Hedge Fund Career Path in India

Last Updated On -09 Jan 2025

Hedge funds as a career path in India seem like investment vehicles that combine high potential profits, complicated investment methods, and hefty expenses. They raise capital from rich investors and invest it in a variety of assets, frequently employing tactics not available to regular mutual funds. Unlike mutual funds, which seek relative returns by outperforming a benchmark index, hedge funds seek absolute returns - which means they strive to generate positive returns regardless of market conditions.

The hedge fund career path in India is expanding steadily and has become quite popular. There's an increasing demand for experts from hedge funds. In this blog, we will discuss all this in detail starting with Who is a Hedge Fund Manager?

Who is a Hedge Fund Manager?

A hedge fund manager in India is someone who is responsible for overseeing a hedge fund's operations and duties. A hedge fund, like a mutual fund, pools investors' money but typically carries a larger risk and, as a result, a bigger payoff for investors.

As a result, hedge funds are usually subject to fewer Securities and Exchange Commission (SEC) restrictions than mutual funds and are frequently limited to major firms or rich individuals. This makes the job of a hedge fund manager crucial.

What are the roles of a Hedge Fund Manager?

Given below are some of these roles:

Consistent market research to manage investment risk.
Managing a team of analysts, traders, and accountants.
Conducting impactful investments for each portfolio with the fund.
Reporting success and losses to clients and corporations
Advising clients on key investment possibilities
The hedge fund manager is responsible for directing the fund's operations.
They make decisions about the fund's portfolio composition and manage its operations on a daily basis.
In regards to finance, hedge fund managers are well compensated, but they also face significant pressure due to the high risk of the portfolios they manage.

Hedge fund managers typically require vital financial skills and an in-depth knowledge of the market in order to make effective decisions and increase hedge fund profitability.

What are the Skills Required for a Hedge Fund Career?

You already know from the introductory paragraph what a hedge fund is all about. In order to start a hedge fund career path in India, you need to first acquire certain characteristics or skills.

Some of these skills are listed below:

High intelligence
Credibility
Competitiveness
Strong expertise in the field.
Consistent and accurate
Expertise in finance and investment
Financial Modeling Skills
Excellent quantitative and legal capabilities.

Aside from these, you have to sense the financial markets, detect changes, and respond accordingly. Credibility is a vital trait to have when dealing with an extensive amount of money from the public.

While it offers rewarding career prospects, if you're seeking a broader scope in finance, consider pursuing the ACCA (Association of Chartered Certified Accountants) qualification. ACCA is globally recognized and offers diverse opportunities in accounting, finance, and business.

If you are ready to embark on this journey, explore our ACCA course for comprehensive preparation.

What are the Professional Requirements to Become a Hedge Fund Manager?

Candidates interested in pursuing a successful career in finance can choose from a variety of professional courses and fill in the requirements. Hedge fund management also falls under the category of finance, although there are only a few courses available in this sector.

Let's have a look at the various professional courses that can help with-

Chartered Financial Analyst

CFA is one of India's most popular finance degrees after graduation. The CFA course focuses on investment instruments, asset appraisal, portfolio management, and the like. It is a popular course among students who want to learn about investment management.

Duration:

The duration of this training is approximately 2-3 years.

Eligibility Criteria:

A bachelor's degree from any reputable university is sufficient to qualify for this course. Candidates in their final year of undergraduate study may also apply.

Alternatively, a period of four thousand hours of appropriate job experience completed in a minimum of 36 months certifies candidates for the CFA program.

Chartered Alternative Investment Analyst

This is another certification course for hedge fund roles. The CAIA examination is divided into two parts, with each part lasting for four hours.

Duration:

The duration of this training is approximately one year. The CAIA Association administers both levels of tests twice a year.

Eligibility Criteria:

A bachelor's degree from a reputable university and more than a year of full-time working experience in regulatory, banking, or similar sectors are required to apply for this course.

Financial Risk Manager

The FRM credential is offered by the Global Association of Risk Professionals (GARP), based in the United States. Risk management experts are largely responsible for assessing and managing potential liquidity, credit, and market risks.

Duration:

The course lasts between two and three years.

Eligibility Criteria:

This course requires a bachelor's degree and two years of relevant job experience.

The courses listed above can help you stand out in the extremely competitive banking profession.

What is the Salary of a Hedge Fund Manager?

Hedge fund manager salary in India can vary due to a number of factors, including experience, fund performance, and location.

The average hedge fund manager salary is ₹4.5 lakhs per year, which can go to ₹ 13.1 lakhs per year. Top achievers and those with vast expertise can earn a lot more.

Many investors today choose to diversify their investment portfolios with hedge funds. As a result, there is a significant need for hedge fund managers and other associated experts. Furthermore, people interested in a career in finance are drawn to hedge fund professions because of the attractive salaries they provide. So, if you enjoy working in challenging jobs, this is definitely for you.

Frequently Asked Questions: (FAQs)

Hedge funds or mutual funds, which is better for ordinary investors?

Hedge funds and mutual funds are quite different in terms of accessibility. Mutual funds are often better suited for ordinary investors due to lower minimum investment amounts and lower risk levels.

Is it difficult to get into hedge funds?

As a Hedge Fund Manager, you are responsible for a large amount of money known as AUM. Companies like to recruit experienced professionals. However, anyone with the necessary abilities, experience in related industries, and certification can work as a Junior Analyst.

Which credential is ideal for hedge funds?

The finest degrees for working in this industry are Chartered Financial Analyst (CFA), Chartered Alternative Investment Analyst (CAIA), and Financial Risk Manager (FRM).

What exactly should investors be aware of regarding Indian hedge funds?

Hedge funds in India demand a minimum investment of ₹1 crore. As a result, they are only available to accredited investors, which include wealthy people and institutional investors. Furthermore, they pose major risks.