An investment associate applies financial acumen and securities market knowledge to evaluate asset selection strategies and recommends options to a firm's leadership. She uses financial and statistical tools, such as trend analysis and financial statement evaluation methods, to gauge investment opportunities based on a firm's short-term or long-term risk profile.
Nature of the Work
An investment associate evaluates a company's operating data or economic information about a country or region, and he proposes adequate asset selection alternatives to management. He also performs financial modeling analysis to detect various investment outcomes, such as positive or negative returns, and he establishes adequate risk-management techniques for transactions in which corporate portfolio managers and proprietary traders engage. (A proprietary trader uses a company's funds to buy, hold or sell securities on financial markets.)
Education and Training
Financial institutions, such as banks, private equity firms and insurance companies, prefer investment associates who hold master's or higher degrees in finance, accounting, investment analysis and financial management. A master of business administration (MBA) in investment management is popular in the field. A junior investment associate typically has a 4-year college degree in a business-related field. Investment associates who engage in proprietary trading activities may hold chartered financial analyst (CFA) designations.
An investment associate's pay depends on his seniority, length of service, academic training and professional certifications. Economic trends and investment returns on securities exchanges also affect compensation levels in the field. According to U.S. Labor Department data, investment associates earned median wages of $68,680 in 2008, excluding annual stock and cash bonuses, with the middle half of the profession earning from $40,480 to $122,270. The same research indicates that investment analysts earned average salaries of $73,150 in 2008, excluding annual stock and cash bonuses, with the lowest 10 percent of the occupation earning less than $43,440 and the highest 10 percent earning more than $141,070.
An investment associate who holds a professional certification, such as CFA, certified financial manager (CFM) or financial risk manager (FRM), has more career growth opportunities. An investment associate also can improve chances of promotion by performing adequately and attending regular training sessions or professional conferences. A skillful and competent investment associate advances to a senior function, such as investment manager, senior investment associate or investment trading specialist, in a few years.
An investment associate has a typical 8.30 a.m. to 5.30 p.m. work schedule. He may travel periodically to meet with domestic or international clients, although his schedule usually depends on securities exchanges' operating hours. An investment associate can also be busy at the end of the quarter when a firm typically files regulatory financial reports to the Internal Revenue Service and the Securities and Exchange Commission.
- Photo Credit investment image by Kit Wai Chan from Fotolia.com
Financial Adviser's Job Description
Financial advisers, also known as financial planners, advise individuals, couples and organizations on financial matters, such as spending income, saving for retirement...
What is The Job Description of an Investment Analyst?
Investment analysts are responsible for analyzing financial information to forecast business, industry and economic conditions for use in making investment decisions, according...
Job Description of Investment Bankers
Investment banks arrange financing for private companies. Investment bankers are responsible for matching businesses that require financing with investors who are willing...
Financial Services Associate Job Description
A financial services associate uses sales techniques and accounting, finance or fiscal skills to recommend investment ideas and insurance policies to clients....
The Job Description of a Junior Broker
The main role of a junior stockbroker is to augment the work of a stockbroker. He advises individual clients and retail investors...
Job Description of an Investment Banking Associate
An investment banking associate uses finance, accounting and economic skills to evaluate a company's operating data, detect business trends and recommend investment...
- Investment Banker's Average Salary
Financial Consultant Job Description
The stock market report is required reading for a financial consultant. These experts study the complexities of pension plans, investment portfolios and...
Associate Analyst Job Description
Many organizations use associate analyst positions as a training ground for new hires. These firms frequently promote experienced associates when other positions...
The Starting Salary of an Investment Banker
While it's true that investment bankers have the potential to make a salary that is much higher than the national average, don't...