Trying to find the right job for you can be a difficult choice. Career paths are a central part of your life, and as a result, it can be hard to find something that fits the balance between something you enjoy, and something that can make you an adequate amount of money.
Investing has become an increasingly popular activity in the past few decades, people look to make the right choices and get big returns. As a result of this, so has the role of an investment manager.
But what exactly does an investment manager do, and is this a good career path for you to choose (see also “What Does An Executive Producer Do?“)? If you’ve been wondering about this, then you have come to the right place!
In this article, we’re going to explore the responsibilities, difficulties, and earning potential of an investment manager. We’ll also give you some general advice on how you can become one, as well as some of the biggest challenges that come with the job.
What Is An Investment Manager?
To begin, let’s take a look at what an Investment Manager actually is. In short, an investment manager is a financial professional who is responsible for managing and investing the money that their clients have allowed them to use.
They are typically employed by investment firms, banks, or insurance companies (see also “How Much Do Insurance Agents Make?“). Investment managers are usually expected to have a very deep understanding of specific financial markets, be proficient at asset allocation, and be adept at risk management.
The investments they make will either win or lose their client’s money, so they will typically stay up to date with economic trends, market changes, and regulatory developments.
It’s important to note here that the role of an investment manager can vary depending on the type of firm they work with/for, and the specific responsibilities they have been assigned.
For example, some investment managers will be responsible for managing a portfolio of assets, while others will have the responsibility of mentoring and overseeing a team of analysts and traders.
Whatever their exact role is, almost all investment managers will have the main responsibility of making important investment decisions that align with their client’s financial goals.
This is one of the main things that can be challenging and stressful about this job, as their decisions can be make-or-break for their position.
How Much Do Investment Managers Make?
It can be difficult to know exactly how much investment managers make, especially when you consider the wide range of different earnings that can be made depending on performance, market conditions, and other factors.
With this in mind, the Bureau of Labor Statistics estimates the median annual salary for an investment manager is somewhere around $134,180.
Because this is the median figure, you should know that some successful investment managers can earn much more than this. In some ways, there is no real cap for how much they can make, depending on important factors around their position and clients.
How Difficult Is The Job Of Investment Manager?
Now we come to the part of our article where we discuss whether or not becoming an investment manager is a good career path. We’ve already seen that it has good earning potential—but how difficult of a job is it?
The first thing you’ll need to know is that the job role of an investment manager is not an easy one.
Becoming an investment manager requires a lot of education, on-the-job experience, and expertise to become competent. Investment managers must often work under pressure and are tasked to make big investment decisions that can massively affect both their own lives, as well as that of their clients and colleagues.
This makes each decision as an investment manager difficult and requires a lot of knowledge and expertise to feel simple.
It’s also worth noting that the daily life of an investment manager can be demanding and stressful. Investment managers are responsible for large sums of money, and big mistakes can have big consequences.
The job also requires them to be well-read in economic theory, and trends, and to stay up-to-date with market changes, which can dominate much of their day.
How Do I Become An Investment Manager?
Becoming an investment manager requires education and specific work experience.
First off you’re going to need to earn a bachelor’s degree. Many investment firms see a bachelor’s degree in finance, economics, or another related field as the baseline for employment.
Some people also choose to pursue a degree in business administration or accounting, however, these are not as widely chosen.
Next, you’re going to need to obtain a lot of work experience. To become an investment manager, you’ll probably first have to have worked on a team under one so that you can learn the ropes.
Many investment managers begin their work as either a financial analyst or a general trader, before working their way up toward a managerial position.
Another important thing you’ll need to do if you want to one day become an investment manager is to network. The world of finance, trading, and investing often relies on networking.
Who you know is sometimes as important as what you know, so keep this in mind as you progress through your education and early work life.
So that was our article explaining how you can become an investment manager. As you can probably tell by this point, investment managers lead a difficult life with lots of tasks to overcome daily.
That said, with an impressive earning potential, it is an attractive career path for many ambitious individuals.
We hope that this article has outlined everything you wanted to know, but whether or not it is a good career path for you will have to be decided on your own—as everyone is different and you may or may not have the skills/drive required.
We wish you the best of luck with working out what you’d like to do as a career path, and that you’re now more confident about this subject!