Written by 
Edited by 
Edited by 
Investment management can be a demanding profession, but one that may offer lucrative rewards and long-term stability. Financial managers earned a median annual salary of $161,700 in 2024, according to the Bureau of Labor Statistics. 1 Is investment management a good career path for beginners in the financial services industry? It could be for advisors who have the experience and skills necessary to succeed.
Add new clients and AUM at your desired pace with SmartAsset’s Advisor Marketing Platform. Sign up for a free demo today.
What Is an Investment Manager and What Do They Do?
Investment management involves working with clients to construct and maintain investment portfolios that are designed to align with their needs, goals and risk tolerance. While a financial planner or advisor may take a broader view of a client’s situation when dispensing advice, investment managers focus on investment decisions.
In terms of what that looks like in action, here’s what a typical investment manager’s daily routine may include:
- Meet with clients to discuss their goals and begin to formulate an investment strategy based on those goals.
- Determine the appropriate asset allocation for the client’s portfolio, based on their overall investment strategy.
- Evaluate individual investments, including specific companies and stocks, while analyzing broader market trends.
- Develop financial models using portfolio visualizer tools to help clients assess potential outcomes.
- Execute trades of assets within the portfolio, which may include buying stocks, mutual funds, bonds and other securities.
- Monitor investment performance using established metrics and adjust portfolios as needed to ensure alignment with the client’s goals.
Investment managers can work with individual or institutional investors. They may run their own investment management firm or be employed by a larger advisory firm. Some choose to partner with an RIA aggregator, which provides advisors with resources and support as they move toward independence.
Client Acquisition Simplified: For RIAs
- Ideal for RIAs looking to scale.
- Validated referrals to help build your pipeline efficiently.
- Save time + optimize your close rate with high-touch, pre-built campaigns.
CFP®, CEO
Joe Anderson
Pure Financial Advisors
We have seen a remarkable return on investment and comparatively low client acquisition costs even as we’ve multiplied our spend over the years.
Pure Financial Advisors reports $1B in new AUM from SmartAsset investor referrals.
Is Investment Manager a Good Career Path for Beginners?
Investment management could be an attractive career path for someone with time and experience working in the financial services industry. It’s less common for this type of role to be offered to newer advisors.
A typical career path for an investment manager looks something like this:
Earn a relevant degree → Secure an entry-level position → Obtain necessary licenses/credentials → Advance to more senior roles
Someone who’s just earned their bachelor’s degree is likely going to have a challenging time landing an investment management position. Why? Because it’s a job that requires hands-on experience working with clients and offering investment advice, which can take years to amass.
Become a Top Financial Advisor
Referrals and market gains aren't enough. Grow with the all-in-one advisor marketing platform.
Pros and Cons of a Career in Investment Management
If you’ve been in the financial services industry for some time already, you likely know some of its advantages and challenges. Here are some of the main advantages and disadvantages of shifting into investment management as you continue your career.
| Pros | Cons |
| Specializing in investment management can offer significant earning potential, particularly if you work with higher-net-worth clients. | Investment management can be highly demanding, which may make it difficult to maintain a healthy work-life balance. |
| Investment management may give you an opportunity to do work you’re genuinely interested in while serving clients who fit your ideal client profile. | Moving into investment management typically means overcoming higher barriers to entry regarding the types of credentials and experience required. |
| Demand for financial managers is expected to remain strong, with employment projected to increase 15% through 2034, according to the BLS. | Starting an investment management firm can be costly and time-consuming, and it may take time to grow your client base. |
| Starting your own investment management firm could give you more control over the clients you serve, the services you offer and your daily schedule. | Investment managers are subject to strict regulatory and compliance requirements, which can be burdensome to meet without an experienced CCO. |
What Kind of Jobs Can Investment Managers Get?
There are a variety of jobs that fall under the investment management umbrella. The career path you choose to pursue may ultimately depend on your experience and the type of clients you’d most like to serve. Here are some examples of investment management job titles you may consider:
- Portfolio manager
- Wealth advisor
- Investment banker
- Hedge fund manager
- Financial analyst
- Financial manager
- Risk manager
- Private equity associate
If you’re actively searching for investment management roles, you’ll likely run into these terms. If you’re planning to launch your own investment management firm, you may choose to stick with that title or choose a more specialized one, depending on the exact nature of the services you plan to offer.
How to Become an Investment Manager
Assuming that you’ve earned a bachelor’s degree and are working in the financial services field in some capacity, you’re already ahead. You might pursue an advanced degree, such as an MBA, but that’s not necessarily a requirement to advance your career in investment management.
You will, however, need to ensure that you have the proper licensing and credentials. That includes FINRA securities licenses as well as designations granted by third-party organizations. Here are some of the licenses and credentials you may consider pursuing as an investment manager.
| Series 7 | A Series 7 license qualifies you to trade most securities. You’ll need to complete the Securities Industry Essentials (SIE) as a prerequisite for obtaining a Series 7. |
| Series 65 | Series 65 qualifies you to act as an investment advisor representative (IAR) and offer financial advice in exchange for a fee. |
| Series 63 or Series 66 | The Series 63 license qualifies you to act as an advisor at the state level. Advisors who have passed the Series 7 may use the Series 66 in place of the Series 63 and Series 65 licenses. |
| Chartered Financial Analyst (CFA) | Though not necessarily required, many investment managers choose to obtain a CFA designation. This credential, considered a gold standard for analysts, signals that you have expertise in portfolio management and analysis. |
| Certified Investment Management Analyst (CIMA) | The CIMA designation may be appropriate if you plan to focus on asset allocation, portfolio construction and risk management. |
| Chartered Alternative Investment Analyst (CAIA) | You might pursue a CAIA credential if you plan to serve clients who invest in alternatives, such as hedge funds, private equity, precious metals and real estate. |
The Certified Financial PlannerTM (CFP®) certification is also a popular choice among advisors who plan to offer comprehensive financial planning advice, including investment management. Whether this designation makes sense for you depends, once again, on the services you plan to offer and your target clientele.
Earning securities licenses and certifications can be a lengthy process, as each one requires an exam that you’ll need to allow yourself time to prepare for. Depending on the credential you’re earning, you may need to meet additional requirements, such as earning a bachelor’s degree, obtaining a certain level of work experience and agreeing to adhere to specific ethical standards. Many certifications also require continuing education annually or every two years to maintain the designation.
If you plan to go independent as an investment manager and establish an RIA, you’ll need to register with the Securities and Exchange Commission or state regulators. Which entity you register with is determined by your firm’s assets under management; if you’re starting an RIA with zero AUM, for instance, you’ll register with the state. If your AUM exceeds $110 million, you’ll register with the SEC.
The typical RIA startup cost, including registration fees and startup expenses, is around $25,000, while the average time frame to get up and running is four to six months, according to LPL Financial. If you’re hoping to fast-track your client acquisition efforts, you might consider partnering with SmartAsset AMP. This advisor marketing platform connects advisors with qualified leads, and provides them with the tools they need to nurture new relationships automatically. Schedule a free demo to learn how SmartAsset could help you grow your new practice.
Frequently Asked Questions (FAQs)
Do Investment Managers Make a Lot of Money?
Investment management is a career path that pays well, with the median salary in the six-figure range. How much you earn as an investment manager can depend on numerous factors, such as your experience, the types of clients you work with, and whether you work for a wealth management firm or yourself in a business that you own.
What Degree Is Best for Investment Managers?
Investment managers may benefit from earning degrees in fields that are related to financial services. That can include accounting and finance, but a business degree may also be valuable for those seeking to launch their own investment management firms.
Is It Hard to Be an Investment Manager?
Investment management can be a stressful and demanding career path, which may require working long hours and spending a significant part of your day studying the markets. You’ll need to possess solid time management skills, strong attention to detail, effective communication skills and a genuine passion for the work you’re doing.
Bottom Line
Is becoming an investment manager a good career path? It depends on your experience and where you are in your career. For someone who’s gained some experience working in financial services, shifting gears to focus on investment management could be an excellent chance to further their professional goals. However, it’s important to consider the skills, experience and licensing that are required, as well as what the job involves day-to-day to decide if it might be right for you.
Tips for Growing Your Advisory Business
- Working with an online lead generation service can help accelerate your business growth by putting your business in front of prospective clients. SmartAsset AMP (Advisor Marketing Platform) is a holistic marketing service financial advisors can use for client lead generation and automated marketing. Sign up for a free demo to explore how SmartAsset AMP can help you expand your practice’s marketing operation. Get started today.
- If you’re pursuing a professional designation, consider what’s required to prepare for the exam as well as what you’ll need to do after you pass. For example, if you’re hoping to become a Certified Financial Planner™, you’ll have to complete the CFP© exam and meet continuing education requirements thereafter. Continuing education credits can be earned online or offline, using a mix of free and paid options.
Photo credit: ©iStockPhoto/SDI Productions, ©iStockPhoto/fizkes, ©iStockPhoto/FatCamera
Article Sources
All articles are reviewed and updated by SmartAsset’s fact-checkers for accuracy. Visit our Editorial Policy for more details on our overall journalistic standards.
- “Financial Managers.” U.S. Bureau of Labor Statistics, https://www.bls.gov/ooh/management/financial-managers.htm.