Are you a finance graduate wondering about the job prospects in investment management? Then it’s not unusual to see you have such a question as ‘How many jobs are available in investment managers?’ in your mind. And, of course, you are not alone.
Many people even take it a step further by asking what the highest-paying jobs in investment management are. Nowadays, people are looking to pursue career paths that offer sustainability and potential for growth, both in the present and the future.
And with so many potentials and prospects investment management offers, people are gradually turning their attention away from such fields as medicine and engineering and looking to choose a career in investment management.
So, in this post, we will not only be answering the question, ‘How many jobs are available in investment managers?’ but we will also show some more important things you should know about the field. Not sure what type of roles are available and what their salary looks like? We are going to discuss all of that in this post. So, just keep reading!
First, What is Investment Management?
Investment management involves overseeing the finances and assets of companies or individual clients to help them achieve their financial goals. Professionals in this field create and implement strategies that help their clients identify lucrative investment opportunities.
For instance, an investment manager may leverage his experience and in-depth financial analysis to predict stock patterns and advise his client to invest. But that’s not all they do; the responsibilities in investment management may also include assisting organizations in determining their risk tolerance.
They advise clients on optimal timing for buying or selling financial assets and can create investment policy statements. Investment managers can also buy or sell financial assets on behalf of clients.
How Many Jobs Are Available in Investment Management?
Now let’s get to the focus of this post; let’s see how many jobs are available in investment managers. One unique thing you would likely appreciate about this field is that there are enough jobs, and the outlook also appears really promising.
The field offers numerous job opportunities for people looking to pick a career path there. According to a recent annual review of the financial industry, there are over 2.3 million jobs in the sector. The report, which was released in 2022, highlights approximately 1.2 million employment opportunities for financial service providers, including investment managers.
And with different factors pointing to a promising outlook for professionals in the industry, it doesn’t look like a place you would likely struggle to get a job if you decide to choose a career path in investment management.
How Much Can You Earn as an Investment Manager?
When thinking of choosing a career in investment management, one of the things that will hold strength in your mind will be the pay. You will want to know how much you can earn when working there to see if it’s worth it after all.
Well, there is no definite answer to this question. Your earning potential in investment management will depend on various factors. This would include your job experience, seniority, specialization, and the size and reputation of the firm you work for.
All of these will play an important role in determining your salary levels. But let’s look at the average salary of workers in the field.
Entry-Level Positions
As someone starting out in an entry-level investment management role, like an investment analyst, you can expect to earn an average annual salary that ranges from $70,000 to $100,000. However, in most cases, this will be dependent on your location and the size of the firm.
Mid-Level Positions
Of course, you are not going to remain an entry-level worker forever. As you gain more experience and move into mid-level roles, your earning potential will also increase. Salaries for mid-level investment managers are usually between $100,000 to $250,000 per year or even more.
Senior-Level Positions
At the senior level, such as being a chief investment officer or director of investment management, you can earn significantly higher salaries. In these positions, your earnings can be anywhere above $200,000 per year.
Bonuses and Incentives
One exciting aspect of being an investment manager is the opportunity to earn performance-based bonuses and incentives. These additional financial rewards can substantially boost your overall compensation. Typically, these bonuses are tied to your ability to meet specific performance targets, generate positive returns, or exceed benchmarks. So, if you perform well, your total earnings can be even more impressive.
How Many Jobs Are Available In Investment Managers: Common Roles in the Field
If you’re interested in pursuing a career in investment management, it’s important to understand the various job roles available, their responsibilities, salary ranges, and work environments. All these will come together to help you make a more informed decision about your career path. Let’s quickly see some popular job roles in investment management.
1. Business Development Specialist
A business development specialist focuses on building and nurturing relationships with clients. Their role involves identifying potential investors, creating marketing strategies, and presenting investment opportunities to prospective clients. They play a crucial part in expanding the client base and driving business growth for investment firms.
2. Investment Analyst
Investment analysts are responsible for conducting in-depth research and analysis of various investment options. They evaluate financial data and market trends to assess the potential risks and returns of investment opportunities.
Their insights help portfolio managers and clients make informed investment decisions. To be an investment analyst, you need a bachelor’s degree in economics, finance, or a related field. Working in this role will also earn you about $70,000 to $100,000 per annum.
3. Portfolio Manager
Working as a portfolio manager, you will be tasked with overseeing a portfolio of investments. You will be making strategic decisions to optimize returns and manage risk for your client or the company you work with.
Portfolio managers work closely with clients to understand their investment goals, create investment strategies, and actively monitor and rebalance portfolios to ensure alignment with clients’ objectives and market conditions.
According to Zippia, there are a little over 16,000 jobs in portfolio management, and the average salary here is between $100,000 and $250,000 per year.
4. Financial Advisor
Financial advisors provide personalized investment advice to individual clients. They assess their clients’ financial goals and risk tolerance and then develop tailored investment plans for them. Financial advisors monitor and adjust investment portfolios, offering guidance on asset allocation, retirement planning, tax optimization, and other financial matters.
5. Bid Manager
Bid managers play a key role in the competitive world of investment management. They are responsible for preparing and submitting proposals to win new business contracts or investment mandates. They develop compelling proposals and negotiate terms to secure new investment opportunities for the company or client they work for.
6. Risk Manager
A risk manager specializes in identifying and mitigating risks within investment portfolios. They assess market risks, credit risks, operational risks, and compliance risks. Risk managers develop risk management strategies and ensure regulatory compliance to safeguard investments and protect clients’ assets.
Risk managers can earn an average annual salary of $80,000 to $150,000, depending on their experience and the complexity of the investments they manage.
7. Fund Accountant
Fund accountants handle the financial and accounting aspects of investment funds. They maintain accurate records of investment transactions, prepare financial statements, calculate net asset values (NAVs), and ensure compliance with accounting standards and regulations.
Depending on their job description and the organization’s size, fund accountants can also invest in or divest from assets on behalf of a client, update clients on a firm’s investments, and perform general accounting tasks like budget reconciliation.
8. Compliance Officer
As their name implies, compliance officers ensure that investment management firms adhere to relevant laws, regulations, and industry standards. They develop and implement compliance policies and provide guidance on ethical practices. They are also responsible for conducting audits and risk assessments that help safeguard the integrity of investment operations and protect clients’ interests.
Is Investment Management a Good Career Path?
Let’s take a short diversion from how many jobs are available in investment managers – we already did justice to that anyway. So, let’s answer another question we think you might have in your mind concerning this. That is, if investment management is a good career path.
While this may depend on individuals and what you want out of a career, generally, pursuing a career in investment management offers numerous advantages, which make it an enticing choice for aspiring professionals. Let’s explore some of the key benefits so you can decide on your own.
-
Intellectual Stimulation
The finance industry, including investment management, is known for its diversity and the need to stay informed about market trends, policies, and procedures. This provides professionals with a stimulating environment that challenges them to think creatively and make informed investment decisions.
So, if you have been looking for a career that will constantly keep challenging you and help you innovate, then a career in investment management will be a great one.
-
Diverse job opportunities
The demand for investment management services is on the rise, driven by various factors. The aging population has heightened the need for retirement planning and investment guidance, creating a significant demand for investment management services. As a result, many individuals and organizations are seeking the expertise of investment management firms, opening up ample career opportunities in the field.
That means there will always be jobs available for professionals in the field. Apart from that, there are also several job opportunities and roles available in the industry to be filled.
-
Good payment
A career in investment management often comes with financial rewards. As professionals advance in their careers, they may have the opportunity to work with affluent clients or large corporations that offer high salaries and generous bonuses. This financial incentive recognizes the valuable skills and expertise investment managers bring to the table.
-
Early Career Start
Many entry-level positions in investment management require only a bachelor’s degree, allowing individuals to embark on their career journey shortly after graduation. These entry-level roles provide valuable industry experience and may serve as a stepping stone for further professional development, including pursuing advanced degrees.
So, if your major concern has been to find a career where high education qualifications are not required, then you will be glad to know that there are several entry-level positions in investment management to accommodate you.
-
Job Satisfaction
Investment managers often derive job satisfaction from helping clients and organizations make profitable investment decisions. Witnessing clients achieve their investment targets and generate profits can evoke a sense of pride and fulfillment.
Knowing that your expertise and guidance have contributed to their success can be highly rewarding, making the field a fulfilling career path for those passionate about finance and investment.
Final Note
We have also told you how good a career path in investment management could be and why anyone with a passion for finance and investment should give it a shot. You will not only be earning a comparatively good salary at the end of the month, but you can also derive great satisfaction from your job. Nothing beats doing what you have always loved to do.
If you still have any more questions, please drop a comment for us below. We will be glad to help!
