investment fund manager

Investment fund managers are high-level financial analysts. They utilize their strong background in finance to analyze current market conditions for helping businesses make smart investment decisions. After a group of shareholders pool their savings to invest in certain financial assets, investment fund managers make the best decisions that will increase the value of the fund for maximum gains. Often called portfolio managers, investment fund managers hold a large amount of power in financial markets because of the mass of money backing them. When they make split-second decisions to shift funds out of a company, their move can dramatically affect share prices. Are you interested in this senior management position of the finance sector? Below is a full job profile exploring the ins and outs of being an investment fund manager.

Salary

According to the U.S. Bureau of Labor Statistics, the average annual salary for investment fund managers and other financial analysts is $91,620. This is equivalent to a mean hourly wage of $44.05. Investment fund managers employed in corporate management often make less at $83,620. However, those working for securities and commodity exchanges bring home the highest average salary at $112,820 annually.

Beginning Salary

When first entering a investment career as a financial analyst, it’s likely that the yearly salary will fall within the bottom 10 percentile around $48,100. While this seems considerably lower than average, it’s important to remember that investment fund managers with years of executive-level experience can eventually make up to $210,000 each year.

Key Responsibilities

Investment fund managers are responsible for closely working with stocks, bonds, and other types of assets to make sure a company’s investing decisions pay off in the long run. Since there is a wide range of investment portfolio options, most investment fund managers specialize in working in a specific geographical market, industry, or asset class. During their workday, investment fund managers may be:

  • researching markets
  • conducting financial analysis on investment portfolios
  • using statistical methods to interpret monetary growth
  • assessing the financial value of goods
  • meeting with multiple clients
  • managing their clients’ investment portfolios

In short, investment fund managers determine the best approaches for making clients’ investments grow and focus on achieving this task.

Necessary Skills

To succeed as an investment fund manager, you must have a passion for learning the business world’s financial affairs and staying up-to-date on market trends. Analytical and mathematical skills are a must for evaluating complex financial investment information. To thrive in this pressured environment you must have:

  • good judgment
  • critical thinking abilities
  • decision-making skills

Interpersonal skills are important for investment fund managers to easily communicate with:

  • clients
  • organizations
  • other analysts working on their portfolios

Investment fund managers should also be:

  • computer literate
  • team players
  • detail-oriented
  • organized

Degree and Education Requirements

For entry into financial analysis, it’s required that investment fund managers have earned at least a four-year undergraduate degree from an accredited business school. Most aspiring investment fund managers choose to earn a bachelor’s degree in:

  • accounting
  • business administration
  • finance
  • financial services
  • management
  • economics
  • statistics

From there, you’ll likely need to head back to graduate school to earn a master’s degree for unlocking the advanced position of investment fund manager. Employers often require a Master of Science in Finance (MSF) or Master of Business Administration (MBA) degree concentrated in finance. If possible, investment fund managers should take elective courses about:

  • bond valuation
  • investments
  • risk management
  • options pricing
  • economics

Pros and Cons of this Position

Investment fund managers partake in satisfying financial work. They make big investment decisions that could potentially create millions of dollars in profit to their clients. As a result, investment fund managers bring in a six-figure salary that can approach the quarter-million mark each year. Investment fund managers often lead a life of luxury and seem to always have a wealthy client offering to buy a snazzy lunch or dinner.

On the flip side, it’s important to note that investment fund managers do quite a bit of grunt work with:

  • analyzing complex financial data
  • writing investment reports
  • answering client emails

This position requires years of financial analysis experience and sometimes licensure. Stress involved with meeting deadlines and being responsible for large sums of money can be taxing. Nearly one-third of investment fund managers also put in up to 70 hours a week, including evenings and weekends.

Getting Started

It’s virtually impossible to begin your career as an investment fund manager without paying your dues first. Entry route to this profession is usually through obtaining entry-level positions as a financial analyst and working up the ladder. Build up your resume with years of full-time work experience in the finance sector, especially working with and managing investment portfolios. If you’re planning to work for an investment firm that manages over $25 million dollars in investments, you’ll also need to register through the Securities and Exchange Commission (SEC). It’s also becoming more prevalent for employers to require licensing from the Financial Industry Regulatory Authority (FINRA) for financial analysis positions. For even more professional credentials beyond your graduate degree, you may also want to consider becoming certified through the Academy of Certified Portfolio Managers (ACPM).

Future Outlook

As more financial products are becoming available for trade, investment portfolios are growing increasingly more complex. Emerging markets around the globe are also offering new investment opportunities. This requires more expertise in geographic regions where these markets are headquartered. Therefore, the Bureau of Labor Statistics reports that the employment of investment fund managers and other financial analysts is expected to rapidly grow faster than average at 16%. Despite this high level of job growth, strong competition for these advanced high-paying jobs will likely be fierce. Having a graduate degree and certifications can significantly improve an investment fund manager’s prospects, especially at:

  • investment firms
  • stock brokerages
  • banks
  • insurance carriers
  • private equity groups

Overall, investment fund managers have been recognized by CNN Money for having the 12th best job in America. For those with loads of determination and a passion for financial markets, becoming an investment fund manager is an appealing decision. It comes with plenty of lucrative benefits. If you feel that being an investment fund manager is right for you, you’ll have the opportunity to drive into investment analysis research. You’ll make significant moves that greatly impact all funds under your control.

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