You’re probably wondering how many jobs are available in investment managers.
There are nearly one million job opportunities in various investment manager positions within the United States.
In this blog post, we’ll dive into the current state of the job market for investment managers, including the number of available positions and what to expect in terms of career growth.
Plus, we’ll cover essential educational and professional requirements you’ll need to get started.
So, let’s jump right in!
How Many Jobs Are Available in Investment Managers?
There are many jobs available in investment managers including financial advisors, wealth managers, credit analysts, portfolio managers, equity traders, and more.
If you are considering a career in investment management, you have a variety of options.
For example, you could work as a financial manager, risk manager or investment banking sales agent. You can find these jobs in banks, brokerage firms, credit unions and insurance companies.
Below are some of the top investment manager positions with the job numbers obtained from the U.S. Bureau of Labor Statistics for 2021.
- Financial Managers – 738,800 jobs
- Personal Finance Advisor – 330,300 jobs
- Credit Analyst – 68,770 jobs
- Financial and Investment Analysts – 291,880 jobs
- Securities, Commodities, and Financial Services Sales Agents – 466,900 jobs
- Financial Analysts – 373,800 jobs
- Financial Specialists – 123,200 jobs
What is Investment Management and the Role of Investment Managers?
Investment management is all about making smart decisions for clients’ money.
Investment managers help individuals, businesses, and institutions grow their wealth by carefully choosing where to invest.
They analyze financial data, assess risks, and create customized investment strategies to achieve their clients’ financial goals.
Job Categories in Investment Management
There are several key roles in the investment management industry, each with its unique responsibilities. Let’s look at three main categories:
Investment Analysts
Investment analysts are the backbone of any investment team. They dig deep into financial data to evaluate investment opportunities.
They research companies, industries, and market trends, then make recommendations based on their findings. Analysts help investment managers make informed decisions on which assets to buy, sell, or hold.
Sales Team Members
Sales team members play a critical role in building relationships with clients. They work closely with investment managers to understand clients’ needs and recommend suitable investment products.
They also communicate the benefits of their firm’s services and strive to grow the client base.
Support Function Staff
Support function staff ensure the smooth operation of an investment management firm. They handle tasks like compliance, risk management, and IT support.
They make sure the firm adheres to industry regulations and maintains a secure and efficient infrastructure.
The Current State of the Investment Management Job Market
The investment management job market is competitive but offers many opportunities for growth. With the increasing demand for professional financial advice, the industry continues to expand.
Job seekers with the right skills, qualifications, and determination can find rewarding careers in investment management.
Factors Affecting Investment Management Job Availability
Several factors influence the availability of investment management jobs:
- Economic conditions: The state of the economy affects the job market. In strong economic times, companies and individuals are more likely to invest, leading to a higher demand for investment managers.
- Market trends: Changing market trends can influence job availability. For example, the rise of robo-advisors and other technology-driven investment solutions may impact the demand for traditional investment management roles.
- Industry regulations: Regulatory changes can create new job opportunities or require firms to restructure their teams, impacting job availability.
Regional Trends: Investment Manager Job Market by State
Job opportunities for investment managers can vary by state.
Some states, like New York and California, are known for their robust financial sectors, offering a higher concentration of investment management jobs.
Others may have fewer opportunities, but lower competition and cost of living could make them attractive options.
Before settling on a specific location, consider factors like job availability, cost of living, and quality of life.
Research the job market in various states to find the best fit for your career goals and personal preferences.
Educational and Professional Requirements for Investment Management Jobs
To succeed in investment management, you’ll need a strong foundation in education and the right set of skills. Let’s explore the educational requirements and essential skills for investment managers.
Formal Education
A bachelor’s degree in finance, economics, or a related field is usually the minimum requirement for most investment management jobs.
Some firms may prefer candidates with a master’s degree, such as an MBA or a Master’s in Finance.
Obtaining professional certifications, like the Chartered Financial Analyst (CFA) designation, can also boost your credibility and job prospects.
Essential Skills for Investment Managers
In addition to formal education, investment managers need a specific skill set to excel in their careers:
Communication
Strong communication skills are vital for investment managers. You’ll need to explain complex financial concepts to clients in a clear and concise manner. Good listening skills are also crucial to understand clients’ needs and concerns.
Organizational Skills
Investment managers juggle multiple tasks and clients. Being organized helps you manage your workload efficiently, prioritize tasks, and meet deadlines.
Presentation Skills
As an investment manager, you’ll often present your recommendations to clients or colleagues. Polished presentation skills help you convey your ideas convincingly and professionally.
Analytical Skills
Investment managers need to be skilled at analyzing financial data and spotting trends. Strong analytical skills enable you to make informed decisions and develop effective investment strategies.
Growth of Investment Management Jobs and the Economy
The investment management industry is closely tied to the economy. As the economy grows, so does the demand for professional financial advice.
A thriving economy leads to more investment opportunities, driving the need for skilled investment managers to help clients navigate the market.
Impact of Technology on Investment Management Jobs
Technology is reshaping the investment management industry. Robo-advisors, artificial intelligence, and other innovations are automating some tasks, leading to shifts in job roles and responsibilities.
However, technology also creates new opportunities for investment managers who can adapt and leverage these tools to enhance their services.
The Future of Investment Management Jobs
The future of investment management jobs is likely to be a mix of traditional roles and new opportunities driven by technology.
Investment managers who embrace change, stay current with industry trends, and continuously improve their skills will be well-positioned to succeed in this evolving landscape.
How to Find and Secure an Investment Management Job
Finding and securing the right investment management job takes persistence, strategy, and a little insider know-how.
Job Search Strategies
- Use online job boards and industry-specific websites to search for investment management positions.
- Network with professionals in the field, attend industry events, and join relevant LinkedIn groups to expand your connections and learn about job openings.
- Work with a recruiter specializing in finance and investment management to access unadvertised job opportunities.
Advice for Getting an Investment Management Job
- Tailor your resume and cover letter to highlight relevant skills, education, and experience for each job application.
- Prepare for interviews by researching the company, practicing common interview questions, and developing a compelling pitch that showcases your value.
- Follow up with a thank-you note after interviews to express your interest and appreciation.
Pro Tips for Becoming an Investment Manager
- Build your financial knowledge by reading industry publications, attending workshops, and pursuing professional certifications.
- Develop your soft skills, like communication and leadership, through volunteer work or extracurricular activities.
- Seek internships or entry-level roles in the financial industry to gain hands-on experience and build your professional network.
Top Investment Management Jobs
How many jobs are available in investment managers?
In this section, we’ll explore the top investment management jobs, their expected salaries, and qualifications.
This section will provide valuable insights into the roles and responsibilities of various positions, helping you to better understand the career path that might be right for you.
Wealth Manager
Job Responsibilities: A Wealth Manager provides comprehensive financial planning and investment advice to high-net-worth individuals, helping them grow and protect their wealth.
Expected Salary: The average salary for a Wealth Manager is around $90,000 per year, with the potential to exceed $150,000 or more with experience and performance-based bonuses.
Qualifications: A bachelor’s degree in finance, economics, or a related field is usually required, with some firms preferring a master’s degree or an MBA. Professional certifications, such as the Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA), can enhance your credibility and job prospects.
Research Assistant
Job Responsibilities: A Research Assistant supports investment professionals by collecting, analyzing, and interpreting financial data, helping to inform investment decisions.
Expected Salary: The average salary for a Research Assistant in finance is around $50,000 per year, with experienced professionals earning higher salaries.
Qualifications: A bachelor’s degree in finance, economics, or a related field is typically required, with some positions preferring a master’s degree. Strong analytical skills and experience with financial software are valuable assets.
Finance Advisor
Job Responsibilities: A Finance Advisor (or Financial Advisor) helps individuals and businesses develop financial plans, manage investments, and achieve their financial goals.
Expected Salary: The average salary for a Finance Advisor is around $60,000 per year, with the potential to earn over $100,000 with experience and performance-based commissions or bonuses.
Qualifications: A bachelor’s degree in finance, economics, or a related field is usually required. Professional certifications, such as the Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFC), can boost your credibility and job prospects.
Credit Analyst
Job Responsibilities: A Credit Analyst evaluates the creditworthiness of individuals or businesses, helping financial institutions make lending decisions.
Expected Salary: The average salary for a Credit Analyst is around $60,000 per year, with experienced professionals earning higher salaries.
Qualifications: A bachelor’s degree in finance, economics, or a related field is typically required. Strong analytical skills and experience with financial software are important for this role.
Investment Banking Analyst
Job Responsibilities: An Investment Banking Analyst works on mergers, acquisitions, and capital raising activities for corporations and government entities, conducting financial analysis and creating client presentations.
Expected Salary: The average salary for an Investment Banking Analyst is around $85,000 per year, with bonuses and commissions potentially pushing total compensation to over $100,000.
Qualifications: A bachelor’s degree in finance, economics, or a related field is usually required. Some firms may prefer candidates with a master’s degree or an MBA. Strong analytical and presentation skills are essential for this role.
Finance Manager
Job Description: Finance managers oversee the financial health of an organization. They create and monitor budgets, analyze financial data, and make recommendations to improve financial performance.
Expected Salary: The average salary for a finance manager in the United States is around $95,000 per year, but it can range from $70,000 to over $130,000 depending on experience, location, and company size.
Qualifications: A bachelor’s degree in finance, accounting, or a related field is typically required. Some employers may prefer candidates with a master’s degree, such as an MBA.
Professional certifications, like the Certified Public Accountant (CPA) or Chartered Financial Analyst (CFA), can also be beneficial.
Equity Trader
Job Description: Equity traders buy and sell stocks on behalf of clients or their employer. They analyze market trends, make informed decisions, and execute trades to maximize profits or minimize losses.
Expected Salary: The average salary for an equity trader in the United States is around $75,000 per year, but it can range from $50,000 to over $150,000, depending on experience, location, and bonuses.
Qualifications: A bachelor’s degree in finance, economics, or a related field is usually required. Obtaining professional certifications, like the Series 7 and Series 63 licenses, is also necessary to trade securities in the United States.
Finance Analyst
Job Description: Finance analysts evaluate financial data and make recommendations to help organizations make informed financial decisions. They analyze market trends, create financial models, and prepare reports to assist in decision-making.
Expected Salary: The average salary for a finance analyst in the United States is around $60,000 per year, but it can range from $45,000 to over $85,000 depending on experience, location, and company size.
Qualifications: A bachelor’s degree in finance, economics, or a related field is typically required. Professional certifications, like the Chartered Financial Analyst (CFA) designation, can also be beneficial.
Portfolio Manager
Job Description: Portfolio managers are responsible for managing clients’ investment portfolios, making key decisions on asset allocation, and developing investment strategies to meet clients’ financial goals.
Expected Salary: The average salary for a portfolio manager in the United States is around $90,000 per year, with experienced professionals potentially earning well over $150,000 annually. Compensation can vary based on factors like experience, location, and performance.
Qualifications: A bachelor’s degree in finance, economics, or a related field is typically required for portfolio manager positions, with many firms preferring candidates with a master’s degree, such as an MBA or a Master’s in Finance.
Professional certifications like the Chartered Financial Analyst (CFA) designation can also be beneficial. A few years of experience in investment management or a related field is usually necessary to become a portfolio manager.
Trader
Job Description: Traders buy and sell financial instruments, such as stocks, bonds, commodities, and currencies, on behalf of clients or their employer.
They may work on the trading floor of a stock exchange or behind a computer screen, using their knowledge of financial markets and analytical skills to make profitable trades.
Expected Salary: The average salary for a trader in the United States is around $65,000 per year, with experienced traders potentially earning over $100,000 annually.
Compensation can vary widely based on factors like experience, location, and performance, with some traders earning substantial bonuses based on their trading profits.
Qualifications: A bachelor’s degree in finance, economics, or a related field is generally required for trader positions, though some firms may accept candidates with extensive experience and a proven track record of success.
Some traders may also obtain professional certifications, like the Chartered Market Technician (CMT) designation, to enhance their credibility and job prospects.
A strong understanding of financial markets and the ability to work under pressure are essential qualities for traders.
Frequently Asked Questions
What are the best paying jobs in investment management?
Some of the best paying jobs in investment management include:
- Portfolio Manager: Responsible for managing clients’ investment portfolios and making key decisions on asset allocation.
- Investment Banker: Works on mergers, acquisitions, and capital raising activities for corporations and government entities.
- Hedge Fund Manager: Manages a hedge fund’s investment strategy, aiming to generate high returns regardless of market conditions.
- Private Equity Manager: Invests in private companies or conducts buyouts of public companies, aiming to improve their performance and sell them at a profit.
- Wealth Manager: Provides comprehensive financial planning and investment advice to high-net-worth individuals.
Keep in mind that compensation in investment management can vary based on factors like experience, location, and performance.
Can I work in investment management without a degree?
While it’s possible to work in investment management without a degree, it’s challenging.
Most investment management jobs require at least a bachelor’s degree in finance, economics, or a related field.
However, if you have extensive practical experience or a strong track record of success in the financial industry, you may be able to find opportunities without a formal degree.
Networking and building a solid reputation can help you overcome the lack of formal education in some cases.
How many years of working experience can you expect a six-figure salary in investment management?
The time it takes to reach a six-figure salary in investment management can vary depending on your role, location, and performance.
On average, it may take between 5 to 10 years of experience to earn a six-figure salary.
High-performing professionals in competitive markets like New York or San Francisco might reach this level sooner, while those in smaller markets or support roles may take longer.
Which state will be the best for investment managers?
The best state for investment managers depends on factors like job availability, cost of living, and personal preferences.
States with large financial centers, like New York and California, typically offer more job opportunities and higher salaries.
However, these states also have a higher cost of living and increased competition. Other states, like Texas, Illinois, or Massachusetts, also have thriving financial sectors and may provide a better balance between job opportunities and cost of living.
Research the job market in different states to find the best fit for your career goals and personal preferences.
Conclusion
In conclusion, the investment management industry offers a diverse range of job opportunities with varying responsibilities, salaries, and qualifications required.
By understanding the different roles and requirements, you can make informed decisions about which career path in investment management might be the best fit for your skills and interests.
The industry is constantly evolving, and with the right education, experience, and dedication, you can find a rewarding career in investment management that not only provides financial stability but also allows you to make a positive impact on your clients’ financial future.
