Is asset management harder than investment banking?
Investment banking typically requires greater sales skills while asset management requires greater quantitative and analytical skills. That said, the most successful professionals in either career have a good mix of both traits.
There are some aspects of asset management that are reasonably straightforward, although a fair amount of work at times, such keeping track of assets. Other aspects are inherently difficult, in particular supporting the use or reuse of assets.
Salary. The average salaries of investment bankers and asset managers also differ, but the gap between the two is closing. The average base salary for investment bankers in the United States is $75,734 per year , and the average base salary for asset managers is $74,045 per year .
Given these benefits competition for jobs in asset management is extremely high, the number of roles is limited, and demand for roles is high as many investment bankers and hedge fund professionals see asset management as a good exit opportunity.
Although it may not have quite the cachet of investment banking, asset management is still one of the most prestigious and desirable areas in finance.
Investment banking typically requires greater sales skills while asset management requires greater quantitative and analytical skills. That said, the most successful professionals in either career have a good mix of both traits.
On The Job, Lifestyle and Culture
Lower Stress Levels and Shorter Hours – most AM professionals work 50 to 60 hours per week, compared with 60 to 70 per week in hedge funds. Also, stress levels tend to be lower because you're not paid directly based on performance.
Differences in work lifestyle
Asset managers can work up to 50 hours a week, while investment bankers are likely to work from 60 to 70 hours a week. Investment bankers and asset managers sometimes work weekends, depending on their workloads. They can engage in travel as the need arises.
Asset Manager salary in India ranges between ₹ 2.3 Lakhs to ₹ 16.0 Lakhs with an average annual salary of ₹ 6.5 Lakhs. Salary estimates are based on 1.2k latest salaries received from Asset Managers.
Final Thoughts on Wealth Management vs. Investment Banking. The basic issue is that investment banking “wins” for entry and mid-level roles due to the higher optionality, higher pay, and the ability to grind your way up the ladder.
Why asset management instead of investment banking?
Work-Life Balance. Work-life balance is a key difference between investment banking and asset management. Asset management is suitable for those seeking a stable career with a more balanced lifestyle and an interest in investing and portfolio management.
Yes, obtaining the CFA charter can significantly enhance career prospects in asset management. The rigorous curriculum covers relevant topics in finance and investment management, providing candidates with the knowledge and skills sought after in the industry.
The average age of asset managers is 40+ years years old, representing 68% of the asset manager population.
The financial expertise acquired through working in investment banking can be applied in other areas like asset management, private equity, venture capital, and hedge funds.
If your goal is to be a portfolio manager for a mutual fund company or a prestigious Wall Street firm, a degree in finance or economics from an Ivy League or other top-tier institution is a good start. These firms are selective and generally only hire the most promising graduates.
J.P. Morgan Asset Management is the investment management unit of JPMorgan Chase, one of the world's largest, most prestigious, most influential banks.
Goldman Sachs is the premier investment bank in the world. With an acceptance rate of roughly 4%, it's harder to get into Goldman than it is to get into Harvard or Yale. Let me share how to get a job at Goldman Sachs from someone who did.
Investment banking is one of Wall Street's most coveted roles. It is also one of the hardest. It is no surprise that the average day in an investment banker's life is long and stressful. Those who manage to survive the adjustment period often go on to have long and financially rewarding careers.
2 There are wealth managers who work with individuals who hold assets anywhere from $50,000 to $500,00 and others who prefer to work with high net worth clients and handle millions. Wealth managers may work one-on-one with their clients, while investment bankers typically work with multiple corporate clients.
Top-performing equity managers at large asset managers or hedge funds can earn $10-30 million or more per year. However, they risk much larger reductions in bonus pay if they underperform.
What is the best degree for asset management?
Most asset management positions require candidates to hold a degree in finance, economics, business or a related field.
Asset managers manage and monitor a company's assets. This could include property, money, stocks, shares and bonds, commodities, equities and other financial products. As an asset manager, you'd aim to maximise your employer's return on investment.
How Many Hours do Investment Bankers Work? Investment bankers work notoriously long hours, with the typical work week filling in 60-80 hours per week, and the occasional high-intensity work week that can push a banker to 100+ hours.
Though wealth managers only earn a slightly higher salary than asset managers, that difference may change with experience and good performance.
Investment bankers are typically the highest-paid workers in the finance industry—high salaries are most prevalent even among younger employees. The starting salary for the typical investment banker exceeds that of most other finance positions, but working in this field has its challenges.
