What is the difference between investment banking and investment management

Investment management is more of a blissful choice of career in this sense. Not only the prospects continue to improve, but work hours are also more or less balanced for most of the relevant job roles. This makes it a clearly better choice as compared to investment banking as far as work-life balance is concerned. However, in the years to come, there is no guarantee that this delicate balance would not be under threat but even then it is unlikely it would be on par with investment banking.

Therefore, it continues to remain more of a balanced career option. Despite all of their professed advantages and disadvantages, it may not be that easy for you to make that all-important choice of career. Of course, an initial analysis of these areas seems to suggest that investment banking is meant for the dynamic and fast-paced individuals who can be exceptionally good at not only number-crunching but developing and managing valuable client relationships.

It is more of a role that demands you to go out of your way to get the job done, and it certainly pays off if you end up on the right side. For individuals with a keen interest and aptitude for finance but not so much of an outgoing approach, asset management could emerge as a better choice. Developing short and long-term investment strategies Investment Strategies Investment strategies assist investors in determining where and how to invest based on their expected return, risk appetite, corpus amount, holding period, retirement age, industry of choice, and so on.

Although some consider it to be a somewhat comfortable choice as compared to investment banking, it is more of a point of view than a fact. You need to identify your calling while trying to measure it with more or less of an objective criterion to make sure it works for you in the long run.

The most important thing is that you should be able to relate to the kind of job role you are aiming to be able to make it a success in the long term. As they say, the head is above the heart for a reason but what are we without a little emotion.

This has been a guide to Investment Banking vs Investment Management. Here we discuss the education and skills required for Investment Banking and Management along with their pros and cons. You may also have a look at the following articles —. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Free Investment Banking Course. Login details for this Free course will be emailed to you.

Conversely, asset managers also must explain sophisticated investment opportunities to clients who may not have as much knowledge about the markets. Thus, good "two-way" communication skills are a must for asset managers. Both investment banking and asset management offer good career choices for finance-minded professionals. More than likely, the best jobs will go to candidates with financial services experience and college graduates with finance, business and, increasingly, technology degrees.

The best jobs often go to graduate students who earn an MBA at a high-level often an Ivy League or similarly esteemed university. That said, many of the best investment bankers and asset managers in history have brought more street credibility to the finance sector than they have academic pedigrees.

Good trading, analysis, money management, and investment sales skills, no matter how you get them, will earn the attention of most Wall Street hiring managers. Many investment bankers and asset managers get their start at Wall Street firms who hire them directly out of college and put them to work as interns first, and as hard-working hires once they've proven they have the potential to work either on the buy-side or sell-side money management sectors.

The skill sets that make or break a good investment banker and asset manager rarely change, although the "fintech" merger between finance and technology has put a special emphasis on training in artificial intelligence, robotics, data analysis, and trading algorithms in recent years.

Traditional skills like good number-crunching capabilities, investment analysis and money management will also always help a disciplined financial professional to rise up the ladder at an investment banking firm or asset management firm. As for a specific job outlook in both sectors, the U. Jobs will especially be abundant in fintech positions, data analysis posts, foreign currency management, and in direct money management.

It's well worth noting that if either an investment banker or asset manager make up it up the corporate ladder as a C-level, salaries levels rise exponentially. As with any occupation, there are upsides and downsides in forging a career in investment banking.

The income earned as an investment banker can be huge. On top of a fat salary comes the opportunity to earn year-end bonuses that in some cases are higher than your average salary. The hours are long and the work is arduous when you first start out. Eighty-hour weeks with plenty of weekend hours logged on the job are commonplace with fresh-out-of-college investment bankers. Like investment banking, the money is great. Whether you're a fund manager , a data analyst or other asset management professional, the financial opportunities are tremendous right now on Wall Street.

Yes, the hours are long and the pressure to produce big investment performance numbers is significant. But the largest con is still in the development stage and that's the threat of artificial intelligence and robotics to curb or even eliminate opportunities in the money management market. Automation has already killed jobs in multiple industries like manufacturing and retail. List of Partners vendors. Your Money. Personal Finance. Your Practice. Popular Courses.

Careers Career Advice. Key Takeaways Investment banking and asset management are both potentially lucrative financial careers.

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