SEARCH FOR IDEAS...

Let's stay in touch!

Close Search

Money Manager Business Idea

Learning how to become a money manager can be a great business opportunity if you have the rare skill for identifying intelligent investment opportunities among the thousands of market possibilities. Accomplished investment consultants guide clients through the ups and downs of the financial markets with the goal of reducing risks while maximizing returns. Money managers devise successful investment strategies for clients who invest in stocks, bonds, commodities, or real estate.

Investing and making a profit is never a sure thing. Markets are in a constant state of flux, rising and falling as a result of financial, news, economic and emotional drivers. It’s the job of the professional money manager to provide clients with the best possible investment portfolio for success, in spite of the inherent market fluctuations and risks.

How to Become a Money Manager

Financial markets are constantly changing. If you have a background in financial planning, learning how to become a money manager is a credible next step. Consider the following questions as you consider getting started in this field:

  • As a professional, will you specialize in one area of financial investments?
  • Do you prefer working with corporate or individual investors?
  • Do you have the necessary knowledge and skills to guide clients in their investments or will you need more experience and success stories?
  • Do you have the ability to work closely with clients when handling setbacks as well as successes?

As a professional money manager, your primary responsibilities will include:

  • Meeting with clients to learn about their investment goals
  • Developing fund portfolios based on consistent goals across your clients
  • Buying and selling investments that make up your funds
  • Tracking performance and adjusting positions accordingly to minimize risk
  • Contacting clients on a regular basis
  • Staying in-tune with regulatory requirements and ensuring compliance
  • Staying abreast of financial market news
  • Networking with other financial industry experts
  • Advertising your services in investing trade journals and other channels

Getting Started as a Money Manager

Managing financial investments takes a great deal of knowledge and expertise. Learning how to become a money manager requires an education and a professional money management background. Most money managers possess at least one business or financial management degree, such as an MBA. To enhance your money management background, consider training and certification with the American Academy of Financial Management (AAFM) and the CFA Institute. Chartered Risk Analyst (CRA) and Chartered Portfolio Manager (CPM) certifications are also available.

Learning how to become a money manager, opening for business, and building a portfolio of successful accounts takes time. As your record of successes grows, so will your client base. In the beginning, emphasize your training and certifications. Consider offering new customers discounts or free services. Involve yourself in financial management seminars, network, and make full use of the traditional advertising methods. Become known as a money management expert.

Keys for Success

No financial expert is right 100% of the time. Even the most talented money managers are often wrong in their prediction of market direction. The talents they share, however, is their ability to make more money than they lose (as opposed to being right more than wrong) and build substantial wealth by capitalizing on big market trends.

As you learn how to become a money manager, consider the following keys to success:

  • Stay on top of market and industry news. Changes constantly occur in the financial world. What looks good today may not look good tomorrow. Stay informed for the benefit of your clients.
  • Be decisive. With rapid changes in the financial outlook comes the need for rapid decision-making. For example, should you recommend that your client pull out of an investment due to new information? Weigh the advantages and disadvantages and proceed quickly. Cut losers short and let winners run.
  • Maintain constant contact with clients. You are advising clients about money, something that is extremely important to them. Keep clients in the loop about their financial situation. Return calls promptly. Nothing will cause more worry and doubt than a client not being able to reach you.
  • Remain ethical. Never engage in shady, sub-standard, or illegal practices. Treat the financial management of each of your clients as if it were your own. The successful client/money manager relationship is built on trust.

Expanding Your Money Manager Business

Once you’ve learned how to become a money manager and start to think about expanding your services you have several options to consider. A few growth ideas might be:

  • Teach money management classes and seminars
  • Write and sell money management books, courses or memberships
  • Branch out into new investments vehicles and markets
  • Expand the size of your firm by hiring other qualified money managers

No comments yet.

Leave a Comment