Mutual fund broker

Mutual fund brokers handle and raise cash from shareholders in order to invest them in stocks, bonds, and money-market securities. They engage with investors by inquiring about the client’s mutual funds account status and transaction procedures. Mutual fund brokers make use of their expertise in investment theory, market experience, and research to pick the most appropriate investments for their fund portfolio. They ensure that the mutual fund’s operations comply with legal requirements.

The following job titles also refer to mutual fund broker:

mutual fund sales agent
mutual fund managers
mutual fund salesmen
mutual fund dealer
mutual fund dealers
mutual fund salesman
mutual fund sales representatives
mutual fund sales representative
mutual fund manager
mutual fund sales agents

A bachelor’s degree in finance, business, economics, or a related field is generally the minimum required to work as a mutual fund broker.

ISCO skill level is defined as a function of the complexity and range of tasks and duties to be performed in an occupation. It is measured on a scale from 1 to 4, with 1 the lowest level and 4 the highest, by considering:

• the nature of the work performed in an occupation in relation to the characteristic tasks and duties
• the level of formal education required for competent performance of the tasks and duties involved and
• the amount of informal on-the-job training and/or previous experience in a related occupation required for competent performance of these tasks and duties.

Mutual fund broker is a Skill level 3 occupation.

These occupations, although different, require a lot of knowledge and skills similar to mutual fund broker.

financial trader
stock trader
securities broker
securities underwriter
securities trader

These occupations require some skills and knowledge of mutual fund broker. They also require other skills and knowledge, but at a higher ISCO skill level, meaning these occupations are accessible from a position of mutual fund broker with a significant experience and/or extensive training.

securities analyst
investment analyst
corporate banking manager
investment fund management assistant
dividend analyst

This knowledge should be acquired through learning to fulfill the role of mutual fund broker.

• Financial products: The different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.
• Securities: The financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities which is raising capital and hedging risk in financial markets.
• Economics: Economic principles and practices, financial and commodity markets, banking and the analysis of financial data.
• Financial markets: The financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.
• Stock market: The market in which shares of publicly held companies are issued and traded.
• Modern portfolio theory: The theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing the right combination of financial products.
• Investment analysis: The methods and tools for analysis of an investment compared to its potential return. Identification and calculation of profitability ratio and financial indicators in relation to associated risks to guide decision on investment.
• Actuarial science: The rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.

These skills are necessary for the role of mutual fund broker.

• Analyse market financial trends: Monitor and forecast the tendencies of a financial market to move in a particular direction over time.
• Develop investment portfolio: Create an investment portfolio for a customer that includes an insurance policy or multiple policies to cover specific risks, such as financial risks, assistance, reinsurance, industrial risks or natural and technical disasters.
• Review investment portfolios: Meet with clients to review or update an investment portfolio and provide financial advice on investments.
• Analyse economic trends: Analyse developments in national or international trade, business relations, banking, and developments in public finance and how these factors interact with one another in a given economic context.
• Operate financial instruments: Work with financial instruments such as stocks, bonds, mutual funds and derivatives.
• Monitor stock market: Observe and analyse the stock market and its trends on a daily basis to gather up-to-date information in order to develop investment strategies.
• Trade securities: Buy or sell tradable financial products such as equity and debt securities on your own account or on behalf of a private customer, corporate customer or credit institution.
• Provide financial product information: Give the customer or client information about financial products, the financial market, insurances, loans or other types of financial data.
• Forecast economic trends: Gather and analyse economic data in order to predict economic trends and events.

This knowledge is sometimes, but not always, required for the role of mutual fund broker. However, mastering this knowledge allows you to have more opportunities for career development.

• Customer service: Processes and principles related to the customer, client, service user and to personal services; these may include procedures to evaluate customer’s or service user’s satisfaction.
• Financial jurisdiction: Financial rules and procedures applicable to a certain location, whose regulatory bodies decide on its jurisdiction

These skills and competences are sometimes, but not always, required for the role of mutual fund broker. However, mastering these skills and competences allows you to have more opportunities for career development.

• Perform stock valuation: Analyse, calculate and appraise the value of the stock of a company. Use mathematic and logarithm in order to determine the value in consideration of different variables.
• Implement hedging strategies for clients: Implement strategies for clients in order to reduce the risks of an investment.
• Provide cost benefit analysis reports: Prepare, compile and communicate reports with broken down cost analysis on the proposal and budget plans of the company. Analyse the financial or social costs and benefits of a project or investment in advance over a given period of time.
• Create a financial plan: Develop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.
• Advise on financial matters: Consult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.
• Liaise with shareholders: Communicate and serve as communication point with shareholders in order to provide an overview on their investments, returns, and long-term plans of the company to increase profitability.
• Develop professional network: Reach out to and meet up with people in a professional context. Find common ground and use your contacts for mutual benefit. Keep track of the people in your personal professional network and stay up to date on their activities.
• Apply technical communication skills: Explain technical details to non-technical customers, stakeholders, or any other interested parties in a clear and concise manner.
• Build business relationships: Establish a positive, long-term relationship between organisations and interested third parties such as suppliers, distributors, shareholders and other stakeholders in order to inform them of the organisation and its objectives.
• Offer financial services: Provide a broad range of financial services to clients such as assistance with financial products, financial planning, insurances, money and investment management.
• Analyse financial risk: Identify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.
• Handle financial transactions: Administer currencies, financial exchange activities, deposits as well as company and voucher payments. Prepare and manage guest accounts and take payments by cash, credit card and debit card.

3311 – Securities and finance dealers and brokers

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References

1. Mutual fund broker – ESCO
2. Featured image: Photo by RODNAE Productions from Pexels