When you invest in a mutual fund, your money is pooled together with the funds from thousands of other investors to purchase stocks, bonds, and other securities. Mutual funds are one of the most popular options for investors seeking to create diversified portfolios because there’s the chance to earn a stake in all of the mutual fund’s investments. Plus, there’s no need to keep track of dozens of different investments because a mutual fund accountant has that covered. Mutual fund accountants are highly trained accounting professionals who pay close attention to the daily progress of their clients’ mutual funds. If the market’s down, mutual fund accountants will quickly make any necessary investment changes to reap the best profit possible for all involved. Below we’ve created a full job description to help you determine if specializing as a mutual fund accountant is right for you.
Salary
According to the Bureau of Labor Statistics, the more than 1.18 million accountants employed across the United States earn an average annual salary of $73,670, which is equivalent to a mean hourly wage of $35.42. In particular, the Robert Half Finance & Accounting 2015 Salary Guide reports that mutual fund accountants make a median salary of $71,500 each year within the financial services field.
Beginning Salary
When just starting out in the profession, mutual fund accountants will one to three years of experience typically bring home between $45,500 and $59,500 annually. As mutual fund accountants gain more experience and advance into senior-level managerial positions, it’s possible to break the six-figure salary mark by earning upwards of $96,250 each year though.
Key Responsibilities
In short, mutual fund accountants have the responsibility of making sure the best investing practices and government accounting laws are being followed to keep mutual funds profitable. Mutual fund accountants are often given the task of calculating the value of investment portfolios, recording all interest income, properly amortizing the premium on bond purchases, keeping records of portfolio investments, tracking all capital gains, and addressing any outflows of funds. Mutual fund accountants process a variety of shareholder transactions, including new account set-ups, purchases, sales, redemptions, and exchanges. A mutual fund accountant may be held reliable for managing one or more assigned funds depending on their complexity.
Necessary Skills
Mutual fund accountants need to possess exceptional mathematical skills to accurately analyze, compare, and interpret numerical figures for a wide variety of securities. Having good analytical skills is essential for mutual fund accountants to effectively identify any investing issues and minimize the threat for any profit losses. Mutual fund accountants should be detail-oriented, good at multi-tasking, and have organizational skills for keeping tabs on their assigned fund’s performance. Communication skills are another must because mutual fund accountants need to clearly express the fund’s gains or losses with all shareholders involved. Mutual fund accountants should also be comfortable with computers since they work with investing and statistical analysis software daily.
Degree and Education Requirements
Before jumping into the mutual fund accounting field, you’ll need to first earn at least a bachelor’s degree from an accredited four-year post-secondary institution. Most aspiring mutual fund accountants choose to major in accounting, but undergraduate studies in finance, business administration, statistics, mathematics, and economics may be useful too. Taking courses related to mutual funds, securities, risk monitoring, portfolio management, investment analysis, and fund distribution will lead to great career preparation. Many mutual fund accountants are now creating a competitive edge for senior-level positions by returning to graduate school for a Master of Accounting (MAcc) or MBA in Accounting degree too.
Pros and Cons of the Position
Becoming a mutual fund accountant is a good option for those who love crunching numbers and playing in the stock market. Not only are mutual fund accountants paid well with the opportunity for bonuses, but they’re also in high demand with growing job options in today’s market. Even if you specialize in mutual fund accounting, you’ll never be tied down because you can easily relocate to a new career in any other area of financial or accounting services. On the flip side, mutual fund accountants spend a tremendous amount of time poring over the facts and figures on their fund’s performance, which can lead to boredom for some. Mutual fund accountants do work with large sums of money, so there can be added pressure to make solid investing decisions that won’t lose profit. A good work-life balance may be difficult to attain since mutual fund accountants often work beyond 40 hours weekly too.
Getting Started
While completing an appropriate education, it’s likely that you’ll need to build real-world accounting practice experience before you can land even an entry-level position. It’s advised that you look for internship or part-time work opportunities where you can begin dealing with financial statements and communicating with clients. Most mutual fund accountants will then need to start in an entry-level role like bookkeeper, accounting clerk, accountant, or auditor for even more experience. Registering with the Securities and Exchange Commission (SEC) is smart because you’ll be working heavily with stocks and bonds. You may also wish to become a Certified Public Accountant (CPA) by earning a master’s degree and passing a Uniform CPA exam. There’s also the option for becoming a Certified Mutual Fund Specialist (CMFS) through the Institute of Business & Finance (IBF) with at least 15 credits of continuing education.
Future Outlook
In general, the Bureau of Labor Statistics predicts that the employment of accountants will be strong with average job growth of 13 percent before 2022, which will lead to around 166,700 new jobs. Mutual fund accountants tend to have a job outlook that is closely tied with the health of our economy, which means hiring may pick up as our nation continues to recover from the recession and people begin saving more. Stricter laws that have been placed on mutual fund regulation will also draw in demand for mutual fund accountants to carefully monitor their activities for compliance. Mutual fund accountants should have the best prospects with a master’s degree and previous fund management experience.
Nearly one in every three Americans currently owns shares in a mutual fund, so it’s clear that they’re an attractive investment for developing a well-diversified portfolio at an affordable cost. Mutual fund accountants are hard at work behind the scenes to keep a close eye on the state of these funds’ profits, assets, losses, liabilities, and taxes. If you choose to specialize in mutual fund accounting, you could play a prominent role in helping shareholders reap big returns.
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