Many professionals who intend to transition into investment managers find themselves asking the question, how many jobs are available in investment managers? Currently, there are over 71,300 openings for investment managers in the U.S.
In this post, you will learn all there is to know about investment managers.
What Is Investment Management?
According to Wikipedia, Investing is more than just buying and selling financial assets and investments. It entails creating a thorough plan for purchasing and disposing of portfolio holdings, whether in the short or long term. Investment management encompasses a wide range of financial services, including budgeting, banking, and tax-related obligations.
Asset allocation and financial statement analysis, stock selection, monitoring current investments, and establishing and implementing portfolio plans all fall under investment management.
It follows that investment managers can provide financial consulting and planning services, such as managing a client’s portfolio and aligning it with their overall financial aims and life goals.
How Many Jobs Are Available In Investment Managers
According to the Bureau of Labor Statistics, there are about 71,300 available investment managers. This figure encompasses other job roles and descriptions that are similar to investment managers, such as financial managers, credit analysts, portfolio managers, etc.
Below is a breakdown of the jobs available to investment managers:
|Job Title||Number Of Jobs In The U.S.||2020-2030 Job Growth Rate||Job Openings|
|Investment Banking Analyst||22,000+||6%||52,000+|
The United States Bureau of Labor Statistics (BLS) forecasts a 17% rise in financial management roles within the investment management business, which is faster than the overall growth rate. The BLS attributes this surge to an increase in the number of worldwide corporations that require financial managers to supervise their financial assets, as well as those leaving the job sector or labor force.
Factors That Influence Demand For Investment Manager Jobs
Numerous internal and external factors affect the demand for investment managers.
Here are 4 major factors that influence the demand for investment managers:
1. Economic factors
One of the most important factors influencing demand for investment managers is the state of the global economy. While the economy is expanding, investors are more willing to take risks and put money into ventures. As the market becomes more active, the demand for investment managers to monitor and manage these assets grows.
2. Regulatory modifications
Regulatory changes are another factor influencing the need for investment managers. The financial business is heavily regulated, and any changes to existing rules may have an influence on investment plans, necessitating the aid of industry specialists. As a result, investment managers who are aware of legislative changes and can adjust their strategy accordingly may be in more demand.
3. Investors’ attitudes
Investor sentiment also has a significant impact on the demand for employment in investment management. When investors are more eager to invest, investment managers are in more demand. Unfavorable investor sentiment may make it difficult for investment managers to raise capital, resulting in a drop in demand for their services.
The competitive nature of the sector impacts the need for investment managers. As the financial sector grows more competitive, investment firms are looking for individuals with diverse skill sets, such as experience in developing markets, alternative investments, and sustainable investing. Those with specialty investment experience might appeal to organizations looking for managers with a wide range of experience.
Best Paying Jobs in Investment Managers
The investment management industry provides a diverse range of job possibilities. Some of the most desirable and financially lucrative occupations are listed here.
Here are the top 10 paying jobs in investment management
Average annual salary: $103,512
Financial managers are critical to their organization’s economic well-being. They are in charge of evaluating financial data, creating financial reports, and developing strategies to move their firm toward its goals.
2. Investment banking analyst
Average annual salary: $90,355
Investment banking analysts examine financial information and market trends, doing extensive research to develop and apply financial models to evaluate and determine the profitability of projects. They are in charge of mergers and acquisitions, as well as initial public offerings (IPOs) and private equity settlements.
3. Wealth manager
Average annual salary: $87,514
Wealth managers help high-net-worth people and their families manage their assets and investments. They offer tailored financial planning and investment advice to match the particular needs of their clients. They are also referred to as personal financial advisors.
Average annual salary: $86,680.
Traders play an important role in the financial markets, buying and selling assets in order to make profits for their customers or businesses. Their ability to execute deals and employ various trading methods is critical in the financial business. They are constantly monitoring market trends, analyzing market data, and making knowledgeable trading decisions in order to maximize profits while reducing risk.
Average annual salary: $86,680.
Equity traders perform research and analysis to find the best moments to purchase or sell a company’s shares on the stock market. Their responsibilities may include trading stocks, exchange-traded funds, futures, options, and other derivatives in addition to stocks.
6. Portfolio manager
Average annual salary: $86,244
Portfolio managers’ major role is to design and supervise investment allocations for their customers, who might include private individuals, families, and institutional or corporate investors. While some portfolio managers construct investment packages for their customers, others are largely in charge of managing client expectations and transactions.
7. Financial analyst
Average annual salary: $85,948.
Financial analysts are responsible for evaluating financial data, constructing economic models, and producing informative reports that assist their companies in making sound business decisions. They identify trends, possible dangers, and opportunities that may have an influence on their company’s financial success.
8. Financial Advisor
Average annual salary: $75,161.
Financial advisors provide customers with counsel and advice on a variety of financial topics, such as investment strategies, risk management, and retirement planning. They help customers define attainable financial goals, create concrete strategies, and evaluate progress toward those goals.
9. Credit analyst
Average annual salary: $59,380.
Credit analysts analyze client credit applications based on a variety of characteristics, such as the objective of the application, credit viability, customer payment history, and creditworthiness. Their major task is to determine the creditworthiness of individuals or organizations seeking loans.
10. Financial research assistant
Average annual salary: $39,519
Financial research assistants gather and evaluate data on investment opportunities, securities, and the financial market. They also undertake extensive studies on industry trends and financial statements in order for the financial analyst to make informed decisions. Financial research assistants are also in charge of keeping spreadsheets and databases up to date.
Strategies for finding an investment manager job
There are certain tactics you can employ to land a high-paying job in investment management. These tactics will differentiate you from other job candidates and give you an edge.
Here are 4 proven steps to land a high-paying investment manager job:
The importance of networking cannot be overstated. Attending business events, joining professional groups, and engaging with colleagues on social media are all common ways to build a strong professional network.
Attending networking events is a great method to meet people in the field and build ties with them. These events allow attendees to engage with industry specialists such as investment managers, analysts, and financial advisers.
Networking helps you stay up to date on market trends and changes, which may lead to career opportunities.
Applying for internships is another way to get into the business and obtain crucial experience that can help you land entry-level positions. Company internships allow you to expand your professional experience and skill set.
3. Research investment companies
Consider researching possible jobs if you want to pursue a career in investment management. First, look for firms that share your beliefs and professional objectives. Then, go to its website to discover more about its management, culture, and investing strategy. You can then select whether or not to contact the company’s human resources department.
4. Leverage your certifications and education
In your CV and cover letter, list your credentials and educational history. Highlight your qualifications and achievements, such as a bachelor’s degree in finance or economics, an MBA, or a relevant professional certification, such as the Chartered Alternative Investment Analyst (CAIA) or Chartered Financial Analyst (CFA). This might demonstrate to prospective employers that you have the information and skills required to succeed.
Factors to consider before working in the investment management industry
Are you toying with the idea of going into the investment management industry bank? Maybe you find your current career path unfulfilling and wish to switch to investment management. Well, there are some factors you should consider before making such a career change.
4 factors to consider before working in the investment management industry:
1. Educational requirements
Many firms prefer investment managers with degrees in business administration, finance, or accounting. A bachelor’s degree may be sufficient for an entry-level career. A master’s degree or a Ph.D. may be necessary as you advance in your career. Certifications like the Chartered Financial Analyst (CFA), Chartered Alternative Investment Analyst (CAIA), Financial Risk Manager (FRM), Advanced Diploma in Financial Planning, and Certified Management Accountant (CMA) may also boost your resume.
2. Work-life balance
I have emphasized the need to maintain a healthy work-life balance in my previous post. This is a salient factor you should definitely consider if you wish to start an investment management career. It is important to note that most investment management jobs have conventional work hours, which are often between 8 a.m. and 5 p.m.
3. Work experience
Work experience in investment management may give you an edge over other job candidates. How do you garner experience in investment management? Well, most colleges and universities have internship programs that you should definitely utilize. Such internships afford you the opportunity to apply theoretical financial ideas to real-world settings. You might also volunteer at an investment management firm to learn from experienced investment managers.
4. Professional growth
Working in investment management frequently gives several prospects for promotion. For example, you may begin as an entry-level freelance financial analyst, gain industry experience, and eventually advance to a senior-level managing position. Investment managers can operate in both private and public enterprises, as well as independent financial planners.
What are the Benefits of Being an Investment Manager?
A job in investment management offers various advantages, including the following:
1. Intellectual stimulation
Finance is a diversified business that requires you to follow market developments as well as keep up to date on rules and processes. As a result, the sector may offer sufficient diversity, intellectual stimulation, and a challenge to think creatively.
2. Competitive pay
Investment management is a financially beneficial profession. As your career progresses, you may be able to deal with affluent customers or major corporations that offer high salaries and substantial incentives.
3. Early career start
Several entry-level investment management professions demand only a bachelor’s degree, allowing you to begin your career immediately after graduation. You might use these entry-level positions to get industry experience while saving money for a master’s degree.
4. Job satisfaction
An investment manager’s job often entails assisting businesses in making lucrative investment decisions. You may feel happy and fulfilled when your customers meet their financial goals and create profits.
How much can you earn as an investment manager?
Investment manager salaries can be determined by factors such as employment experience, seniority, specialization, and the company’s size and reputation.
Here is a breakdown of how much investment managers earn:
1. Entry level positions
An entry-level investment manager, such as an investment analyst, typically earns between $70,000 and $100,000 per year.
2. Mid-level positions
As you gain experience and graduate into mid-level roles such as portfolio manager or senior investment analyst, your earning potential increases.
Mid-level investment managers may make $100,000 to $250,000 or more per year, depending on the size and complexity of the managed portfolio, the firm’s track record, and other factors.
3. Executive positions
Chief investment officers and investment management directors, for example, might earn far more than junior investment managers. Earnings at this level can range from $200,000 to well over $1 million per year, depending on the company’s size, reputation, and employee performance.
How Can You Become An Investment Manager?
To become an investment manager, you must have the relevant education, experience, and skills.
Follow these broad steps to become an investment manager:
- Obtain a Bachelor’s degree
- Gain Financial Industry Knowledge
- Continue Your Education
- Obtain the Required Certifications
- Improve Your Skill Set
- Acquire professional experience
- Make contacts and network
- Obtain your driver’s license and registration.
- Constantly learn and adapt.
What Are Some Of Best States For Investment Managers In The United States?
Below are some of the states in the United States with awesome opportunities for investment managers:
- New Jersey
- New York City
- North Carolina
- North Dakota
- Rhode Island
Is Investment Managers a Good Career Path?
Yes, investment management is a good career path. It is lucrative for persons who are interested in money and investing. Before you go into the exciting world of money-making, there are some key factors to consider: What kinds of job prospects are most suited to your skill set? How much risk are you willing to take with your investments?
What Are Some Common Certifications For Investment Manager?
While there are no particular credentials necessary to become an investment manager, earning appropriate certificates can demonstrate your expertise and help you develop in your profession.
Here are some credentials that investment managers frequently pursue:
1. Chartered Financial Analyst (CFA)
The CFA certification is highly recognized in the investment management profession and displays a good grasp of investment analysis and portfolio management.
2. Certified Investment Management Analyst (CIMA)
The CIMA certification is designed for investment professionals who work with high-net-worth customers and focus on portfolio development, due diligence, and risk management.
3. Chartered Alternative Investment Analyst (CAIA):
This qualification focuses on alternative investments such as hedge funds, private equity, and real estate.
4. Financial Risk Manager (FRM)
This qualification focuses on risk management, which includes credit risk, market risk, and operational risk.
5. Certified Financial Planner (CFP)
While not dedicated to investment management, the Certified Financial Planner (CFP) credential may indicate a comprehensive grasp of financial planning, including investments.
Earning any of these certificates might help you stand out in a crowded employment market and demonstrate your dedication to the investment management industry.
What Skills Do You Require to Be an Investment Manager?
Several critical qualities are required to flourish as an investment manager.
Below are the top skills you need as an investment manager:
- Financial Analysis: The capacity to critically examine financial accounts, appraise corporate performance and evaluate investment prospects.
- Market Knowledge: In-depth knowledge of global financial markets, economic trends, and industry dynamics.
- Risk Management: The ability to recognize and manage risks connected with investing decisions in order to preserve the assets of customers.
- Decision Making: The ability to make sound investment decisions based on data analysis and market insights.
- Communication: Strong communication skills are required in order to convey investment strategy and updates to clients and stakeholders.
- Negotiation: The capacity to get advantageous terms in investment transactions and cooperation.
- Technical skills: Working knowledge of financial software and data analysis tools to help in investment research.
Which Degree Is the Best for Investment Management?
A good educational background is often required for a job in investment management. While there is no one-size-fits-all solution, the following degrees are typically pursued by professionals in this field:
- Bachelor of Finance or Economics: This degree provides an essential understanding of finance, economics, and accounting.
- Master of Business Administration (MBA): This degree program provides advanced instruction in financial management and investing methods.
- The Chartered Financial Analyst (CA) Program: This is a globally recognized qualification that focuses on investment analysis and portfolio management.
- Master of Finance: Provides expertise in investment research, financial markets, and asset management.
- Bachelor’s Degree in Mathematics or Statistics: Provides a solid quantitative foundation, which is required for data-driven investing choices.
It is critical to select a degree that matches your employment goals and compliments your talents and weaknesses.
Which Company Pays Highest to Investment Managers?
As mentioned earlier, the salaries for investment managers vary based on different factors.
Below are companies that pay investment managers lucratively:
- Goldman Sachs
- J.P. Morgan
- Morgan Stanley
- UBS Group
Conclusion: How Many Jobs Are Available In Investment Managers?
Individuals with a passion for money and investing can find a variety of work options in the investment management business. Many opportunities are available for people with the necessary skills and expertise, ranging from research analysts to portfolio managers to compliance specialists.
FAQs on How Many Jobs Are Available In Investment Managers
Is Investment Management Hard?
It depends on how you see it. Investment management may be a difficult and time-consuming career. Still, for those willing to put in the effort and attention, it may be an enriching and gratifying job.