The role of an Investment Manager is very important for businesses and individuals with high net worth. It is the investment managers who are responsible for looking after all the finances, keeping them in order, and taking the most important financial decisions for a secured future. This work sure involves a lot of patience and skills to cope up with stressful and critical situations, but the results are always better than expected.
The industry of investment is fast-paced, demanding and potentially very lucrative; here, you come across numerous work and self-enhancing opportunities every day. If you are someone who is interested in exploring the investment market, would love to acquire analyzing skills, help businesses buy other businesses or help millionaires or billionaires manage their finances, if it is all money you want to deal with, then there cannot be a better job position suitable for you than becoming an investment manager.
Still, confused why you should choose this industry? Have lots of questions and doubts brimming on your mind? Need to be very sure before taking the biggest career decision of your life? Don’t worry; this article will provide answers to almost all your questions, and by the end, you will have solid reasons to get established in this industry as an investment manager.
1. What is Investment Management?
Before you begin with other significant topics, it is very important to clearly understand what investment management actually is. The meaning of investment management is simple; it actually means managing investments or finances, and as an investment manager, you will be required to manage your client’s investments and keep them up-to-date.
Managing investments means choosing the right assets for your clients so that they get decent returns for it. Your responsibility also lies with the level of risks involved in every finance you choose for your clients and requires skills to avoid problems. It is a work full of responsibilities but, it is not that tough as it seems.
2. Why Would You Choose This Career Path?
Now the main question arises why would you actually choose the role of an investment manager as your ideal career path? Well, there are many reasons to consider, be it the various job opportunities, the high demand of this industry, or even the highest salaries; there are more than enough reasons to become an investment manager.
If you are really after a job that gives you money and respect, then becoming an investment manager is indeed the best choice for you.
3. How Can You Become an Investment Manager?
It is not that hard to become an investment manager; you have to acquire a bachelor’s degree in fields related to financial management to get started. To climb the ladder quickly, or get closer, or work directly on the position of a manager, you will have to opt for higher degrees such as a master’s degree in Business Administration or financial management, earning the FRM designation, becoming a CFA or CAIA Charterholder, and so on.
You can either get started directly after finishing up your bachelor’s degree or complete your higher education and then work in a managerial position.
4. What are the Basic Qualifications for an Investment Manager?
As discussed above, the basic requirement for getting into the investment management industry is completing your bachelor’s degree in fields related to financial management. You can also opt for higher degrees such as an MBA in business administration, or Financial Management, earn an FRM Designation, become a CFA or CAIA Charterholder to climb up to the managerial position easily.
5. What Do Investment Managers Specialize in?
There are various areas where the investment managers specialize in such as Fund management, where you get to manage a pool of money from many different investors; private wealth management refers to managing finances of individuals with high net worth, which also involves taking investment decisions for a secured future, and lastly, Institutional business management, which is quite similar to private wealth management, but it does not focus on a single individual, but a whole business, and its finances.
These were the main areas where the investment managers get to showcase their skills; you must have understood by now how this role is so important and involves a lot of responsibilities.
6. What are the Various Career Options?
Just like other industries, in investment management, you come across a lot of career options. Here are some of the most popular ones:
- Financial Analysts
- Investment Managers
- Sales and client relations
- Portfolio Manager
- Hedge Fund Manager
And many more to choose from. According to the U.S Bureau of Labor Statistics (BLS), there were over 650,00 financial manager jobs in the US in 2020 alone, and with time, the numbers are increasing. And this is a good sign because getting employed becomes easier after you are done with your degrees.
7. Are There any Internship Opportunities?
There are quite many internship opportunities available in the field of investment management. If you aim to get trained first and then apply for other renowned positions, then you always have many internship opportunities coming your way.
You can always apply for internships of your choice by just submitting your CV and Cover Letter and filling up the online application form, and also be as creative as possible while answering the questions mentioned on the application forms or questions focusing on skills and competencies. You might also have to go through an aptitude test or a face-to-face interview under some circumstances.
8. What are the Basic Skills Required to Become an Investment Manager?
You surely require some basic skills to become an investment manager, and some of the most important ones are- coping up with stress and the ability to thrive in a competitive market, work under deadlines, cope up with responsibilities, and blend with the work environment. If you are passionate enough to work as an investment manager, then your first focus must be your clients and their satisfaction. It is their trust that relies on you, and this is indeed a big responsibility.
A bonus will be if you are proficient in mathematics, data analysis and have the capability to deal with stressful situations, and in a way, demonstrate your problem-solving skills.
9. What the Firms Look Out in an Investment Manager?
These days, when you apply for the position of an investment manager, there are quite many things that the firms usually focus on and test while an ongoing interview. So, it is better to get prepared from the beginning so that you don’t go through rejection.
Some of the basic things that firms usually seek in investment managers are a passion for financial markets, client-oriented attitude, communication and interpersonal skills, excellent analytical ability, desire to work in a fast-paced environment, collaborative and team-working abilities and so on. If you wish to build a good reputation at the interviews or want to stand out amongst the crowd, you must always demonstrate your passion for investments and why you actually want to work for this industry.
Acing the interview, especially when it comes to a managerial position, is quite tough oftentimes. There are a few things you must keep in mind such as, you must demonstrate a sound knowledge of the investment management industry and clearly speak out your reasons for choosing this career path, you must have views and opinions to share, this is the best way to demonstrate your wit and knowledge about the markets and the industry. Most importantly, you must demonstrate a keen interest in the industry, and also what are your plans with it. If you remember all these major points, there is a high chance of getting the job of your dreams.
10. Salary and Perks
To be honest, the average salary of an investment manager is quite high and satisfactory. Your average salary after graduation can be as high as $52,000 and, you are also likely to have a performance-based bonus scheme.
If you are working under renowned or big companies, you might also receive flexible benefits schemes, health insurance, gym membership, childcare vouchers, and so much more.
11. Is There Any Job Satisfaction?
When you get highly paid, have a flexible job schedule, an active and engaging work environment, along with many beneficial schemes and incentives to keep you going, then how can you not be satisfied? Ask anyone in the investment management industry, and you will get the same answer, that every job positions you come across in this industry provide you satisfaction along with a lot of opportunities to enhance your skills.
It is now time, to sum up; you must have understood by now how amazing the role of an investment manager is! It surely is a position full of responsibilities and determination, but it sure is a fascinating job that offers a lucrative career, and of course, a bright future ahead. So, if you are considering investment management as your ideal career path, you are making the right decision. If you are in touch with someone who would need this article, then do share it with them.