The Role of Investment Consultants
The role of Investment Consultants is a critical one for institutional investors. These professionals manage a vast amount of money, estimated at $30 trillion by 2020. While most people have little knowledge of this industry, these individuals play a significant role in the financial future of all Americans. Here are a few facts about this field. Mercer is the world’s largest consultant, with $11 trillion under advisement and $242 billion managed through its outsourced-CIO unit. Mercer’s investment consulting practice employs more than 1,300 people worldwide, including 135 research analysts.
Many firms hire Investment Consultants with an MSc in finance. But what is the average degree level of Investment Consultants? Getting hired at a top-ranked college requires years of experience and knowledge of the investment industry. Some companies seek out people with an MBA in finance, while others seek out individuals with a background in investment consulting. However, if you’re unable to find a top-ranked school, you may still have a good chance of getting a job at a top firm.
The education required for an Investment Consultant is extensive. An investment consultant needs a bachelor’s or graduate degree in finance or a related field. Depending on your experience, you can take additional coursework in investments, taxation, estate planning, and risk management. Obtaining a professional certification can also be beneficial, including a chartered financial analyst (CFA) or a certified financial planner (CFP). Most Investment Consultants are licensed with the Financial Industry Regulatory Authority, an independent regulator. The Securities and Exchange Commission, a government agency, oversees the activities of investment consultants.
The best investment consultants have completed graduate programs in finance, accounting, and law. While there are no specific minimum educational requirements for these positions, most consultants are employed by reputable firms that seek the services of graduates from top schools. For example, Merrill Co, AXA, and Fidelity Investments hire many Investment Consultants with a master’s degree. But the biggest factor for choosing a good consulting firm is the willingness to do the necessary research and educating yourself.
In addition to hiring a qualified investment consultant, it is essential to make sure that they are certified by the industry’s ethical standards. In addition to ensuring compliance with these standards, a consulting firm must have a net-zero rating. It must adhere to the Principles for Responsible Investment. Using a GIPS-certified asset manager ensures that the investment firm’s client’s interests are in the best interest of the fund’s clients.
Moreover, investment consultants should be well-versed in the world of investment. It is important to understand that the role of a consultant is crucial for a hedge fund. In fact, it is vital for the success of a hedge fund to be vetted by an expert. The consultant will help the fund choose a strategy that matches its objectives and ensures that it is profitable for both parties. Further, the Investment Consultant’s relationship with the fund’s clients will be mutually beneficial.