Is Investment Managers A Good Career Path for Graduates in 2022

is-investment-managers-a-good-career-path

People often ask, “Is investment managers a good career path?”

Well, the truth is, that technology is speedily disrupting the financial sector. And investment management is one of the areas in this field that has evolved with advanced technology.

Hence, a career path in this major now requires some up-skilling, higher salary expectations, and new ways of working.

We can therefore say that investment management can be a good career path for professionals who are willing to continue building their skills and increasing their financial knowledge.

If that describes you, then continue reading to find out more about this great field.

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Who are Investment Managers?

Investment managers are people or organizations who invest their client’s money. Their job covers financial planning, investing, and managing a portfolio for individuals or organizations.

Investment managers tend to understand the risks and benefits associated with an investment. Hence, they manage analysts, conduct research, and make important investment decisions.

How to Become an Investment Manager

If you want to work as an investment manager, then you’ll need to earn a bachelor’s degree relevant to financial management or economics.

In addition, you’ll have to obtain experience in the financial industry.

Similarly, a lot of investment managers have experience as analysts. So you can gain some experience from inventory investment for example. Also, it will be good to earn certification and licensure as well as join professional organizations or associations.
You can also begin by first applying for a portfolio manager position.

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What Skills Do You Need to Become an Investment Manager?

The following are the skills required to succeed as an investment manager:

  • Technical skills
  • Leadership skills
  • Communication: persuasion and negotiation
  • Customer service
  • T-shaped skills: a combination of keen knowledge in a single field and wider knowledge in other fields and the ability to connect them
  • Problem-solving skills
  • Basic understanding of artificial intelligence and machine learning
  • Knowledge of sustainability issues

Examples Of Investment Management

Investment Management involves investing and managing clients’ money.  Investment management may also include financial planning and advising services, not only overseeing a client’s portfolio but coordinating it with other assets and life goals (Source).

There are different examples of investment services that you can offer potential clients. Hence, you need to understand how each work. This will help the services you’re offering clients.

Having said that, the following are the various investment management services as stated by investopedia.com.

  • Asset Allocation
  • Financial Statement Analysis
  • Stock Selection
  • Monitoring of Existing Investments
  • Portfolio Strategy and Implementation

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Is Being an Investment Manager A Good Career Path?

Yes, investment management can be a good and lucrative career path. It offers high remuneration for hardworking and ambitious professionals who are willing to acquire new financial knowledge and skills.

If you’re interested in the financial industry, with experience in finance and some analytical skills, you can build a great career in investment management.

In addition, investment management offers room for growth and salary increases. An Investment Manager can make $101,990 per year on average in the United States according to payscale. However, salaries can be as high as $157,502 according to salary.com.

Other perks that also come with an investment manager job are:

  • Bright Job Outlook
  • Fewer Years Spent in School
  • Creative and Innovative Career Path
  • Satisfying Career Path


Now, let’s throw more light on these investment management perks under the benefits of the investment manager career path.

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Is Investment Managers A Good Career Path: Benefits of Being an Investment Manager

Bright Job Outlook

The U.S. Bureau of Labor Statistics projects a 17% employment growth in investment management from 2020 to 2030. The above job outlook is brighter than the job outlook for all occupations.

Further, there are many financial products in the market. As a result, employers are seeking creative and innovative investment managers.

Also, if you want to stand out in the crowd, then get familiar with your geographic region. In addition, the best path to being an investment manager is that you never stop learning.

So, develop a love for economics, business, and finance. And study past and current financial trends.

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Fewer Years Spent in School

Investment Management is not one of those career paths that require many years of additional studies.

In other words, you can get an entry-level investment management position with your BS in finance or a related field.

However, you can earn a voluntary certification or charter such as the Chartered Financial Analyst (CFA) charter, the Chartered Alternative Investment AnalystSM (CAIA) charter, or the Financial Risk Manager (FRM) designation. This can increase your chances of landing a job without having to get a graduate degree.

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Creative and Innovative Career Path

Investment management is beyond crunching numbers and stats. In fact, you’ll need to be creative enough to tailor investment portfolios to match the needs and aspirations of your clients.

Further, you need to be innovative with delivering products that match individual investors’ needs as well as resonate with business and capital flow.

Satisfying Career Path

If you love solving problems, then investment management might be a good career path for you.

Investment managers enjoy the satisfaction of seeing their clients make money from their recommended products.

Such experience on a consistent note, help build their worldview. However, sometimes, they encounter obstacles and things don’t go as expected.

But, such challenges help build their experience and expertise.

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Diverse Career Options

Investment managers can find many jobs to choose from. For example, you can be a financial analyst, fund manager, portfolio manager, risk manager, hedge fund manager, alternative investment analyst, stockbroker, risk analyst, rating analyst, private equity associate, and more.

Also, the U.S Bureau of Labor Statistics (BLS) estimates there are about 681,070 financial managers employed in the US in 2021.

Further, you can choose to manage the investments of individuals or businesses.
And if you have the right education and knowledge, you might land a role in top financial companies like Vanguard, JP Morgan Chase, and Goldman Sachs, just to name a few.

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What are the Job Prospects for Investment Managers?

Employment of financial managers is projected to grow by 17% from 2020 to 2030 according to the U.S. Bureau of Labor Statistics (BLS). That percentage is much faster than the average for all occupations.

In addition, about 64,200 openings for financial managers are projected each year, on average, over the decade.

The BLS expects many of those openings to come from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

In summary, we believe the investment management career path should provide moderate employment opportunities for years to come.

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How Much Can You Make From Being an Investment Manager?

The investment managers’ median pay is $131,710 per year or $63.32 per hour according to the Bureau of Labor Statistics.

In addition, financial managers work in many industries, including banks, investment firms, and insurance companies.

Most financial managers work full-time, and some work more than 40 hours per week.

7 Highly Paid Investment Managers’ Career Paths for Graduates

1. Investment Banker

Average Annual Salary: $157,000

Typically, investment bankers are hired to work directly with or in a corporation or government branch. Your job is to advise your employer on which financial positions to take.

Also, you can be in charge of becoming a publicly-traded company or of raising funds and issuing stock.

Further, some businesses do not require a full-time investment banker, but they do require one on occasion.

So, you can be hired on a contract basis to help the company achieve its goals before moving on to help another company.

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2. Portfolio Manager

Average Annual Salary: $126,000

As a portfolio manager, you may have both individual and corporate clients. Your task is to review a client’s overall goals and determine the best and most efficient way to achieve them through investments.

Further, investment management jobs come with responsibilities. That said, portfolio management can also provide a lot of wealth to the manager through your income.

Click to read more about the duties of a Portfolio Manager

3. Portfolio Assistant

Average Annual Salary: $109,000

When working as a portfolio assistant, the individual will prepare documents and reports as required by the portfolio manager.

In addition, you may be responsible for keeping an eye on the portfolio itself and producing reports that reflect its status.

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4. Assistant in Trading

Average Annual Salary: $94,000.

Before you can become a financial trader, you may need to work as a training assistant. This position entails a variety of tasks, including document preparation and processing, data entry, and possibly some analysis.

Hence, understanding basic accounting principles is essential for this position, and the majority of people who start in this position have a bachelor’s degree in accounting or a related field.

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5. Risk Analyst

Average Annual Salary: $81,000 (entry-level)

The risk analyst examines a company’s investment portfolio to determine how much risk it can tolerate with its investments.

As a risk analyst, you might be expected to make recommendations that reduce risk, add some diversification, and suggests alternative investment strategies.

You can also find an entry-level risk analyst position. However, chances are you’ll be working under a more senior person who will have you doing more analysis and fewer recommendations – at least at first.

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6. Economic Analyst

Average Annual Salary: $74,000

Economic analysts understand the economic trend of the market, the industry, and the world, in general.

With an educational background in education, studying the economy is not new to economic analysts.

Further, the economic analyst’s professional goal is to help analyze and determine stock or industry performance. You can find jobs in corporate and government establishments.

7. Stockbroker

Average Annual Salary: $55,000

Some companies employ stock brokers at the entry-level. However, you’ll need a bachelor’s degree to get started.

Afterward, you’ll consider getting the appropriate licenses and certifications necessary to work as a stockbroker.

FAQs

Why do I want a career in investment management?

investment management can be a good and lucrative career path. It offers high remuneration for hardworking and ambitious professionals.

some of the perks that come with investment managers job are:

  • Bright Job Outlook
  • Fewer Years Spent in School
  • Creative and Innovative Career Path
  • Satisfying Career Path

What do you do as an investment manager?

An investment manager invests their clients’ money. Your job covers financial planning, investing, and managing a portfolio for individuals or organizations.

Is investment manager same as portfolio manager?

A portfolio manager is a form of an investment manager who creates and manages investment allocations for private clients.

Are fund managers worth it?

Yes, investment managers may be worth having. They help break down the complicated aspect of investment. In addition, they offer personalized guidance that can help you increase your invested assets.


Conclusion

A lot of professionals interested in financial industry careers might find the investment niche quite interesting.

However, the career path does not fit everyone’s needs. But, if you have what it takes to make successful investment decisions, and overcome competition, and the stress that comes with it, then you’re good to go.


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