Today so many students pursue investment banking and investment management as their career option after finishing with their masters or their MBA. There is a lot of scope in both investment management and investment banking today.
Both play a very vital role in developing one’s business. This leads to growth in the economy as a whole, leading to the rise in per capita income.
Investment Banking vs Investment Management
The difference between investment banking and investment management is that in investment banking, the banker helps out raise the capital compared to the market rate of their clients. Whereas, in investment management, an investment manager helps the clients by giving advice and solutions in the most efficient way to manage a person’s money with equity research and analyzing the finance.
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In investment banking, the person is said to be all of a deal maker. Their work is to give an assistant as a consultant to their clients on a high level and act as an analyst to strategize on raising capital of a clients company to raise profits.
In investment management, it is all about emphasizing the allocation of all kinds of assets and making decisions regarding them by an investment manager for the clients. The investment managers help develop sound strategies for investment and direct their clients to fund their properties.
Comparison Table
| Parameters of Comparison | Investment Banking | Investment Management |
|---|---|---|
| Basic feature | Assist and consult their clients for raising their capital. | Assist and help their clients to manage their money. |
| Skills required | Should have the ability to be a catchy eye and excellent ability skills, and good Strategic skills. | Should be able to work in a fast based environment having skills of strategies funds. |
| Mostly used by | Common people | People having a high net worth. |
| Other name | They are also called Dealmakers. | They are also called wealth management. |
| Work includes | Provide strategies, mathematical proficiency, initial public offering, etc. | Research on equity, analyzing finance, etc. |
What is Investment Banking?
Investment banking comprises a person who helps raise the capital of their clients according to the current market rates. They are usually titled to be known as dealmakers.
The work of an investment banker is giving assistance regarding having high-level profits to and give them strategies to do so on raising their capital which would lead them to raise in business profits.
Investment banking includes performing functions like research of equity, Security research, buying and selling, and holding their respective recommendation. Every investment banker starts their career as a financial analyst first usually.
They help in Co-operating a client financial needs. Investment banking is institutions that engage themselves in underwriting a financial institution.
Consequently, by summing up everything, whenever a client needs a corporation of some financing, investment banking comes to their rescue. Getting into this field is not so easy as it has a lot of competition these days as this is work that involves professional level finance management.
In investment banking, a person should have analytic abilities for having eye-catching detail. They should be an expert in mathematical calculations and have good Proficiency skills to communicate with clients.
What is Investment Management?
Investment management comprises a person whose work is on allocating some respective funds of the client. Decisions regarding how an Investment should be made and what time it is to be made are all some features that an Investments’ manager provides his clients.
Central authorities like that Government and many top-grade companies help them facilitate mergers for the clients by efficient methods. They provide services and guide their clients regarding pension plans by standardized equity bonding.
The Main work of investment manager is that they help manage the money of their clients in such a way that the client would earn some profits. They assist an individual in investing and where to invest, which helps the clients achieve their business goals.
Usually, people who seek information from an investment manager are more often the ones who hold a high net worth of individuals.
A person working as an investment manager needs to possess some skills such as having Absolute and complete knowledge of instruments related to investments. They should be an expert in mathematics and make complex lines into a simplified solution for their clients.
An investment manager helps in long term objectives in finance.
Main Differences Between Investment Banking and Investment Management
- Investment banking is where a client gets assistance from a professional to guide a company to raise capital and meet their financial needs. On the other hand, investment management is where clowns get advice from a professional on how to invest and manage money.
- Investment management is a service that is usually given more often to people with high net worthwhile an investment banking can have services for more of the common public.
- Investment banking needs skills like a catchy eye, excellent ability skills, and good Strategic skills. In contrast, in investment management, the skills required are to have good knowledge about mathematics and outside market rates and must have the ability to make easy solutions.
- The Main work of investment banking is to raise the capital of a client, whereas an investment manager has the crucial role in guiding his client on how to manage their money.
- Investment management is considered to be more of a Blissful career choice which is not the case in investment banking.
- https://link.springer.com/content/pdf/10.1007/978-3-540-93765-4.pdf
- https://books.google.com/books?hl=en&lr=&id=4w3oVc4ZCMsC&oi=fnd&pg=PA1&dq=Investment+Banking+and+Investment+Management&ots=pMe4mf8Lkk&sig=OH7tIFP4RXm4vgkm9D2wb37XvYI
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
