How Much Does an Investment Fund Manager Make?

By Indeed Editorial Team

Updated March 1, 2021 | Published February 25, 2020

Updated March 1, 2021

Published February 25, 2020

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Many people are interested in the field of finance because it is challenging and lucrative. Investment fund management is one of the most sought after finance roles, and it offers the potential to earn a high salary. In this article, we discuss how much investment fund managers earn on average and list the top investment fund manager salaries by state. We also explain what investment fund managers do and how to become one.

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How much do investment fund managers make?

Investment fund managers earn an average salary recorded at $90,814 per year, but this can range from $21,000 per year to $209,000 per year. Investment fund managers' base salary depends on their experience, where they work and their geographical location. Their initial salary typically grows as they stay with a firm and gain more responsibility. Different institutions pay different rates based on their size, primary clientele and specialization.

Much of the time, a significant portion of investment fund managers' compensation comes from the performance bonus, which is usually paid at the end of the year. Investment fund managers' bonuses depend on how long they have been working, how many clients they support and how successful their clients' investments become.

Performance bonuses are usually based on a percentage of the money they made for their clients and the firm. Factors such as how long they've spent at a particular company may also affect what type of bonus they receive.

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Top investment fund manager salaries by state

Investment fund manager salaries change depending on the state in which you're located. Some states have a higher standard of living than others, such as housing costs, which will increase salaries in most industries. Investment fund manager salaries can also vary depending on what financial institutions are based in their state. Some institutions, such as those within large cities, may offer higher pay rates than others. Knowing which states have the highest average salaries for investment fund managers can help you build a career development strategy.

Here are the average base salaries for investment fund managers by state:

  • Alabama: $82,098 per year

  • Alaska: $88,304 per year

  • Arizona: $300 per day

  • Arkansas: $81,097 per year

  • California: $99,199 per year

  • Colorado: $87,826 per year

  • Connecticut: $90,389 per year

  • Delaware: $85,330 per year

  • District of Columbia: $100,604 per year

  • Florida: $59,266 per year

  • Georgia: $88,369 per year

  • Hawaii: $85,431 per year

  • Idaho: $78,128 per year

  • Illinois: $74,531 per year

  • Indiana: $82,217 per year

  • Iowa: $83,285 per year

  • Kansas: $81,828 per year

  • Kentucky: $80,459 per year

  • Louisiana: $82,420 per year

  • Maine: $81,955 per year

  • Maryland: $90,596 per year

  • Massachusetts: $89,399 per year

  • Michigan: $84,521 per year

  • Minnesota: $87,638 per year

  • Mississippi: $77,872 per year

  • Missouri: $85,378 per year

  • Montana: $78,522 per year

  • Nebraska: $45,000 per year

  • Nevada: $84,572 per year

  • New Hampshire: $83,879 per year

  • New Jersey: $79,976 per year

  • New Mexico: $82,756 per year

  • New York: $89,886 per year

  • North Carolina: $85,078 per year

  • North Dakota: $84,094 per year

  • Ohio: $84,337 per year

  • Oklahoma: $81,078 per year

  • Oregon: $91,193 per year

  • Pennsylvania: $68,217 per year

  • Rhode Island: $85,409 per year

  • South Carolina: $82,527 per year

  • South Dakota: $80,420 per year

  • Tennessee: $83,200 per year

  • Texas: $111,284 per year

  • Utah: $81,612 per year

  • Vermont: $82,545 per year

  • Virginia: $78,817 per year

  • Washington: $107,880 per year

  • West Virginia: $79,098 per year

  • Wisconsin: $84,271 per year

  • Wyoming: $81,462 per year

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What do investment fund managers do?

Investment fund managers oversee funds and investments with the goal of getting the highest possible return for their clients. When they are managing these funds, they must consider how much risk their client is comfortable taking and what their client's goals and plans are. Some other primary duties include:

Researching investments

Investment fund managers spend a significant amount of time doing research. They stay up to date on product developments, earnings statements and other changes to decide if a stock or fund would be a worthy investment for their clients. They are also always looking for new individuals or companies that could be clients.

Creating and presenting reports

Investment fund managers spend a significant amount of time preparing reports. They present proposal reports to potential clients to help the individual or company understand how much risk they are willing to take in their investments and how to measure their risk tolerance against their future goals. Investment fund managers provide reports to their existing clients, as well. They use these reports to show how successful current investments are and to suggest new investments that will help their clients reach their financial goals.

Watching the stock market

Investment fund managers must understand how corporate changes will affect stock prices. They need to stay up to date on new products, perform effective research and have extensive networking skills to help their clients earn as much on their investments as possible. Investment fund managers must be shrewd analysts and decisive business people. Their work can be high-pressure, so they should be able to manage stress and competing expectations.

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How to become an investment fund manager

Here are the steps you need to take if you want to become an investment fund manager:

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  1. Earn a bachelor's degree in finance, mathematics or economics. You need a bachelor's degree to work as an investment fund manager. Many investment banks recruit accomplished graduates from prestigious universities and business schools. Degree programs in an area such as finance will help you prepare for the responsibilities of this position.

  2. Start work as an investment banker or investment analyst. Most investment fund managers start their careers in finance as investment bankers or analysts. This will help you build connections and get an understanding of the market.

  3. Consider obtaining a graduate degree. Many investment fund managers earn a master's degree to increase their value to financial institutions.

  4. Earn appropriate licenses and registrations. Many investment fund managers earn their Chartered Financial Analyst designation. They must also earn licenses from the Financial Industry Regulatory Authority based on what assets they work with. Finally, they must register with the Security and Exchange Commission if they are expected to manage more than $25 million in assets.

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