Whether you are choosing your college degree or thinking about a career switch, the financial investment services is one of the most in-demand job markets in the country and (for that matter) the world today. Basically, the investment services industry requires technical knowledge, social skills and sales acumen. Corporations, investors, or even financially-conscious individuals have specific commercial, economic, and financial needs. Since the industry is very broad, the most in-demand professionals are those that cater to these precise necessities.
Usually, corporations need advice on mergers, acquisitions, hedging, forecasting profits and losses, controlling expenses and financing capital. Investors are attentive about the ups and downs of the stock market, options market, ETF, etc. Individuals are engrossed on insurance, housing, car loans, retirement fund, education fund, emergency fund, etc.
We will assist you with your career planning through the following breakdown of the career paths for the investment services industry.
Global Asset Management
Broadly defined, asset management aids in monitoring and maintaining assets of an entity or group. Global assets under management include pension funds, insurance companies and mutual funds. Other funds include private wealth and alternative assets such as hedge funds and private equity. Institutional clients generate the majority of funds. It can also refer to management of fixed assets such as buildings and equipment or intangible assets such as patent, trademark, and goodwill. A global asset management firm invests the funds of the client in line with the stated investment objectives.
Prospective employees in this field may need finance, economics, or any business degree. Business schools have integrated an investment asset management course in their program for financial services majors. Some companies require a Chartered Financial Analyst (CFA) but, there are companies who value experience more than the degree. Psychology and communication majors can also be involved in this field as long as they acquire the basic training from the company or a business school. HSBC and UBS are the top financial firms for global asset management. The starting salary ranges from $90,000 – $120,000.
Traders usually work for a trading firm to buy and sell securities based on either the individual trader or the portfolio manager of an investment firm. If you are aiming for this career, you have to learn as much as you can about the stock market. Learn about the trends in stocks, read up on financial news, and identify the performing and underperforming stocks in the market based on your analysis.
A business degree is not required but is preferred. You can take classes and trainings on trading even if you do not have a business or finance background. Communication and negotiation skills are also needed in this very competitive job. There are long hours of research and high-pressure trading situations that one has to venture to in this career. On average, traders have a starting salary of $80,000 with a $10,000 – $15,000 bonus.
Investment Banking Industry
Investment bankers work for financial intermediaries that assist individuals, corporations, and governments in the underwriting and issuance of securities. Investment bankers also aid in the execution of mergers and acquisitions. The top investment banks in the world are Goldman Sachs, JP Morgan, and Morgan Stanley.
Investment bankers should be sharp with numbers, investment strategies, and corporate finance. They should feel at home with communicating to their clients on the recent news and opportunities for their investments. An investment banker should also digest data quickly and analyze it responsibly for the benefit of the investors.
Business school graduates are preferred in this position but other degrees are welcome as long as they are educated on the basic practices and are ready to face the pressures that the job entails. An investment banker on their first year can earn $70,000 – $150,000 while a third year associate can rack up to $250,000 – $500,000.
A career in the financial services is sought by many for different reasons. Mostly, the reason is because of the generous paycheck and rich people lifestyle that goes with the job. Before deciding on a career switch, you need to carefully consider the direction you want to embark in the midst of the wild possibilities in the financial services. You have to prudently assess the demand for the position and match your skill set with the work in order to effectively pursue the job with a high prospect for success. It is better to do your research now to mitigate the risk of pursuing a career that doesn’t suit your abilities.
Recommended Book which will help you develop a career identity and personal brand!