investment fund manager

Centered around Wall Street and other money hubs worldwide, investment banking is a fast-paced field that involves the adrenaline rush of staying on top of the globe’s financial markets. Investment bankers play a valuable role in structuring all financial deals for business operations and helping our economy keep moving forward. There’s a need for investment bankers to advise commercial corporations and the government about various financial matters. From mergers and acquisitions to stocks and bonds, investment bankers are a vital link. They connect organizations that need financing to the investors who’ll provide it. If you’re considering a career in finance, the following is a detailed job profile for investment bankers in today’s global marketplace.

Salary

According to the Bureau of Labor Statistics, the average annual salary for investment bankers as well as other securities and commodities agents is $102,510. This is equivalent to a mean hourly wage of $49.28. Investment bankers working in depository credit intermediation make significantly less than average at $61,100, but those employed by securities and commodity contracts brokerages earn a sizable mean salary of $132,510 each year.

Beginning Salary

When just starting their career, investment bankers can expect to earn an annual salary in the bottom 10 percent of the profession–around $32,280. This may seem very low. It’s important to remember that investment bankers with many years of experience often bring home six-figure salaries that soar past the $150,000 mark yearly.

Key Responsibilities

Investment bankers are predominantly responsible for the underwriting process. This involves helping businesses find investors who can provide funding to finance their daily operations or expansion plans. Investment bankers often provide initial public offerings (IPOs) to assist companies in becoming open for public investment and issuing their first stocks. Investment bankers will likely contact prospective commercial clients. They:

  • offer advice on the purchase or sale of securities
  • buy and sell securities or commodities
  • monitor financial markets
  • analyze their clients’ finances
  • provide recommendations for mergers or acquisitions

In short, investment bankers offer priceless financial advice to businesses. They help ensure that all transactions go smoothly and that monetary gains are maximized.

Necessary Skills

In order to survive in investment banking, you’ll need to have top-notch analytical skills for spotting new financial market trends and industry changes. Interpersonal skills are a must. Investment bankers must:

  • be persuasive
  • clearly communicate their recommendations
  • make businesses trust their expertise

Investment bankers make split second decisions with large sums of money often at stake. So solid critical thinking and decision-making skills are important. Investment bankers should be proficient in math to accurately judge the profitability of potential deals or mergers. Also, investment bankers must be very detail-oriented with a focused attention span to carefully monitor any changes that could have large consequences.

Degree and Education Requirements

To compete for investment banking positions, you must earn at least a bachelor’s degree from an accredited business school first. Most investment bankers choose an undergraduate major in:

  • business administration
  • finance
  • accounting
  • economics
  • math

In general, you’ll need to complete a master’s degree with two years of post-college study to actually rise in the investment banking field. Investment bankers often earn a Master of Science in Finance (MSF) or complete a Master of Business Administration (MBA) program with a specialization in finance. While there is no investment banking major, try to take as many electives related to this unique field as possible.

Pros and Cons of the Position

Investment banking comes with its fair share of benefits and drawbacks that you should be aware of. Of course, the most noticeable advantage is the sizable salary and the potential to hit the six-figure mark before turning 30. Investment bankers also enjoy a fast-paced lifestyle that caters to people who love high energy and intense situations. Since investment bankers work with multi-million dollar deals frequently, the job delivers a lot of power for rising to the top.

On the flip side, investment bankers work extremely long hours with weekend work and perhaps sleepless nights. Investment banking virtually requires individuals to dedicate 70 to 100 hours per week. This makes a personal life difficult. Investment bankers often also face:

  • a lack of job security
  • high rate of burnout
  • tighter regulations to reduce fraudulent scandals

Getting Started

Investment banking is rarely ever an entry-level position, so you’ll first need to get your feet wet with analyst or associate jobs and build your resume with valuable experience. While earning your education, hop on every opportunity to complete internships relevant to investment banking. It’s likely that your business school will offer on-campus recruiting opportunities to help you expand your professional network. You may need to be aggressive in cold-calling small, local investment banks to land an interview and start analyzing assets or portfolios. Get at least three years of full-time experience and hone your analytical skills. Then you may want to consider pursuing the Certified Investment Banking Association (CIBA) designation to further your professional credibility in the field too.

Future Outlook

Starting a career in investment banking can be a tough road due to the high level of competition for a dwindling number of available positions. The U.S. News and World Report recently dropped investment banking from its “Best Careers” rankings thanks to the dwindling job market for investment bankers. After all, the past few years has seen dramatic layoffs at the largest investment banks, including 35,000 at Bank of America and 73,000 at Citigroup.

However, if you’re truly meant to enter this profession and have a high tolerance for risk, it’s still possible to find investment banking opportunities. Having a graduate degree and certification is the best way to unlock positions for investment bankers.

Since over $63.6 billion is earned in investment banking revenue annually, it’s no surprise that many people are interested in entering this field and working with these large lumps of money. Investment bankers use their strong background in finance to offer valuable advice to their client businesses on high-level issues of financial organization. Investment bankers may:

  • buy new bonds
  • recommend strategies for taking over other companies
  • sell company stocks to the public

If you’re a worshiper of finance and long to walk across the trading floor, a job in investment banking could be the perfect role for you.

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