Careers in Investment
If you are looking to start a career in the investment field there are several jobs that will earn you a good wage that you might want to consider. With a degree in finance or accounting and additional relative credentials you have a variety of options open to you. You will want to display knowledge of business and personal investment vehicles, have a mathematical background and understand bonds and the stock market. You can then chose whether you want to become a financial planner certified and working for yourself, or enter into a large corporation. Usually when starting out in this industry you start out in a coverage group so try to get into a group that covers areas you are interested in, and one that makes successful deals.
Types Covered by Industry Focused Groups
Terms such as IBD, CIBD, IBK are all areas that large investment banks have indicating the investment banking is industry directed. Usually these are grouped into product or industry coverage groups. For example the former might be private placements and the latter might be aerospace. If you take a look at the banking page of Credit Suisse you will see this reflected. A group can have a set of MDs (Managing Directors) who are senior bankers. There role is to create and develop a business relationship with client businesses within the industry like Aerospatiale or Boeing. Backing these senior bankers are a group of Analysts, Admins, Directors, Associates and VPs. These people innovate ideas for clients, pitch them, carry out transactions, go to meetings, write up memos and so on.
There are two primary categories of business, M&A and financing which can be done within the group or sent out to a separate finance group corporation. A client team can be put together with an Associate, MD, VP and one of two Analysts to work with a client on a specified deal. They would work with others like a product specialist, colleagues from corporate finance and maybe colleagues from Debt Capital Markets. The analysts here would be taking on the role of putting a Working Group List together which lists anyone at the bank, the client’s business and the law firm who are involved with the deal. If there is a syndicate it would also have any other banks involved.
Investment Jobs – Specific roles
A Financial Manager
If you decide to become a Financial Manager you would be earning around $50 an hour possibly more. If you work for yourself you would have to get your own clientele and you may have to work longer hours. Your job would be to advise your clients on how to best invest their money and manage their investment portfolios. To enter this profession you would need a financial degree and then become a certified financial planner by taking a CFP examination and becoming certified. To get the latter you need to also have some experience in the field working in an insurance company, at a bank or an investment brokerage firm.
If you want to go into a field that involves analyzing data you may want become an Actuary. Working for insurance companies it is their job to help businesses weigh the risk of things that happen and the financial outcome by analyzing data. You could also work for a big corporation to help assess the risks of different types of investments at varying levels of importance. The average pay received by an Actuary is around ninety thousand a year. To become one you need your four year degree to have focused on financial theory, math and statistics and for better chances at promotion a certificate from either the Society of Actuaries or the Casual Actuary Society.
Earnings of a Broker average at about $70, 000 to 75,000 a year but on top of that are bonuses and commissions that can be earned by those who are successful at it. It is a Broker’s role to carry out stock trades and advise clients both businesses and individuals of financial favorable circumstances. You will need to have a degree with emphasis in economics, business, finance and accounting. Those who also get a Masters in business administration can advance further in their career than those who do not, though a lot of what you know will be earned on the job. You also need the financial industry Regulatory Authority to give you a license.
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Obviously if you wish to enter the world of investment banking you will most likely work for a bank where your responsibilities will include mergers and acquisitions and managing the issuing of company bonds. An investment banker often starts out as an analyst with a bachelor’s degree and then progresses to a banker once an MBA is earned. The hours are long, sometimes as much as seventy hours per week and you may need to do regular traveling to meet clients and look into investments. Initially your salary starts lower at anywhere between $45, 000 up to $85, 000 but this can increase to more than $100,000 a year after you gain some experience.
An Investment Analyst
Finally there is the option of being an Investment Analyst and the title pretty much explains what this involves. Usually you will choose to specialize or focus in a certain area like high grade corporate bonds, consumer cyclical stocks or Brazilian stocks even. Eventually experience will make you an expert in which ever area you chose. You can find investment analysts working in banks, hedge funds companies, brokerages, money management firms and any other business linked to investing. On the sell side is the brokerage firms and banks where an analyst sends recommendations to clients on what to buy and sell. If you work on the buy side, like a hedge fund or money management business the job involves suggesting securities to buy. It is up to the individual whether they remain a specialist in that field for their whole career or move onto becoming a portfolio manager. Wage earned really depends on what you are analyzing, who you work for and how good you are at the job, but it can be a very good income.