Mutual Fund: A day in the life.

Rank: Gorilla | 718

Hey all,

WSO has given me a lot of information about the Hedge fund, Investment banking, Private equity, and Venture Capital industries. WSO actually help me get an internship of my dreams as a freshman (VC fund in SF) .

I cannot seem to find much about Mutual Fund things here.
1) what is the path "correct" for becoming a PM at a MF, (like is it to join a MF right after undergrad, or is it to join to join ER or IBD get a CFA and get to the MF).
2) How much do the research analysts at MF make, and how much do PM's make ( lets say for a MF like Fidelity)
3) what is the day in the life for a research analyst/PM at one of those MF's?

I appreciate all the help again!

Comments (62)

 
Dec 31,2011

I'de be willing to bet that upwards of 90-95% of MF PM's have their CFA.

My name is Nicky, but you can call me Dre.

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Dec 31,2011
aempirei:

I'de be willing to bet that upwards of 90-95% of MF PM's have their CFA.

at large funds, maybe. not as common at smaller funds.

 
Dec 31,2011

@swagon,

Probably. I was thinking of the Big 2 (Vanguard, Fidelity).

My name is Nicky, but you can call me Dre.

 
Dec 31,2011

OK yea, I understand that a CFA is a pre-req for MF.

Another question I guess I had to add to the other ones was that do top MF firms have as much turnover, as lets say PE. Because my goal is to be an investor, but I feel like I dont have too much preference on whether I am investing(buying out) smaller companies, or making a portfolio of stocks. Both interest me. I am just wondering which one of these might have a lower turnover rate, and which one will enable me to have the most stablized work-life balance in your guy's opinion.

I love VC, but it seems to very much operational based, and I love reading the news, research, doing models and deciding from there if I should invest in this company as a whole ( PE) or through the markets (MF).

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011
Ambition:

Hey all,

WSO has given me a lot of information about the Hedge fund, Investment banking, Private equity, and Venture Capital industries. WSO actually help me get an internship of my dreams as a freshman (VC fund in SF) .

I cannot seem to find much about Mutual Fund things here.
1) what is the path "correct" for becoming a PM at a MF, (like is it to join a MF right after undergrad, or is it to join to join ER or IBD get a CFA and get to the MF).
2) How much do the research analysts at MF make, and how much do PM's make ( lets say for a MF like Fidelity)
3) what is the day in the life for a research analyst/PM at one of those MF's?

I appreciate all the help again!

1) PMs usually start as Analysts...but it's hard to say that there's a "progression" like there is in PE because it's not just a title change and more comp, it's a totally different role.
2) More at larger firms, depends on performance. It's not terribly different from hedge fund pay (fair to say with somewhat less upside) but it's the same labor/talent pool and job function. PMs at good firms with good performance will make several million.
3) Every place is different. Hours are usually much more reasonable than sell-side. Spend a good amount of time reading, keeping up w/ news flow, talking to sell-side, meeting w/ companies/managements, models, conferences, formulating/pitching ideas internally, etc.
Buyside research is a great career and one of the best kept secrets. Relative to PE, you don't have to do all of the deal/transaction work at a MF, you want to buy or sell something, you call up a trader or push a button.

 
Dec 31,2011

IBPEHFVC,

I appreciate the response. I know that IBD--->MF is very unlikely, but is ER---->MF more doable?

Just wondering what the hour comparison between MF and PE is for future use thanks again man +1 SB for you

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Best Response
Dec 31,2011

At my firm I would say that about 1/3 of PMs started as research associates, a handful came in from other firms, and the rest came in as Analysts after their MBA. ER---> MBA ---> MF is very doable. ER ---> MF is also doable, but it's less of a formal process since they don't regularly recruit people from the sell side. Their regular recruiting processes are from a few schools out of UG (top targets/regional targets) and out of top MBAs for analysts.

Don't know anyone who was originally in IBD, but there's no question that if it gets you into a top MBA then you can get in through OCR there. I would say 95% of the people that have been working for 5+ years there have gotten the CFA. About half with MBAs, half without. You're probably looking at around 60-70 hours a week as an analyst, with a decent amount of travel to visit the companies you're evaluating.

 
Dec 31,2011

@Ambition, I don't know what year you are at school but you should definitely try to apply for Global Equity Analyst Program at Fidelity Investment. I was at Boston last month for the "Boston Career Forum". The forum is a back-door approach to getting interviews at bulge brackets. Most of the firms give you walk-in interviews on the spot. It's mainly for Japanese speakers but they do have some spots for offices in Hong Kong, Singapore and Asia-Ex-Japan. It helps if you speak a few languages like Japanese and Chinese.

I mentioned that Global Equity Analyst program for Fidelity because I have interviewed for that position (for Asia-Ex-Japan) and it's basically a rotation program for 4-6 years, where you move from one sector (and office) to another every 2 years to be groomed to become a Portfolio Manager.

If you can't get into buyside directly like through the program I mentioned above, my second suggestion would be to pick Equity Research over Investment Banking. Work at sell-side for a few years and then get a job at buy-side. I have seen many friends who made those similar moves.

But if you haven't made up for your mind, in term of what you want. Try as much as you can to get pure banking experience, mainly transaction/deal experience. It opens up more doors/options later down the road. With 2 years in IBD, you can easily move to PE, VC, Hedge Funds and other Investment Management funds as well.

However, with Equity Research, you can only move to long/fundamental strategy buyside shop later down the road. And it get harder to switch, as you get further in your Equity Research career.

Good luck.

"I am the hero of the story. I don't need to be saved."

 
Dec 31,2011

Very interesting thread, Thanks so much. Keep em coming.

 
Dec 31,2011

@sxh

Thank you very much for the informative response, I appreciate it!

+1

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011

If you want to end up as a PM at a MF then you should try to get into their research associate program straight out of UG. You get amazing training and its great pay too (140 all in first year out of UG at big shops). In some asset classes you're given your own companies day one, while others you'll be learning from an analyst for the first 9-12 months. Your bonus is highly linked to the performance of your recommendations.

 
Dec 31,2011

I see wow 140k is crazy good.... more than IBD...

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011

I'd agree with above comments generally, although I've never personally worked a 70 hour week (except during internship). If you want to only be a at a hedge fund, you still might consider doing a banking program out of undergrad. Sell-side research is also a good place if you know you love the stock market but can't get to the buyside directly yet. Not a ton of entry level options but Fidelity program would be good. PE hours depend on the firm but being transaction related they are highly variable and unpredictablew whereas buyside research is very predictable.

 
Dec 31,2011

I see,

Well this is very interesting, I still have things to think about i guess, I am doing my VC/PE internship, and my AM internship so I guess I will get a chance to see how both work and decide from there.

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011

What mutual fund is paying 140k for undergrad new hires? That's a myth unless it's some type of highly specialized quant fund that only hires math or physics majors.

Agree with most of what everyone else was saying. I started on the buyside at a boutique and have been VERY happy with the work life balance. Not sure what 1st years are making at IBD anymore, but I'm definitely happy with my comp.

 
Dec 31,2011

I don't really care if you believe me or not tbh. Not going to give a name but its a top MF all in compensation for 1st year. I'm not too familiar with what IBD 1st years make so I can't speak to that.

 
Dec 31,2011
BeastMode:

I don't really care if you believe me or not tbh. Not going to give a name but its a top MF all in compensation for 1st year. I'm not too familiar with what IBD 1st years make so I can't speak to that.

Why won't you name the fund? Because you're making it up? Your story is bullshit and you know it. There is no major mutual fund company that pays 140k to first years out of undergrad. The comp at all major funds, i.e. Fidelity, Wellington, Blackrock, is well below that.

 
Dec 31,2011
models_and_bottles:
BeastMode:

I don't really care if you believe me or not tbh. Not going to give a name but its a top MF all in compensation for 1st year. I'm not too familiar with what IBD 1st years make so I can't speak to that.

Why won't you name the fund? Because you're making it up? Your story is bullshit and you know it. There is no major mutual fund company that pays 140k to first years out of undergrad. The comp at all major funds, i.e. Fidelity, Wellington, Blackrock, is well below that.

I won't name it because I'm going to be working there and that is what my offer is. Believe me now? It's 80 base + 20 signing + 40 performance. This is for a full 12 months of working. Honestly you have no idea what you're talking about so I would quit while you're ahead. Stop pretending to know what you're talking about when you clearly have no idea.

 
Dec 31,2011
BeastMode:
models_and_bottles:
BeastMode:

I don't really care if you believe me or not tbh. Not going to give a name but its a top MF all in compensation for 1st year. I'm not too familiar with what IBD 1st years make so I can't speak to that.

Why won't you name the fund? Because you're making it up? Your story is bullshit and you know it. There is no major mutual fund company that pays 140k to first years out of undergrad. The comp at all major funds, i.e. Fidelity, Wellington, Blackrock, is well below that.

I won't name it because I'm going to be working there and that is what my offer is. Believe me now? It's 80 base + 20 signing + 40 performance. This is for a full 12 months of working. Honestly you have no idea what you're talking about so I would quit while you're ahead. Stop pretending to know what you're talking about when you clearly have no idea.

Actually, no, I still don't believe you. I hope everyone else on this board lowers their expecatations dramatically too. More power to you if you're actually making that. I've known a shitload of people that have worked at top ibanks, mutual funds, and PE funds straight out of undergrad, and none have made 140k.

 
Dec 31,2011
models_and_bottles:
BeastMode:
models_and_bottles:
BeastMode:

I don't really care if you believe me or not tbh. Not going to give a name but its a top MF all in compensation for 1st year. I'm not too familiar with what IBD 1st years make so I can't speak to that.

Why won't you name the fund? Because you're making it up? Your story is bullshit and you know it. There is no major mutual fund company that pays 140k to first years out of undergrad. The comp at all major funds, i.e. Fidelity, Wellington, Blackrock, is well below that.

I won't name it because I'm going to be working there and that is what my offer is. Believe me now? It's 80 base + 20 signing + 40 performance. This is for a full 12 months of working. Honestly you have no idea what you're talking about so I would quit while you're ahead. Stop pretending to know what you're talking about when you clearly have no idea.

Actually, no, I still don't believe you. I hope everyone else on this board lowers their expecatations dramatically too. More power to you if you're actually making that. I've known a shitload of people that have worked at top ibanks, mutual funds, and PE funds straight out of undergrad, and none have made 140k.

Fair enough and thank you for that. Notice though that I said "top" funds and yes, it is at a Wellington/Fidelity/Capital. Again though, it's not about the money at all when you're starting out, or at least it shouldn't be.

 
Dec 31,2011
BeastMode:
models_and_bottles:
BeastMode:
models_and_bottles:
BeastMode:

I don't really care if you believe me or not tbh. Not going to give a name but its a top MF all in compensation for 1st year. I'm not too familiar with what IBD 1st years make so I can't speak to that.

Why won't you name the fund? Because you're making it up? Your story is bullshit and you know it. There is no major mutual fund company that pays 140k to first years out of undergrad. The comp at all major funds, i.e. Fidelity, Wellington, Blackrock, is well below that.

I won't name it because I'm going to be working there and that is what my offer is. Believe me now? It's 80 base + 20 signing + 40 performance. This is for a full 12 months of working. Honestly you have no idea what you're talking about so I would quit while you're ahead. Stop pretending to know what you're talking about when you clearly have no idea.

Actually, no, I still don't believe you. I hope everyone else on this board lowers their expecatations dramatically too. More power to you if you're actually making that. I've known a shitload of people that have worked at top ibanks, mutual funds, and PE funds straight out of undergrad, and none have made 140k.

Fair enough and thank you for that. Notice though that I said "top" funds and yes, it is at a Wellington/Fidelity/Capital. Again though, it's not about the money at all when you're starting out, or at least it shouldn't be.

I totally agree that it isn't about the money when you start. I don't want to give away your firm, but I can assure you that the other two of those don't pay that much for straight out of undergrad hires (it's more in line with street pay)

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Dec 31,2011

Is there a (big) difference in starting at a BB(GSAM for ex.) and an AM(Schroders, Fidelity)? Are the program structures different, pay, responsibilities?

 
Dec 31,2011

It's not inconceivable though 70K base, 10K signon and 60K bonus

 
Dec 31,2011

Well my my uncle (a PM) tells me that IBD will have no direct relationship to AM of course, but if I get a MBA and CFA and decide to switch over to that side it wouldnt be hard. Its just that PE and Event-Driven funds are a lot more related.

It seems like in ER i would need to get my CFA and MBA anyways to be a PM so I think IBD might be the better of the 2 choices. Also specificly in PE I may want to join more 'late-stage VC" type funds "Growth Equity" because the hours are much better from what I have heard that traditional PE and you will be in between both worlds in investment proposals ( between operational and hardcore finance).

Haha soo many choices in the world of finance and everything seems interesting and I am open to it all :D

Thank you all for the well-informed posts. I have recieved my answer, but feel free to continue.

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011

future, I dont know my uncle ( sorry a retired PM) started at a large AM back ( when he says it was easy) and he told me that he got about 60k +5k+ 20-25k bonus starting so around 80-85k I mean I thought that was standard even now, maybe it has changed.

IBD seems more like 70k +10-15k + 35- 50K so maybe around 125k all in as an analyst at a BB. I am pretty sure that BB IBD analyst make more than beginning research analysts/associates at top MF.

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011

^^^ nice package man thats hellaa nice! Right ou of college 140k wow. IBD is gonna be shit this year anyways since MS is gonna fire 1600 people this quarter and Jefferies gave out no bonus to VPs and associates. Not looking good haha. I can see my GS friend look at his all in of 100k and cry :( lol

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011

No question it's great but you have to really look at what you would really enjoy and where you would learn the most for the first few years in my mind. I would work at my firm for 1/3 that because of the responsibility they give you, awesome training, and great exposure to really senior people. I love investing and finding value in companies stocks/bonds like that too (a lot different than IBD), so that's a huge part. IBD is just not for me and I couldn't do it for all the money in the world. For other people, it's really exciting. One is never really better than the other. Just my two cents.

Appreciate the congrats though and I couldn't be happier.

 
Dec 31,2011

Those numbers are what I would expect for someone coming from a couple years of sell-side research, not straight out of u-grad--I think it's an outlier, and is probably at one of the huge firms (Fido, Wellington, Capital, etc.) which would be a great opportunity. However, ambition I wouldn't get so caught up in comp numbers this early in the career, really doesn't matter. Also, the active money management industry is just as structurally and cyclically challenged as investment banking so there are, and will continue to be more zero bonuses and lay-offs in both fields for a long-time unfortunately.

 
Dec 31,2011

just check the salary info on: http://www.glassdoor.com/index.htm

"I am the hero of the story. I don't need to be saved."

 
Dec 31,2011

Yeah, I'm betting that's for Capital. Fido might also be close to that range. Others would be somewhat lower, although still competitive with IBD analysts, who will work 30% harder. Nice job in any case!

 
Dec 31,2011

I don't know if I believe it, but I know I don't want to believe it because I'm starting at a mutual fund and will be making far less than 140k. Moral of the story kiddies is don't plan on getting that sort of offer, because if it exists it is a rare species.

 
Dec 31,2011

^^^^^ I see yea 140k is a lot for incoming mutual fund people.

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011

I can confirm that number from a person at my target, who got offers from 2 of fido,Wellington,capital. One of them was ridiculously high

 
Dec 31,2011

^^^ ohh I see man, well have fun with that 140k..... I think I may go the IBD route since I just feel like actually investing/buying out companies seems more exciting. I also want to eventually run my own shop (whatever it may be. HF or PE/VC/Growth equity.) Also BB IBD bankers make around the same correct around 150k all in?

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011

The compensation should be around 60-70k base + around 10k-30k bonus at top mf. You would be getting a total of 80-90k working 60 hrs a week. The major benefit is that you get good job security.

 
Dec 31,2011

Let me premise my entire post by saying that I summered in IBD, and hated it so much that I turned down my offer in order to find another job within finance. If I sound like I hate IBD, or BB's, it's because I do. Please don't let me sway your position. I'm going to try to stick to buy side research as much as possible (except where comparison with IBD is warranted).

That said:

Buy side research seriously sounds like the coolest job in the world. You make about 80-90k starting, and you're working about 50-60 hours per week. You get a life outside the office, which is good if you don't want to explain away your early 20's to your children as The Time I Stared At A Computer Screen. Assuming you're good, you have similar long-term upside (I think the average MD IBD payday is/was about 1.2 million, and valuable PM's easily clear 7 figures). Plus, your work is legitimately interesting. If you already invest on your own, and do similar research anyway, what could possibly be better than being paid to do it?

Also, this may be confirmation bias, but I've interviewed for all sorts of finance positions (BB IBD, Quant Research, Asset Management, etc.), and I've noticed that the Asset Management people were always the most humble, thoughtful, and genuinely intelligent of the bunch. (And when I say confirmation bias, I mean it's because I hated my Summer Analyst internship at a BB. Also: For those who are curious, the Quant Research probably had higher average IQ's, but I'm using a broader basket than raw horsepower to define intelligence).

I think it boils down to this: Research, and ultimately becoming a PM, is performance-based. IBD is about spending a fuck-ton of time at the office, and developing relationships; you're not searching for value, you're doing what your told. I suppose that's not completely true. You are looking for value in IBD, in that you're trying to find the next big sucker. If you're good at one, you probably wouldn't be good at the other.

That said:

I'm doing trading. If I weren't, I would almost certainly be working at a mutual fund.

 
Dec 31,2011

^^ Thanks for the insight. Actually I know somebody also at a Top VC/Growth Equity firm that said that IBD analysts are honestly not that useful and its a useless struggle, because you need to keep on switching comapanies.. He suggested that If I would be interested in becoming a VC partner (without creating my own company, or with a engineering background) one of the easiest ways is prolly to stay at in a BB TMT IBD until I am a MD (as an MD I will be speaking with many of the CEO's of Tech comapnies that are the buyers and sellers) This he said would be easier to leverage into become a MD or Partner at a Top VC Fund.

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011

Completely agree with Atomic said. I did several IBD internships in undergrad and ultimately hated my last internship at a BB. I was fortunate enough to end up on the buyside straight out of undergrad and enjoy it tremendously. I don't make 140k (still say that's bs!), but I make plenty and only work ~60 hours a week. I also agree that, on average, the people I work with are far more intelligent and likeable than in IBD. To undergrads that have the choice between buyside and IBD: take the buyside. The work is more interesting, the pay is comparable, and the lifestyle is superior. Comp is going WAY down in IBD and the "exit opps" are diminishing for all but the top analysts.

 
Dec 31,2011

interesting point. i dont think pe buyside is any better than ibd

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011

Great thread. I can't believe i missed it.

Some questions. First, if one does not have any experience in banking, sell-side er, or buyside er, and wants to work at a major IM firm, is a M7 mba the only path? Do you guys recommend passing at least cfal level I before b-school? And finally, for anyone who has gone through the process, how tough is recruiting for the major IM shops if you're at a M7 school?

 
Dec 31,2011

Brady, I would suggest a few things (for sell side research)

1) find sector (no more than 2) that you are interested in and study the sector, learn more about the industry metrics

2) cold-call and network: a search trick that I like to use is like this. type in urban outfitter analyst coverage, http://investor.urbn.com/phoenix.zhtml?c=115825&p=..., this would give you the list of analysts, who are covering the company and they are the one who can decide whether to hire you or not. Skip the HR at all cost

3) follow up, ask for advice, network, and position yourself to interview with them.

Flake did a post with more details: http://www.wallstreetoasis.com/forums/equity-resea...
let me know if you needed more info.

"I am the hero of the story. I don't need to be saved."

 
Dec 31,2011

An M7 MBA would help you break in, but is certainly not necessary.

 
Dec 31,2011
buybuybuy:

An M7 MBA would help you break in, but is certainly not necessary.

If I had relevant experience, then yes, an M7 mba won't be necessary. But in my case I think it probably is. IM is tough to break into, and nothing is guaranteed, but at least a M7 will give me access to on-campus recruiting, something that is extremely valuable for someone trying to break in.

 
Dec 31,2011
Brady4MVP:
buybuybuy:

An M7 MBA would help you break in, but is certainly not necessary.

If I had relevant experience, then yes, an M7 mba won't be necessary. But in my case I think it probably is. IM is tough to break into, and nothing is guaranteed, but at least a M7 will give me access to on-campus recruiting, something that is extremely valuable for someone trying to break in.

Well I work at one of the largest asset managers in the world and I can think of at least one guy off the top of my head who had an unrelated major in undergrad and unrelated work experience prior to his non-M7 MBA, but managed to break in about a year ago after graduating. Maybe our ideas of "major" firms is not the same.

And to answer your previous question, you should start pursuing the CFA Program as soon as you know you want a career in asset management. Might as well get it out of the way as soon as possible.

 
Dec 31,2011

^^ interesting thanks!

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
Dec 31,2011

I still think buyside recruiting at the MBA level is about as tough as it comes. I suppose getting a bulge PE job (KKR, Blackstone, TPG) is tougher, but that's about the only thing I can think of. BB banking jobs are pretty straightforward as long as you do the face time at networking events and work your ass off during the summer. Each bank will take 5-20 from M7 schools. Consulting seems pretty basic (MBB will take 20-30+ each). F500 CorpFin also seems straightforward. Really the ppl in b-school who have to barricade themselves away the most during recruiting season are the IM folks (prepping stock pitches). Most of the major funds will take 1-3 analysts per year GLOBALLY. So you figure among the 5 big IM schools (HBS/S/Chi/Wharton/Col) each will get 0-1 person in to each major fund (maybe 15 shops). I think it opens a ton of doors, and you'll get access to all the big funds, but by no means is it easy.

 
Dec 31,2011

Jankynoname, based on what you saw at your school, did the people who couldn't land IM end up doing BB equity research?

Given how tough IM is, I wonder if it will be wise to even discuss IM as a short-term career goal.

 
Dec 31,2011

Yeah, some are heading to the sell-side. It's tough to say because we still haven't seen how the HF recruiting will shake out. A lot of ppl are holding out for hedge fund jobs, and those guys really won't come until the spring (tend to be 'just-in-time' recruiters). But yeah, clearly some ppl have started shifting back towards consulting or more account management type roles within AM. I think buyside research doable as long as you have the right background and skillset, and you're totally committed to IM recruiting, but it's clearly stressful and you'll need to be comfortable with uncertainty.

 
Dec 31,2011

jankynoname, very interesting. I know BB S&T recruiting is awful this year, from what i've heard.

Do a lot of hedge funds visit your school for on-campus recruiting?

 
Dec 31,2011

Yeah, S&T sucked. I think I only know a couple guys heading that way.

A fair amount of HFs come. Almost none do presentations (called "Corporate Conversations" at Booth). I think only AQR, Carlson Capital and Citadel do presentations. But there's probably 10-15 that will post a position on the board, and most of these will hold 1st rounds on-campus. The MFs will be much more formal processes; presentation, maybe a stock pitch event, lunch talks, and then on-campus interviews. MFs will also coordinate so virtually all of the R1 interviews take place over the span of about a week.

 
Dec 31,2011

Oh, SAC too. Forgot about them.

 
Jan 31,2012
jankynoname:

Oh, SAC too. Forgot about them.

Yeah, I actually went to a SAC presentation at booth back in september. A second-year friend got me in.

Pretty interesting place. They have like 100 different portfolio managers, each with about 2-3 research analysts and a trader. They only hire like 2-3 mba's at most in a given year.

 
Jan 31,2012

Great responses everyone.. like people said it may be considered one of wall street's best buyside secrets I know somebody who is pm for a teacher's retirement fund and he keeps on telling how secure his job is making 400k a year.

I want a lady on the street, but a freak in the bed,

Go Bucks!!

 
 
Jan 31,2012

I've been looking at mutual funds myself, and this is the impression I get:

If you want to build a career as an analyst or PM at a mutual, then of course you should take the job. Depending on the firm, business school placement can be fantastic as well.

If, however, you are thinking you want to go to a hedge fund or PE firm, you might want to look at other opportunities. Hedge funds generally have a very different mindset when making investments (relative versus absolute returns). PE firms want somebody with transactional or operational experience.

This is just the impression I have gotten from reading these boards and talking to people in the industry, so I would appreciate anybody with actual experience to chime in.

 
Jan 31,2012

I work indirectly with mutual funds a lot and I can say this much: the paygrades aren't as good as IBD but the jobs are WAAYYYYY more stable. In my mind I want to jump to IBD, but on the other hand most of my current coworkers have worked here 5+ years and you'd have to do something insanely retarded to get fired - I like the stability.

If you're coming from accounting, then this is a good transition move to other finance jobs, and it's also a good 'career' type job in the sense that trends change slowly enough so that you can get ahead of them and build a career around understanding the products. Again, the major downside is that it's typically not possible for the pay to increase as fast as other areas, but $80K isn't a bad starting salary.

Moving to research is very possible, and is a good move after a year or two. Personally, I don't want to be pigeonholed just yet so I'll likely be out of here as soon as a research position opens up. IMO, research has it the best out of everyone.....

Get busy living

 
 
Jan 31,2012

Mutual Funds, from my understanding, collects funds from investors to invest in diversified portfolio to minimize risk but at the same time to get some yield. Since you have looked into different aspects of finance, you probably already know the difference between mutual funds and hedge funds.

Nonetheless, mutual fund is part of finance and is not bad at all.
Investment Banking is much more work intensive as it requires you to gather information, pitch and go through the project. The biggest aspects of mutual fund is portfolio management and sales.

So if you are into putting together a low risk, decent yield portfolio or sales, mutual fund is definitely a good place for you.

Not to mention, since it is market driven (stocks, bonds, other securities) your hours are much better than those of investment bankers.

 
Jan 31,2012