Strong quantitative skills and an ability to think analytically are expected to be present in professionals associated with the finance sector. However, in addition to these skills, financial analysts working with institutional investors are expected to be excellent communicators with the ability to adapt and demonstrate flexibility with multiple priorities while functioning as part of a team. This space looks out for talent with a fluid mindset and skill sets to disrupt and innovate.
Institutional investors can be mutual funds, insurance companies, foreign portfolio investors (FPIs), scheduled commercial banks, alternative investment funds or pension funds. They use their expertise, financial stability, and analytical skills to evaluate and invest in capital markets. Therefore, they are critical to market stability and efficient capital allocation.
Here is a list of skills much sought after in professionals in the financial analysis domain of the institutional investors sector, as per the ‘Institutional Investors Talent Trends and Insights’ report by CIEL Works, the tech-driven HR solutions provider.
The first among these is data analysis skills. Professionals in this space should be able to interpret and make sense of complex data sets.
They should have knowledge of financial modeling. In other words, they should be able to create models to assess and predict financial performance.
Next on the list of in-demand skills is knowledge of programming languages, including Python. These are essential for analysing data and for automation.
Mastery over Power BI is also sought after. This interactive data-visualisation software product is required to visualise and share insights in an effective manner.
Those playing the roles of fund managers, portfolio managers, and research analysts typically hold advanced degrees and certifications. A bachelor’s degree in finance, economics, business administration, or a related field from top tier colleges is a must for any entry-level position.
A significant 25 per cent of the professionals in this space possess a bachelor’s degree in engineering or tech (BE or BTech). This technical background equips them with the analytical and problem-solving skills that are a must in fund managers and research analysts in this sector.
A whopping 90 per cent professionals in this sector pursue advanced courses to add to their expertise. About 34 per cent of executives come from Tier 1 colleges, while a good 58 per cent possess an MBA. About 28 per cent of executives have obtained a chartered accountancy degree of CFA. Organisations hire or promote from within for 17 per cent of these roles (including fund managers, portfolio managers, and senior analysts), while 83 per cent are hired from outside. The majority (95 per cent) of these hires belong to the financial services industry.
Clearly the rapid growth of this sector is resulting in high demand for experienced and skilled professionals. Promotions come slowly, however, after the individual completes a significant time period in each role.
While women make up 27 per cent of the roles in the institutional investors sector, they occupy only 14 per cent of senior roles. Those in such positions usually have at least 15 years of experience.