About

The hedge fund industry employs some of the most paid business professionals across the world, but getting into it is not a cakewalk. A solid competitive streak is needed to break into this field. They are investment funds that raise capital from investors and then invest it in various financial assets. Their revenue comes from a management fee (a small percentage of assets under management), and a performance fee (a percentage of their annual returns). The top roles are within the investment and trading division of a hedge fund.

Education

Training

in Investment Banking, Equity Research or related work

Master's

MBA in Finance

Master's

in Economics, Statistics, Quantitative Finance or a related field

Certification

CFA, CAIA

Ph.d

Any quantitative discipline

Skills Required

Quantitative Aptitude
Consistency
Accuracy
Financial Modeling

Job Prospects

  • Portfolio Manager
  • Risk Analyst
  • Sales and Trading
  • Quantitative Developer
  • Legal Compliance Manager

Salary / Annum

600,000

Fresher

1,500,000

Average

3,200,000

Experienced

Cities Data


Jobs Outlook

  • Being a highly competitive industry, one should be clear about their interest in the public markets to grow in a hedge fund.
  • The pay is attractive and only increases if one is an overachiever with bonuses in the range of 100%-200% for analysts.
  • The downside lies in the long working hours, stressful job roles, and a lack of good exit options from the industry.
  • The top hedge funds in India had a return of 6.45% in 2020 compared to the -26% by Nifty 50 which highlights the success of hedge funds even during a pandemic.

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