Daijiworld Media Network – New Delhi
New Delhi, Feb 26: India’s institutional investor sector has recorded an impressive 69% growth in hiring over the last two years, driven by a surge in market capitalisation, according to a report by CIEL HR Services.
The report, titled Institutional Investors - Talent Trends and Insights, highlights that India’s market capitalisation has grown more than four times, from $1.2 trillion to $5.2 trillion in the past decade, fueling significant expansion in the institutional investor segment.
"India’s trajectory towards becoming a $7 trillion economy by 2030 is a reflection of its burgeoning market size and rapid financial transformation. With an expected growth rate of 6.1% over the next five years, the country is on course to become the world’s third-largest economy by 2027, placing institutional investors at the forefront of this evolution," said K Pandiarajan, executive director and chairman, CIEL HR.
The report notes that the average tenure across the sector is three years, indicating high mobility and competition for talent. However, at senior levels, the average tenure extends to seven years, underlining the critical nature of leadership roles. These positions often come with lucrative compensation packages and retention incentives to ensure stability.
"The institutional investor sector is undergoing a transformative shift, with both established firms and new entrants innovating investment strategies and financial products. This presents a pivotal opportunity for institutional investors to capitalise on emerging trends in India and globally," Pandiarajan added.
The study also sheds light on workforce diversity, revealing that women constitute 27% of the total workforce. However, female representation in leadership roles remains low, with only 14% holding senior positions.
Another key insight from the study is that only 17% of professionals, including fund managers, portfolio managers, and senior analysts, are promoted internally, while 83% are hired externally. This highlights the need for companies to focus on career progression and fostering talent within their organisations.
The institutional investor sector continues to attract highly qualified professionals, with many holding MBAs from top business schools in India and abroad, as well as Chartered Accountant (CA) and Chartered Financial Analyst (CFA) certifications.
The study, which surveyed over 16,000 executives from 80 companies, also indicates that approximately 25% of the workforce has switched jobs in the past year, emphasizing the competitive and dynamic nature of the industry.
“With the economy growing rapidly, demand for skilled professionals will only increase, further widening the demand-supply gap. We expect more professionals to return to India from global markets, and also see a rise in expatriates seeking opportunities here," said Aditya Narayan Mishra, Managing Director and CEO, CIEL HR.