India’s Institutional Investor Sector Sees 69% Hiring Growth As Market Expands: CIEL HR Report

India’s institutional investor sector has witnessed a significant 69% increase in hiring over the past two years, according to a study by CIEL HR Services. This growth aligns with the sector’s expanding market capitalization.

The study, titled ‘Institutional Investors – Talent Trends and Insights’, highlights a notable rise in India’s market capitalization, which surged from $1.2 trillion to $5.2 trillion in the last decade.

This expansion is closely tied to the rapid development of the institutional investor sector.

India’s Institutional Investor Sector At The Forefront Of Economic Growth: K Pandiarajan

Commenting on these trends, K Pandiarajan, executive director and chairman of CIEL HR stated, “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 percent 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.”

The study also noted that professionals in this sector have an average tenure of three years, which reflects both high mobility and competition for talent.

Senior roles, however, have a longer average tenure of seven years, underlining the importance of leadership in driving stability.

These positions offer attractive benefits and incentives, which helps retain talent in critical roles.

“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 emphasized.

Workforce Diversity & Career Progression

The report also touched on workforce diversity, revealing that women make up 27% of the sector’s overall workforce. However, their representation in leadership roles remains lower, at just 14%.

The study identifies this as an area where the sector can improve.

Another key finding is that only 17% of professionals, including fund managers, portfolio managers, and senior analysts, are promoted internally, with the majority (83%) being hired from outside the organisation.

This creates an opportunity for firms to enhance their internal career progression strategies.

Additionally, the study shows that many professionals in the industry hold advanced qualifications, such as MBAs from leading institutions, alongside CA and CFA certifications.

CIEL HR’s study, which analysed over 16,000 executives from 80 companies, provides valuable insights into gender diversity, in-demand roles, and career development.

Aditya Narayan Mishra, managing director and CEO of CIEL HR asserted, “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.”

The report further highlights the competitive nature of the sector, with around 25% of the workforce having changed jobs in the last year, underscoring the industry’s dynamic environment.

Also Read: Schneider Electric Expands India Operations With Rs 3,200 Crore Investment