How The Strong Inventory Relates to a Career as an Investment Fund Manager
In early1920’s, the Strong Interest Inventory (SII) Assessment was first introduced by E.K Strong, a military psychologist, that aims to measure individual interests and preferences and use this as a guide in their career and education exploration. Over the years, E.K. Strong empirical approach was combined with John Holland’s theory of vocational choice and interest. Based on Holland’s theory, an individual can be classified into six theme codes based on interest and personality. These six theme codes are often referred to as the Holland RIASEC (Realistic, Investigative, Artistic, Social, Enterprising, and Conventional) Theme Code. Individuals who are high in Enterprising Themes are ambitious, risk-takers, and confident. Investment fund managers are individuals who oversee and manage investment portfolios for clients such as individuals, institutions, or corporations. They are typically associated with the Enterprising Theme Code in the Strong Interest Inventory Assessment, as they possess a combination of qualities such as being results-oriented, self-assured, and competitive. They are often seen as problem solvers and decision-makers who use their analytical skills and business acumen to make informed investment decisions.
Learn all about a career as an Investment Fund Manager, including career stats such as median salary, daily tasks, employment growth, and more!
What Does an Investment Fund Manager Do?
Investment fund managers are responsible for researching and analyzing market trends, identifying investment opportunities, and creating investment strategies that align with their client’s goals and risk tolerance. They are also responsible for monitoring the performance of the portfolio and adjusting as needed to ensure that the investments are performing well. They also need to stay up to date with the latest developments in the financial industry and market conditions, as well as regularly monitor and evaluate the performance of the portfolios they manage. In addition, they may also meet with clients to discuss their investments and provide regular updates on their portfolios. Good communication and interpersonal skills are also important for building and maintaining relationships with clients.
An Investment Fund Manager Day-to-Day Tasks and Tools.
On a daily basis, Investment Fund Manager is accountable for planning and implementing the fund’s investing strategies and overseeing trading activities. They play a vital role in the financial world as they provide investors with a sense of security that their money is managed correctly. Another responsibility of the fund manager involves generating reports for clients on how well the fund is operating. They also create reports for prospective clients, so they are aware of the fund’s risks and objectives and select clients and businesses that would be excellent matches as clients.
As stated by The Department of Labor, The Following Work Tasks are Most Often Completed by Investment Fund Manager:
- Manage financial operations.
- Acquire organizational policies or programs.
- Execute organizational processes or plan changes.
- Authorize expenditures.
- Examine forecasting data to improve business decisions.
- Counsel others on corporate or operational matters.
- Share organizational information with customers or other shareholders.
- Monitor organizational procedures to ensure proper functioning.
- Gain knowledge of up-to-date developments in the area of expertise.
- Collaborate with exterior parties to exchange information.
- Identify operational compliance with regulations or standards.
- Assess employee performance.
(Retrieved from O’netOnline.org. Investment Fund Manager Career. Career Code: 11-3031.03 Detailed Work Activities)
Core Activities for Investment Fund Managers:
- Supervise and manage investment funds to maximize return on client investments.
- Choose specific investments or investment mixes for purchase by an investment fund.
- Oversee financial or operational performance of individual investments to ensure portfolios meet risk goals.
- Decide or direct the execution of trades.
- Create or implement fund investment policies or strategies.
- Implement or evaluate research, such as detailed company or industry analyses, to inform financial projecting, decision-making, or valuation.
- Display investment knowledge, such as product risks, fees, or fund performance statistics.
- Create, execute, or monitor security valuation policies.
- Connect with investors to determine investment objectives or to discuss investment approaches.
- Be present at investment briefings or consult financial media to stay abreast of relevant investment markets.
- Prepare for and answer regulatory inquiries.
(Retrieved from O’netOnline.org. Investment Fund Manager Career. Career Code: 11-3031.03 Tasks)
Investment fund managers typically use a range of financial tools and software programs to help them make informed investment decisions. They may also use financial databases and news sources to stay up to date on market trends and utilize the software for portfolio management and risk analysis. In order to communicate and collaborate with other financial professionals, they may also use various communication and project management tools. Additionally, investment fund managers may also use financial modeling and simulation software to test investment strategies and assess potential returns. The exact tools and technologies used can vary depending on the specific organization and the size and complexity of the investment portfolios they manage.
Experience and Education
A bachelor’s degree in finance, economics, business administration, or a related field is often the minimum requirement for entry-level positions in this field. Many investment fund managers also have advanced degrees such as a Master’s in Business Administration (MBA) or a Master’s in Finance.
In addition to formal education, investment fund managers also need to obtain certifications such as the Chartered Financial Analyst (CFA) designation or the Certified Investment Management Analyst (CIMA) certification. These certifications demonstrate a high level of knowledge and expertise in investment management and are highly valued by employers.
Many investment fund managers start as analysts or junior portfolio managers and work their way up the ranks by gaining experience and building a track record of successful investments. They also need to keep up to date with changes in the financial markets and regulations, so ongoing professional development and continuing education is important.
Salary and Wages
The salary of an investment fund manager is often tied to the performance of the funds they manage. For example, if a fund manager consistently outperforms their benchmark, they may receive bonuses or performance-based incentives that can significantly increase their overall compensation. They typically earn a high salary, with compensation packages that often include a base salary, bonuses, and profit-sharing arrangements. The exact amount an individual can earn depends on various factors, such as their experience level, job location, and the size and type of the organization they work for. Fund managers who work for larger investment firms or who manage large investment portfolios typically earn higher salaries. Usually, they can earn between $75,000 and $250,000 annually. However, top-performing investment fund managers can earn well over $1 million per year.
Below are some employment trends for Investment Fund Managers:
- Median Salary: $63.32 hourly, $131,710 annually
- Employment: 730,800 employees
- Projected growth (2021-2031): Much faster than average (11% or higher)
- Projected job openings (2021-2031): 71,300
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References
- Bureau of Labor Statistics wage data and 2018-2028 employment projections Onetonline.org