67 Portfolio Manager Interview Questions And Sample Answers
Learning and reviewing different aspects of investment management is usually necessary for a successful career in finance. Potential employers may pose behavioural, investment and random questions during the interview process. If you wish to work as a portfolio manager, practicing a few related questions might be beneficial. In this article, we study a variety of portfolio manager interview questions that hiring managers may ask you, provide you with example answers and give you tips to help you prepare for interviews.
Related: What Is Portfolio Management? (With Benefits And Types)
22 General Portfolio Manager Interview Questions
The common portfolio manager interview questions they may ask you initially during your interview may be basic questions that help the interviewer learn more about you as a person and as a candidate. The topics covered in this section might range from your likes and preferences to what attracted your interest in the role. Your interviewers may ask you these questions:
What do you hope to accomplish in the first month if you get the job?
If I were to ask your last employer for a reference, what three positive things do you think they might say about you?
What is a popular opinion that you disagree with and why?
If you can choose, what do you pick—the ability to see the future without the ability to change anything or immortality without the ability to remain young?
How important is a healthy work-life balance for you?
Are you available or willing to work on weekends, if required?
What are your career goals?
What would you choose if you can only take three things on an uninhabited island?
Please tell us how hiring you can benefit our company.
Why did you choose to work in this industry?
What, according to you, is the biggest accomplishment of our organisation?
What is a random interest that you regularly invest time in and how did this interest begin?
Tell us a little about the city where you grew up.
Can you tell us about the last job you held?
What made you decide on the major you choose in college?
Are you willing to relocate to another country?
This job might require you to travel frequently. Are you willing to do so?
What genre of films do you watch the most?
Are you a person who reads a book in one sitting or do you read it for over a week?
Name any three projects that make you particularly proud.
How do you keep yourself organised?
What are your strengths and weaknesses, according to your close friends?
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21 Questions About Previous Experience And Background
Interviewers might often ask certain additional questions to understand more about your work history and experiences to gauge whether you are a suitable candidate. During this phase of the interview, they may ask you the following questions about your experience in your previous jobs:
Why did you apply for this job?
What about this company appeals to you?
Are there any reservations about coming to work here?
What is the most difficult challenge that you faced in your professional life?
What previous work experience do you hold that applies to this position?
What is your specific area of expertise?
Did you ever train anyone?
Do you or did you ever interact with unhappy or opinionated clients? How do you usually handle them?
What parts of your training did you enjoy or dislike?
How do you resolve a disagreement with your coworkers? Give me an example of a time when you were able to convince someone at work to see things from your point of view.
Describe a long-term project you were in charge of in your last job. How did you ensure that everything went smoothly?
In your previous position, how frequently did you deliver presentations?
How do you react if you and your supervisor are in disagreement about a certain task?
What software did you use in your previous jobs?
What do you do when you see an error in your work? Give me an example of when you made a mistake.
How do you handle errors in your subordinates' work?
What is the proudest achievement of your career?
What approach do you take when faced with giving some constructive or critical feedback to your subordinates?
Give me an example of a time when you showed exemplary leadership in your last job.
How do you handle stressful situations at your place of work?
Can you tell me a time when you successfully managed several important projects at the same time?
Related: Top 10 Careers In Stock Market (With Duties And Salary)
20 In-Depth Questions
Here are some questions that recruiters might ask you:
What qualities do you possess that make you a competent portfolio manager?
What aspect of portfolio management do you find most enjoyable?
How did your managerial style change over time?
How do you suggest we invest a substantial amount of money and what influences this?
When is the optimal time to have a delta-neutral portfolio and what is delta hedging?
Tell me about a moment when your attention to detail made a difference in the outcome of a project.
Give me an example of when the outcomes of your project helped others learn.
Tell me about your approach to investing.
How do you assess risk in any investment?
What tools do you employ while deciding on asset allocation?
What professional designations do you hold?
How are you going to you invest ₹10,00,000 today?
How do you develop your anticipation skills?
Which financial management software or online applications are you familiar with and how do they help you?
How do you determine investment risks? How do these concerns impact your investment strategy?
Give me an example of a time when one of your client's investment portfolios did not perform as you expected. How did you inform your client and what strategies did you propose to manage the situation?
What considerations guide your investment choices for yourself and your client?
Are you a risk-averse person or a risk-taking one?
Do you want to continue working as a portfolio manager in 10 years' time?
How do you keep yourself up to date on current trends in the market?
Related: What Is An Investment Banker? Definition And Career Advice
4 Examples Of Portfolio Manager Interview Questions With Their Answers
Listed below are a few questions along with their answers to help you get ready for your interview:
1. What skills do you try to build to help you manage your clients' portfolios better?
Interviewers might ask this question to examine your approach to a changing work environment and industry. They may also want to see if you are diligent and motivated. When responding, consider focusing on abilities that apply to this role while also presenting your versatility and self-sufficiency.
Example: "I worked in several industries throughout my career, which contributed to developing a diverse set of abilities. My communication and critical thinking abilities are the ones I am trying to improve constantly, as I believe these are two of the most critical skills a portfolio manager can gain. I spend a lot of my time reading books and attending seminars to develop them. My varied experiences made me a more dynamic manager who can readily accept and adapt to change and react to it accordingly."
Related: What Does an Investment Banker Do? (Skills and Careers)
2. What is your preferred investment strategy?
Your interviewers might use the answer to this question to judge your knowledge of investing strategies and your understanding of what is the right approach for your clients. Consider drafting a response that shows your experience, understanding of market conditions and knowledge of different investing strategies and when to use them.
Example: "There are various investment strategies like socially responsible investing, small-cap investing, growth investing, value investing and income investing, which may vary depending on the client and the market. Since each client may possess varied demands and requirements, I do not utilise a single strategy for all. For instance, if a client is looking for a consistent, predictable return, I may recommend income investment. I may employ a value investing strategy if they want a long-term investment."
Related: How to Write an Investment Banker Cover Letter (With Tips)
3. How do you judge whether an investment is too risky?
Your potential employers may pose this question to assess your knowledge of high-risk investments and your decision-making abilities. Consider showing your analytical skills and your experience in making and managing high-risk investments.
Example: "I routinely perform a risk analysis by constructing a sensitivity table before investing in something. To determine if the planned investment can generate a sufficient return, I include the potential investment's past financial outcomes and a projection of its future performance. This allows me to judge whether the investment is worth taking the risk."
4. Do you consider yourself to be a risk-taker or are you averse to risks?
This question helps your interviewers determine your understanding of the risks associated with investing. Briefly focus on your knowledge of risks and your experiences in high-risk or low-risk investments.
Example: "I consider myself a risk-taker when investing my money. I like to take bigger risks hoping to get a bigger reward. But, as this might not work for everyone, I let the client decide how much risk they are ready to take with their assets and build a portfolio around that."
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