Comparing Investment Managers to Fund Managers
Investment managers work with securities, such as bonds, while fund managers focus on different types of funds, such as mutual funds. They invest money on behalf of their clients with the goal of earning profits for their clients.
|Job Title||Educational Requirements||Mean Salary (2020)*||Job Outlook (2018-2028)**|
|Investment Managers||Bachelor's degree||$85,605||6% (financial analysts)|
|Fund Managers||Bachelor's degree||$63,937||6% (financial analysts)|
Sources: *Glassdoor; **U.S. Bureau of Labor Statistics
Responsibilities of Investment Managers vs. Fund Managers
Investment managers and fund managers have many comparable duties. They interact with potential and current clients to establish their investment goals and provide information about how investments are performing. They must conduct a lot of research to have the information that they need to make effective investment decisions. They are also responsible for following applicable regulations. They concentrate on different types of investments, so investment managers must focus on exploring securities investment options to determine which ones to buy or sell. Since fund managers work with things like hedge funds they need to monitor business developments and assess how business decisions, such as mergers, may impact investments so that they can identify the best investment options.
Investment managers handle investments for clients. They may also be known as portfolio managers or financial advisors and some of their duties may vary slightly based on their specific job title and employer. Many investment managers work long hours and divide their time between their office and traveling to meet with clients. While a bachelor's degree can qualify individuals for entry-level positions in finance, it's common for investment managers to need several years of relevant experience to advance to this type of role. They may also benefit from earning a master's degree or certification. They need strong math skills to perform calculations and they also need to have strong customer service skills so that they can effectively interact with their clients.
Job responsibilities of an investment manager include:
- Investigating investment options
- Reviewing financial data
- Determining which securities to buy or sell
- Establishing client investment objectives
- Providing reports for clients
- Evaluating investment decisions
Fund managers combine interpersonal, sales and analytical skills in their roles. Their goal is to produce strong financial gains by investing money for their clients. Since their clients invest in them it's important that they inspire confidence and have a sound investment plan in place. Once they've earned a bachelor's degree in a related discipline, such as finance, they may opt to pursue studies towards a master's degree or earn a Chartered Financial Analyst (CFA) certification to prepare for their career. They need to have analytical skills to review data and pay attention to details so that they consider all relevant factors in their decisions. It's common for them to work overtime and spend time out of the office meeting with current and potential clients.
Job responsibilities of a fund manager include:
- Promoting services to clients
- Managing the company's services
- Complying with industry regulations
- Identifying client goals
- Evaluating investment options
Individuals considering a future as an investment manager or a fund manager may also be interested in other financial careers, such as becoming an equity strategist or a financial advisor. Information about these careers is available through the links listed here.