How To Become an Investment Manager: Salary & Career Paths for 2025

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According to the latest data from the U.S. Bureau of Labor Statistics, finance managers earned an average annual salary of $161,700. This high earning potential attracts many to the field.

However, aspiring investment managers often face challenges in determining the right educational path, acquiring necessary skills, and understanding how to enter the profession. With diverse degree options and career trajectories, the path can seem unclear. This article aims to provide a clear roadmap, outlining the essential steps, skills, and strategies to successfully become an investment manager, helping you navigate this competitive industry and achieve long-term professional success.

Key Things You Should Know About How to Become an Investment Manager

Education is essential but not always traditional. While most investment managers hold degrees in finance, economics, or business, alternative pathways, such as certifications or self-taught experience, can also lead to success in the field. As many as 27% of financial advisors in the U.S. operate without a traditional four-year degree in finance
Certifications and licenses matter. Most investment managers need certifications such as the CFA (Chartered Financial Analyst) to demonstrate expertise. In the U.S., over 150,000 CFA charterholders are active in the field, reflecting the value of this credential in securing managerial positions
Investment managers are well compensated. The median annual wage for financial managers, which includes investment managers, was $156,100 in May 2023 according to the US Bureau of Labor Statistics. However, compensation can vary widely based on experience and location.
Skills in technology and AI are critical. As AI and technology rapidly change the financial landscape, investment managers need to be familiar with tools like machine learning, data visualization, and financial modeling. Around 80% of top-performing investment firms have integrated AI into their decision-making processes.
Work-life balance can be a challenge. Despite the high earning potential, the demands of the role can be taxing. Investment managers often work long hours, particularly when markets are volatile. Reports show that around 45% of financial managers report significant stress in their roles due to the demands of market fluctuations and client expectations.

What does an investment manager do?
What degree or background do you need to become an investment manager?
Can you become an investment manager without a finance degree?
What licenses or certifications do you need to be an investment manager?
How much do investment managers make at each career stage?
What are the most in-demand skills for investment managers?
What tools and technologies do investment managers use today?
What types of investments do investment managers handle?
Should an MBA Be Part of Your Investment Management Strategy?
How competitive is investment management as a career?
How can investment managers transition into entrepreneurial roles?
Why do investment managers leave the profession?
Is investment management still a good career in 2025 and beyond?
Is an Executive MBA Worth the Investment for Aspiring Investment Managers?
Other Things You Should Know About How to Become an Investment Manager

What does an investment manager do?

Understanding what investment managers do is essential for anyone considering this career path. If you're trying to determine whether this role fits your skills or ambitions, knowing the day-to-day responsibilities—and how they relate to client outcomes—helps you make informed choices. The following key functions define what investment managers actually do in professional practice.

Develop investment strategies. Investment managers assess market trends, client goals, and risk tolerance to craft plans that guide short- and long-term asset allocation.
Conduct market research and analysis. They use quantitative models, technical indicators, and macroeconomic insights to make informed investment decisions.
Manage portfolios. Investment managers oversee client portfolios by buying, holding, or selling assets in line with the investment strategy, adjusting to changes in market conditions.
Meet with clients and report performance. Regular meetings and updates help clients stay informed and reassured, especially during market volatility.
Ensure compliance and regulatory reporting. They must adhere to financial regulations and industry standards, filing required documentation to keep accounts compliant and transparent.

The work of an investment manager is at the intersection of trust, data, and performance. For aspiring professionals, mastering these areas means being equipped to grow wealth and manage expectations precisely.

What degree or background do you need to become an investment manager?

Before stepping into the world of portfolio management and institutional investing, it is important to understand the academic paths most commonly associated with success in the role. While there’s no singular formula, certain degrees and credentials significantly improve employability and advancement prospects.

Finance and economics degrees are foundational. Most investment managers hold a bachelor's degree in finance, economics, accounting, or a related field, providing them with analytical tools and business fundamentals.
A master's in finance boosts credibility and access. Graduate-level training, such as an online masters in finance, is often preferred for leadership roles or specialized positions and can increase both earnings and advancement speed.
Alternative pathways exist but require more proof of ability. Those without traditional finance degrees can enter the field through experience, certifications, or lateral moves from adjacent roles like data analysis or consulting.
Certifications are often necessary. Many employers look for designations like CFA or CFP to signal both technical knowledge and ethical standards, especially for client-facing or high-risk roles.
Quantitative and analytical skills outweigh titles alone. Regardless of academic credentials, real-world investment acumen and performance history carry substantial weight in hiring and promotion.

Whether you’re planning your education or weighing a career switch, what matters most is a strategic alignment between your background and the analytical, ethical, and communication demands of the role.

Can you become an investment manager without a finance degree?

Yes, it is possible to become an investment manager without a finance degree, though the path may require more intention and persistence. Many professionals transition into investment management from fields like mathematics, engineering, computer science, or economics—backgrounds that support the analytical rigor and technical proficiency the role demands. What often compensates for the lack of a traditional finance education is a combination of relevant experience, strong investment performance, and industry certifications like the CFA.

But, for aspiring investment managers who want to acquire finance knowledge formally but are pressed for time, accelerated finance degrees offer a fast-track option. These programs are designed to deliver core financial competencies—like portfolio theory, valuation, and risk analysis—in a compressed timeframe, making them ideal for career changers or working professionals. While not always required, gaining structured finance education can significantly increase your chances of entering the field and moving up quickly.

In short, a finance degree can open doors, but what keeps them open are performance, adaptability, and continuous learning.

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What licenses or certifications do you need to be an investment manager?

While not all investment managers need the same credentials, licenses and certifications often play a crucial role in establishing trust and legal authority to operate. Here's what you need to know about the most recognized ones:

Series 65 license is a baseline for most roles. This license, issued by FINRA but administered by NASAA, allows investment managers to provide advice on securities and manage client portfolios legally in many US states.
The CFA designation signals top-tier credibility. The Chartered Financial Analyst credential, held by over 190,000 professionals globally, is widely regarded as the gold standard in investment management.
Additional licenses depend on services offered. If the role includes selling securities or supervising others, the Series 7 or Series 63 may also be required.
Certifications require continuing education. Licenses like the Series 65 and certifications like the CFA mandate periodic renewals and ethical adherence to remain valid.
Licensing requirements vary by state and employer. Some firms register investment advisors under a firm’s license, while others require individual registration, making it essential to verify what's expected for your specific role.

Earning the right licenses and certifications isn’t just a box-checking exercise—it’s a trust-building and legally protective necessity.

How much do investment managers make at each career stage?

Compensation in investment management varies significantly depending on experience level, credentials, and the size of the firm or fund being managed. Here's what professionals can generally expect to earn at each stage:

Entry-Level (0–2 years of experience)

New investment managers typically earn between $60,000 and $90,000 annually, depending on the firm’s size and location. According to Zippia, the average entry-level salary for an investment manager is around $75,000. Those with strong internship experience or certifications like the CFA Level I may earn more.

Mid-Career (3–7 years)

With several years of experience and a proven performance track record, salaries rise to between $100,000 and $140,000, not including bonuses. Professionals in this tier often manage client portfolios directly and may start taking on strategic planning responsibilities.

Senior-Level (8–15 years)

At this stage, managers are often responsible for entire client divisions or high-net-worth portfolios. Compensation typically ranges from $150,000 to $250,000, including performance-based bonuses. The Bureau of Labor Statistics (BLS) lists the median annual pay for financial managers at $156,100, with the top 10% earning over $239,200.

Executive-Level (15+ years)

Managing directors, chief investment officers (CIOs), and partners at top firms can earn upwards of $400,000, particularly at large asset management firms or hedge funds. Bonuses and profit-sharing arrangements can sometimes double base pay at this level.

These earnings are strongly influenced by education and credentials. Individuals with a graduate degree in finance consistently earn more than their peers. A higher-level finance education—particularly one that aligns with the average finance degree salary across experience tiers—can significantly boost lifetime earnings, especially when paired with licensing and investment firm experience.

What are the most in-demand skills for investment managers?

Investment managers are expected to bring a mix of technical and interpersonal skills to the table. The most in-demand competencies are not just related to financial analysis but also to communication, data analysis, and software proficiency. Here’s a breakdown of the key skills investment managers need to excel in the field:

Financial analysis and modeling. According to Zippia, this is one of the most frequently requested skills for investment managers, appearing in over 70% of job postings.
Portfolio management. ZipRecruiter highlights this as an essential skill in 68% of job descriptions, encompassing tasks like asset allocation, risk management, and portfolio optimization.
Data analysis and technology proficiency. A Zippia survey found that over 55% of investment management roles require familiarity with data analysis tools like Excel, Python, and Bloomberg.
Communication and relationship-building. Zippia’s data indicates that 60% of investment manager roles prioritize strong client-facing abilities, with employers seeking professionals who can translate complex financial data into actionable insights.
Financial certifications. Starting with the easiest finance certifications can provide a strong foundation, with certifications such as the CFA, often required for senior roles. Zippia suggests that 40% of job postings emphasize certifications as a top qualification.

To succeed in investment management, professionals must hone a balance of technical acumen and soft skills. While financial modeling and portfolio management are critical, the ability to communicate effectively and manage relationships is equally valued in today’s competitive market.

If you're exploring how to become an investment manager, you're likely focused on building a career grounded in finance, strategy, and decision-making under pressure. Interestingly, those same core skills are essential in other leadership paths—such as for individuals curious about how to become an athletic director. Both roles demand financial oversight, long-term planning, and the ability to guide a team toward measurable goals.

What tools and technologies do investment managers use today?

Investment managers rely on a variety of tools and technologies to analyze data, manage portfolios, and optimize investment strategies. With the industry’s increasing focus on data-driven decision-making, these tools are vital for staying competitive and efficient. Below are some of the most widely used tools and technologies in the field today:

Financial modeling software. Tools like Excel and Bloomberg Terminal are essential for building financial models, analyzing data, and tracking market trends.
Portfolio management platforms. Systems like BlackRock’s Aladdin and Morningstar Direct allow investment managers to monitor, assess, and adjust portfolios in real time.
Data analytics tools. Investment managers use platforms like Python and R to process vast amounts of data, allowing for better predictive analytics and risk management.
CRM and client management tools. Salesforce and other CRM tools are critical for managing client relationships, tracking performance, and improving communication.
AI in investment management. According to a survey by Mercer, the integration of AI in investment management is becoming increasingly prevalent, with 37% of investment firms planning to adopt AI tools to enhance portfolio strategies and forecasting.

As the industry becomes more reliant on technology, investment managers must stay updated on the latest tools and integrate them into their daily operations to improve both efficiency and performance. The growing influence of AI in investment management is especially noteworthy, transforming how firms make decisions and predict market trends.

What types of investments do investment managers handle?

Investment managers handle a wide variety of investments, each requiring specific knowledge, strategies, and expertise. Their role is to manage and grow portfolios by carefully selecting assets that align with the clients’ goals and risk profiles. Below are the primary types of investments that investment managers commonly handle:

Stocks and equities. Investment managers frequently deal with stocks, as they offer high potential returns but also come with a higher level of risk. According to recent data, over 60% of investment portfolios include equities.
Bonds and fixed income securities. Bonds are typically a safer investment option compared to stocks, offering steady returns over time. Around 50% of investment portfolios include bonds, making them a core part of many strategies.
Mutual funds and exchange-traded funds (ETFs). These collective investment vehicles offer diversification by pooling together funds from many investors. About 40% of investment managers handle mutual funds or ETFs in their portfolios.
Real estate. Real estate is often part of a diversified portfolio, with around 30% of investment managers including property assets in their strategies. And when it comes to investment properties, you will need to engage the services of mortgage brokers. Look into our article on how to become a mortgage broker if you want to know more about these professionals.
Alternative investments. These include private equity, hedge funds, commodities, and cryptocurrencies, and they represent a growing portion of investment portfolios. Approximately 20% of managers are increasingly turning to alternative investments to diversify further.

Investment managers also need to understand the difference between finance and economics degrees, as these fields provide different lenses for analyzing market trends, risks, and asset management strategies. While a finance degree may focus on the practical aspects of investing, an economics degree tends to emphasize broader market principles and theories. Now, read more on how to become an economist in a separate article on the topic.

Navigating these various investment types requires a deep understanding of market dynamics and the ability to tailor strategies based on client preferences and economic conditions. As investment managers continue to diversify their portfolios, understanding the nuances of each asset class becomes even more crucial for long-term success.

Should an MBA Be Part of Your Investment Management Strategy?

Advanced education can serve as a catalyst for career advancement, offering a broader perspective on strategic finance, leadership, and global market dynamics. An MBA not only hones managerial skills but also equips professionals with analytical tools to navigate complex economic scenarios and drive innovation. For those seeking to supplement their technical expertise with strategic management training, exploring affordable MBA online programs can provide a flexible and cost-effective pathway without compromising on quality.

How competitive is investment management as a career?

Investment management is highly competitive due to the attractive salary potential and the intellectual challenges it presents. Many professionals enter the field with the hope of managing high-value portfolios and securing lucrative opportunities. With the right mix of education, skills, and networking, the career can be highly rewarding. Investment managers often compete for positions at top firms, where the salaries and benefits reflect the expertise and responsibility of the role. For example, positions at well-known investment management firms consistently rank among the highest paying finance degree jobs, with top roles earning between $100,000 and $250,000 annually, depending on experience and firm reputation.

The level of competition also stems from the critical trust that clients place in investment managers to make sound financial decisions. The most important factor for choosing a financial advisor is trust, and this is especially relevant for investment managers. According to a study by YouGov, 60% of Americans prioritize trust as the top factor when choosing a financial advisor. To succeed in this competitive environment, professionals must not only demonstrate technical proficiency but also build long-lasting relationships with clients based on confidence and reliability. Trust plays a central role in career progression within investment management, and the ability to consistently meet client expectations can open doors to higher-profile projects and opportunities.

How can investment managers transition into entrepreneurial roles?

Investment managers develop robust analytical, risk management, and strategic planning skills that can be effectively leveraged outside traditional portfolio management. Shifting into entrepreneurial roles allows these professionals to apply their financial expertise to innovative business ventures and create new value streams. By tapping into transferable skills, they can diversify their career paths and adapt to evolving market demands. For instance, exploring entrepreneurship careers offers an opportunity to blend financial acumen with business development, paving the way for sustainable professional growth.

Why do investment managers leave the profession?

Investment management can be a highly demanding career, leading some professionals to move on to other fields. The most common reasons for leaving the profession are stress, burnout, and dissatisfaction with work-life balance. Investment managers often work long hours, especially when managing large portfolios or handling market fluctuations. In fact, 37% of investment professionals cite work-life balance as a key factor in their decision to leave the profession, according to a recent survey by Mercer.

Burnout from high pressure

The pressure to deliver consistent returns for clients, especially in a competitive market, can take a toll. Many investment managers report experiencing burnout after years of constant high-stakes decision-making. According to a study by CFA Institute, 45% of finance professionals experience burnout at some point in their careers.

Limited career growth opportunities

Another common reason for leaving the profession is the perceived lack of upward mobility. Some investment managers feel that their career paths stagnate after reaching certain positions, leading them to seek other opportunities for growth. This could mean transitioning into different finance sectors, starting their own firms, or pursuing higher-level positions in other industries.

Desire for a different work environment

The structured, client-facing environment of investment management may not be for everyone. Some professionals move on to more flexible, less client-centered roles where they can have a better work-life balance or greater independence.

Desire for a career change

Finally, a number of investment managers leave the profession to pursue completely different career paths. A significant portion of those who leave investment management transition into roles like financial consulting, entrepreneurship, or even roles outside finance entirely, such as technology or non-profits.

Speaking of career options outside of finance, content marketing may be worth considering. You just have to learn more about content marketing specialist requirements, what they do, and how much they earn.

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Is investment management still a good career in 2025 and beyond?

Investment management remains a strong career choice in 2025, despite some challenges and competition in the industry. As markets continue to evolve and grow, the demand for skilled investment professionals is expected to persist.

According to the US Bureau of Labor Statistics (BLS), the median annual wage for financial managers, which includes investment managers, is significantly higher than many other fields. In fact, the BLS reports that the median wage for this role in 2023 was around $156,100, with potential for growth as the industry expands.

Strong job outlook

Investment management is expected to see steady job growth in the coming years, fueled by global financial expansion and an increasing need for investment expertise. The BLS projects that the employment of financial managers will grow by 17% from 2021 to 2031, much faster than the average for other occupations. This means that skilled professionals in investment management will likely continue to find ample career opportunities.

The rise of AI and data analytics

One of the most exciting aspects of investment management in 2025 and beyond is the increasing role of artificial intelligence (AI) and data analytics. As technology continues to advance, AI in investment management is becoming a crucial tool for analyzing market trends, optimizing portfolio management, and making data-driven decisions. This presents an opportunity for professionals to expand their skill sets and remain competitive in the evolving industry.

Increased demand for ethical investment management

There is a growing interest in ethical and sustainable investing as more investors prioritize environmental, social, and governance (ESG) criteria in their portfolios. Investment managers with expertise in these areas are in high demand. This trend is expected to continue as consumer preferences shift toward socially responsible investing, which could provide a lucrative niche for those who specialize in ESG strategies.

Personal fulfillment and career growth

For many investment managers, the career offers personal fulfillment through helping clients achieve financial goals and the potential for career advancement. The variety of roles within the industry—from portfolio management to risk analysis and financial advisory—means there are diverse opportunities for growth. Investment management can offer financial rewards and professional satisfaction for those willing to adapt to changing market dynamics.

What Investment Managers Have to Say About Their Profession

The fast-paced nature of the job is both challenging and rewarding. I thrive in high-pressure environments, and the ever-changing financial markets keep me on my toes. Over the years, I’ve seen a significant increase in demand for my services, and my role has evolved to include more strategic decision-making. The learning never stops, and that’s what keeps me engaged. – Malcolm
When I first became an investment manager, I was surprised by the level of responsibility I took on quickly. The trust clients place in you is immense, but it’s incredibly motivating. There are days when the stress levels are high, but the satisfaction of seeing a portfolio grow outweighs any stress. Every successful investment feels like a win for both my clients and me. – Amira
The financial freedom that comes with this career is amazing. As I progressed through the ranks, my lifestyle improved, and I was able to provide better for my family. The key is to stay proactive in learning and adapting. As technology transforms the industry, staying updated with the latest tools, like AI in investment management, has been crucial to my growth. – Felix

Is an Executive MBA Worth the Investment for Aspiring Investment Managers?

An executive MBA provides targeted leadership training and strategic insights that complement the quantitative expertise required in investment management. This advanced qualification enhances decision-making, risk assessment, and team leadership skills—qualities that can differentiate a manager in a high-pressure financial environment. Furthermore, the program offers valuable networking opportunities and exposure to evolving global market trends, enabling professionals to adapt swiftly to industry changes. For example, exploring the best value executive MBA online may serve as a catalyst for accelerating career progression and fostering long-term success in investment management.

Key Findings

Strong earning potential. Investment managers can earn a substantial salary. According to the US Bureau of Labor Statistics (BLS), the median annual wage for financial managers, including investment managers, was around $156,100 in 2023, with potential bonuses and performance-based incentives pushing compensation higher.
Demand for skills is growing. The employment of financial managers is projected to grow by 17% from 2023 to 2033, much faster than the average for other occupations, as reported by the BLS. This highlights the increasing demand for skilled investment professionals.
A finance degree is often essential. While it's possible to enter the field without a finance degree, most investment managers hold at least a bachelor’s degree in finance, economics, or a related field. Additionally, 37% of investment professionals now consider AI and data analytics essential for success in the industry.
Professional certifications are highly valued. More than 50% of investment managers hold certifications like the CFA (Chartered Financial Analyst) or other specialized qualifications. These certifications not only boost credibility but also increase the likelihood of advancement in the competitive field.
The role requires deep market knowledge. Investment managers must have a broad understanding of financial markets, and knowledge of tools like Excel, Bloomberg, and financial modeling is critical. 78% of financial managers report using financial software and analytical tools as part of their daily responsibilities, indicating the importance of tech proficiency in the role.

Other Things You Should Know About How to Become an Investment Manager

Is investment management hard to get into?

Investment management can be competitive to enter, especially at higher levels. While it’s possible to enter with a finance degree or related background, many candidates also pursue certifications like the CFA (Chartered Financial Analyst) or a master’s in finance to increase their chances. Networking and gaining experience through internships, financial analysis roles, or junior investment positions are crucial in helping candidates stand out. Additionally, the profession requires a strong understanding of financial markets, data analysis, and an ability to make high-stakes decisions, making the entry process challenging, especially in top-tier firms.

How do investment managers get paid?

Investment managers are typically compensated through a combination of salary and performance-based incentives. The salary varies depending on the level of experience, type of firm, and the specific role. On top of their base salary, many investment managers receive bonuses based on the performance of the investments they manage, which can be a significant part of their total compensation. In some cases, they may also earn a percentage of the assets under management (AUM) or a share of the profits, which can result in substantial earnings, especially if their managed funds perform well.

What is the difference between a financial advisor and an investment manager?

The primary difference between a financial advisor and an investment manager lies in the scope of their roles and the services they provide. Financial advisors typically offer broader financial planning services, which may include retirement planning, estate planning, insurance advice, and tax strategy. They may not always manage investments directly but often recommend investment products. On the other hand, investment managers focus primarily on managing their clients’ investments, making decisions on asset allocation, buying, and selling securities, and optimizing portfolio performance. Investment managers typically work with larger sums of money and institutions, while financial advisors often serve individual clients.

What are the types of investment managers?

There are several types of investment managers, each specializing in different asset classes or strategies. These include:

Portfolio managers – Manage investment portfolios for clients, making decisions on asset allocation and investment strategy.
Hedge fund managers – Oversee hedge funds, which typically involve high-risk, high-reward investment strategies.
Private equity managers – Specialize in investing in private companies, aiming to increase their value and eventually sell them for profit.
Mutual fund managers – Manage mutual funds, pooling money from various investors to purchase a diversified portfolio of stocks, bonds, or other assets.
Real estate investment managers – Focus on real estate assets, including residential, commercial, and industrial properties, managing investment portfolios in this sector.

Each type of investment manager specializes in different sectors or strategies, and the skill sets needed can vary accordingly.

References:

Bureau of Labor Statistics. (2024, August 29). Financial managers. bls.gov
Business Wire. (2023, July 5). Time-starved U.S. financial advisors considering alternative options, J.D. Power finds. businesswire.com
Cerulli Associates. (2023, June 22). Financial advisors leaving independent broker-dealers and RIAs. barrons.com
Mercer. (2023, April 14). AI in investment management: A survey on portfolio strategies. mercer.com
Wealth Professional. (2023, May 10). Almost half of advisors have quit their firms over one major failing. wealthprofessional.ca
YouGov. (2023, May 3). 27% of Americans use financial advisors; 60% prioritize trust as the top factor. yougov.com