Asset Manager vs. Fund Manager: What Are the Differences?

Asset managers and fund managers are both responsible for overseeing and growing investments. However, there are key differences between the two positions. If you’re interested in a career in investment management, understanding the role of an asset manager vs. a fund manager can help you decide which path is right for you. In this article, we discuss the similarities and differences between asset managers and fund managers, and we provide tips for pursuing a career in investment management.

What is an Asset Manager?

Asset Managers are responsible for the overall management and performance of a company’s investment portfolio. They work with a team of analysts and researchers to make recommendations on which stocks, bonds and other securities to buy or sell. Asset Managers also develop and implement investment strategies for their clients, which can include individuals, pension funds, insurance companies or other businesses. They regularly monitor the performance of the investments and make changes as needed to keep the portfolio on track. Asset Managers typically have a bachelor’s degree in finance or a related field.

What is a Fund Manager?

Fund managers are responsible for the day-to-day operations of a mutual fund or other type of investment fund. They make decisions about which securities to buy and sell, and when to buy and sell them. They also monitor the performance of the fund and make changes to the portfolio as necessary. Fund managers typically work for asset management firms, banks, insurance companies or other financial institutions. They typically have a bachelor’s degree in business, economics or finance, and many also have a master’s degree or MBA.

Asset Manager vs. Fund Manager

Here are the main differences between an asset manager and a fund manager.

Job Duties

A fund manager oversees the entire life cycle of a particular investment product. They’re responsible for researching potential investments, developing strategies for those investments and overseeing the performance of the investments after they’ve been made.

An asset manager is hired by fund managers to help them with certain aspects of their jobs. For example, a fund manager may hire an asset manager to provide additional research on potential investments or to assist with financial analysis once an investment has been made. Asset managers don’t typically work with investors directly because they usually serve as support staff for the fund managers who interact with clients.

Job Requirements

Asset managers typically need at least a bachelor’s degree in business, economics or another related field. Some asset management firms prefer candidates to have a master’s degree as well, such as a Master of Business Administration. Additionally, many asset managers pursue professional certifications through organizations like the Chartered Financial Analyst Institute (CFA Institute) or the Institute for Certified Investment Management Consultants (ICIMC). These certifications can help asset managers stand out to potential employers and show that they have the skills and knowledge necessary to excel in their role.

Fund managers also usually need at least a bachelor’s degree, although some firms may prefer candidates with a master’s degree. Many fund managers also pursue professional certifications, such as the CFA designation or the Certified Investment Management Analyst (CIMA) certification. These certifications can help fund managers demonstrate their expertise to potential employers and clients.

Work Environment

Asset managers and fund managers work in different environments. Asset managers typically work for large companies, such as banks or insurance firms, where they manage the assets of wealthy individuals and businesses. They may also work for private wealth management firms that provide financial services to high-net-worth individuals.

Fund managers usually work for investment firms, such as mutual funds, hedge funds or private equity firms. These professionals often travel frequently to meet with clients and attend conferences related to their industry.

Skills

Both asset managers and fund managers need to have excellent analytical skills to perform their jobs. They use these skills to review financial reports, assess economic trends and make investment decisions. They also need to be able to understand complex financial concepts and have strong math skills to calculate risks and potential returns on investments.

Asset managers typically work with individual clients to help them reach their financial goals. As a result, they need to have strong communication and interpersonal skills. They need to be able to explain investment options and strategies in a way that is easy for their clients to understand. They also need to be able to build relationships of trust with their clients.

Fund managers often oversee teams of analysts and other professionals. As a result, they need to have strong leadership skills. They need to be able to delegate tasks, provide guidance and motivate their team members. They also need to be able to make quick decisions when market conditions change.

Salary

Asset managers earn an average salary of $86,405 per year, while fund managers earn an average salary of $92,932 per year. Both of these salaries may vary depending on the size of the company at which you work, location of your job and the level of experience you have prior to pursuing either position.