Breaking Into Investment Management: Degrees Aren't Everything

While it is challenging to break into the world of investment management without a degree, it is not impossible. The role of an investment manager is to advise individuals, families, or businesses on financial matters such as mortgages, investments, and retirement planning. To become an investment manager, you'll need a combination of knowledge, experience, skills, and qualifications. While a degree is the typical entry route, you can gain the necessary knowledge through self-study, online courses, and certifications. Building a strong network within the finance industry is also key, as many investment bankers have forged their careers through connections and referrals. Exceptional candidates can succeed with extensive industry knowledge, certifications, and a broad network of professionals.

Gain relevant work experience

Gaining relevant work experience is a crucial step in becoming an investment manager without a degree. Here are some strategies and paths you can explore to build the necessary experience:

• Entry-level positions: Start your career in entry-level roles within the financial industry, such as financial analyst, portfolio manager, or trader positions. These roles will provide valuable knowledge of financial markets, investment strategies, and risk management. You can then use this experience as a stepping stone to more advanced positions in the field.
• Internships: Consider applying for internships, which can provide on-the-job training and help you develop valuable skills. Many investment banks and financial firms offer internship programs that can lead to full-time positions. Take advantage of these opportunities to learn and network with professionals in the industry.
• Apprenticeship programs: Look for apprenticeship programs that offer hands-on experience and mentorship from seasoned professionals. This can be an excellent alternative to a formal degree, as you'll gain practical knowledge and build connections in the industry.
• Networking: Build a strong professional network by attending industry events, joining professional associations, and connecting with other financial professionals. Networking can open doors to career opportunities and help you stay informed about job openings.
• Assistant positions: Consider applying for assistant roles, such as financial analyst or administrative positions within investment banks. These roles can provide valuable experience and exposure to the industry, even if they don't require a degree.
• Alternative careers: Explore alternative careers in finance that can serve as a stepping stone to becoming an investment manager. Roles such as financial analysts, traders, sales representatives, or real estate agents can provide relevant experience and help you build a strong foundation in the financial industry.

Remember, gaining relevant work experience is essential to demonstrate your knowledge, skills, and interest in the field. It will also help you build a professional network, which can be invaluable when searching for investment management positions without a degree.

Build a network of contacts

Building a network of contacts is a crucial step in securing a role in investment banking, especially if you don't have a degree. Here are some detailed instructions on how to build a solid network:

Identify Networking Opportunities

Start by identifying networking opportunities, such as careers fairs, spring programmes, insight days, mentoring programmes, and summer internships. These events provide valuable chances to meet professionals in the industry and build connections. Make the most of these opportunities to introduce yourself, ask questions, and collect contact information.

Utilise School and University Networks

Take advantage of your school or university's alumni network. Contacting alumni who are working in investment banking can be an effective way to gain insights and build relationships. They may be willing to offer advice, referrals, or even internship opportunities.

Attend Recruitment Events

Participate in recruitment events, especially those organised by investment banks. These events allow you to meet recruiters in person and make a good impression. It's a great opportunity to showcase your interest and enthusiasm for the industry.

Join Professional Organisations

Consider joining professional organisations related to investment banking, such as the CFA Society. These organisations often host events and provide networking opportunities with like-minded individuals and industry professionals. It's a great way to expand your network and gain valuable industry knowledge.

Utilise Online Platforms

Make use of online platforms like LinkedIn to find and connect with professionals in the investment banking industry. Send connection requests, introduce yourself, and express your interest in the field. You can also join industry-specific groups and participate in discussions to build your network.

Follow Up and Maintain Contact

Following up is crucial to building strong connections. After meeting someone or attending an event, send a follow-up email or message to thank them for their time and express your interest in staying in touch. Maintain regular contact by sharing relevant industry news, updates on your educational or career progress, or simply checking in from time to time.

Seek Informational Interviews

Informational interviews are a great way to gain insights and build relationships. Reach out to professionals in the industry and request a short interview to learn about their career path, gain industry knowledge, and receive career advice. This demonstrates your initiative and interest in the field.

Building a solid network of contacts in investment banking can greatly increase your chances of securing a role, even without a degree. It's important to be proactive, persistent, and genuine in your networking efforts to make a lasting impression and foster meaningful connections.

Get certified

Although a degree is not necessary to become an investment manager, certifications can enhance your qualifications and help you stand out in the competitive field of investment management. Here are some steps to get certified and increase your chances of becoming an investment manager:

• Identify the Right Certifications: Research and identify industry-recognised certifications that are specifically valued in investment management. Examples include the Chartered Financial Analyst (CFA) and Certified Investment Management Analyst (CIMA) certifications.
• Understand the Requirements: Different certifications will have varying requirements. For instance, the CFA is a globally recognised credential that requires passing three levels of exams, while the CIMA, offered by the Investment Management Consultants Association (IMCA), necessitates passing an exam and meeting specific experience and education criteria.
• Prepare for the Exams: These certifications often involve rigorous examinations. Allocate sufficient time to prepare for these exams, utilising available resources such as study guides, practice tests, and industry publications like the Financial Times and Bloomberg.
• Gain Practical Experience: While certifications provide theoretical knowledge, combining them with practical experience makes your profile more attractive. Consider internships, assistant positions, or entry-level roles in the financial industry to gain hands-on experience in investment management.
• Network and Build Relationships: Building a solid network within the financial industry is crucial. Attend industry events, join professional associations, and connect with other financial professionals. This will not only help you stay abreast of industry developments but also open doors to potential job opportunities.
• Stay Up to Date: The world of investment management is dynamic and ever-changing. Even after obtaining certifications, continue to educate yourself on industry trends, regulations, and emerging practices. Consider subscribing to industry publications and enrolling in short courses or webinars to broaden your knowledge.
• Consider Specialisations: Depending on your interests and the type of investment management role you aspire to, you may want to pursue specialisations. For instance, you could explore risk management, quantitative analysis, or alternative investments as areas of specialisation by taking relevant courses or certifications.

Prove your interest in finance

Proving your interest in finance is crucial if you want to pursue a career in investment banking without a degree. Here are some strategies to demonstrate your passion and convince employers that you're the right candidate:

Gain Practical Experience:

• Seek internships or assistant positions in financial institutions, such as banks, insurance companies, or investment firms. This will provide you with valuable on-the-job training and help you develop the skills needed for a career in investment management.
• Consider using a trading simulator to create mock portfolios. This will show potential employers your practical skills and interest in market trends.

Develop a Strong Understanding of the Industry:

• Stay informed about recent developments and trends in the financial industry. Follow industry news, read relevant publications like the Wall Street Journal or Bloomberg, and familiarise yourself with market jargon.
• Focus on a specific sector or sub-sector within the industry and strive to become an expert in that area. This will demonstrate your ability to speak intelligently about market developments and showcase your passion for a particular niche.

Build a Solid Foundation of Knowledge:

• Invest in your education by taking relevant courses, obtaining certifications, or even pursuing a degree in finance or a related field. While a degree is not always necessary, it can make you a stronger candidate.
• Enhance your technical skills by learning tools such as Excel modelling, Bloomberg, and Thomson One. These skills are highly valued in the financial industry and will make you a more competitive applicant.

Showcase Your Passion:

• Start a blog or maintain an online presence where you can share your knowledge and insights about the industry. This will not only showcase your expertise but also demonstrate your enthusiasm for the field.
• Network with professionals in the industry and express your interest in learning from them. Attend industry events, join relevant clubs or societies, and seek out mentors who can guide you.

Demonstrate Your Interest in the Specific Company:

• When applying for a position, show that you have done your research on the company. Learn about their culture, values, mission statement, and recent projects. This will demonstrate your genuine interest in working for them specifically, rather than just any company.
• During interviews, highlight how your skills and interests align with the company's goals and values. Share a compelling story about why you are passionate about investment management and how it connects with the company's work.

Develop a strong knowledge base

To become an investment manager without a degree, you must develop a strong knowledge base in several areas. Here are some key steps to achieve that:

Understand the Role of an Investment Manager

Firstly, it is crucial to comprehend the responsibilities and daily tasks of an investment manager. They provide advice and support to clients on various financial matters, including investments, retirement planning, and estate planning. Investment managers analyse their clients' financial situations and develop personalised investment portfolios and financial plans to help them achieve their goals. Understanding these duties will help you identify the specific knowledge areas you need to focus on.

Study the Fundamentals of Finance and Economics

Develop a solid understanding of financial and economic principles. Study topics such as financial markets, securities, mergers and acquisitions, and risk management. Familiarise yourself with investment products like stocks, bonds, and mutual funds, and other investment vehicles. This knowledge will provide you with the foundation needed to make informed investment decisions and advise your clients effectively.

Explore Online Courses and Certifications

While a degree is not mandatory, you can enhance your credentials and validate your knowledge by pursuing relevant online courses and certifications. Consider certifications such as the Chartered Financial Analyst (CFA) or Certified Investment Management Analyst (CIMA). These programmes will provide you with recognised qualifications and demonstrate your expertise to potential employers and clients.

Stay Informed about Market Trends and Developments

It is essential to stay abreast of the latest market trends and developments. Follow reputable financial news sources, such as the Financial Times, Bloomberg, and the Wall Street Journal. Additionally, utilise resources like Morningstar and Preqin to access investment data, market news, and analysis. Staying informed will enable you to make more strategic investment decisions and adapt to changing market conditions.

Develop Analytical and Critical Thinking Skills

Investment management requires strong analytical skills and the ability to make informed decisions based on financial data. Practice analysing financial statements, identifying patterns, and assessing investment risks and opportunities. Enhance your critical thinking abilities by exposing yourself to diverse perspectives and considering various investment strategies. This will enable you to provide well-informed and tailored advice to your clients.

Understand Regulatory and Compliance Requirements

The financial industry is highly regulated, and it is crucial to understand the legal and ethical framework within which investment managers operate. Familiarise yourself with relevant laws, regulations, and industry standards. Understand the concept of fiduciary duty and the importance of acting in the best interests of your clients. Stay up to date with any changes in regulatory requirements to ensure compliance throughout your career.

Frequently asked questions