Through formal education, analytical savvy and on-the-job experience, a mutual fund analyst gains the skills to understand debt markets and investments to be able to make profitable investment choices for wealthy clients and individuals. Boasting an excellent starting salary and incredible potential for career growth, the position of mutual fund analyst is ideal for market-savvy individuals who enjoy working in high-pressure environments.
Average Salary of Mutual Fund Analyst
In the United States, a mutual fund analyst with a bachelor’s degree can expect to earn upwards of $100,000 annually working as an assistant or junior analyst. Starting salaries average around $75,000 per year, with many of the larger banks offering a signing bonus that boosts the initial salary upwards at least several thousand dollars. With an MBA, starting salaries are boosted dramatically to around $120,000 as these mutual funds analysts begin their careers in an associate position. Salary expectations can nearly double after several years working with a firm.
Job Responsibilities of Mutual Fund Analyst
A mutual fund analyst typically reports to a fund manager and is responsible for doing much of the research and market analysis that helps the fund manager make savvy investment decisions for clients, according to Investopedia. Fund analysts work for wealthy individuals, banks and investing firms or companies which offer pension funds for their employees, among others. On a daily basis, a mutual fund analyst might be expected to research current market developments and new investment opportunities, model and predict future financial trends and culminate their knowledge and research into market reports for fund managers or clients. There is typically some degree of communication skills required for a mutual fund analyst to be able to express ideas clearly to both fund managers and clients, though the amount of face-to-face interaction may be depending on the company for which an analyst works. One of the key factors in becoming a successful fund analyst is being able to successfully interpret data from different markets and turn it into a profitable investment strategy.
Education Requirements of Mutual Fund Analyst
Becoming a junior or assistant analyst requires, at minimum, a bachelor’s degree in finance, investment analysis or accounting, though a graduate degree can offer a competitive edge and higher starting salaries. Most mutual fund analysts acquire an MBA in Finance at some point in their career, while many also actively pursue internships during their formal education to gain real-life knowledge of their future career as well as making business connections for the future.
Career Path of Mutual Fund Analyst
Entering the business with a bachelor’s degree gives many people an idea of the type of work they will be doing if they choose to stay in the field. With a generous starting salary, analysts are able to get a feel for the work while retaining advancement opportunities before deciding to go back to school for an MBA. Analysts typically work under fund managers who are responsible for investing money into profitable ventures. This position requires substantial experience as a mutual fund analyst as well as a master’s degree; it can be a difficult but rewarding career goal to pursue.
Related Resource: Jobs in Commercial Banking
The responsibility of investing others’ money can be both exhilarating and intimidating, but a solid understanding of the market and a formal education can make it a bit less daunting. Market-savvy individuals will find that pursuing a career path as a mutual fund analyst is a financially rewarding career path with excellent growth potential.
