Investment management involves establishing managing, monitoring and improving the financial portfolios of clients. This profession is very lucrative. The top financial managers earn more than 4.5 percent of the annual median salary for all fields as per data obtained from the U.S. Bureau of Labor Statistics. But is it a viable career choice? We talked with industry experts to find out the ins and outs as well as the pros and pros and. In this article,
What Is Investment Management?
Investment management specialists manage financial portfolios and assist clients meet their financial objectives.Clients include institutions or individuals like pension funds, insurance companies or charitable foundations.Their financial portfolios consist of bonds, options, stocks real estate, mutual funds annuities, as well as commodities.
Investment managers collaborate with their clients to create and implement a short-term as well as long-term strategy for investing that is based on market conditions as well as investors' risk tolerance as well as their personal targets.In terms of daily tasks the investment manager could:
What Do Investment Management Jobs Pay?
A median wage to financial executives was $131.710 in 2021, as per the U.S. Bureau of Labor Statistics.The top 10% of the earners earned a median annual salary of $208,000, which is 4.5 times higher than median wage for all occupations ($45,760).
The financial analysts -- an entry-level job for future investors -- earned the median salary of $81,410 as of May 2021. That's more than double the average annual wage for all professional positions according to the Bureau of Labor Statistics.
"Investment managers are very well paid, especially at the senior level," says Shaun Martin, owner and CEO of Denver Home Buyer and an investment advisor based out of Denver, Colorado. "In addition to competitive salaries some investment managers get bonuses as well as other benefits, like stock options."
Pros and Cons of Investment Management Careers
We asked experts to explain what they consider to be the advantages as well as disadvantages of this field in order to determine the following: Is investment management an ideal career choice?Here's what they have to say.
Pros
The possibility of earning high is a major benefit of a position in investment management.
Cons
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While the number of positions is expected to increase however, obtaining one or a business from a client -isn't an absolute certainty.
"Investment management is a highly competitive field, and it can be very difficult to get started in the industry without a lot of education and experience," Martin adds.
Some individuals may have trouble balancing work-life since investment managers typically have to answer questions from clients during the night or during weekends.They also have to keep track of economic and market conditions carefully.
"This job is all about making the right financial decisions based on the ever-changing economic climate," Jason Porter who is the Senior Investment Manager of Scottish Heritage SG, says. "This necessity to stay attentive can make this task very tiring if you don't are interested in these issues.As with all occupations, you need to choose this job if your character corresponds to the description of the job."
Another possible stressor?Events beyond your control can impact your performance, and the results of the portfolios of your clients at the very minimum.
How to Become an Investment Manager
To begin your journey in this field it is likely that you'll need the business, finance or economics education.
"A bachelor's degree is the minimum requirement for most entry-level positions, but many investment managers have master's degrees or higher," Martin states.
For experience, you'll likely begin with an entry-level finance position, like an underwriter, loan agent, financial analyst or research associate. (Learn whether you think that finance is a great career choice.)
When you make towards more senior and formal positions in investment management You'll probably need to sign up at the Financial Industry Regulatory Authority (FINRA) or the Securities and Exchange Commission (SEC).
"Some [positions] require regulatory licenses like theSeries 7 General Securities Licenseor theSeries 6 Limited-Investment Securities License," Hogue says.
The requirements for licensing in the regulatory sector vary according to the role, size of the company and the location.Beyond that you may want to consider pursuing different certifications to differentiate yourself in this extremely competitive work market.These most often are those with the Chartered Financial Analyst (CFA), Certified Investment Management Analyst (CIMA) or the Certified Financial Planner (CFP) designations.
Core Skills Required
"You'll need to be able to crunch the numbers, but computers are automating that part of the career," Hogue states.As such the ability to communicate is essential for financial advisers and managers.
"You have to be in constant contact with clients and be able to articulate complicated strategies in simple terms," Montini says. "You need to keep in mind that the company you work for have hired you to provide their skills because they don't have the time nor the desire to master it."
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