How do fund managers make money?

As a fund manager, you generally receive a salary plus a bonus based off of the success of your fund. As a hedge fund manager, your firm may make as much as 20% of the returns of the investment, and depending on your seniority and your employer, you receive a portion of that on top of your annual salary. While this is not a commission based job, a significant portion of your income may come from these bonuses. Your annual earnings also vary greatly depending on your employer, whether that’s a bank, investment company, brokerage firm, or mutual fund.