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The differences between portfolio managers and investment bankers 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 banker takes usually requires 2-4 years. Additionally, an investment banker has an average salary of $162,715, which is higher than the $114,671 average annual salary of a portfolio manager.
The top three skills for a portfolio manager include portfolio management, customer service and risk management. The most important skills for an investment banker are financial services, discounted cash flow, and capital markets.
| Portfolio Manager | Investment Banker | |
| Yearly salary | $114,671 | $162,715 |
| Hourly rate | $55.13 | $78.23 |
| Growth rate | 17% | 10% |
| Number of jobs | 43,192 | 28,460 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 71% | Bachelor's Degree, 69% |
| Average age | 46 | 43 |
| 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 banker is responsible for selling and issuing securities and financial assets to the stock markets to generate money and raise capital for organizations and financial institutions. Investment bankers also work with private clients to advise them of investment options and financial transactions according to the market's condition and clients' interests. They handle the clients' investment portfolios and create propositions for acquisitions and company mergers. An investment banker must have excellent knowledge of the financial and stock industry, as well as having excellent analytical skills to review statistical data and determine the best financial strategies.
Portfolio managers and investment bankers have different pay scales, as shown below.
| Portfolio Manager | Investment Banker | |
| Average salary | $114,671 | $162,715 |
| Salary range | Between $66,000 And $198,000 | Between $95,000 And $276,000 |
| Highest paying City | Stamford, CT | Boston, MA |
| Highest paying state | Connecticut | Alaska |
| Best paying company | The Citadel | Citi |
| Best paying industry | Finance | Real Estate |
There are a few differences between a portfolio manager and an investment banker in terms of educational background:
| Portfolio Manager | Investment Banker | |
| Most common degree | Bachelor's Degree, 71% | Bachelor's Degree, 69% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between portfolio managers' and investment bankers' demographics:
| Portfolio Manager | Investment Banker | |
| Average age | 46 | 43 |
| Gender ratio | Male, 66.6% Female, 33.4% | Male, 76.2% Female, 23.8% |
| 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, 5.5% Unknown, 4.1% Hispanic or Latino, 11.5% Asian, 12.4% White, 66.2% American Indian and Alaska Native, 0.2% |
| LGBT Percentage | 11% | 6% |