Becoming A Financial Investment Manager: Key Steps

Financial investment managers are responsible for the financial health of an organisation. They create financial reports, direct investment activities, and develop plans for the long-term financial goals of their clients or organisation.

If you want to become a financial investment manager, you'll need a combination of education, experience and skills. Here are the steps to get you started:

1. Earn a high school diploma: Start by building a strong foundation in business, economics, and mathematics courses.

2. Obtain a bachelor's degree: Major in finance, accounting, business administration, economics, or a related field.

3. Gain relevant work experience: Aim for entry-level roles in finance, such as a bank teller or insurance salesperson.

4. Pursue certifications and further education: Consider a master's degree in business administration (MBA) or professional certifications like Chartered Financial Analyst (CFA) or Certified Treasury Professional (CTP).

5. Develop key skills: Besides technical skills in mathematics and analytics, focus on communication, leadership, and problem-solving abilities.

Gain a bachelor's degree in finance, business, economics, or accounting

A bachelor's degree in finance, business, economics, or accounting is the first step towards becoming a financial investment manager. This degree will provide you with the foundational knowledge and skills needed to pursue a career in this field. Here are some key points to consider:

Coursework and Majors

When pursuing a bachelor's degree in finance, business, economics, or accounting, you will gain a strong understanding of financial concepts, analytical skills, and industry knowledge. Some common courses you may take include:

• Financial modelling
• Global markets
• Financial theory
• Finance principles
• Securities
• Financial planning
• Microeconomics
• General business

Developing Transferable Skills

In addition to the technical knowledge, a bachelor's degree will help you develop transferable skills that are highly valued in the financial industry. These skills include:

• Strong mathematical and analytical proficiency
• Communication and interpersonal skills
• Leadership and management abilities
• Attention to detail and organisational skills

Choosing a University and Major

When selecting a university, consider the reputation and accreditation of the institution, as well as the specific courses and specialisations offered. Additionally, you may want to research the faculty members and their areas of expertise to find a programme that aligns with your interests.

Internship Opportunities

Consider pursuing an internship during or after your bachelor's degree programme. An internship will provide you with valuable hands-on experience in the financial industry and help you build a network of professional connections. Internships can also give you an edge when applying for competitive positions in the future.

Planning for the Future

While a bachelor's degree is a crucial first step, it is important to remember that further education and experience are often required to advance in the financial industry. Many financial investment managers go on to pursue master's degrees, MBAs, or professional certifications to enhance their career prospects.

Develop strong communication, analytical, and leadership skills

Strong communication, analytical, and leadership skills are essential for a career as a financial investment manager. Here are some ways to develop and enhance these skills:

Communication Skills

• Practice clear and concise communication: Effectively communicate complex financial concepts and strategies to clients and colleagues. Ensure your explanations are easy to understand without oversimplifying.
• Build rapport and trust: Cultivate strong relationships with clients by demonstrating trustworthiness and reliability. Effective communication helps build and maintain client trust.
• Develop active listening skills: Beyond conveying information, focus on understanding your client's goals, concerns, and preferences. Listen attentively to their needs and tailor your advice accordingly.
• Enhance written communication: As financial managers often prepare reports and statements, ensure your writing skills are strong. Practice writing clearly and concisely, ensuring your messages are easily understandable.

Analytical Skills

• Stay updated on market trends: Regularly monitor market activity and stay informed about industry developments. This knowledge will help you make informed investment decisions and provide valuable insights to your clients.
• Interpret financial data: Develop your ability to analyze financial statements, market trends, and economic indicators. Interpret data to identify investment opportunities, assess risks, and make strategic decisions.
• Enhance critical thinking: Cultivate a critical mindset to evaluate investment options and make sound judgments. Consider various factors, such as market conditions, risk tolerance, and client goals, when analyzing investment choices.
• Utilize analytical tools: Familiarize yourself with financial analysis software and tools to aid in your decision-making. Stay current with industry-standard software and stay open to learning new tools as they emerge.

Leadership Skills

• Seek management training: Enroll in leadership development programs or seek out management training opportunities. These programs can provide you with the skills and frameworks to effectively lead and motivate a team.
• Develop emotional intelligence: Effective leaders understand and manage their emotions and the emotions of those around them. Work on recognizing and responding to your own emotions and those of your team members.
• Foster a collaborative environment: Encourage collaboration and teamwork among your colleagues. Create an environment where diverse ideas are welcomed and valued, and ensure everyone feels heard.
• Delegate tasks effectively: Understand the strengths and weaknesses of your team members and delegate tasks accordingly. Effective delegation ensures that tasks are completed efficiently and helps foster a sense of trust and autonomy within the team.

Complete an internship or gain work experience in finance

Gaining work experience in finance is crucial if you want to become a financial investment manager. This is because financial investment managers are responsible for handling their clients' financial planning, investing, and portfolio management activities, and employers typically seek candidates with at least five years of relevant industry experience.

• Complete an internship: During or after your bachelor's degree program, you can pursue an internship in finance at a local business. This will give you valuable workplace experience and make you more employable. Shadowing professionals such as bank tellers, insurance salespeople, loan officers, finance directors, budget analysts, or personal financial advisors can provide great insight into the industry. Internships can also help you build your professional network and gain references or letters of recommendation.
• Entry-level positions: You can gain relevant work experience by starting with entry-level positions in finance, such as working as a bank teller or being part of a company's accounts receivable team. Other roles you can consider include insurance sales, underwriting, loan officer, budget analyst, or personal financial advisor positions. These roles will not only prepare you for a career in financial management but also help you meet the requirements for certifications.
• Continuing education: While not always necessary, earning a master's degree in a related field, such as a Master of Business Administration (MBA), can boost your employability and help you access higher-paying, management-level roles.

Obtain professional certifications such as CFA, CTP, or CPA

Obtaining professional certifications is an important step in becoming a financial investment manager. While it is not always a requirement, certifications are highly valued by employers and can give you a competitive edge when applying for jobs. They also demonstrate your commitment to the profession and your expertise in the field. Here are some of the most prestigious certifications you can obtain:

Chartered Financial Analyst (CFA)

The CFA charter is highly respected in the financial industry and is often seen as the gold standard of investment credentials. Offered by the CFA Institute, this certification consists of three rigorous exams that cover a wide range of topics, including investment tools, asset valuation, portfolio management, and wealth planning. To become a CFA charterholder, you must also gain at least three years of qualifying work experience and adhere to ethical standards. CFA charterholders often work in institutional money management and stock analysis, providing research and ratings on various investment forms.

Certified Treasury Professional (CTP)

The CTP credential is the only professional certification in cash management and is highly regarded in corporate finance and treasury operations. It demonstrates a strong understanding of cash management and a commitment to performance and professionalism. This certification is ideal for those seeking positions as corporate treasury officials.

Certified Public Accountant (CPA)

The CPA license is required for certain roles in accounting, such as independent auditing or public accounting. CPAs may also prepare tax returns, although this is not mandatory. To obtain the CPA designation, individuals must have a bachelor's degree with 150 semester hours, pass the CPA exam, gain relevant work experience, and meet additional educational requirements, often choosing to pursue a master's degree in accounting. CPAs can find employment in various sectors, from small accounting firms to major corporations.

Advance your career with an MBA or other master's degree

An MBA in Finance is a master's in business administration degree that includes specialised course material directly related to finance. The core course material is similar to other MBAs, but as the student progresses, their coursework becomes increasingly focused on finance. This means an MBA in Finance creates a well-rounded graduate ready to lead others in the finance industry.

An MBA in Finance is not to be confused with a finance concentration MBA. The primary difference is that rather than focusing on finance as a profession, a finance concentration is a focused look at how money moves within an organisation and throughout the economy. This produces a person well versed in how money works in business, but not how money works as a business.

A finance concentration is therefore best for those looking to understand cash flows and how the economy affects a business. An MBA in Finance, on the other hand, is best for those looking to make a profession of how this money works, and be able to utilise that understanding to achieve their professional goals.

An MBA can open many doors and with the skills gained through an MBA program, you will find yourself considered for higher-paying positions than you would with a bachelor's alone. An MBA in Finance can lead to diverse career opportunities and professional advancement in the financial sector.

An MBA in Finance will provide you with transferable skills such as leadership and communication, which are useful for any profession. It also allows you to join other highly skilled and ambitiously-minded individuals who will provide a lifelong asset to your career.

Jobs in finance are expected to grow by at least 7% between now and 2031, according to the U.S. Bureau of Labor Statistics, for a total of 715,100 new jobs over the next decade. Accounting for workers expected to leave their occupations, this number grows to 980,200 openings each year. So, there are plenty of opportunities in this field.

When pursuing a career in finance, a typical career path might look like this:

• Junior Analyst – Performing security analysis of stocks and bonds.
• Senior Analyst – Focusing on specific industries and sectors, analysing important financial data, and developing relevant research reports.
• Investment Manager – Overseeing investments, buying and selling securities based on data.
• Senior Investment Manager – Same as an investment manager, but entrusted with overseeing and managing considerable sums of money.
• Chief Financial Officer – Managing an entire organisation's financial needs.

An MBA in Finance can help you advance in this career path. For example, to become an investment manager, you can begin with a bachelor's degree, but most employers are looking for their investment managers to possess additional certifications, education, or a healthy portfolio of relevant work experience.

Frequently asked questions