About Investment Management Field:
If you are interested in following the financial markets like reading The Wall Street Journal, checking stock prices on the internet or watching CNBC. If your personality traits include being creative, analytical, optimistic and impartial then you might find the investment management career as a tempting option.
Can you think of an industry that rewards employees for functioning independently, thinking rationally and taking calculated risks? Also, imagine an industry that largely affects households all around the world. Not many. However, these are some of the thrilling aspects of the asset management field. Since people are planning their upcoming financial need, this industry is growing rapidly.
Investment management field offers a more stabilized career as compared to other financial industries like investment banking, as this industry generates stability of cash flows. Normally, investment management industries are compensated a set payment as a percentage of assets under supervision.
Even though investment management fees include a performance incentive, this industry is less cyclical than other industries like investment banking. Banking fees are dependent on the number of transactions. As banking activities like IPOs and M&A transactions decreased, fees for investment banks also reduced which led to layoffs of bankers. However, on the contrary, assets are always being invested fairly.
Though an unofficial process of money management had started at the beginning of the 20th century, it did not mature till the early 1970s. Before that, investment management was totally relationship-based. Banks and insurance companies already had relationships with various institutions like companies, municipal corporations for employee pension funds which needed to be invested providing asset managers with assignments to supervise the assets.
These asset managers were selected in an unorganized manner. Assignments bound to grow naturally instead of the official request for the application and bidding procedure. The real work of the investment management was also unorganized. Since the investment industry has matured now, full amount assets under management in the United States are around $60 trillion. Globalization has produced a miscellaneous list of foremost industry players which include investment banks, insurance companies and commercial banks. Performing in an investment management field does not require that you should be from particular region of the country like other financial firms such as investment banking.
Please refer to the following articles regarding the Investment Management Career: