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Portfolio Manager

Description:

Portfolio managers work with a team of analysts and researchers, and are ultimately responsible for making the final investment decisions for a fund or asset management vehicle.

They can be called ‘Fund Managers’ or ‘Asset Managers’ depending upon the size of the asset/fund value. Their objective is to grow assets under management.

They may work for large asset management firms, or for small boutique fund management firms managing investment portfolios of stocks, bonds, mutual funds, and other investment vehicles for the clients.

Portfolio Managers can either start as Research Associates or Analysts.

Disclaimer_DILO:

Typical Day in The Life (DILO) or Work Schedule of someone pursuing that career.

This is a fictitious calendar and is meant to give an idea of the different tasks that the professional performs and different people that the professional needs to coordinate with.

This may differ from organization to organization and context.

Context DILO:

A portfolio manager working for a small boutique firm managing clients’ investment portfolios.

DILO, Day In The Life of:

Time Activity
6:00 am – 7:00 am Review research on different sectors and asset classes
8:00 am – 8:30 am Check the pre-market movers.
9:00 am – 10:00 am Keep monitoring the markets via alerts and text messages. Meeting with a client for portfolio review and financial planning.
10:00 am – 10:30 am Respond to emails
10:30 am – 11: 30 am Write an article for a business weekly.
11:30 am – 12:00 Noon Call with a reporter to discuss market movements.
12:00 pm – 12:30 pm Lunch
12:30 pm – 1:30 pm Respond to market movements by placing the trades
1:30 pm – 3:30 pm Meetings with clients to review the portfolio performance and to do financial planning.
3:30 pm – 4:00 pm Respond to E-mails.
4:00 pm – 5:00 pm Update retirement plan clients regarding what to do in their individual plans based on the models and risk tolerance
5:00 pm – 6:00 pm Write a commentary on Fed’s decision on rate hike for a news channel.

Career Ladder:

Exact career path or career ladder or career progression may change from organization to organization, but below is a typical path.

CareerLadderImage:

PortfolioManagerCareerLadder.jpg

Description For Certifications:

Links to Certifications or Credentials, that can also be identified as Professional Organizations that certify, can potentially help in climbing up the career ladder.

Professional Certifications or Credentials:

Certification Description Career Level Certifying Body
CFA The Chartered Financial Analyst® Entry Level/Expert/Professional CFA Institute
CPM ™ Chartered Portfolio Manager Program Expects working knowledge of Finance at graduate level at a minimum. GAFM ®
CMT Chartered Market Technician Minimum 3 years of relevant working experience MTA
CFP Certified Financial Planner ® Minimum of 3 years of relevant working experience CFP Board
CTFA Certified Trust and Financial Advisor® Experienced professional ICB

Description For Associations:

Links to Associations, that can also be identified as Professional Organizations that certify, can potentially help in climbing up the career ladder.

Professional Associations or Organizations:

Association Description More Info
IACPM International Association of Credit Portfolio Managers. IACPM
GAFM Global Academy of Finance & Management ® GAFM
ACPM Academy of Certified Portfolio Managers ACPM
ABA American Bankers Association ABA

Portfolio Manager Tools:

Links to a few Tools/Techniques (Also called Career Management Tools or Career Tools) and Methods (Also called Career Method Tools or Techniques) that the professionals in that career path tend to use, like this:

Tool Purpose More info
AIM AIM helps fund managers increase deal flow, improve efficiency, and demonstrate credibility to investors. AIM
FC PORTFOLIO FC Portfolio is solution for investment managers and accounting firms. It supports portfolio accounting, management and reporting tasks. FC Portfolio
IMS Investment Management System (IMS) is a portfolio-management and accounting solution that utilizes technology to deliver a solution for asset managers, mutual funds, insurance companies and pension plans. IMS

Portfolio Manager Methods:

Links to a few Methods (Also called Career Method Tools or Techniques) and Tools/Techniques (Also called Career Management Tools or Career Tools) that the professionals in that career path tend to use, like this:

Method Description
Active Asset Management It seeks to take advantage of the inefficiencies in the market
Passive Asset Management Is based on the belief that the markets are efficient and low cost investments held for long time can yield better results.

Portfolio Manager Experts:

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Accountant

Description:

Accountants prepare and examine financial records. They ensure that financial statements such as balance sheet, income statement and statement of cash flows are accurate and taxes are paid on time. Accountants can either work for an accounting firm or a large company or can set up individual practice and provide accounting services.

Accountants should have attention to details and should be good with numbers. Basic skills required for accountants: Accounting, Corporate Finance, Reporting Skills, Attention to Detail, Deadline-Oriented, and general math skills. Tend to have undergraduate and graduate degrees in Accounting, Commerce or Finance with a relevant certification like CPA/CA.

Disclaimer_DILO:

Typical Day in The Life (DILO) or Work Schedule of someone pursuing that career.

This is a fictitious calendar and is meant to give an idea of the different tasks that the professional performs and different people that the professional needs to coordinate with.

This may differ from organization to organization and context.

Context DILO:

Senior accountant having an individual practice.

DILO, Day In The Life of:

Time Activity
9:00 am – 9:30 am Arrive at office, check emails and respond to mails.
9:30 am – 11:00 am Review the financial statements for a large client prepared by a junior accountant and provide feedback.
11:00 am – 12:30 pm Call with a client regarding an ongoing tax audit and follow up discussion with the internal team on the next steps.
12:30 pm – 1:00 pm Lunch
2:30 pm – 3:30 pm Internal team meeting to review the client accounts to ensure that the targets are met and the issues are resolved.
3:30 pm – 5:00 pm Client call to review and advice on the investment limits and tax treatment of the same.
5:00 pm – 5:30 pm Review and edit a report prepared by a junior accountant regarding the impact of the new tax laws and prepare the weekly digest mail for the large clients.
5:30 pm – 6:30 pm Respond to the emails from the clients regarding the queries and new requests.

Career Ladder:

Exact career path or career ladder, i.e. career progression may change from organization to organization, but below is a typical path.

Career Ladder Image:

Accountant_CareerLadder

Description For Certifications:

Links to Certifications or Credentials, that can also be identified as Professional Organizations that certify, can potentially help in climbing up the career ladder.

Professional Certifications or Credentials:

Certification Description Career Level Certifying Body
CIMA Certificate Chartered Institute of Management Accountants Certificate Entry Level CIMA
CA The Chartered Accountant Entry Level/Expert/Professional ICAI
CMA Certified Management Accountant Entry Level/Expert/Professional IMA
CPA Certified Public Accountants Entry Level/Professional AICPA

Description For Associations:

Links to Associations, that can also be identified as Professional Organizations that certify, can potentially help in climbing up the career ladder.

Professional Associations or Organizations:

Association Description More Info
IMA Association for Accountants and Financial Professionals in Business IMA
IAA India Accounting Association IAA
AICPA American Institute of CPA’s AICPA
IAAP International Association of Accounting Professional IAAP

Accountant Tools:

Links to a few Tools/Techniques (Also called Career Management Tools or Career Tools) and Methods (Also called Career Method Tools or Techniques) that the professionals in that career path tend to use, like this:

Tool Purpose More info
QuickBooks Accounting software for small businesses. QuickBooks
Kashflow Kashflow presents information clearly and the fact that it enables direct filing of VAT is one of its strongest points. Many small setups find tax filing a challenge, but with Kashflow this can be effortlessly done without exiting the application. Kashflow
Xero For an accountant who needs to maximize on team work, Xero can be a very helpful tool. The tool enables easy access and sharing of data, and bank accounts can be connected without difficulty. Xero
Designwoop DesignWoop is feature rich, and this probably explains why it is liked by accountants. The tool can be accessed on both the computer and on mobile gadgets and with this, accountants can easily post journal entries. Designwoop
Outright For a business that requires basic accounting such as a sole proprietorship, Outright can work pretty well. The software helps you manage what you are receiving and spending and gives you a clear picture of your business finances. In addition, an accountant can use this tool to determine what a business owes in terms of taxes. Outright

Accountant Methods:

Links to a few Methods (Also called Career Method Tools or Techniques) and Tools/Techniques (Also called Career Management Tools or Career Tools) that the professionals in that career path tend to use, like this:

Method Description
Cash-basis Accounting In cash-basis accounting, companies record expenses in financial accounts when the cash is actually laid out, and they book revenue when they actually receive cash.
Accrual Accounting If a company uses accrual accounting, it records revenue when the actual transaction is completed (such as the completion of work specified in a contract agreement between the company and its customer), not when it receives the cash. That is, the company records revenue when it earns it, even if the customer hasn’t paid yet.

Accountant Experts:


Financial Analyst

Description:

Financial Anaysts help people decide how to invest their money. There are various other terms such as securities analyst, research analyst, equity analyst or investment analyst which are used for financial analyst. Financial analysts can work in different roles in different organizations. They can work for brokerage firms either as buy side or sell side analysts or they can work for large organizations supporting senior management with financial analysis including explanations of variances to forecast, plan, and prior periods and other ad hoc analysis as requested.

Education and Skills:

Aspiring Financial Analysts are expected to be good in math and should have an aptitude for numbers and number crunching. Degree in Business Administration, Accounting, Finance or Statistics is desired. The CFA program offered by ICFAI can be done either full time or part time depending upon the time and interest.

Disclaimer_DILO:

Typical Day in The Life (DILO) or Work Schedule of someone pursuing that career.

This is a fictitious calendar and is meant to give an idea of the different tasks that the professional performs and different people that the professional needs to coordinate with.

This may differ from organization to organization and context.

DILO, Day In The Life of:

Time Activity
8:30 am – 9:30 am Arrive at work. Check emails. Internal group meeting to review the status and plan for the quarter closing.
9:30 am – 11:00 am Conduct month end financial statement analysis. Identify and communicate financial issues to the senior management.
11:00 am – 12:30 pm Prepare research note in advance of earnings release. Review junior analysts work and provide feedback.
12:30 pm – 1:00 pm Lunch with colleagues.
1:00 pm – 3:00 pm Analyze business and operations financial data. Prepare and analyze actual vs. plan (Revenues, expenses and earnings) and identify the reasons for variance. Generate monthly variances report.
3:00 pm – 4:00 pm Review prior quarter’s earnings call transcripts and make notes for the upcoming earnings release.
4:00 pm – 5:00 pm Contact senior management to clarify the questions regarding the upcoming earnings release. Assign a junior analyst to assist with coordination of the annual plan and monthly forecast cycles.
5:00 pm – 6:30 pm Prepare and review earnings report. Send the same to senior management for comments and clarifications.

Career Ladder:

Exact career path or career ladder, i.e. career progression may change from organization to organization, but below is a typical path.

Career Ladder Image:

FinancialAnalyst_CareerLadder.jpg

Description For Certifications:

Links to Certifications or Credentials, that can also be identified as Professional Organizations that certify, can potentially help in climbing up the career ladder.

Professional Certifications or Credentials:

Certification Description Career Level Certifying Body
OHFM Oracle Hyperion Financial Management 11 Specialist Certification intermediate-level Oracle
CFA The Chartered Financial Analyst® Entry Level/Expert/Professional CFA Institute
FRM Financial Risk Management Entry Level/Expert/Professional NYU School of Professional Studies

Description For Associations:

Links to Associations, that can also be identified as Professional Organizations that certify, can potentially help in climbing up the career ladder.

Professional Associations or Organizations:

Association Description More Info
CFA CFA Institute CFA
AFP Association for Financial Professionals AFP
EFFAS The European Federation of Financial Analysts Societies EFFAS
GFAM Global Academy of Finance & Management GFAM

Financial Analyst Tools:

Links to a few Tools/Techniques (Also called Career Management Tools or Career Tools) and Methods (Also called Career Method Tools or Techniques) that the professionals in that career path tend to use, like this:

Tool Purpose More info
Engagement CS Engagement CS is comprehensive tax workflow and accounting audit management software available. Engagement CS
Financial statement analysis Financial statement analysis can be referred as a process of understanding the risk and profitability of a company by analyzing reported financial info, especially annual and quarterly reports. Financial Statement Analysis
Adaptive Reporting With Adaptive Reporting you can manage all of your reporting needs both online and across Microsoft Office. Adaptive Reporting

Financial Analyst Methods:

Links to a few Methods (Also called Career Method Tools or Techniques) and Tools/Techniques (Also called Career Management Tools or Career Tools) that the professionals in that career path tend to use, like this:

Method Description
1. Ratio Analysis Ratio analysis is the analysis of the interrelationship between two financial figures.
2. Cash Flow Analysis Cash flow analysis is the analysis of the change in the cash position during a period.
3. Comparative Financial Statements Comparative financial statement isanalysis of financial statements of the company for two years or of the two companies of similar types.
4. Trend Analysis Trend analysis is the analysis of the trend of the financial ratios of the company over the years.
5. Sensitivity Analysis Sensitivity analysis is simply the method for determining how sensitive our NPV analysis is to changes in our variable assumptions.
6. Scenario Analysis Scenario analysis takes sensitivity analysis a step further. Rather than just looking at the sensitivity of our NPV analysis to changes in our variable assumptions, scenario analysis also looks at the probability distribution of the variables.
7.Monte Carlo Simulation Monte Carlo simulation is considered to be the “best” method of sensitivity analysis. It comes up with infinite calculations (expected values) given a number of constraints.

Financial Analyst Experts:


Auditor

Description:

Auditors like their accountant counter parts deal with financial statements. However, their focus is primarily on reviewing the accounts and financial statements and ensure the validity and legality of the same.They can also act in an advisory role to recommend possible risk aversion measures and cost savings.

Financial auditors either can work for the government in taxes department or work for large organizations as independent auditors or work as private consultants.

Degree in Accounting, Math, Business or Finance is usually required. Some jobs may prefer certifications such as CPA or CIA. Should have strong aptitude for math, numbers and expected to show meticulous attention to detail.

Disclaimer_DILO:

Typical Day in The Life (DILO) or Work Schedule of someone pursuing that career.

This is a fictitious calendar and is meant to give an idea of the different tasks that the professional performs and different people that the professional needs to coordinate with.

This may differ from organization to organization and context.

DILO, Day In The Life of:

Time Task
8:30 am – 9: 00 am Arrive at work. Respond to emails
9:00 am – 11:00 am Audit the expense reports submitted by the sales department. Discussion with a senior auditor about issuing clarification on the upper limits for client visit expenses.
11:00 am – 1:00 pm Review the financial statements of the services division. Prepare audit report.
1:00 pm – 1:30 pm Lunch break
1:30 pm – 2:30 pm Review the draft contract with a vendor for a new IT system and email the opinion to the IT head.
2:30 pm – 3:30 pm Attend an internal training program on fraud investigation
3:30 pm – 5:30 pm Respond to an audit request from the procurement division. Meeting with the representatives from the procurement division to understand the scope of the requested audit. Prepare a draft schedule and estimate the hours to be budgeted for the proposed audit and submit the same to a senior auditor for review and approval.

Career Ladder:

Exact career path or career ladder, i.e. career progression may change from organization to organization, but below is a typical path.

CareerLadder Image:

AuditorCareerLadder

Description For Certifications:

Links to Certifications or Credentials, that can also be identified as Professional Organizations that certify, can potentially help in climbing up the career ladder.

Professional Certifications or Credentials:

Certification Description Career Level Certifying Body
CIA Certified Internal Auditor Entry Level/Expert/Professional IIA
CFSA Certified Financial Services Auditor Professional IIA
CISA Certified Information Systems Auditor Entry Level/Expert/Professional ISACA

Description For Associations:

Links to Associations, that can also be identified as Professional Organizations that certify, can potentially help in climbing up the career ladder.

Professional Associations or Organizations:

Association Description More Info
IIA Institute of Internal Auditors IIA
AICPA American Institute of Certified Public Accountants AICPA
ASWA American Society of Women Accountants AICPA
AAA American Accounting Association AAA

Auditor Tools:

Links to a few Tools/Techniques (Also called Career Management Tools or Career Tools) and Methods (Also called Career Method Tools or Techniques) that the professionals in that career path tend to use, like this:
Tool Purpose More info
Government Auditing Standards (Yellow Book) Tools and Aids This is a collection of Practice Aids and tools designed to help auditors maintain or improve the quality of their Yellow Book audit engagements. Government Standards
Flowcharts and Illustrations This is a collection of flowcharts and illustrations to help members with various aspects of governmental auditing. Flowchart and Illustrations

Auditor Methods:

Links to a few Methods (Also called Career Method Tools or Techniques) and Tools/Techniques (Also called Career Management Tools or Career Tools) that the professionals in that career path tend to use, like this:

Method Description
CAPA Corrective and Preventive Action.
CAATTs ‘Computer-assisted audit tools and techniques, is the practice of analyzing large volumes of data looking for anomalies

Auditor Experts: