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Investment analyst vs portfolio manager

The differences between investment analysts and portfolio managers can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 2-4 years to become an investment analyst, becoming a portfolio manager takes usually requires 6-8 years. Additionally, a portfolio manager has an average salary of $114,671, which is higher than the $79,056 average annual salary of an investment analyst.

The top three skills for an investment analyst include portfolio management, financial statements and strong analytical. The most important skills for a portfolio manager are portfolio management, customer service, and risk management.

Investment analyst vs portfolio manager overview

Investment AnalystPortfolio Manager
Yearly salary$79,056$114,671
Hourly rate$38.01$55.13
Growth rate9%17%
Number of jobs63,00343,192
Job satisfaction5-
Most common degreeBachelor's Degree, 76%Bachelor's Degree, 71%
Average age4046
Years of experience48

What does an investment analyst do?

An Investment Analyst provides research and information to help traders, fund managers and stock brokers make decisions about investments. They are hired by companies, investment trusts, stock trading and brokerage firms, and insurance providers.

What does a portfolio manager do?

A portfolio manager is responsible for managing the clients' investment portfolios to advise them of the best investment plans to achieve their financial goals and objectives. Portfolio managers determine the most suitable options by evaluating the clients' credit score and risk potential and the client's financial background. A portfolio manager should be highly knowledgeable and updated with the recent financial industry changes to decide on investment plans with maximum returns.

Investment analyst vs portfolio manager salary

Investment analysts and portfolio managers have different pay scales, as shown below.

Investment AnalystPortfolio Manager
Average salary$79,056$114,671
Salary rangeBetween $44,000 And $140,000Between $66,000 And $198,000
Highest paying CitySan Francisco, CAStamford, CT
Highest paying stateNew YorkConnecticut
Best paying companyThe CitadelThe Citadel
Best paying industryTelecommunicationFinance

Differences between investment analyst and portfolio manager education

There are a few differences between an investment analyst and a portfolio manager in terms of educational background:

Investment AnalystPortfolio Manager
Most common degreeBachelor's Degree, 76%Bachelor's Degree, 71%
Most common majorFinanceBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Investment analyst vs portfolio manager demographics

Here are the differences between investment analysts' and portfolio managers' demographics:

Investment AnalystPortfolio Manager
Average age4046
Gender ratioMale, 70.1% Female, 29.9%Male, 66.6% Female, 33.4%
Race ratioBlack or African American, 5.6% Unknown, 4.5% Hispanic or Latino, 7.7% Asian, 14.1% White, 68.0% American Indian and Alaska Native, 0.1%Black or African American, 7.5% Unknown, 4.1% Hispanic or Latino, 14.4% Asian, 10.1% White, 63.6% American Indian and Alaska Native, 0.3%
LGBT Percentage7%11%

Differences between investment analyst and portfolio manager duties and responsibilities

Investment analyst example responsibilities.

  • Update weekly liquidity stress report and utilize VBA and SQL to automate the process
  • Manage and update early engagement processes daily through SharePoint.
  • Manage trade executions and broker relationships for all portfolio positions across several banks, prime brokerage accounts and electronic commodities exchanges.
  • Perform financial analyses including discount cash flow, leverage buyout, public market comparable trading and precedent transaction-base valuations
  • Participate in the asset management valuation committee and provide management oversight to accounting, legal, and operations personnel.
  • Used JAVA to develop trading spread calculator.
  • Show more

Portfolio manager example responsibilities.

  • Manage ongoing existing client needs and assist in credit structuring at loan origination.
  • Manage over $900M in U.S. Equities and fixed-income; are simultaneously responsible for monitoring over $1.4b in global assets
  • Manage governance, engage stakeholders and communicate budget impact to senior management.
  • Conduct post-promotion analysis and manage financial reporting to ensure favorable ROI for clients.
  • Create PowerPoint presentation books for clients.
  • Facilitate internal, external, GAAP audits.
  • Show more

Investment analyst vs portfolio manager skills

Common investment analyst skills
  • Portfolio Management, 7%
  • Financial Statements, 6%
  • Strong Analytical, 6%
  • PowerPoint, 5%
  • Real Estate, 5%
  • Risk Management, 3%
Common portfolio manager skills
  • Portfolio Management, 10%
  • Customer Service, 9%
  • Risk Management, 5%
  • Project Management, 5%
  • Financial Statements, 5%
  • Real Estate, 5%

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