Investment Banking or Asset Management? Job Opportunities, Qualification, Salary

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Reported by Anjali

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Investment Banking, as well as Asset management, provides interesting career paths to students belonging to the finance and economics fields. Choosing any of these fields right after school means earning an attractive salary. Investment Banking, Asset management and other filed of finance have prestige in big cities.

Both fields come under the financial sector. However, the duties, lives and roles vary. If you are also confused between Investment Banking or Asset Management then you have landed on the right page. In the following section, we are going to discuss both fields in detail so that you can easily choose which one suits you better. Scroll down and check those details.

Investment Banking or Asset Management

Investment Banking or Asset Management
Investment Banking or Asset Management? Job Opportunities, Qualification, Salary 3

One of the major differences between both is that Investment bankers help in selling financial products. Whereas, Asset manager help in buying the same to manage it for their client. Both of these are opposite sides of the same transaction.

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An Asset manager buys the investment product for their client from the investment banker. Investment bankers need better skills in sales and asset managers need better quantitative and analytical skills. Both fields have their advantages and disadvantages. To check, both professions in detail, check the article prepared below.

Investment Banking

Investment Banking is specifically a part of banking which is related to the capital formation for governments, companies and others related to banking. This field deals with equity and security research. They also buy, sell, and hold recommendations. Now, let’s take a look at the available job opportunities:

Investment Banking Job Opportunities

The following is the list of some of the common job opportunities under investment banking:

Banking analysts
Capital market analysts
Research associates
Trading specialists

Investment Banking Responsibilities

In the following section, we will elaborate on some of the basic tasks that are required by a professional in investment banking:

Offering debt, such as a bond offering and others
The assistance of mergers and acquisitions i.e., M&A
The subsidizing of new securities
be in the forefront of initial public offerings i.e., IPO
Heading up reorganizations
Preparing broker trades for institutions and private investors
Guiding respective issuers about the issue and placement of stock
Accomplishing complicated financial transactions
Guiding other complicated financial requirements

Asset Management

Professionals of Assent Management help their clients reach the goals of their investments by managing their money. Clients of the Investment Manager might include individual investors along with institutional investors. For Examples:

Retirement plans
Pension funds
Educational institutions
Insurance companies

Asset Management Job Opportunities

The following is the list of some of the common job opportunities under asset management:

Asset management associate
Financial analyst
Project manager
Business development specialist
Fund accountant
Financial Advisor

Asset Management Responsibilities

In the following section, we will elaborate on some of the basic tasks that a professional in Asset management requires:

Analysis and Calculation of financial statements
Portfolio allotment such as a perfect mixture of bonds and stocks
Research of Equity and buy and sell of recommendations
Planning and offering advice related to finance
Estate and retirement planning along with the distribution of assets

Salary of Investment Banking and Asset Management

People working in the financial industry get a salary, which is typically calculated on an annual basis. Many banks also pay their employees good bonuses. For example,

  • During December 2023, the average salary of an analyst working under the investment bank lies between $135,000 to $234,000 as per the Glassdoor estimation. However, this data does not include the bonuses which they might receive.
  • The average salary of a person working under Asset Management is around $92,855. The bonuses the employees receive vary based on their performance, goals and others.

BLS recently calculated the data on wages, but it does not include any specific category for investment banking. It was included in jobs like commodities, securities and others. As per the figures, people earned around $67,480 and it is expected to grow 7% more in ten years.

Meanwhile, the Asset Manager position falls under the category of financial manager category according to the reports of BLS. According to the reports, these professionals have earned around $139,790 annually. It has been expected by the officials that there will be a growth of 16% in ten years.

Required Qualification for Investment Banking and Asset Management

Neither field has set rigid or across-the-board educational qualification requirements. Previously, it was usual to see people without any degree working efficiently. Many successful professionals have begun their careers with a single bachelor’s degree. People with a bachelor’s degree in a field like accounting, maths, accounting, business and related can apply for the above-mentioned position. Applicants who will secure higher qualifications in the related specialisation are more than welcome. It is also a plus point for them while applying for the position.

Frequently Asked Questions

What’s the Difference Between Investment Banking and Asset Management?

Investment banking includes capital creation for different clients. Investment bankers help in offering services like buying and selling securities and more. Meanwhile, an asset manager helps clients reach their goals regarding investment by managing their money.

How to make a career in Investment Banking?

Applicants will first have to complete their schooling, After that, they must hold a bachelor’s degree in the field of banking, maths, economics and other related fields. Applicants with special financial certifications and designations like Chartered Financial Analyst will be preferred.

How to make a career in Asset management?

Applicants will have to get at least a bachelor’s degree in economics, finance and others from a recognized university. Along with this, special financial certifications and designations will be required if one wants to work in a specific field. One will also have to get a license from federal and state authorities to do certain financial transactions for their clients.

Which one is better, Investment Banking or Asset Management?

Please note that both investment banking and asset management have many similarities, but both fields are different. The answer to that question will be different for different people. One must consider all aspects before choosing any one of the fields.

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