Investment jobs can be broadly categorized into the following types:
Investment Broker
Investment brokers participate in buying and selling stocks, bonds mutual funds and other such financial products on behalf of their clients. Investment brokers can be licensed individuals as well as brokerage firms, such as Merrill Lynch, Charles Schwab and Smith Barney. The primary function of brokers is executing trades for the investors, but a large number of investment brokers provide additional services, including portfolio management and investment advice.
Investment Consultant or Advisor
An investment consultant is an individual or a firm that helps clients select the most profitable investment option. An investment advisor primarily assesses the financial situation of the client before recommending a suitable investment plan. Investment consulting jobs require thorough understanding of the market and the factors that affect it.
Investment advisors can be broadly categorized into two types, according to the nature of their advice:
· Direct advice to individuals and businesses.
· Asset management services, typically used by corporate clients, mutual funds and hedge funds.
Investment Analyst
An investment analyst examines various companies and entities to arrive at an estimated financial value. The analysts procure company information by assessing public records, such as financial statements of the company, and by contacting the management in person, through public conference calls and asking direct questions.
Investment analysts use spreadsheet and other statistical software applications to scrutinize financial data, identify trends and develop forecasts. They use their findings to prepare reports to aid clients in determining whether to hold a particular investment or to sell it.
Investment Banker
Investment bankers participate in arranging and negotiating large financial transactions. They are typically employed by specialized investment banks to advise their clients as well as initiate private ventures.
Investment banker jobs are diverse, depending on the financial needs of different clients. The services of an investment banker are generally hired by corporations during:
· Mergers and acquisitions, for negotiating the agreement.
· Large budget deficit, for finding an appropriate remedy.
· Issue of new stock, for underwriting the issue.
Investment jobs, irrespective of whether they are at the entry-level or the management level, are very demanding. Moreover, due to the lucrative nature of the sector, entry is restricted and competitive.