January 11th, 2020 | Updated on June 27th, 2022
The financial services industry comprises various firms that provide financial services to individuals, businesses, and government entities.
The industry attracts an enormous number of job seekers due to the high-profile job and lucrative salary.
Though the finance professions spend long hours or grueling days in the office, they get rewarded with high pay once they get acquainted with their profile. Moreover, they do get short hours as they step up in their career ladder.
A candidate who can count money need not always win the career. There are aspiring graduates from another stream like humanities, technology, or may have a Ph.D. too. The industry calls for candidates who can connect, network, identify trends, research, and dedicate long hours.
Get to know the finance areas that offer the best opportunities and competition to maximize earning potential.
Finance careers that maximize your earning potential
1. Investment Banking
Investment banks provide finance for governments, corporations, and other industries through debt and equity capital markets. They also advise clients on investment strategies and opportunities.
They handle stock-bond issues, manage investments, writing pitchbooks, research industry trends, analyze company’s operations, financials, run models, conduct due diligence, manage purchase and sale of companies through mergers and acquisitions, etc. The deals bring more money for the investment banks.
The highest-paid job at investment banks waits for individuals who can successfully manage deals. The job requires long hours and a strong work ethic to succeed.
2. Private Equity
Private equity jobs involve wealth creation. Private equity firms provide the major capital investment for start-up businesses or businesses that need a large amount of finance for their growth projects. They offer funds in exchange for equity interest or profit participation.
The professionals at Private equity deal sourcing, raising investment capital; secure deal flow from investment banks, intermediaries, transaction professionals; buy or invest in sound companies; support management’s efforts for growth company; sell portfolio company for a profit, forecast financial projections, calculate return rates, draft presentation, review, and comment on legal documents, close deals, coordinate fund flow, help company in operations and reports, etc.
Taking up a career in private equity is more challenging and rewarding. It is the destination career for most of the finance graduates.
3. Hedge Funds
Hedge funds serve the investment needs of high net worth individuals and large institutional investors. It takes management fees and a percentage of profits for offering investment and money management services.
The hedge fund manager is among the highest-earning individuals in the financial industry.
The professionals at hedge funds are involved in fundamental research, surveys, financial models, filed-level research, investment analysis, network development, performance improvement, profit and loss statement generation, etc.
A career in the finance industry requires a bachelor’s degree in fields like finance, economics, business, and mathematics. The graduates from other fields also can try their luck in the industry.
Certain jobs require post-graduation like an MBA in finance. In addition, specialized licensing or certifications like Chartered Financial Analyst (CFA), Certified Financial Planner (CFP), Chartered Private Equity Professional (CPEP), etc., would help you climb the career ladder at a faster rate with higher pay prospects.