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Fund Manager vs. Investment Banker: What Are the Differences?

Learn about the two careers and review some of the similarities and differences between them.

A fund manager and an investment banker are both finance professionals with different responsibilities. A fund manager is responsible for making investment decisions and managing a portfolio of securities, while an investment banker provides financial and legal advice to clients. If you’re interested in working in finance, understanding the similarities and differences between these two positions can help you decide which is the right fit for you. In this article, we compare and contrast the job titles of fund manager and investment banker, and we provide information on what you can expect from each role.

What is a Fund Manager?

A Fund Manager is a professional who is responsible for managing a portfolio of investments for a client. They make decisions about what assets to buy and sell, and when to buy and sell them. Fund managers typically work for banks, insurance companies, or investment firms. They are often responsible for managing a team of analysts who research potential investments. Fund managers typically have a four-year degree in business or economics and must pass the Series 7 exam to become licensed.

What is an Investment Banker?

Investment bankers typically work for banks, but there is a growing number that work for securities firms, insurance companies, and other financial institutions. They help companies and governments raise money by underwriting and selling securities. Investment bankers typically work with a few large banks and a few smaller banks. They work with a variety of clients, including public companies, private companies, and venture capitalists. Investment bankers typically have a four-year degree in business or economics.

Fund Manager vs. Investment Banker

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

Job Duties

Fund managers have a lot of responsibilities, as they’re in charge of running a fund and making investment decisions. They might need to research companies before investing in them, meet with company executives and evaluate new technologies that could improve their industries. Investment bankers also perform many duties related to their job, but the two professionals likely have different daily tasks.

For example, fund managers often spend most of their time in an office setting where they can collaborate with team members and clients. They may travel sometimes to visit potential business partners or attend conferences. Investment bankers also do a lot of work in offices, but they also spend a lot of time traveling to meet with clients and attend meetings.

Job Requirements

Fund managers and investment bankers typically need at least a bachelor’s degree to enter the field. However, many employers prefer candidates with a master’s degree in business administration, economics or another related field. Additionally, both fund managers and investment bankers must pass the Series 7 exam from the Financial Industry Regulatory Authority (FINRA) before they can begin working. The Series 7 exam covers topics like investment products, securities regulations and ethical practices.

Work Environment

Investment bankers work in an office setting, often spending long hours at their desk. They may travel to meet with clients and attend meetings. Fund managers also spend most of their time in an office environment but may travel more frequently than investment bankers. Both professions require a lot of attention to detail and the ability to multitask effectively.

Skills

Both fund managers and investment bankers need to have excellent analytical skills. They use these skills to review financial reports, assess opportunities and make sound investment decisions. They also need to be able to effectively communicate their findings to clients and colleagues.

Fund managers typically need to have a deep understanding of the markets in which they invest. They use this knowledge to make informed decisions about where to allocate funds and how to best grow their clients’ investments. Investment bankers, on the other hand, may not need to have as in-depth market knowledge. Instead, they rely on their ability to identify potential business opportunities and match them with the right investors.

Investment bankers also benefit from having strong sales skills. They use these skills to pitch investment opportunities to potential clients and convince them to invest. Fund managers do not typically need to be as adept at sales because they are not responsible for actively seeking out new clients.

Salary

Fund managers can earn an average salary of $92,932 per year, while investment bankers can earn an average salary of $116,983 per year. Both of these salaries can vary depending on the size of the company, the location of the job and the level of experience the professional has.

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