Technology is quickly upending the financial industry. And one of the subfields in this one that has advanced with modern technologies is investment management.
Because of this, a career in this major now calls for some up-skilling, higher wage expectations, and different methods of operation.
So, it follows that experts eager to keep honing their abilities and broadening their financial knowledge may find success in investment management.
What Is Investment Management?
Professionals in investment management oversee financial portfolios and assist clients in achieving significant financial objectives. Clients might be private citizens or institutional investors like businesses, insurance providers, pension funds, or non-profit organizations. Their investment portfolios include securities such as equities, options, bonds, mutual funds, real estate, annuities, and commodities.
Investment managers collaborate closely with their customers to create and implement a short- and long-term investment strategy based on market conditions, investors’ risk appetite, and personal objectives. Investment managers may be responsible for the following daily tasks:
- Create investor profiles using data from financial statement analysis, financial goals, risk tolerance, and other pertinent factors.
- Suggest stocks to clients.
- Track client portfolios and determine KPIs for each customer (KPIs).
- Based on investor profiles, suggest relevant investments.
- Analyze publicly traded stocks or businesses.
- You can improve a multi-asset investor portfolio by making timely stock trades, allocating assets, and other changes.
- Provide updates and answer client inquiries.
Who are Investment Managers?
Money from clients is invested by investment managers, who might be individuals or businesses. Financial planning, investment, and portfolio management are what they do for people or businesses.
Investment managers typically understand the risks and rewards of investment. They oversee analysts, carry out research, and make crucial investment decisions as a result.
How Much Do Jobs in Investment Management Pay?
According to the U.S. Bureau of Labor Statistics, the median annual salary for financial managers was $131,710 in 2021. The median annual income for the top 10% of earners was $208,000, 4.5 times the median annual income across all occupations ($45,760).
According to the agency, the median annual income for financial analysts, a typical entry-level post for future investment managers, was $81,410 in May 2021. This is over twice the median annual pay for all occupations.
Getting Started as an Investment Manager
A bachelor’s degree in economics or financial management is required if you wish to work as an investment manager.
You’ll also need to develop some financial industry experience.
In a similar vein, many investment managers have worked as analysts. Therefore, investing in merchandise, for instance, can help you develop experience. Additionally, obtaining certification and licensure, as well as joining professional organizations, will be beneficial.
You may start by submitting a resume for a position as a portfolio manager.
Why Should You Become an Investment Manager?
There are various reasons you might decide to pursue a profession in investment management if you’re interested. The top advantages of a career in investment management include:
- Strong career Field
Most entry-level investment management jobs only accept applications from candidates with a bachelor’s degree. An investment manager can launch their career quickly as a result. This enables you to begin working sooner than a position requiring an advanced degree, and it can also help you save money on college expenses.
- Financial Perks
Choosing a career in investment management may be financially profitable. The possibility for huge revenue generation for investment managers working with major corporations or rich clients. Because of the overall profit, they provide for their clients, an investment manager can charge greater rates. High pay in the industry may be possible if you succeed as an investment manager and advance to serving wealthy clients.
- Professional Fulfillment
A successful investment manager can offer their clients a lot of value. Due to the quantitative nature of the activity, evaluating performance levels as an investment manager may also be simpler. For successful investment managers, this can make it an area that offers a lot of professional satisfaction. Strong performance leads to greater client growth generation, which can be a source of pride and personal satisfaction for the investment manager.
Is Being an Investment Manager A Good Career Path?
Yes, a career in investment management may be rewarding and successful. It provides excellent pay for ambitious professionals who work hard and are eager to learn new financial concepts and techniques.
If you have an interest in the financial sector, some analytical ability, and some financial expertise, you can establish a successful career in investment management.
Investment management also provides opportunities for advancement and pay raises. According to payscale, the average annual salary for an investment manager in the United States is $101,990. Salary.com states that incomes can go as high as $157,502.