Investment Finance
Investment finance is a sub-field of finance. People who work in this field usually work for investment banks. Investment banks are companies who help other companies, and the government, issue (sell) securities. Investment banks help investors purchase securities, sell (trade) securities, and manage their personal financial assets. They also provide financial advice to clients.
The biggest investment banks in the United States are J.P. Morgan, Goldman Sachs, and Morgan Stanley.
Investment finance can be an exciting and lucrative career. There are many specialties within the field, including working as a stock broker, working with pension funds, mutual funds, hedge funds, corporate bonds, and public IPO offerings. Research is an important aspect of this field. Many who work in investment finance focus on various types of economic research.
The largest client of investment banks is the United States government. The US government represents roughly 50% of all revenue generated. Their business is in the form of government bond issuance, trading, and redemption.
The industry is highly geographically concentrated. Most investment banks are located in New York City, London, or Tokyo. If you end up working in the field of investment finance it is highly likely that you will be living in one of these cities.
Salaries for the field widely vary. Starting salaries for individuals with a bachelor of science in finance range from $60,000 to $70,000 per year (after bonus). Individuals with an MBA receive between $80,000 and $150,000 in annual compensation. Salaries vary by region and firm. Bonuses can account for 10% – 50% of annual salary.
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If you’re considering a career in investment finance, you should be highly motivated, competitive, and action-oriented. There is intense competition in the field. Promotions are critical for a successful career and are earned based on performance, education, and experience.