investment analyst or fin.risk.mgmt analyst?
Is there anyone make a clear differences between junior investment and financial risk management analyst in asset management firms?
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Junior Investment likely means that you will be a desk assistant to a PM. This generally means booking trades, making sure the funds are positioned correctly, some basic investment analysis, learning about the different assets invested in the fund etc etc
Financial Risk Management Analyst will likely be just a standard risk function. You would sit as part of the risk team (not as part of the PM team) and run various analytics on the funds, show their exposures, tolerances etc etc. You wouldnt be focused on one fund and this is more of a data analysis role rather than being part of the fund team contributing decisions.
Essentially the first one is a junior front office role, while the second is a middle/back office function.
^ Basically touched on all of the high points. I would not recommend going into risk management unless you have very good quantitative skills. This means most people with non SME majors should not apply for this job.
There are some exceptions but for the most part these guys are very quant savvy and have financial engineering degrees etc... One of the risk guys at my firm has a B.S. in economics and was originally a pre-med student. Decided two years after undergrad that medicine wasn't for him so he landed an internship at my firm and they placed him in the risk room. It's his second year now as a risk guy and he is pretty damn good at what he's doing just after one year. I wouldn't say this is the norm, especially since the CRO at my firm trained him, and he's flat out genius. If you can land an internship with the intention of full employment after x months that puts you in the risk room, the hands on experience could be very beneficial granted your mentor is on point.
I got from your response that risk analyst have monotone work life which i can't stand.Btw,did you mention reading financial statements or 10k-10s reports when you said basic investment analysis?Thank you for your response.
I wouldnt say monotone necessarily, but it is certainly more of side assistance role. They arent involved in the running of the fund etc.
As for the 10k's it really depends on what kind of fund and what kind of asset manager your talking about. In many houses for example, the fund managment roles and research roles are clearly split, so although you would be looking at trades to make etc, what to add to the fund, its unlikely you would be doing research on a specific name. However, other firms have quite intergrated research/fund managers, where the people are involved in both specific company reasearch and fund positioning etc.
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