If you have ever wanted to explore the career opportunities of an Asset Manager, then this article is going to give you a proper strategy on while approaching this career.
I have tried to touch all the important points that you may feel necessary, like:
- The job description of an Investment/ Asset Manager,
- Various career options available in this field,
- Future prospects in this field of Investment Management,
- Educational and Skill requirements, and
- Salary of an Investment Manger
Career Opportunities of an Asset Manager/ Investment manager
Ask yourself these following question honestly and tell me what’s your answer.
- Are one of those who is interested in the ups and downs of the financial market?
- Do you enjoy reading finance based newspapers?
- Do you love checking stock prices on the internet or watching BBC stock reviews?
If your answer is yes for any of the above-mentioned questions, then investment/asset management is the right career choice for you.
The other name of Investment Management is Money or Asset Management. In the banking sector, it is sometimes also referred to as Fund Investment Management.
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What does an Investment/Asset Manager do?
If I have to give the job description of Investment managers in one word then they help their clients to determine the best investment strategies.
Their objective is to help their clients earn as much money through their investments as possible.
They will meet with clients to discuss their needs and set investment goals.
Duties of an Investment/Asset Manager:
Their duties can also involve researching companies and investment options so that they know which investment options are most likely to be secure investments.
They continue to review relevant data so that they can make informed decisions about which investments to change so that their clients’ financial goals are met.
It’s common for investment fund managers to work for companies or clients investing large amounts of money.
Illustration of the career path of an Investment/Asset Manager:
Investment/ Asset Manager Career Options:
There are various career options in the field of investment/asset management. Out of all those, I have listed a few in order to narrow down your search:
1. Financial Analyst:
Many business organizations and large pension fund firms require analysts to do the analytical work required before an investment is made.
They provide advice on buying and selling of securities after analyzing stocks, taking a view on their future outlook and circulating research internally.
This is the entry level posting for bachelor degree holders. Work experience of 1-2 years as a financial analyst, is an added advantage for applying to a top business school.
For having a wider view of this field, check out our blog-post on career opportunities of a Stock Analyst
2. Investment/Asset manager:
An investment/asset manager should be a reservoir of knowledge about the market trends.
Asset managers will rely heavily on the in-depth research done by analysts when deciding how to invest in assets.
They are responsible for the investment of clients’ money in profitable ventures.
The pension fund or money management firms hire portfolio managers to oversee investing for a group with specific investing aims.
3. Investment Advisor/Consultant:
They provide investment advice, performance evaluation and quantitative analysis in the money management sector.
They offer suggestions regarding where to invest money and when to sell securities.
For this deep knowledge of financial market trends is necessary.
4. Portfolio Management Marketing:
If you are outgoing, knowledgeable and has excellent sales skill, then you might consider a sales position in portfolio management.
Most companies want people who can make authoritative suggestions about their larger investments.
In short, it is the marketing side of investment management.
5. Hedge/Mutual Fund Trader:
Hedge funds are private funds that involve large sums invested in currencies, bonds, stocks and the like.
These funds hire analysts and traders and have exhibited rapid growth in recent years.
For understanding this subject in a better way, please check out our blog post on Investing on Equity SIP.
6. Securities/Stock Brokers:
They execute orders to buy and sell securities. Some act only as dealers while others are principally advisors.
They work for both institutional clients and individuals. Their services are required by investment firms, pension funds, banks, insurance companies etc.
If you want to learn more about investing in stock markets please see Tips on Stock Market Trading.
If you are new to the stock market and want to learn more about it, please see Stock Market Basics: Beginners’ Guide
7. Equity/Stock Analyst:
With the tremendous growth in equity market scope for equity analyst is much more than earlier.
Equity analysts are involved in continuous research of companies performance, financial management and risk-return analysis of investment in equity shares.
Job Prospects of an Investment/Asset Manager:
The U.S. Bureau of Labor Statistics (BLS) anticipates personal financial advisors will see job growth of 14% from 2016-2026.
This is more than the average job growth for any occupation during the same time period, which is expected to be 7%.
Every business organization, whether big or small, is always in need of good investment managers who can take the decision regarding investment in such a manner that maximizes profit.
This has increased the demand for efficient investment managers, which in turn brighten the scope for a career in this field.
Educational Requirements of an Investment/Asset Manager:
Investment/Asset managers may be able to start their career with a bachelor’s degree.
According to ONet OnLine, 33% of these professionals have a bachelor’s degree while 63% earned a master’s degree.
Common fields of study for these professionals include mathematics, finance, and business.
Certification as a Chartered Financial Analyst (CFA) may be an asset to those seeking employment in this field.
What are the skills required for an Investment Manager?
No matter how many degrees you have, but if you don’t possess the following skills, you are never gonna become a biggie in this sector
- Mathematical Skills: This is the top priority for this job. Investment in a numbers game. And in order to understand it better, you have to be excellent at maths.
- Analytical Skills: In this job, you have to analyze a lot of data to make some good investment strategies. And if you are not good at this, you’re gonna lose anyway.
- Customer Handling Skills: Since this is a service sector job, you have to be absolutely perfect at handling clients.
- Excellent Communication Skills: This is again one of the basic requirements of this job. In order to handle your clients properly, you have to be good at this.
- Good Computer Skills: You need to be good at handling spreadsheets and making presentations in order to make your clients understand your strategies
Salary of an Asset/Investment Manager:
The Median Salary of an Investment Manager can be roughly $96K annually. i.e. around 50% of the investment managers can expect this amount.
Total cash compensation to Investment Managers approaches anywhere from $59K on the lower end to $192K on the higher end;
in exceptional cases, this can include more than $51K from bonuses and upwards of $20K from profit sharing.
Below I have also provided a Table of the various pay-scales that an Investment/Asset Manager manages to earn:
(Avg. Salary per year earned by Investment Manager) Vs (Percentage of Investment managers earning that)
Location is the biggest factor affecting pay for this group, followed by career length.
Again, there are a lot of variations depending upon the job role of an Investment/Asset Manager.
Some senior portfolio managers manage to make around $120K per year, whereas, there are some who stucks around $70-80k per year.
In case you want to know more about the Avg. Annual Salary of an Investment Manager, there is a table given below:
|Various job roles of Investment Manager||Avg. Annual Salary|
|Senior Portfolio Manager||$120,000|
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Investment managers are smart, talented and extremely intelligent people.
If you are sure to become someone like that, you must go through tremendous hard work and training in order to acquire such skills.
So, are you ready to take on this challenge? It’s easy to say you can do it but it’s really tough to execute this in a perfect manner.
If you have any query regarding this, please feel free to ask in the comments section below.