Investment management is a hot career choice for college graduates. It seems like everyone wants to be an investment manager these days, and that’s not surprising. Investment managers are expected to have a broad knowledge of financial markets, which means you need to study business and economics in addition to investing theory. Even if you don’t major in finance or accounting, learning how to read financial statements and understand the balance sheet can help your job search. Investment management has many great benefits. It offers one of the best job prospects for recent college grads. If you want to become an investment manager, read this article and explore different career paths before committing to any one path. You might find something else that better suits your interests and skills as an individual.
What is investment management?
Investment management is the process of managing money for the purpose of making more money. The investment manager is responsible for all aspects of managing their investment firm’s funds. Investment managers are responsible for evaluating investments for the benefit of their clients. They may also manage a collection of funds for the purpose of offering a range of investments to the public. Investment managers are responsible for finding the best investment opportunities. These opportunities can come from analyzing existing assets, researching new investments, and investing in asset management firms. Investment managers also provide consultative services to help businesses better manage their finances.
Investment Management Careers
An investment manager may work in asset management. Asset management is the process of collecting money from different people to earn a profit by investing the funds. A good asset manager will manage a collection of different funds that serve a variety of investors. Investment managers may also decide to branch out on their own and open a fund management business. This is an extremely lucrative field that allows you to manage people money and makes a good salary. Investment managers may also work for a financial services firm such as a bank or insurance company. In this case, they are responsible for managing a large financial portfolio for the company. If you had passion for money calculation and sharp instinct. Well, this maybe good starting point for career choice. But, remember, the investment manager had huge responsibility to keep yourself on the field.
Investment Management as a Career Path
Investment management as a career path is a great option for students who are interested in the financial world. Investment managers are responsible for managing large financial portfolios for large financial institutions. They may also manage their own funds. Investment managers are required to have a broad knowledge of business and economics. This means you will need to study subjects like finance, accounting, and economics as an undergraduate student. Once you complete your undergraduate studies, you may choose to enter one of the many career paths available in the investment world. A range of investment management careers are available, including investment brokerage, investment banking, hedge funds, research, and private equity. Available jobs as investment managers can be found on any financial institution. For example, there are many jobs available on Real Estate Investment Trust as portofolio manager or financial analyst.
An investment manager mostly can work for a financial institution, such as a bank or insurance company, or for an investment management company. Investment managers can work for a large company that manages billions of dollars in assets or for a smaller company that manages tens of millions of dollars. You can also work for an investment management company (fund manager) or as an investment adviser. Investment management companies oversee the functions of a fund, such as managing the fund’s assets and collecting investment fees. Investment advisers provide financial advice to individuals, corporations, or other investment management companies. Investment advisers can also offer financial planning services to help individuals make long-term financial decisions. Investment managers can specialize in different types of investments, such as financial stocks, real estate, or bonds. Investment managers can work with a range of investors, such as large corporations, wealthy individuals, or pension funds.
Investment Management Salaries and Job Prospects
The average salary for investment managers was $163,000 per year in 2017, according to the Bureau of Labor Statistics. The highest-paid 10% brought home annual earnings of more than $271,000. Investment managers get paid based on a percentage of the assets under management. For example, a hedge fund manager earns a percentage of the returns she gets for her clients. Investment managers can also charge fees for managing investors’ funds. Investment management companies usually pay investment managers an annual salary. Investment managers in private equity and hedge funds generally don’t get paid an annual salary. Investment managers’ salaries vary depending on their industry, their education level, and their experience. In general, managers at large investment firms with a long history of good performance earn more than managers at smaller firms who have a lot to prove.
How to Become an Investment Manager
Investment managers usually have advanced degrees in finance, accounting, economics, or another relevant field. If you don’t have a degree in business, you can learn the skills you need to become an investment manager. Some general education classes, such as English composition and economics, are helpful, but you should focus primarily on classes that focus on investments, such as investment management. You can also take free courses offered by investment management schools or take online classes. Many investment management firms and universities offer online degree programs that allow you to transfer credits from a bachelor’s degree program. If you don’t have a degree, you can pursue a postsecondary educational program and apply to investment management firms. Most investment management firms require a bachelor’s degree and typically require you to have worked for at least one year as an investment manager before applying. You can also become an investment manager through a company’s training program. Participating in a training program can help you gain experience and make connections in the industry. Investment management firms often use online and in-person training programs. You can also attend investor conferences and trade shows to meet investment managers and learn how they manage funds.
Other Investment Careers
If you don’t want to become an investment manager, you can also pursue careers in accounting, auditing, or a related field. Investment managers can also become consultants, traders, private equity investors, hedge fund managers, or venture capitalists. Investment analysts and brokers usually work for financial companies or brokerage firms. They analyze trends in financial markets and make predictions about future market movements. Computer scientists, programmers, and data analysts usually work for tech companies, government agencies, or consulting firms. Many tech companies focus on data analysis, such as mining information from social media platforms like Facebook or Google to help develop products and services.
Investment Management: The Drawbacks of the Field
Despite the enormous benefits of investment management, the field has some drawbacks, too. Investment managers face a high risk of loss and may need to work long hours. Investment managers may also be required to work weekends and late nights. The high risk of loss and long hours may discourage some people from pursuing investment management as a career. Another drawback of the field is the fact that investment managers are not typically directly involved in managing investments. Instead, they are responsible for selecting which investments to buy and analyzing their performance. Investment managers may find it difficult to make connections between business and finance.
If you love the idea of managing money, this will help you decide Is Investment Management a Good Career Path?. Investment management is a great field with lots of opportunities for advancement and high salary. Investment management is also a challenging field with plenty of challenges that come with the territory. Make sure you love the idea of being a money manager before you start your career.