Exploring Career Options Within The Investment Fund Industry

Investment funds offer a range of job opportunities for those interested in finance and investments. The most well-known role is the investment fund manager, who advises clients and helps them maximise their investments. Other roles include investment analysts, who provide financial information and recommendations to fund managers, and risk management professionals, who monitor trading limits and set boundaries for investment and trade exposure. There are also jobs in marketing, accounting, IT, human resources, and administration. These jobs offer high salaries and impressive financial rewards, but they also require long working hours and intensive travel.

Characteristics of Jobs in Investment Funds

Investment fund managers

Typical Tasks

• Liaise with clients and their representatives to understand their investment preferences and appetite for risk
• Meet with company managers to discuss clients' needs
• Carry out rigorous research and read financial briefings
• Stay up-to-date with the economy, current financial news and financial markets
• Assess and interpret complicated financial information
• Communicate financial information accurately and simply to those without a financial background
• Keep detailed records and reports
• Develop and refine the investment strategy for the fund, taking into account the fund's objectives, risk tolerance, and market conditions
• Conduct thorough research and analysis of financial markets, economic trends, and individual securities to make informed investment decisions
• Build and manage the fund's portfolio by selecting and adjusting investments to align with the fund's strategy
• Assess and manage the risks associated with the fund's investments
• Implement risk-mitigation strategies to protect the fund from potential losses
• Regularly communicate with clients or stakeholders, providing updates on the fund's performance, investment strategy, and any relevant market developments
• Stay informed about relevant financial regulations and ensure the fund complies with legal and regulatory requirements
• Work collaboratively with analysts, traders, and compliance officers to ensure the smooth operation of the fund
• Stay informed about macroeconomic trends, geopolitical events, and other factors that could impact financial markets
• Stay abreast of industry developments, new investment strategies, and financial innovations
• Conduct due diligence on potential investments, assessing their financial health and management team before including them in the fund's portfolio

Types of Investment Fund Managers

There are various types of investment fund managers, including:

• Mutual Fund Managers
• Hedge Fund Managers
• Private Equity Fund Managers
• Venture Capital Fund Managers
• Real Estate Fund Managers
• Exchange-Traded Fund (ETF) Managers
• Fixed-Income Fund Managers
• Money Market Fund Managers
• Commodity Fund Managers
• Multi-Asset Fund Managers

Investment fund analysts

A typical day for an investment fund analyst might involve researching investments and forming opinions, liaising with clients and their representatives to understand their investment preferences and risk appetite, meeting with company managers to discuss clients' needs, carrying out rigorous research, reading financial briefings, and keeping up to date with the economy, financial news and financial markets.

Analysts need to be able to assess and interpret complicated financial information, and then communicate this accurately and simply to those without a financial background. They also need to keep detailed records and reports.

To become an investment fund analyst, you'll typically need a bachelor's degree, and sometimes a master's degree, in a subject like business studies, management, statistics, finance, mathematics, accounting or economics. Work experience is also highly beneficial.

In terms of skills, employers will be looking for excellent written and spoken communication skills, strong time management skills, the ability to work under pressure, excellent numerical and IT skills, analytical and problem-solving skills, and a keen interest in and understanding of financial markets.

It's also worth noting that investment fund analysts can expect to work long hours, and may need to travel to meet clients.

Risk management professionals

Entry-level positions in risk management are often titled risk analysts. They are involved in quantitative calculations, such as Value-at-Risk (VaR), and the assessment of risk exposure. As they gain experience, risk analysts progress into senior positions where they define the risk framework and limits for trading and investing. This involves collaboration with traders and investment professionals to ensure buy-in and adherence to the established risk parameters. Effective risk management requires a combination of structured internal processes, robust independent review, sophisticated systems, and continuous oversight.

To achieve independence in risk management, the function must be separate from the portfolio management team. This ensures that risk assessments are not influenced by the investment teams and provides a stronger voice in investment decisions. Collaboration and open communication between portfolio managers and risk managers are critical for optimising performance and preventing issues.

A comprehensive risk management framework consists of three lines of defence. The first line is the fund manager, who assesses the risk of trades and protects investors' capital by staying abreast of market developments. The second line is an independent risk review, conducted by a separate internal team or a third-party provider, which offers valuable checks and balances while promoting best practices. The third line is the Group Risk function, typically a sub-committee of the board, which provides the highest level of oversight by reviewing any breaches and monitoring overall investment risk.

Marketing roles

Entry-level marketing candidates for hedge funds should possess excellent communication skills and a solid understanding of finance. Their initial responsibilities often include taking notes during client meetings, conducting client interviews to gauge their needs, and offering investment solutions. As they gain experience, their role expands into fundraising and associated functions.

Marketing professionals in this field act as the face of the hedge fund to clients, so it is essential that they effectively communicate complex financial information in a simple and accurate manner. They play a vital role in maintaining relationships with high-net-worth individuals (HNWI) and ensuring adequate fundraising for the fund's investment ventures.

In addition to communication and financial expertise, marketing professionals in investment funds should also possess analytical skills to interpret and present financial data effectively. They need to stay updated on economic trends, financial news, and market behaviour to make informed decisions and provide valuable insights to clients.

Accounting roles

Job Description

The accounting department is responsible for critical accounting tasks, including calculating Net Asset Value (NAV) and maintaining accurate books and records for holdings, investors, and figures. They utilise dedicated computer programs and accounting software to aid in these tasks, and monitoring and error-checking is an integral part of the job.

Qualifications and Skills

A career in accounting within the investment fund industry typically requires a strong academic background, with a Bachelor's degree in Business, Finance, or a similar field. A Master's degree or professional qualification can also be advantageous.

Employers will look for excellent numerical and IT skills, strong analytical and problem-solving abilities, and a keen interest in financial markets. Time management skills and the ability to work effectively under pressure are also essential.

Career Path and Progression

Graduates often enter the industry in entry-level accounting roles and can progress to more senior positions with experience. Starting salaries for graduate accountants in the investment fund industry can range from £28,000 to £32,000, with potential for growth as you gain experience and further qualifications.

Example Job Titles

• Investment Fund Analyst
• Investment Analyst
• Accounting Manager
• Financial Analyst

Frequently asked questions