Finding a job in the financial investment industry can be very competitive. It’s important to be prepared for the recruitment and interview process. Having access to common interview questions and sample answers is a great way to get ready. In this article, we will provide key points and conclusions on financial investment interview preparation, sample questions, and how to best answer them. There will be a focus on investment banking, asset management, sales and trading, and other popular financial career paths. Advanced preparation and insight into the questions asked will give candidates a leg up. With practice and being armed with sample responses, landing a top investment job is within reach.
Understand the firm and role – Research is critical
One of the most important things to do when preparing for an investment interview is thoroughly research the firm and the specific role. Firms want to know that applicants took the time to understand their business, culture, and the day-to-day responsibilities. For investment banking interviews, it’s key to understand the firm’s industry coverage,product groups, and recent deals. Look up the background of interviewers on LinkedIn. For asset management and other investment roles, be prepared to speak intelligently about their investment strategies, products, and competitive positioning. This research demonstrates passion and fit with the firm.
Master technical skills like valuation, modeling, math, Excel
The technical aspect of interviews, especially for investment banking, can be demanding. Applicants must showcase skills in valuation methodologies, financial modeling, math, accounting, and Excel. Common technical questions include walk-me-through a DCF, comparables analysis, LBO models, M&A scenarios, and technical accounting questions. It’s important to brush up on textbooks like Rosenbaum and Pearl’s Investment Banking, or take online courses to prepare. Excel skills like keyboard shortcuts, financial functions, and data tables should become second nature.
Practice sample interview questions and answers
Preparation for the many different types of questions is vital – behavioral, technical, market sizing, brainteasers, resume walkthroughs, and industry/role specific. Use the ample online resources and books that provide sample questions with suggested answers across these categories. Practice aloud and refine answers to deliver clear, structured responses. Record answers on video to review body language and presentation. Participate in mock interviews to simulate the real experience. Knowing what may be asked along with honing answers separates the good from the great.
Demonstrate passion for finance and the markets
Hiring managers want to know candidates have a genuine interest and passion for the financial markets and investment industry. Be prepared to answer questions about why you are attracted to this career path, how you invest your own money, favorite companies, your market and financial news consumption, opinions on recent events, etc. Passion is conveyed through knowledge of current events, market trivia, stock opinions, understanding valuations, and being able to hold an intelligent discussion. This enthusiasm will differentiate passionate applicants from those just going through the motions.
Perfect storytelling with resume walkthroughs
The resume walkthrough allows applicants to expand on their experiences and accomplishments. Prepare 2-3 minute stories that provide an engaging narrative around items on the resume. Bring the interviewer into the story and explain why experiences were meaningful, how they demonstrated core competencies, and why they fueled an interest in the role. Tie each experience back to how it prepares you for the specifics of the job. Expert storytelling showcases communication skills, self-awareness, and your career trajectory.
Thorough preparation and practice for the various types of investment interview questions provides a huge advantage. Do the research, know technical skills cold, practice sample questions, showcase passion for markets and finance, and tell compelling stories. With meticulous preparation and polish, candidates can master the interview and land their dream job.