Qualities of a Good Portfolio Manager

Qualities of a Good Portfolio Manager

Not all of us have the luxury to oversee our investments all the time. We got our lives to run outside the world of investing. Therefore, we got to have some help from a reliable person, which in this case is a portfolio manager.

Portfolio Manager qualities


What is a portfolio manager?

A portfolio manager is a person that helps you decide about your portfolio. The task is to invest in the best available investment plans.

In other words, this person helps you guarantee great returns in the future.

In this article, we will discuss the responsibilities of a good portfolio manager. We will also tell you how to wisely choose a portfolio manager.

See also: 5 Top Qualities of a Forex Broker

Portfolio Manager: Roles and Responsibilities

Here are the responsibilities that your portfolio manager needs to undertake.

Decides the best Investment Plans

Your portfolio manager should be able to decide about crucial investment plans. He or she should base the plan according to your income, age, and risk tolerance.

Makes you Aware of Tools at your Disposal

Your portfolio manager should let you be familiar with investment tools. Such tools provide great and distinct benefits to investors. And even though they have different functions, they all make it easier for an individual to do his investment activities.

Along with this, the manager should make you realize why investment and tools are important. He or she should also make it clear why his or her chosen investment plan is the best for you.

Designs Customized Investment Solutions

Remember that you can never be 100 percent similar to another investor. No two investors are exactly alike. That means your financial needs will differ largely from other investors, no matter how close your personalities are.

A good portfolio manager should first analyze the background of his or her client. He or she should also know your earnings and ability to invest. The key is to understand your overall financial situation and needs before coming up with a solution.

Portfolio Manager: Qualities and Traits

Those are the roles. Here are the qualities that you should look for when choosing a portfolio manager.

Knowledgeable about Latest Financial Market Changes

The portfolio manager should be aware of the most recent and most relevant market changes. Not only changes, for that matter, but also possible near-term changes. This will help him decide better over the adjustments to be done on your portfolio.

When the manager keeps him/herself abreast of the situation, he or she can come up with the best plan for you much faster.

Unbiased and Professional

A portfolio manager’s primary goal is to make you earn money out of your portfolio. However, a portfolio manager also aims to earn some money. Usually, he or she gets paid through commissions.

The manager should be unbiased to decisions that will give him or her higher commissions. Therefore, even if he or she stands to gain something, he or she must prioritize the client in case the investment is too risky.

Good and Quick Decision Maker

Aside from being knowledgeable about the market, the portfolio manager should also be quick.

Sometimes, market developments compel investors to make crucial decisions at the drop of the hat. This means there’ll be less time for analysis and thinking through. A good portfolio manager should be able to make good calls in events like these.

Possesses Excellent Communication Skills

Your portfolio manager should have great skills when it comes to relaying news and updates to you. As we have mentioned above, it’s the manager’s responsibility to make everything clear to you as his or her client.

The manager should give you all the details in as clear a way as possible. More importantly, he or she must communicate with you on a regular basis. You should be able to talk to him or her whenever needed, or when situations call for it.

Patient and able to Sympathize

Sometimes market events can be like a roller coaster ride. Uncertainties, market crashes, bubbles, and corrections may affect you emotionally. There are also times when the next move isn’t as clear as you want it to be.

These emotions that affect investors can be catastrophic if they’re not controlled. And a portfolio manager must be able to guide the client out of these disruptive emotions. He or she must have sufficient amount of patience to see the client through.

Tips when Dealing with Portfolio Managers


portfolio management

Dealing with a portfolio manager is not free. Usually, it can be costly, requiring you to spend substantial portion of your hard-earned money. Of course, you shouldn’t just do that without ensuring the security of your money. Use the following tips to know how to cleverly deal with a portfolio manager.

Tip 1:

Gauge how much the manager knows about the market and investment plans. He or she should know risks and rewards involved in any transaction. Also, take note of the things the manager says, and verify their accuracy. This way, you would know if the manager’s expertise will be a huge help or not.

Tip 2:

Expect to meet all kinds of managers: professional, unprofessional, cheaters, biased, or dishonest. You should gauge your portfolio manager’s trustworthiness by checking his or her history and background. Learn about his or her reputation in the portfolio management world. You don’t want anyone running away with your capital.

Tip 3:

Demand that your portfolio manager be transparent to you at all times. Since you’re entrusting this person your money, it’s your right to demand transparency. Keep in mind that you can ask him or her to simplify things for you. If manager uses vague, ambiguous, complicated, and too-professional jargons, insist that he or she reword it.


There are many different kinds of portfolio managers and you’ll definitely meet all of them along the way. Remember that these people are who you will entrust your money to. So it’s very important that you find the right one. Consider the portfolio manager another huge investment that you will make.

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