Wikipedia of Finance – Project Portfolio Manager Meaning, Role, Responsibilities, Requirement, how to become a Portfolio Manager, Project Portfolio Management, Project Portfolio Optimization

Portfolio Manager – Definition, Responsibilities, How to Become a Portfolio Manager


You may be confused on what is the meaning of portfolio manager, how to become a portfolio manager, what are the portfolio manager requirements or education qualification required for this position, what are the roles and responsibilities of a portfolio manager, examples of investment portfolio managers, what is a role of portfolio manager in project management, What is project portfolio management (PPM), what are project portfolio optimization (PPO) methods? In this chapter, we will discuss few of the answers for the questions.

Portfolio Manager:

A person who takes investment decisions for other individuals or a client or a person who deals with a financial services for portfolio management is known as portfolio manager. The roles and responsibility of portfolio manager is to make investment decision to the best of his knowledge and data provided by experts. He is responsible for fulfilling the investment objectives for their companies or clients.  Portfolio management is all about finding opportunities, treats when making investment decisions regarding equity, debts, mutual funds, derivatives or bonds and balancing the investment risk against performance returns.

This managers internally work with a group of experts and researchers, who are responsible for creating investment strategies, tricks and techniques, choosing suitable techniques and allotting investment in appropriate manner for an individual or an investment fund, portfolio management or asset management companies. Portfolio managers are given techniques, ideas for investment from inside experts. Their job is to filter the ideas and techniques and utilize their data to make decision regarding buying or selling of securities.

Portfolio Manager Responsibilities:

The roles and responsibilities of portfolio manager towards their clients / company or an organization are as follows:

  • Most critical role played by portfolio manager is to select the best investment option for an individual or a company according to its income, age and risk taking capabilities.
  • Portfolio Manager role includes communicating with their client on regular basis.
  • Portfolio manager responsibility includes designing of customized investment plans which can give performance returns comparatively better than other portfolio management companies.
  • He is also responsible of spreading aware about various different investment plans and opportunities available in the market to their clients.
  • A key responsibility of project manager is to keep himself updated the latest changes, opportunities or plans available in the financial markets.
  • Project manager responsibilities is also not to look after commission always. He is more liable toward giving maximum returns to their clients. So be patient and start slowly. If your client earn better than other, they will always follow your investment plans which can benefit you in long term.

Portfolio Manager Requirement:

There are lot of people who are looking for the answer of How to become a portfolio manager? Or what are the portfolio manager requirements? Here are some of the answers for your questions:

1. Education Requirement: A standard bachelor degree is good in-case of entry-level position for financial analyst. Employers mostly search for the candidates who have done their bachelor degree in the stream of finance, economics, statistics, mathematics and related courses.

If you want to apply for portfolio manager, you need to have master’s degree in either business administration or business finance. Such programs conduct advance courses on hedge funds, option pricing, asset management, bond valuation, etc.

2. Age Restriction: There is no age restriction to become a portfolio manager. Even you and I can apply for it with appropriate education qualification.

3. Opportunities and Growth: There are few bureau statistics in India which stats that position for financial analyst / portfolio manager in India is going to grow at 12% year on year from 2017 or 2018 financial year. Growth statistics stats that some of the portfolio managers with good experience are earning equivalent to Chartered Financial Analyst (CFA). There are some valuable positions where you require certification and licensing to deal with buying / selling of securities. You can then think of it, once you have good experience in this field.

Project Portfolio Management (PPM):

All the management decisions brought together in the form of processes, procedures, techniques, and methods utilized by portfolio managers and officers to examine proposed and current projects based on various key qualities are called as Project Portfolio Management.

Huge programs undergo through project portfolio management programs where they need to manage resources, time, budget, skills, etc. to accomplish the task. This programs are well prepared with frameworks for centralized management, risk mitigation, issues management and lot more. There are teams formed to resolve the issue. Firstly most suitable team is identified for resolution to meet the project and program deadlines.

Below teams are broadly identified for managing the task under project portfolio management, they are:

  • Asset Management.
  • Change Control Management.
  • Pipeline Management.
  • Risk Mitigation and Management.

Project Portfolio Optimization:

Once various teams are been formed, it is easy to identify the project portfolio optimization methods, techniques, terms and conditions while taking the best decisions. There are four essential phases of project portfolio optimization, they are:

Phase-1: Project Analysis and Planning.

Phase-2: Project Selection or Discarding.

Phase-3: Assessment and Resources allocation.

Phase-4: Final Project Execution.

After effect of undergoing through this phases, project portfolio management will able to choose the project to be funded. Also to choose the most ideal choices under various conditions.

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