Investment Consultants combine financial expertise with well-developed social intelligence to ensure clients make fitting investments to fulfil their needs and achieve their financial goals. Continue Reading
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Explore Career Investment Consultants combine financial expertise with well-developed social intelligence to ensure clients make fitting investments to fulfil their needs and achieve their financial goals.
What are the typical responsibilities of an Investment Consultant?
An Investment Consultant would typically need to:
Investment Consultants may work in an office, from home, at a client’s home, or in a banking contact centre. They frequently travel to meet clients and drum up new business. Their clients include asset owners, fund managers, and trustees.
Most Investment Consultants work beyond the stipulated 35-40 hours per week. Although some may need to be “on-call” and available at all times for consultation, most work evenings and weekends to meet client needs and expectations.
Research suggests that flexible hours and generous telework policies appeal more than salary to the younger generation. There has been an incremental increase in employers willing to give promising employees a chance to adjust their schedules per the job demands.
Finding a new job may be challenging. Investment Consultants can boost their job search by asking their network for referrals, contacting companies directly, using job search platforms, going to job fairs, leveraging social media, and inquiring at staffing agencies. You can work as an independent consultant or contractor.
Investment Consultants are generally employed by:
Professional associations and organisations, such as the Association For Financial Professionals (AFP), are crucial for Investment Consultants interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation. Professional associations provide members with continuing education, networking opportunities, and mentorship services. Membership in one or more adds value to your resume while bolstering your credentials and qualifications.
Pre-entry work experience shows potential employers that Investment Consultants have some of the required skills and an interest in the field.
Even while in high school, you can check with a teacher or counsellor about relevant work-based learning opportunities to help you connect your school experiences with real-life work. Join the math, finance, and debate clubs. Start an investment club. Participate in mathematical competitions and debates to hone your analytical thinking and decision-making skills.
Learn about investments and financial markets through books, online resources, and introductory courses. Follow financial news and participate in virtual stock market simulations. You can open a personal investment account (with your parent’s permission if you are a minor) and start with a small investment. You will get first-hand experience of investment principles.
Contact local financial institutions, investment firms, or financial advisors for volunteer work and early exposure to the financial industry. Attend workshops and seminars on finance and investment to network and gain additional knowledge about the field. Find a mentor in the finance or investment industry to guide you, answer your questions, and offer meaningful insights into the profession. Join relevant online forums and connect with professionals on platforms such as LinkedIn.
Research and identify reputed colleges and training programmes with certifications and a good track record. The exploration will help you decide your education and training options after high school.
Elective academic internships with banks, insurance companies, and stock brokerage firms will help aspiring Investment Consultants learn how to update client portfolios, research industry standards, and work within business development to source new clients. In addition to benefiting from tasks outside the classroom that align with lessons inside it, interns may also get college credits that help with early graduation, GPA, and tuition. Besides, you will get the chance to hear countless stories and obtain valuable hands-on experience from more experienced professionals.
Some of these internships may help you build helpful business contacts that can lead to a permanent job offer after graduation. Summer internships or short-term paid/voluntary work will also teach you how to prepare and interpret financial statements, interact with clients to form solid, long-term relationships, and give you valuable industry insight.
Some regions offer a financial adviser higher apprenticeship or a financial services professional degree apprenticeship. If you cannot pursue formal education, an internship, or an apprenticeship, volunteer with local financial businesses. You can get invaluable experience in diverse industry areas while deciding if the sector is right for you.
The experience helps determine whether the public, private, or voluntary sector is best suited to realise your ambitions. Your educational provider’s career service department can provide information about relevant work placements, internships and voluntary work opportunities in diverse sectors.
Investment Consultants need an in-depth understanding of the core concepts in wealth management and financial markets to guarantee their clients gain maximum profits from low-risk investments.
Although some succeed with only a high school diploma, most Investment Consultants have a bachelor’s degree in investment management, accounting, finance, business administration/management, risk assessment, economics, mathematics, statistics, or law. You may pursue a master’s degree in the subjects mentioned above to have a better chance of employment.
A degree in finance covers corporate finance, financial institutions, capital markets, investments, and international finance. An economics program will include employment and unemployment, inflation, and labour economics. Aspirants may complete additional coursework in investment, taxation, risk management, personal and private banking, employment law, business strategy, and estate planning, if they are not part of the chosen program.
Recommended high school courses include mathematics, economics, accounting, business studies, computer science, and psychology. English and speech classes will help you develop your research, writing, and oral communication skills.
Remember that completing a particular academic course does not guarantee entry into the profession. Be that as it may, professional qualifications and transferable skills may open up more than one door.
Do your homework and look into all available options for education and employment before enrolling in a specific programme. Reliable sources that help you make an educated decision include associations and employers in your field.
Certification demonstrates an Investment Consultant’s competence in a skill set, typically through work experience, training, and passing an examination. Successful certification programs protect public welfare by incorporating a Code of Ethics.
Certification in financial advice, financial risk management, and international wealth management from an objective and reputed organisation can help you stand out in a competitive job market. You will learn about investments, income taxation, insurance and financial planning, and retirement and estate planning.
Check with local or national financial regulatory organisations whether you will need licensure. Typically, licensure requires an application, processing fees, an examination, and relevant education and experience. You may need to register with a recognised statutory oversight body that regulates the securities market and protects the interests of individuals investing in securities. The registration criteria may vary according to your region, degree of accreditation, and the size of your portfolios.
Investment Consultants may also need to undergo an employment background check, including but not limited to a person’s work history, education, credit history, motor vehicle reports (MVRs), criminal record, medical history, use of social media, and drug screening.
Investment Consultants take on various roles while progressing through the ranks to enhance their mathematical, analytical, problem-solving, sales, leadership, managerial, and communication skills. The correct position and mentor can significantly impact your financial knowledge and job prospects.
The experience gained in entry-level positions such as Junior Financial Analyst, Research Analyst, Financial Advisor/Planner, Brokerage Assistant, and Portfolio Assistant/Analyst can help you understand how banks, wealth management firms, or securities firms function. Trainee roles in investment banking, customer service/client relations, compliance/risk analysis, or sales can also gain commercial awareness and on-the-job experience under a direct mentor. If employed as a Financial Service Administrator or Customer Services Advisor in a bank, you can interact with experienced Investment Consultants and learn from them.
Employees with consistently high-performance levels may be eligible for promotion every two to three years and progress to Senior Portfolio Manager, Senior Financial Analyst, or Senior Wealth Manager positions. You can also aim to become Regional Sales Director, Group Vice President, Senior Vice President, Sales, or Commercial Lending Vice President. Other options include moving into compliance work or independent consultancy.
The desire to accelerate career growth and personal development has an increasing number of millennials choosing to job hop and build a scattershot resume that showcases ambition, motivation, and the desire to learn a broad range of skills.
Studies prove that job hopping, earlier dismissed as “flaky” behaviour, can lead to greater job fulfilment. Employees searching for a positive culture and interesting work are willing to try out various roles and workplaces and learn valuable, transferable skills along the way.
Investment Consultants with the ability to build and maintain strong client relationships have the best job prospects.
Continuing professional development (CPD) will help an active Investment Consultant build personal skills and proficiency through work-based learning, a professional activity,
formal education, or self-directed learning. Newly hired Investment Consultants receive in-house training in various financial products and vital aspects of the industry, including tax laws and knowing how to attract new clients.
Many Investment Consultants who begin their careers with a relevant bachelor’s degree may pursue a part-time master’s programme in business administration, investment management, or risk assessment. Others become acknowledged experts in specific financial advice, such as pensions and retirement planning, and move up the career ladder. You may need to conduct research and analysis to keep up with new developments in regulations or procedures and connect with industry contacts before presenting recommendations to management and clients.
Investment Consultants can sit for and pass three tests to get the widely-recognised Chartered Financial Analyst (CFA) designation. Pre-requisites include a bachelor’s degree, four years of work experience in the current role, and completion of a course focused on investment ethics and principles. Other international certifications worth acquiring include Certified Financial Planner (CFP), Chartered Investment Counsellor (CIC), Chartered Financial Consultant (ChFC), or Personal Financial Specialist (PFS). You may require a Statement of Professional Standing (SPS) issued by a local financial regulatory authority to offer investment advice to retail customers. Pre-requisites may include a specific number of CPD hours.
Close association with accountants, estate agents, and solicitors will prove advantageous when they refer clients to you. Continue to earn the trust of clients. Balance risk and reward in their investment portfolios through strict adherence to the ethical principles surrounding financial investment. Keep track of current events, market trends and developments, and the status of financial markets to have a precise understanding of the global economy and its impact on your clients’ portfolios.
In addition to offering the opportunity to continually upskill, regardless of one’s age, job, or level of knowledge, CPD also enables the periodic renewal of desirable certifications, which increase your chances of advancement and becoming an independent consultant.
Skills Essential To Become A Successful Investment Consultant
A keen business insight can help you identify profitable investments by understanding the business principles and strategies characterising a successful organisation. Financial market research uses online resources such as financial report analyses or company websites to determine which assets are worth purchasing at low prices so clients can enjoy maximum profits.
Shrewd asset allocation can help manage risks. Even if one asset, such as a stock or bond, underperforms, it doesn’t affect the entire portfolio. Financial analysis involves using relevant software to compare current and previous financial records to generate trend charts and predict a company’s future performance. Investment Consultants who keep up with changing investment laws can ensure regulatory compliance by the clients and avoid non-compliance penalties or fines.
In addition, individuals who are honest, fair, patient, confident, decisive, and resilient to change can build a good reputation in the industry and gain the trust of clients and colleagues. Although these traits can be inherent, acquiring them through learning and experience is also possible.
More Than One Kind Of Investment Consultant
Registered Representatives include stock brokers and banking representatives who get a commission for selling investment and insurance products on behalf of financial institutions that create, promote, and sell such financial instruments. Financial Planners are investment Consultants who manage their clients’ finances (college tuition, e.g.).
Financial Advisors charge fees for general and personalised financial advice. Employees of asset management firms, fund managers, or hedge funds who make investment decisions on behalf of a client are called Money Managers.
In Brief
Investment involves putting money to work for a specific period in a project or undertaking to generate profits. There is some risk that the project may fail, resulting in financial loss.
Owners of a company’s stock are known as its shareholders. When the stock price appreciates, they get regular dividends from the company’s profits. Bonds are debt obligations of governments, municipalities, and corporations. Bond buyers receive period interest payments and the return of the bond’s face value when it matures. Commodities are basic commercial goods such as grains, gold, beef, oil, and natural gas, interchangeable with other goods of the same kind. Since their prices tend to move in opposition to stocks, some investors rely on commodities when the market is volatile.
Funds are used to invest in stocks, bonds, preferred shares, or commodities. Mutual funds do not trade on an exchange and are valued at the end of the trading day. ETFs trade on stock exchanges and are valued continuously throughout the trading day. An annuity is a contract between the buyer and an insurance company. The insurer has to make immediate or future payments to the buyer in return for a single or series of payments. Collectors value a collectable object very highly because it is rare or beautiful.
Current Scenario
The overall economy, market trends, regulatory changes, and technological advances may impact the employment outlook of Investment Consultants. Although robo-advisors providing automated investment advice based on user inputs may decrease the need for Investment Consultants, it should be noted that people still prefer to turn to human advisors for more complex and specialised investment guidance.
Much of the demand for Investment Consultants may result from the need to replace employees who move to different occupations or retire from active service. An ageing population with longer life expectancies will lead to more extended retirement periods and an increased demand for Investment Consultants. Since most companies no longer offer defined pension payments, individuals need the help of experts to save and invest for their own retirement.
Potential Pros & Cons of Freelancing vs Full-Time Employment
Freelancing Investment Consultants have more flexible work schedules and locations. They fully own the business and can select their projects and clients. However, they experience inconsistent work and cash flow, which means more responsibility, effort and risk.
On the other hand, full-time Investment Consultants have company-sponsored health benefits, insurance, and retirement plans. They have job security with a fixed, reliable source of income and guidance from their bosses. Yet, they may experience boredom due to a lack of flexibility, ownership, and variety.
When deciding between freelancing or being a full-time employee, consider the pros and cons to see what works best for you.
Whether it’s an individual asset owner or a company seeking to reinvest its profits, Investment Consultants make the best of a unique career path to make a significant impact on their clients’ financial well-being in a trustworthy and responsible manner.
“There is a correlation between how much we care about what others think of us and how much time, energy, and money we waste in a month.”
― Mokokoma Mokhonoana
Fiduciary responsibility is a legal standard that obliges an Investment Consultant to prioritise the client’s needs and ensure they receive the best possible outcomes or pricing.
What do Investment Consultants do?
An Investment Consultant would typically need to:
Accredited
$106,453
