There has been a robust 69 per cent growth in hiring in India’s institutional investor sector over the last two years, driven by a surge in market capitalisation, according to a study conducted by CIEL HR Services.
The report, titled Institutional Investors – Talent Trends and Insights, highlights that India’s market capitalisation has recorded an over four-fold jump from $1.2 trillion to $5.2 trillion over the last 10 years, spurred by significant expansion in the institutional investor sector.
“India’s trajectory towards becoming a $7 trillion economy by 2030 is a reflection of its burgeoning market size and a testament to the rapid transformation taking place across its financial landscape. With an expected growth rate of 6.1 per cent over the next five years and positioning to become the world’s third-largest economy by 2027, India’s institutional investor sector is at the forefront of this evolution,” said K. Pandiarajan, executive director and chairman, CIEL HR.
The average tenure across the sector is three years, reflecting high mobility and competition for talent. At senior levels, the average tenure is seven years, highlighting the critical nature of leadership roles in this industry. Leadership roles often come with lucrative offers, benefits, and strong retention incentives, encouraging stability according to the report.
“The institutional investor sector is experiencing a radical shift, with both established players and new entrants driving innovation in investment strategies and financial products. This dynamic growth signals a pivotal moment for institutional investors to harness emerging opportunities, both within India and globally,” Pandiarajan said.
The study points out that the sector has made strides in workforce diversity, with women’s participation at 27 per cent of the overall workforce. However, representation in leadership roles remains a challenge, with women holding just 14 per cent of senior positions.
The study also reveals that only 17 per cent of professionals, including fund managers, portfolio managers, and senior analysts, are promoted from within their organisations, while 83 per cent are hired externally. This presents an opportunity for companies in the sector to innovate their practices around internal career progression and enhance their work environment to help talent thrive.
Professionals in the industry often hold advanced qualifications, including MBAs from top Indian and international business schools, as well as prestigious CA and CFA certifications, according to the study.
The study encompasses over 16,000 executives from 80 companies in the investor sector and provides insights into key areas such as gender diversity, roles that are in demand, and career progression.
“With our economy growing at a rapid pace, the demand for these roles will surge, further widening the demand-supply gap. We anticipate skilled professionals to return to India from global markets while also drawing expatriates to the country,” said Aditya Narayan Mishra, managing director and chief executive officer, CIEL HR.
Approximately 25 per cent of the workforce in the institutional investor sector has switched jobs in the past year, emphasising the dynamic and competitive nature of the industry. The average tenure across the institutional investor sector is three years, reflecting high mobility and competition for talent.
