With the growth of the asset management industry, investment management firms are expanding their recruiting efforts to target more entry level candidates. Landing an investment management role straight out of college is becoming an increasingly viable path for new graduates interested in asset management. By understanding the skills and experiences firms look for and proactively developing the right profile, new grads can better position themselves for entry level investment management roles. This article will provide an overview of investment management career paths, insights on how firms evaluate entry level candidates, and tips on how students and new grads can best prepare themselves for entry level investment management jobs.
Core skills for entry level investment management roles include strong analytical abilities, financial modeling, and communication skills
Investment management firms need employees who can analyze data, build financial models, and clearly communicate insights. For entry level roles, demonstrated excel modeling skills are highly desired. Coursework in finance, accounting, economics, and statistics help build this strong quantitative foundation. Students can further develop financial modeling skills through classes, clubs, or self-study. Communication skills – both written and verbal – are also key. Entry level investment management roles require collaborating with colleagues and sometimes interacting with clients. Students can showcase communication abilities through classes requiring presentations and writing assignments. Leadership in clubs and activities also demonstrates the ability to work in teams and articulate ideas.
Gaining relevant internship experience gives entry level candidates a significant edge
Completing one or more investment management internships is invaluable preparation for full time entry level roles. Internships expose students to the day-to-day realities of investment management work. They build technical skills through hands-on experience. Internships also help students expand their professional networks. Making positive impressions with internship managers can facilitate securing full time job offers. Candidates who have already completed investment management internships demonstrate interest in the field and lower the risk of being a bad hire for firms.
Technical skills in Excel, financial modeling, Python, and SQL are increasingly valued
As investment management becomes more data-driven, technical skills are increasingly important even at the junior level. Advanced Excel skills such as pivot tables and VBA allow for more robust analysis. Financial modeling skills let candidates build and analyze financial projections. Programming languages like Python and SQL allow for gathering and making sense of large data sets. Employers recognize today’s reliance on technology and favor entry level applicants who can leverage these tools.
CFA or other credentials boost entry level investment management candidacies
Although not required, having credentials like the Chartered Financial Analyst (CFA) gives entry level applicants an edge. The CFA curriculum covers many technical skills needed for investment management. Passing just Level 1 signals motivation and foundational knowledge. Other credentials like the Certificate in Investment Performance Measurement (CIPM) or Certified Financial Planner (CFP) also demonstrate commitment to an investment management career.
Cultural fit and soft skills complement candidates’ technical abilities
In addition to technical expertise, investment management firms look for new hires who fit their culture and exhibit strong soft skills. Entry level candidates can showcase collaborative abilities and work ethic through internships, jobs, and extracurriculars. Leadership positions and team sports demonstrate the ability to work well with different personality types. Every interaction, from informational interviews to formal recruiting events, provides an opportunity for candidates to demonstrate emotional intelligence, maturity, and professionalism.
Entry level investment management jobs provide exciting opportunities for new graduates to begin building careers in asset management. By developing technical skills like financial modeling, obtaining relevant experience through internships, and honing soft skills, students can make themselves competitive candidates for investment management roles straight out of school.