Is Investment Managers A Good Career Path? Indeed, investment management is a good career path because it offers some of the highest starting salaries in finance, and it is quite innovative with a high satisfaction rate.
According to the Bureau of Labor Statistics, employment in investment management is projected to increase by 17% between 2020 and 2030. This comes to show that the future of this profession is quite promising.
Who is an investment manager?
Investment managers oversee client portfolios and assist in the achievement of significant financial objectives. Their client base ranges from private persons, organizations, insurance companies, pension funds, and nonprofit organizations.
Investment managers collaborate closely with their customers to create and implement both short- and long-term investment strategies based on the market conditions.
Some of the basic duties of investment managers are outlined below:
- They provide strategic investment options based on the profiles of the investors.
- They assess publicly traded stocks or businesses
- They recommend stocks to their clients
- They track customer portfolios and determine KPIs (Key Performance Indicators).
Why is investment management a good career path?
Investment management is a sought-after career in the financial industry not only because it is quite lucrative but also due to the high level of mental stimulation that comes with it.
Advantages of choosing a career as an investment manager
Below are some of the advantages of choosing a career in investment management
1. High earning potential
As mentioned earlier, a career in investment management is quite lucrative. As an investment manager, your earning potential grows as you advance in your career. In addition, there are frequent non-financial incentives to work in investment management, such as life insurance, performance bonuses, and private health insurance.
2. Opportunity to deal with a wide range of client
Apart from lucrative salaries, investment managers deal with a wide range of clients that have different needs. This makes investment management quite an interesting career route. Additionally, investment managers are highly satisfied with their jobs because they have the opportunity to help their clients succeed.
3. Flexibility
Additionally, when you advance to more senior roles in your investment management, there are more opportunities for flexibility. Being flexible can help you organize your workload to accommodate other needs. You can even establish your own investment management company, which will allow you to pursue clients and develop investment protocols.
4. Investment management is a growing sector:
As the sector is expanding, a variety of positions in investment management have been created, ranging from risk managers and compliance officers to analysts and portfolio managers. People can discover a specialty that fits with their interests and skill set because of this diversity.
5 Disadvantages of choosing a career in investment managers
1. High stress level
Managing large quantities of money and making important decisions under stress is quite common in the investment management industry. The unpredictability of the financial markets combined with the ongoing pressure to produce favorable outcomes can lead to a high-stress atmosphere.
2. Volatility of the market
The financial markets are prone to ongoing volatility. Periods of market volatility can be difficult for investment managers to navigate, which can affect the profitability of investment portfolios and raise the amount of risk involved in their choices.
3. Regulatory challenges
Adherence to multiple laws and regulations is crucial in the highly regulated investment management sector. Keeping up with evolving regulatory standards can be time-consuming and complicate the work even more.
4. Client expectations:
It can be difficult to manage customer expectations, particularly when the market is down. Investment managers need to be skilled at controlling their clients’ expectations about possible returns while also communicating intricate financial ideas to them.
5. Long hours
Due to the nature of the business, lengthy workdays are frequently required, particularly during times of high demand, like profit seasons or significant economic events. For some people, this can result in a poor work-life balance.
What is the Level of Job Satisfaction in Investment Managers
Problem-solving is a major part of investment management, which usually comes with a high sense of satisfaction when such problems are resolved.
Think about how satisfying it would be to know if you recommended something that resulted in financial success for one of your clients. You have the satisfaction of knowing that your choice not only benefited them but also that your hard work paid off after extensive investigation and research.
You will gain experience and knowledge in investment management even if you make mistakes. Having effectively learned a lesson is, when you stop to think about it, another source of gratification.
How can I decide if working in Investment Management is right for me?
If you find problem-solving a tad entertaining, then you most likely have a career path in investment management.
Another metric for determining if investment management is the right career path for you is if you are keen on gaining financial and personal fulfillment. There are many employment options, a promising future for this field, and excellent income potential. Additionally, you’ll be assisting others in reaching their goals and boosting their wealth, which may be really satisfying.
It is crucial to remember that investment management can be a tough and stressful career path while determining if it is the correct one for you.
Yes, a career as an investment manager could be a perfect fit for you if you have considered the benefits and drawbacks of the job and concluded that the benefits outweigh the drawbacks.
How To Start A career in Investment Management
If you are certain that working as an investment manager is the right choice for you, you should earn a bachelor’s degree in a relevant field, such as accounting, law, or finance.
You might also look out for volunteer opportunities and internships at investment management companies or other related financial institutions while pursuing your degree.
Once you’ve gained sufficient training and experience, you can look for companies that are employing new investment managers.
When your career is just getting started, you should be able to find an excellent company to work for if you develop connections during your school years and internship.
What education do you need to become an investment manager?
To begin with, you will require a bachelor’s degree in an area like economics or financial management, accounting and so on.
A master’s degree in business administration (MBA) can improve your knowledge and abilities in practical accounting, financial management, and business ethics and may provide you an advantage in the field.
For investment managers, a number of certification programs are advised or, in certain situations, even mandated by legislation.
One option would be to enroll in the Chartered Financial Analyst (CFA) program, which provides advanced analyzing skills for investing objectives.
For managers who want to deal with hedge funds and tangible assets, there is also the Chartered Alternative Investment Analyst (CAIA) accreditation.
Professionally designated to assist large institutions in market analysis and appropriate investment decisions are Financial Risk Managers (FRM).
Regardless of the qualifications you select, you will most likely also need to find out from your state if obtaining any local licenses or certificates is necessary before you can work as an investment manager.
Top 5 Investment Management Companies to Work For and Launch Your Career
- Vanguard
- Dark rock
- Morgan Chase JP
- Citigroup
- Goldman Sachs
How much do investment managers earn?
The kind of investment management position you choose to pursue will determine how much money you can make. The BLS stated that the average salary pay for investment managers is $134,180. Sales representatives for financial services, commodities, and securities, including investment bankers, make an average of $64,770. While risk managers and other financial analysts make, on average, $83,660 annually.
Which Other Career Paths Are Available for Investment Management?
A bachelor’s degree is necessary for related alternative occupations in investment management. Working as a budget analyst, which assists businesses and individual clients in maintaining daily financial organization, is one connected professional path. You might also work as an insurance underwriter, applying your knowledge of finance to create the finest insurance plans for individuals and businesses. A third option would be for you to work as a budget analyst, gathering and examining financial data before composing reports with suggestions for executives.
Conclusion: Is Investment Managers A Good Career Path
Investment management is not just a good career path but also a fulfilling one. More so, it has a positive growth rate of 17%, as stated by the Bureau of Labor Statistics. Thus, if you are toying with the idea of pursuing a career in investment management, we advise that you explore that career path!
FAQs on Is Investment Managers A Good Career Path
What is the path to becoming an investment manager?
While not necessary, master’s degrees in finance, business administration, economics, or another discipline with a strong quantitative component are held by the majority of investment managers. Possession of a FINRA license and professional certificates like Chartered Financial Analyst are prerequisites for working in investment management.
Is it hard to become an investment manager?
An investment fund manager normally requires eight to ten years of expertise. Investment managers with Chartered Financial Analyst (CFA) certification make greater money.
What skills do you need to become an investment manager?
To be a successful investment manager, you must possess the ability to establish connections and confidence with customers. You must also understand financial data and possess the analytical capacity to interpret a variety of data relevant to investments.
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