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Portfolio Manager Interview Questions

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Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

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Whether you are preparing to interview a candidate or applying for a job, review our list of top Portfolio Manager interview questions and answers.

  1. What investing platforms or portfolio management software have you used? See answer
  2. How do you determine if an investment is too risky? See answer
  3. How do you keep up with current market trends? See answer
  4. Would you say you are a risk-taker or are you averse to taking risks? Why? See answer
  5. If I gave you $500,000 to invest right now, what would you invest in? See answer
  6. Do you want to continue as a portfolio manager long-term? See answer
  7. Have you ever had a disagreement with a client or colleague? How did you resolve it? See answer
  8. What external factors influence the investments you make for clients? See answer
  9. Do you have a preferred investing strategy? If so, what is it?
  10. How do you inform clients when their portfolios aren’t performing the way you expected?
  11. What skills did you develop in your previous position as aportfolio manager?
  12. How do you onboard new clients?
  13. Why did you pursue a career as a portfolio manager?
  14. How does your educational background make you a betterportfolio manager?
  15. What is the most stressful situation you’ve been in at work and how did you handle it?
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Our mission

Indeed’s Employer Resource Library helps businesses grow and manage their workforce. With over 15,000 articles in 6 languages, we offer tactical advice, how-tos and best practices to help businesses hire and retain great employees.

Read our editorial guidelines

15 Portfolio Manager Interview Questions and Answers

What investing platforms or portfolio management software have you used?

The aim of this question is to gauge the candidate's experience with common investing platforms and portfolio management software to determine if they need further training. What to look for in a successful answer:

  • Experience working with a variety of investment platforms
  • Willingness to learn how to use new platforms
  • Knowledge of platforms your company uses

Here's an example of a strong answer:

Example:

"In my previous role as a portfolio manager, I used a variety of investing platforms and portfolio management software. I have the most experience with Fidelity Investments, TD Ameritrade, Mint Investment and Morningstar Portfolio Manager.If there are any software or platforms you prefer, I would be happy to learn how to use them as I am a quick study."

Do you have a preferred investing strategy? If so, what is it? 

The aim of this question is to gauge the candidate's understanding of investing and the best strategies to use for each client. What to look for in a successful answer:

  • In-depth understandingof investing, financial market conditions and portfolio theory
  • Knowledge of different investment strategies and when to use them
  • Experience investing for a variety of clients

Here's an example of a strong answer:

Example:

"There are a variety of investing strategies, such as socially responsible investing, small-cap investing, growth investing, value investing and income investing. I don't use just one strategy, as different clients have different needs and requirements. For example, if a client wants a steady, reliable return, I would use income investing. If they wanted a long-term investment, I would use value investing."

How do you inform clients when their portfolios aren't performing the way you expected?

The aim of this question is to assess the candidate's communication skills when having difficult, but necessary conversations with clients. What to look for in a successful answer:

  • Strong interpersonal and communication skills
  • Ability to resolve conflicts professionally
  • Understanding of investment performance

Here's an example of a strong answer:

Example:

"If a portfolio wasn't performing the way I expected, I would ensure I talk to the client right away to foster an open and honest relationship with them. I would come up with a new investment strategy for their portfolio and walk them through how I will implement it to minimize further losses."

How do you determine if an investment is too risky?

The aim of this question is to gauge the candidate's understanding of high-risk investments and their decision-making skills. What to look for in a successful answer:

  • Knowledge of when an investment is worth the risk or not
  • Experience making high-risk investments
  • Solid analytical-thinking skills

Here's an example of a strong answer:

Example:

"Before investing in anything, I always do a risk analysis by creating a sensitivity table. I input the historical financial results of the potential investment and an estimate of its future performance to gauge whether the investment will create a big enough return. This helps me determine if the investment is worth the risk or not."

What skills did you develop in your previous position as a portfolio manager?

The aim of this question is to assess the candidate's previous work experience and determine whether they have the skills you're looking for in a portfolio manager. What to look for in a successful answer:

  • Previous experience in a similar role
  • Understanding of the role
  • Mention of skills that suit your needs

Here's an example of a strong answer:

Example:

"My previous roleas a portfolio managerhas taught me a lot. As I worked with a variety of clients, I learned about new investment strategies and techniques to suit different people's needs. This has also helped me strengthen my interpersonal skills, which are important for building trusting relationships with clients."

How do you keep up with current market trends?

The aim of this question is to gauge the candidate's knowledge of market trends and the ability to stay updated. What to look for in a successful answer:

  • Willingness to keep up with current market trends continuously
  • Knowledge of current trends
  • Experience in the field

Here's an example of a strong answer:

Example:

"As the market is constantly changing and updating, I stay current by checkingnews sites with financial information, like Forbes and Market Watch. I also sign up for Google alerts about any investments I have. On my way to work, I listen to financial podcasts as well."

How do you onboard new clients? 

The aim of this question is to assess the candidate's communication skills and ability to build and strengthen relationships with clients. What to look for in a successful answer:

  • Strong interpersonal and communication skills
  • Ability to successfully onboard new clients
  • Experience with client onboarding.

Here's an example of a strong answer:

Example:

"In my previous role, prospective clients would contact the firm I worked for who would then set up a meeting with the client. During the meeting, I would try to get to know the client's needs, but also get to know them more as a person. This helped clients feel more comfortable and willing to trust me. I would always ensure to follow up with clients to thank them for their time and see if they were interested in my services, and they usually were."

Why did you pursue a career as a portfolio manager? 

The aim of this question is to assess the candidate's reasoning for pursuing a career as a portfolio manager to determine their level of commitment to their work. What to look for in a successful answer:

  • Strong reasoning behind pursuing a career as aportfolio manager
  • Experience in a similar role
  • Passion for helping clients make solid investments

Here's an example of a strong answer:

Example:

"I got my first job as a waiter when I was 16. My dad was interested in investing, so he showed me how to invest a portion of my paycheque. I really enjoyed the process and continued investing throughout high school and college. At that point, my return was huge, and I knew I wanted to help other people achieve the same thing. So, I pursued a career as a portfolio manager."

Would you say you are a risk-taker or are you averse to taking risks? Why?

The aim of this question is to gauge the candidate's understanding of the risk associated with investing. What to look for in a successful answer:

  • Experience making decisions related to high-risk or low-risk investments
  • Understanding of the risk of investing and when it's worth it
  • Similar approach to risk-taking as your company

Here's an example of a strong answer:

Example:

"When investing my own money, I would say I am a risk-taker. I like to take bigger risks for the potential of a bigger reward. However, this investment strategy doesn't work for every client. I let the client decide how big of a risk they're willing to take with their investments and plan their portfolio accordingly."

If I gave you $500,000 to invest right now, what would you invest in?

The aim of this question is to gauge the candidate's knowledge of current market trends and assess their ability to make decisions on the spot. What to look for in a successful answer:

  • Accurate knowledge of current trends
  • Quick decision-making skills
  • Ability to work well under pressure

Here's an example of a strong answer:

Example:

"I would invest half of it in Tesla. Tesla stock produces a consistent return with minor losses. The company is always creating new products, buying Tesla stock offers a reliable, long-term return. I would invest the other half in S&P 500 index funds because it's a diverse investment in companies in every industry, making it relatively safe. If one company does poorly, the other ones in the fund will make up for it."

How does your educational background make you a better portfolio manager?

The aim of this question is to assess the candidate's educational background and determine whether it suits your needs. What to look for in a successful answer:

  • Educational background in finance or a similar field
  • Understanding of the role
  • Ability to apply their education in the workplace

Here's an example of a strong answer:

Example:

"I have a bachelor's degree in business administration and a master's degree in finance from the University of Toronto. I also took a Portfolio Management Techniques course with the Canadian Securities Institute. All of this education has helped me develop my knowledge of investing and made me more committed to the role."

Do you want to continue as a portfolio manager long-term?

The aim of this question is to determine whether the candidate would be a good long-term fit for your team. What to look for in a successful answer:

  • Experience in a similar role
  • Understanding of the role and where it can take them
  • Willingness to work for one company long term

Here's an example of a strong answer:

Example:

"I was in my lastportfolio manager role for five years and really enjoyed the experience. I am only looking for a new position as I want to take on a bigger client base, which I believe I can do with your company. Once in a role that allows me to do this, I would like to stay with that company long term."

Have you ever had a disagreement with a client or colleague? How did you resolve it?

The aim of this question is to assess the candidate's ability to handle conflict independently when working with other team members or clients. What to look for in a successful answer:

  • Strong conflict-resolution skills
  • Ability to communicate effectively with clients and colleagues
  • Experience working as a team or with clients

Here's an example of a strong answer:

Example:

"I have had very few disagreements in my eight years as a portfolio manager, but one situation stands out to me. A fellow portfolio manager warned me against investing, as they believed it was too risky. I believed otherwise and my client did as well, so we went ahead with the investment. It garnered a big return, so my colleague apologised and asked if I had any investment tips."

What is the most stressful situation you've been in at work, and how did you handle it?

The aim of this question is to gauge how the candidate works under pressure and whether they can handle stress appropriately. What to look for in a successful answer:

  • Ability to work under pressure
  • Strong problem-solving skills
  • Knowledge of when it's better to delegate a task

Here's an example of a strong answer:

Example:

"The most stressful situation I've been in was with a new client whose portfolio wasn't doing as well as he hoped right away, and he was really upset. I showed him my long-term plan for his portfolio and the estimate of what he would likely earn. I explained I was investing in stocks that would take longer to show a return, but they would be worth the wait. A few months later when his portfolio was doing really well, he apologised and agreed with my strategy."

What external factors influence the investments you make for clients?

The aim of this question is to gauge the candidate's knowledge of investing and their decision-making skills. What to look for in a successful answer:

  • Understanding of investing and external factors that affect it
  • Strong analytical thinking and decision-making skills
  • Ability to adapt to different client's needs

Here's an example of a strong answer:

Example:

"There are many external factors that influence investments, such as the client's initial investment, the risk level they're comfortable with and their timeline. As these types of factors change for every client, my strategy changes as well. I always sit down with new clients and discuss the types of investments they're comfortable with, how much they want to invest, and the amount they're hoping to earn."

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