is investment managers a good career path

Is Investment Managers A Good Career Path? (2022)

Sukanya Mukherjee
By Sukanya Mukherjee 9 Min Read

If you’re wondering, “is investment managers a good career path” then you’ve come to the right place. 

There are various job prospects in the investment management sector. Investment managers focus on specific investment categories or serve clientele, such as those with personal or business interests.

Knowing the advantages of an investment management job might help you decide if it’s the correct path for you. This article explains what an investment manager is and answers is investment managers a good career path.

What Is Investment Management? 

When considering is investment managers a good career path, you must first understand what this field entails. 

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.

Based on market conditions, investor risk tolerance, and personal objectives, investment managers collaborate closely with their clients to develop and implement short- and long-term investment strategies.

Daily responsibilities for investment managers could include:

  • Establish investor profiles based on examining the financial statements, financial goals, risk tolerance, and other pertinent data.
  • Make relevant investment recommendations based on investor characteristics.
  • Assess publicly listed stocks or businesses
  • Advise clients to buy stocks
  • Make a multi-asset investor portfolio more effective by timing stock trades, allocating assets, and other actions.
  • Keep track of client portfolios and determine KPIs for them (KPIs)
  • Provide updates and answer inquiries from clients about everything mentioned above

The expectations of each client may change greatly; therefore, the investment manager must approach each one’s unique investment capabilities, objectives, and needs differently.

How Much Do Jobs In Investment Management Pay?

The U.S. Bureau of Labor Statistics stated that in 2021, the median annual salary for finance managers was $131,710. The median yearly salary for the top 10% of earners was $208,000, 4.5 times the average salary for all occupations ($45,760).

The bureau revealed that the median annual compensation for financial analysts, a common entry-level position for aspirant investment managers, was $81,410 in May 2021, about twice the median annual income for all occupations.

Careers In Investment Management: Pros And Cons

Is investment managers a good career path? To respond to the question, here is a list of this industry’s pros and cons:

Pros

  • High pay and excellent benefits
  • Expanded industry
  • Good work

The excellent earning potential of a career in investment management is a significant perk.

Furthermore, the industry itself is growing. The labor bureau predicts that between 2020 and 2030, employment in the financial management industry will grow by 17%, with 64,200 openings per year on average, largely due to job transfers or retirements.

Cons:

  • Very anxious
  • Entry-level obstacles
  • Problematic work-life balance

It’s difficult for some people to strike a healthy work-life balance because investment managers regularly have to answer customer inquiries on the weekends or after work. Additionally, they must pay close attention to current economic developments and market situations.

Is Investment Managers A Good Career Path?

So, is investment managers a good career path? Absolutely! We’ll look at some of the best job paths in investing. We considered the position’s skill requirements, the ease of moving up from a starter level, and the annual salary.

1. Investment Managers

Investment managers serve as advisors to clients by assisting them in making wise financial decisions. They accomplish this by performing risk analysis, monitoring the data, and paying close attention to the market.

Even if the job of an investment manager in real life is not as thrilling as what you see in movies, it is stressful and competitive. You must be enthusiastic about the financial industry and possess strong interpersonal abilities (you work directly with customers).

It would help if you also were skilled in data analysis and goal-oriented. Possessing a problem-solving mindset and a logical method of thinking is advantageous.

Is investment management a good career path? Over 650,000 jobs were unfilled as of 2020, according to the U.S. Bureau of Labor Statistics (BLS). Furthermore, the median pay for the same year was about $134,180.

You might even be able to join reputable financial institutions like HSBC, JP Morgan Chase, or Vanguard if you take the proper steps. There are plenty of opportunities to start your own business and change the laws to reflect your values.

2. Hedge Fund Manager

Your responsibilities as a hedge fund manager are comparable to those of an investment banker. The kind of portfolios you handle is the only distinction. Your target market comprises investors who pool their money into hedge funds and undertake riskier but potentially more lucrative investments.

By keeping an eye on the market and acting when necessary, it is your responsibility to protect the interests of the investors. The work schedule is as frantic as the ones we described, and the job is just as demanding.

Hedge fund managers make, on average, $54,967 a year, but they can make up to $200,000 or more if they can attract the ideal investors and manage their operations well.

However, you must be able to handle stress and have good analytical abilities, given the increased risk. Additionally, you must be a skilled negotiator, possess solid persuasive skills, and understand how investment bias might affect your choices.

3. Stockbrokers

Executing market orders for clients is one of your responsibilities as a stockbroker. Typically, you manage the transactions when working with a brokerage company.

Since most stockbrokers earn commissions (the median compensation for a stockbroker in 2020 was $60,644), your abilities and diligence can easily pay you in this situation.

The work is challenging, competitive, and demanding, and beginners (at least) must put in a lot more time and effort than the standard 40-hour workweek. You might have to arrive at work well before the market opens and stay late into the evening for marketing events and seminars.

Building a strong client base is essential for advancement in this profession and may require cold-calling potential clients and companies. So having both strong people skills and sales skills is undoubtedly advantageous.

Wrapping Up: Is Investment Managers A Good Career Path?

Is investment managers a good career path? Most certainly! Managing problems is a large part of what investment managers do. There is satisfaction with each solution and revelation. 

Imagine what it would be like to know that a recommendation you made to one of your clients resulted in financial gain.

Along with the satisfaction of knowing that they profited from your decision, there is also the understanding that you made it after extensive investigation and detective work. If you possess the skills necessary to make wise investment choices and handle stress and competition, you should be able to succeed.

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