Investment management is a rewarding career path that has attracted many individuals due to its prospect of high pay and long-term growth opportunities. As the financial industry continues to expand, there is a growing demand for skilled professionals who can help clients manage their wealth and achieve their investment goals. In this competitive industry, certain jobs are known to offer the best compensation packages and career prospects. Understanding the best paying jobs in investment management can help you make wise career choices and map your path to financial success, regardless of your level of experience in the field.
Who is an Investment Manager?
An investment manager is a person or business that manages securities portfolios for customers according to the investment objectives and guidelines that clients have established. The daily buying and selling of securities, portfolio monitoring, transaction settlement, performance measurement, regulatory reporting, and customer reporting are all tasks that an investment manager may conduct when managing client portfolios.
Investment Managers Job
A person or business that manages a client’s investment portfolio is known as an investment manager. To achieve a client’s goals, investment managers develop an investment strategy. Using this strategy, they determine how to allocate the client’s portfolio among various investment types, such as stocks and bonds.
According to the client’s needs, the manager buys and sells certain investments, while also keeping an eye on the performance of the entire portfolio.
Some investment managers also function as financial planners, giving clients comprehensive financial guidance on matters including cash flow management, taxes, insurance, and estate planning. Others oversee the financial planning and investing needs of high-net-worth customers and coordinate the services of other experts, such as attorneys and accountants.
Wealth management is a common term used to describe this. Along with investment management, wealth management also offers other specialized services including accounting, retirement planning, and estate and tax planning. Investment management may be useful if you need help selecting investments for your IRA. Wealth management would likely be unnecessary.
List of Highest Paying Jobs in Investment Management
- Portfolio Manager
- Business Development Manager
- Financial Manager
- Investment Banking Associate
- Equity Research Analyst
- Investment Product Manager
- Financial Trader
- Financial Analyst
- Investment Analyst
- Economic Analyst
- Risk analyst
- Trading Assistant
- Credit Analyst
- Portfolio Assistant
- Insurance Advisor
- Tax Director
#1. Portfolio Manager
Asset, investment, and financial health are managed by portfolio managers for funds.
They choose investments for customers and are accountable for their success.
To maximize client profits, portfolio managers must have the ability to make precise projections.
A portfolio manager makes an average yearly compensation of $80,000. Depending on variables including a person’s geographic location and whether or not they are self-employed, this number may change.
#2. Business Development Manager
The business development manager is responsible for assisting an organization in expanding into new areas and establishing connections with other companies. They are in charge of seeing opportunities and creating strategies to address those demands, all while ensuring that the business expands and gains more customers.
Business development managers are typically required to know many languages and travel extensively. Additionally, as they spend a lot of time conversing with coworkers and clients, they must be effective communicators.
Average Annual Salary: $130,000.
#3. Financial Manager
Managing a company’s, business’s, or organization’s finances is the responsibility of a financial manager. They make sure that the money is used to buy products that are both profitable and required. Their main objective is to make sure you can keep track of every expense so you don’t spend excessive amounts of money.
The day-to-day management of a company’s money is the responsibility of financial managers. In addition to choosing stocks and bonds, managing portfolios, and making sure that money is wisely placed across various asset classes are also responsibilities that they must oversee.
Financial managers typically make $135,000 a year, but they can make significantly more if they work in the correct sector and have the necessary skills.
#4. Investment Banking Associate
An entry-level position in investment banking is called an associate. Associates handle all facets of mergers, acquisitions, and capital raising. They are accountable for conducting research and analysis on potential transactions, creating deal strategies, carrying out due diligence on businesses they are considering buying or investing in, and supporting senior associates in their work.
Before helping with other aspects of an M&A transaction, such as negotiations or the writing of legal documents, associates frequently begin their careers by working on term sheets or pitch books (materials that describe what the company does, its valuation information, and potential purchasers).
Depending on the company you work for and the city you live in, the average annual compensation for an investment banking associate is $150,000.
#5. Investment Analyst
In this position, you will be in charge of advising clients on which stocks, bonds, and other securities to buy and sell. Additionally, you can be in charge of writing reports on the performance of numerous businesses and industries.
Investment analysts are employed in the financial sector and assist investors in making financial decisions. They might achieve this by researching market trends, coming up with investment plans for customers, or carrying out other duties.
Average Annual Salary: $70,000.
#6. Investment Product Manager
Managers of investment products deal with other types of investments in addition to equities. The creation and customer sales of mutual funds may fall under their purview.
To help consumers understand what they require in an investment vehicle, this can include marketing, sales, and product development.
The company’s portfolio managers and product managers work closely together. They contribute to the selection of the firm’s investments as well as the decision of how to organize those investments to satisfy the needs of the customers.
If you’re looking for work in the financial services sector, an investment product manager is one of the highest-paying positions available.
Annual Salary: $70,000 and $90,000.
#7. Equity Research Analyst
Giving advice to investors and investment companies regarding the worth of a specific stock is your responsibility as an equity research analyst. You can be responsible for carrying out market research, examining financial statements, and preparing reports on your conclusions.
You must also assess the risk involved in investing in each company, as well as which ones are likely to appreciate in value over time.
For a financial institution or investment firm, you can work as an equity research analyst. If you enjoy reviewing financial data and suggesting stocks that would make wise investments for clients, this might be a fulfilling job.
#8. Financial Trader
One of the highest-paying careers in investment management is that of a financial trader.
Trading in securities, such as stocks and bonds, is the responsibility of financial traders. They acquire securities at low prices and sell them at high prices, generating income for both themselves and their employers, using their understanding of the financial markets.
Speculating on changes in the prices of commodities, currencies, and securities is a key component of the financial trader’s employment. A trading platform or over-the-counter transactions can be used to accomplish this.
Average Annual Salary: $80,000
#9. Financial Analyst
Financial analysts are the collective minds of finance, helping to frame and mold how businesses perceive their own operations. They create financial models to assist businesses in predicting future revenue and spending trends as well as estimating the amount of cash that will be available for dividends or investments.
At banks or other financial institutions, investment managers frequently employ financial analysts. Many financial analysts also work for private equity firms, hedge funds, or businesses that are trying to enter new industries.
Depending on geography and expertise, the annual compensation of a financial analyst might range from $65,000 to $120,000.
The task of purchasing and selling stocks, bonds, and other financial instruments on behalf of investors falls to stockbrokers. Additionally, they might offer their clients investing advice. Typically employed by brokerage firms or banks, stockbrokers are compensated with commissions for each sale.
Although stockbrokers have several duties, one of the most crucial ones is assisting customers in achieving their financial objectives by identifying suitable investment opportunities.
To give sound advice, you must also be aware of the level of risk associated with each investment.
Average Annual Salary: $60,000.
#11. Economic Analyst
Economic analysts conduct research and offer predictions on how businesses and sectors will be impacted. They provide investment advice, forecast economic trends, and market positioning suggestions for businesses.
Among an economic analyst’s responsibilities are the following:
- Finding future company activity trends by analyzing economic data sources like labor statistics and real estate data.
- Utilizing up-to-date data on present situations and anticipated future outcomes to forecast key market segments like manufacturing or retail sales.
Average Annual Salary: $104,100
#12. Risk analyst
One of the highest-paying positions for investment managers is risk analyst, which is a career in the financial services sector. Risk analysts are in charge of identifying risks and advising management.
They will require good analytical and communication skills to accomplish this. These experts typically hold degrees in finance, economics, or math. However, a bachelor’s degree in any subject may be sufficient for some entry-level jobs.
Roles as risk analysts in major banks or insurance firms, where wages can range from $95k to 145k annually depending on experience level, are among the highest-paying positions in this industry.
Risk analyst roles in major banks or insurance companies, where salaries can vary from $81k-$145k per year, depending on experience level, are among the highest-paying professions in this industry.
#13. Trading Assistant
The traders and brokers on their teams will receive assistance from you as a trading assistant. If you think this job might not be for you, don’t bother applying. It’s a competitive and extremely stressful position where you’ll be working with large sums of money and under pressure.
But those that are qualified can work in this position and make a lot of money; some even make hundreds of thousands of dollars annually.
Average Annual Salary: $50,000.
#14. Credit Analyst
When a business requests a loan or other type of credit, a credit analyst is in charge of examining it. The probability of the borrowers defaulting on their loan commitments must be determined by the analyst.
In addition, the analyst could assess a company’s ability to repay loans in the event of unanticipated circumstances or whether it has enough assets to satisfy its debts.
Average Annual Salary: $55,000
An underwriter evaluates an investment’s risks and rewards to ensure that it is secure for investors. They examine the company’s financial statements, anticipated sales and earnings, and the feasibility of their business strategy to do this.
Average Annual Salary: $59,000.
#16. Portfolio Assistant
The person who works as a portfolio assistant will create paperwork and reports as needed by the portfolio manager. They may be tasked with creating reports that represent the status of the portfolio as well as monitoring it and gathering data that will be utilized to strengthen it.
Average Annual Salary: $109,000.
#17. Insurance Advisor
The need for insurance advisor positions is rising. This individual gives consumers advice on choosing the best insurance option for them and on securing their future. Their pay frequently is based on the number of clients they can get.
The following are some examples of an insurance advisor’s duties:
- Encouraging clients to get the insurance plan that is most appropriate for them.
- Convincing potential customers to choose a policy.
Annual Salary: $40,000 – $85,000 per year
#18. Tax Director
One of the highest-paying finance positions is tax director, and there is typically a lot of competition for the post globally. The Tax Director is responsible for preparing and filing the client’s taxes. He also gives advice to his clients on tax-saving strategies.
The following tasks are often carried out by a tax director:
- Tax preparation and filing.
- Examining the tax calculation for any mistakes.
- Suggesting means of reducing taxes.
Annual Salary:$100,000 to $220,000
How to become Investment Manager?
To become an Investment Manager, one typically needs to obtain relevant education, experience, and skills.
Here are the general steps to consider:
Steps 1: Obtain a relevant degree
Typically, Investment Managers have a bachelor’s degree in finance, business administration, economics, accounting, or a related field. Some may also have a Master of Business Administration (MBA) degree, which can be helpful in advancing their career.
Step 2: Gain work experience
After obtaining a relevant degree, gain experience in the financial industry. Start as an entry-level financial analyst, research assistant, or other related positions in finance. This will help you to build a strong foundation and develop skills such as financial analysis, portfolio management, and risk management.
Step 3: Obtain certification
Consider obtaining a professional certification such as the Chartered Financial Analyst (CFA) or Certified Financial Planner (CFP) designation. These certifications demonstrate a high level of expertise and commitment to the profession.
Step 4: Build your network
Networking is essential in the financial industry. Attend industry events, join professional organizations, and connect with other professionals in the field. This can help you to stay current on trends, find job opportunities, and develop mentorships.
Step 5: Develop specialized skills
Investment managers need to have strong analytical, quantitative, and problem-solving skills. Additionally, knowledge of financial markets, investment vehicles, and risk management strategies is essential.
Step 6: Move up the ladder
As you gain experience and develop your skills, look for opportunities to advance your career. This may include taking on more responsibility, managing a team, or moving into a higher-level role such as a Chief Investment Officer.
Investment Managers Salary
The degree, level of experience, and size of the organization are only a few of the many variables that affect an investment manager’s pay.
The income of an investment manager is significant and ranks among the highest average wages in America, it should be underlined. A typical year’s salary for an investment manager is between $60,000 and $65,000. Not all investment managers fall under this category, though. Investment managers can operate in a wide range of industries, and as a result, their pay varies.
An investment manager in the private equity sector, for instance, typically earns a starting pay between 80,500 and 110,500 dollars, whereas an investment manager in the venture capital sector typically earns a starting salary between 45,500 and 60,500 dollars.
On one hand, a number of years of professional experience in other fields, such as investment banking, strategy consulting, etc., or a high level of education, can be used to explain the private equity industry’s high beginning wage.
Starting at $ 184,000 and going all the way up to $ 274,000, an investment manager in the private equity industry has a management position.
In the financial sector, getting bonuses and commissions on top of your pay is also typical. Even the fund manager can consider such perks a blessing. In advance, these are discussed in employment contracts.
As a result, it is challenging to determine an investment manager’s exact average and starting income. However, it is a truth that an investment manager’s position offers a competitive income.
Investment Managers Job Outlook
Since 2004, there has been a good overall job outlook for Investment Manager careers. In that time, there have been 32.37 percent more job openings for this profession nationwide, growing on average by 2.02 percent annually. By 2029, 152,930 additional jobs should be filled due to an increase in demand for investment managers. Over the following few years, this amounts to a 2.60 percent yearly increase.
A career in investing might be highly appealing to many professionals interested in working in the financial sector. Becoming an Investment Manager requires a strong educational background, relevant work experience, specialized skills, and a commitment to ongoing learning and development. It also requires a passion for investing and a dedication to helping clients achieve their financial goals.
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Business Development Manager
Investment Banking Associate
Investment Product Manager
Equity Research Analyst
A career in investment management is highly sought after. There are, however, a limited number of openings for investment managers, so you should be aware of that. So having a degree in financial management might not guarantee you a job as an investment manager.
A profession in investment management may be financially rewarding. One of the top-paying positions in finance is investment management and educated and motivated individuals can anticipate seeing rapid salary growth in this field. According to Glassdoor, the annual salary for investment managers in the US ranges from $51,000 to $172,000