Is Investment Management A Good Career Path? YES, Investment Management is a hot cake for individuals seeking jobs in this field. Kindly go through this article for everything you need to know.
The financial sector encompasses many fields that are crucial for businesses and individuals. One such field is investment management. Many people have often bought in with the notion that the financial management niche is only about stock exchanges. However, while stock is part of what you may be managing as a financial manager, you also deal with far more complicated tasks such as analyzing risk, helping potential investors design profitable investment paths, and also helping investors get substantial return on their investment.
It is pretty important to note that the industry is a fast-growing industry with a lot of potential. Many business managers need somebody who will help them manage their financial portfolio, advise them on financial aid, grow their credit cards, and more.
So if you like to help grow their business, you might want to go into investment management. In this article, we’ll detail the necessary things you must know before embarking on a sojourn in the industry.
What Is Investment Management?
Investment management is the process of helping businesses and individuals manage their financial portfolios. Investment managers act as advisors to companies and individuals to make profitable financial gains. They don’t just work for individuals; they also work for investors, which may include charities organizations, NGOs, businesses, insurance companies, and more.
Is Investment Management A Good Career Path?
Yes, Investment Management is a Good Career Path.
Investment managers work with their clients to develop short and long-term investment strategies. They also advised against any risk that may be involved in undertaking a business adventure. As an investment manager, you are expected to dutifully understand the fundamental part of finance, including financial analysis, stocks, real estate, options, commodities, and annuities.
Aside from overseeing the clients’ financial portfolios, you are also expected to recommend business opportunities to clients, provide appropriate investments in accordance with the client portfolio and also answer any questions the client might have.
Skills Needed To Become An Investment Manager
If you are desirous of becoming an investment manager, a degree in economics, insurance, or any financial management-related field could suffice. To enhance your employability, you may also need to have some financial-related certificate, such as Certified Financial Planner, Certified Investment Management Analyst and more, that proves your knowledge and experience.
To get started, you might have to settle for entry-level jobs because you may not have the requisite experience for the top plum jobs. Entry Level Jobs such as financial analyst, loan officer, and underwriter are good places you can start your journey in the investment management industry.
Also, to work in this competitive workspace, you have to be a goal-oriented, energy-efficient, and tenacious person. You also have to be passionate about the industry with a penchant for learning any new development.
Advantages of Becoming A Financial Manager
If you have been looking at financial management as a career. Here are some of the advantages you might be looking at
1. Innovative Environment
Investment management is a hub of innovations, while investment managers are creative innovators. As an investment manager, you have to use your creativity and ingenuity to assess the needs of your clients in terms of their financial portfolios. As part of the larger society, your roles include providing practical solutions that bring positive vibes to businesses and individuals.
2. A Lucrative Career Path
A peep at this lucrative industry is an attractive proposition for whoever is desirous of going into it. From helping people manage their portfolios to advising clients on the best investment strategies, the field is indeed lucrative. In terms of emoluments, financial managers are one of the best-paid professionals. Annually, their salary could range from $51,000 to $172,000, according to Glassdoor.
Furthermore, the opportunity to quickly ascend the ladder is huge in this industry. So if you are passionate and tenacious about managing client businesses and investments, this might be the field for you.
3. A lot of Job Opportunities
The number of establishments that require financial experts is on the rise. Banks, credit unions, insurance companies, and brokerage firms are some of the notable mentions. This means that with the necessary qualifications, one can find his way to this field. As of 2020, the U.S. The Bureau of Labor Statistics estimates that there are 650,000 financial managers jobs in the U.S. alone. With the right education and experience, you can work your way up to big establishments such as JP Morgan, Citigroup, HSBC, and more.
4. Job Longevity
The outlook of the investment industry is very promising, with the potential to be even more crucial in the future. Everybody needs financial experts who are willing to use their knowledge to find profitable investments for them as well as help them manage their portfolios. If you are also conversant with technology, your job in the industry could be secure for a long time. To prove this, the BLS envisaged the industry to have an increase of 17% in jobs opportunity between 2020-2030. However, it should be noted that only those with a deeper understanding of the industry and the knowledge to navigate this path are likely to have job longevity because the competition to get into the industry will be fierce.
Top Jobs in the Investment Industry
In the investment management industry, some jobs could be more lucrative than others. Here are some of the top jobs in the industry
1. Investment Managers
Arguably, the most important task in the industry involves managing clients’ businesses and investments, analyzing the market, spotting risk, and devising a financial strategy. As an investment manager, you must be focused and up-to-date with the market trend. You are expected to be the client’s guide in any investment they might want to dive into. Having logical thinking and problem-solving skills could enhance an investment manager’s efficiency as he will have to solve a lot of financial problems for the client. For this position, the U.S. Bureau of Labor Statistics estimates the annual salary to be $131,710
2. Hedge Funds Manager
The difference between an investment manager and the hedge fund manager is in the type of portfolio they manage. While the former manages clients’ businesses and investments, the latter is in charge of hedge funds that are stored in the hedge funds.
Investors who pooled their funds into the hedge funds may incur greater risks and Rewards; this means your job as a hedge fund manager deals with greater risks and greater rewards. You monitor the market, sight loopholes that can drain investors’ capital, and also devise strategies that can make the investor earn more rewards.
Conclusion: Is Investment Management A Good Career Path?
Investment management and the financial sector generally is a hot cake for those who are looking to break into the field. However, to work in the industry, you have to be focused, tenacious, goal-oriented, and have the creativity to boost client financial statements through your working strategies. If you can do this, you might have just got yourself a lucrative career path.