most sought-after finance courses after graduation. CFA course primarily deals with investment tools, asset valuation, portfolio management and the like. It is a go-to course for students with an inclination for investment management. 

• Duration: The duration of this course is about 2-3 years.
• Eligibility criteria: A bachelor’s degree from any renowned university is enough to be eligible for this course. Candidates in the final year of their undergraduate studies can also apply. Alternatively, 4000 hours of relevant work experience completed in at least 36 months also qualifies candidates for the CFA course.

2. Chartered Alternative Investment Analyst (CAIA)

Chartered Alternative Investment Analyst is another certification course for applying for positions related to hedge funds. The CAIA examination is held in two parts.

• Duration: The duration of this course is about one year. CAIA Association conducts both levels of exams twice a year.
• Eligibility criteria: A bachelor’s degree from any renowned university and more than one year of full-time professional experience within the regulatory, banking, or related fields is the minimum requirement to apply for this course.

3. Financial Risk Manager (FRM)

US-based Global Association of Risk Professionals (GARP) offers the Financial Risk Manager (FRM) certification. Risk management professionals are primarily involved in analysing and controlling potential liquidity, credit and market risks. 

• Duration: The duration of the course ranges from 2-3 years.
• Eligibility criteria: The eligibility criteria for this course is a bachelor’s degree and two years of relevant work experience.

The above courses can give you an edge over others in securing a role in the highly competitive finance industry. 

Hedge Fund Roles 

In this section, we will discuss the hierarchy of roles in the hedge fund industry and the hedge fund career growth across the job posts. The entry-level post in this field is that of a Junior Analyst. With experience or promotions, a candidate can go up to the post of Portfolio Manager. Let’s check out the job roles below:

1. Junior Analyst

• Roles and responsibilities: Junior Analysts tend to perform most of the work in a firm, including looking for new investment opportunities, monitoring the active funds status and generating new leads, among others.
• Work experience: Although this is an entry-level job in this industry, 1-2 years of relevant work experience and an undergraduate degree are advantageous.

2. Analyst

• Roles and responsibilities: Hedge Fund Analyst is a higher position than Junior Analyst. The job role of an Analyst includes evaluating existing funds, creating financial models and researching new investment opportunities.
• Work experience: Most Junior Analysts get the post of Analyst after working for 2-3 years.

3. Senior Analyst

• Roles and responsibilities: Senior Analyst’s job roles include monitoring and enhancing the performance of funds, pitching new ideas to clients and analysing the return on investment (ROI) of all the active funds. Senior Analysts must be far-sighted and creative with their approach. As they often handle clients’ money, this job is risky and requires a lot of attention and seriousness. 
• Work experience: Candidates can get promoted to Senior Analyst after working as an Analyst for 2-4 years.

4. Portfolio Manager

• Roles and responsibilities: A Portfolio Manager does most of the decision-making work for a company. The job profile includes communicating with clients, fundraising, risk management, delegating work to subordinates and many more.
• Work experience: Most Portfolio Managers possess 3-5 years experience as Senior Analysts. But it varies from company to company.

Salaries of Hedge Fund Managers 

The hedge fund career salary depends on several factors like job experience, skills, qualifications, the performance of the fund, job location and others. The average Hedge Fund Analysts’ salary in India is Rs. 4.5 LPA, which can go up to Rs. 13.1 LPA. In India, the average salary of a Portfolio Manager is about Rs. 11.05 LPA, which can go up to a whopping Rs. 30 LPA.  

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Wrapping Up

Many investors nowadays like to diversify their portfolios with hedge funds. As such, the demand for Hedge Fund Managers and related professionals is high. Moreover, people interested in a career in finance get drawn to hedge fund jobs for the lucrative salary packages they offer. So if you like to work in challenging roles, this career is definitely for you. 

Zell Education offers various globally recognised courses in finance and accounting, such as CFA. Check out these courses today and kickstart your dream career as a Hedge Fund Manager. You can also check out 8 Highest Paying Jobs in Finance – Top Skills Required to learn more about building a career in finance.

FAQ

Is hedge fund a good career?
A career in hedge funds is promising. There is immense scope for growth – financially and professionally.

What is the career path for a Hedge Fund Manager?
One can start their journey as a Junior Analyst and gradually become a Senior Analyst, Portfolio Manager and Senior Portfolio Manager.

Is it hard to get into hedge funds?

As a Hedge Fund Manager, one has to take care of lots of money as AUM. Thus, companies prefer to hire experienced professionals. But with the right skills, experience in similar sectors and certification, anyone can secure a job as a Junior Analyst.

What degree is best for hedge funds?

The best degrees which can help you in this industry are Chartered Financial Analyst (CFA), Chartered Alternative Investment Analyst (CAIA) and Financial Risk Manager (FRM).

Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.