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The differences between portfolio managers and investment advisors can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 6-8 years to become a portfolio manager, becoming an investment advisor takes usually requires 2-4 years. Additionally, a portfolio manager has an average salary of $114,671, which is higher than the $105,377 average annual salary of an investment advisor.
The top three skills for a portfolio manager include portfolio management, customer service and risk management. The most important skills for an investment advisor are exceptional client, risk management, and client relationships.
| Portfolio Manager | Investment Advisor | |
| Yearly salary | $114,671 | $105,377 |
| Hourly rate | $55.13 | $50.66 |
| Growth rate | 17% | 15% |
| Number of jobs | 43,192 | 63,438 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 71% | Bachelor's Degree, 76% |
| Average age | 46 | 45 |
| Years of experience | 8 | 4 |
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.
An investment advisor is responsible for managing the clients' financial portfolios, advising them of investment options according to their financial goals and objectives, and their ability to handle risks. Investment advisors should have excellent knowledge of the investment policies, providing the clients with the best financial strategies according to their interests. They also determine their expenses, income, and credit scores to identify a comprehensive financial plan. An investment advisor helps the clients with cash management techniques, as well as conducting data analysis on financial market projections.
Portfolio managers and investment advisors have different pay scales, as shown below.
| Portfolio Manager | Investment Advisor | |
| Average salary | $114,671 | $105,377 |
| Salary range | Between $66,000 And $198,000 | Between $60,000 And $184,000 |
| Highest paying City | Stamford, CT | New York, NY |
| Highest paying state | Connecticut | New York |
| Best paying company | The Citadel | McKinsey & Company Inc |
| Best paying industry | Finance | Telecommunication |
There are a few differences between a portfolio manager and an investment advisor in terms of educational background:
| Portfolio Manager | Investment Advisor | |
| Most common degree | Bachelor's Degree, 71% | Bachelor's Degree, 76% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | University of Minnesota - Twin Cities |
Here are the differences between portfolio managers' and investment advisors' demographics:
| Portfolio Manager | Investment Advisor | |
| Average age | 46 | 45 |
| Gender ratio | Male, 66.6% Female, 33.4% | Male, 72.3% Female, 27.7% |
| Race ratio | 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% | Black or African American, 5.6% Unknown, 4.4% Hispanic or Latino, 9.4% Asian, 8.2% White, 72.3% American Indian and Alaska Native, 0.1% |
| LGBT Percentage | 11% | 5% |