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Career in Finance - a thread.
If you want to have a proper career in the Financial Markets, as an analyst or as a trader, in M&A, or with a VC firm - anything Finance, I'll share what I have seen and heard from industry insiders below.
If you want to have a proper career in the Financial Markets, as an analyst or as a trader, in M&A, or with a VC firm - anything Finance, I'll share what I have seen and heard from industry insiders below.
1. Mergers & Acquisitions and broadly Investment Banking.
MBAs right out of top IIMs go into the top Investment banks. This means look at no place beyond IIM Ahmedabad, Bangalore, and Calcutta.
Other than MBAs, top ranked CAs are also preferred. Having a CFA adds more weight.
MBAs right out of top IIMs go into the top Investment banks. This means look at no place beyond IIM Ahmedabad, Bangalore, and Calcutta.
Other than MBAs, top ranked CAs are also preferred. Having a CFA adds more weight.
2. Analyst positions in Financial Consulting firms
Again, usually top MBAs, but CFAs are being given preference too prevalently these days.
MS in Finance from top universities (say Princeton) are also given equal preference.
Again, usually top MBAs, but CFAs are being given preference too prevalently these days.
MS in Finance from top universities (say Princeton) are also given equal preference.
3. Quant Analyst at Hedge Funds: Usually someone with a Stem Degree, preferably someone with Math or Physics background. In the US, there are firms who pick their analysts right after Bachelor's at relatively lower pay and grow them in-house.
This is the prevalent practice at places like AQR Capital, Citadel, and now increasingly at places like Two Sigma as well.
Few other companies go for candidates with Masters degree in STEM (including quant finance, computational finance specializations).
Few other companies go for candidates with Masters degree in STEM (including quant finance, computational finance specializations).
4. Prop Trader
Very few decent prop trading firms exist that give you a shot when you have no track record. But they usually look for superior math ability, fast to respond to stimulus, calm under pressure, more of a psychological fit to the culture of prop trading as a whole.
Very few decent prop trading firms exist that give you a shot when you have no track record. But they usually look for superior math ability, fast to respond to stimulus, calm under pressure, more of a psychological fit to the culture of prop trading as a whole.
There are hardly any renowned prop firms in India. Lot of famous ones are centered around Chicago and some in New York. Usually the firing rate is very high in these firms, but the ones who settle well strike it big.
5. Sell Side Trader
MBAs straight out of college, CAs, CFAs, MS Finance people, even STEM masters people go into sell side positions. These aren't trading positions, more of Sales & Trading, with more emphasis on sales. Read about this on WallStreetOasis website.
MBAs straight out of college, CAs, CFAs, MS Finance people, even STEM masters people go into sell side positions. These aren't trading positions, more of Sales & Trading, with more emphasis on sales. Read about this on WallStreetOasis website.
6. Quantitative Trader
Quant trader as a role is fading away as there isn't a clear cut role anymore in many firms, as firms move to more systematic methods, with more emphasis on developers, data scientists, and quant researchers, and algos taking care of execution.
Quant trader as a role is fading away as there isn't a clear cut role anymore in many firms, as firms move to more systematic methods, with more emphasis on developers, data scientists, and quant researchers, and algos taking care of execution.
The few roles that are out there, usually where you do the research, come up with the model, build the model (preferably working with a developer in house) and trade it live. You usually don't get to this role at the outset. You have to be with the company for few years to do it.
7. Quantitative Developer
Usually most firms prefer someone with strong Python and C++ (HFT firms) experience, along with skills in using kernel and methods around it, low latency based coding, etc. This is usually a CS graduate. They take a math grad with coding skills too.
Usually most firms prefer someone with strong Python and C++ (HFT firms) experience, along with skills in using kernel and methods around it, low latency based coding, etc. This is usually a CS graduate. They take a math grad with coding skills too.
8. Quantitative Researcher
This role is mostly filled by PhDs. Usually PhDs in statistics (Columbia PhD Stats & Two Sigma is a love story unlike anything else), Physics, and very rarely those with CS PhDs are also hired for this role.
This role is mostly filled by PhDs. Usually PhDs in statistics (Columbia PhD Stats & Two Sigma is a love story unlike anything else), Physics, and very rarely those with CS PhDs are also hired for this role.
9. Junior VC
You can't become a junior VC right out of college. There are two routes. One is by interning with a VC (which is very very difficult unless you have personal strings to pull in the industry). Another is by working as a consultant for few years and then approaching.
You can't become a junior VC right out of college. There are two routes. One is by interning with a VC (which is very very difficult unless you have personal strings to pull in the industry). Another is by working as a consultant for few years and then approaching.
This is typically the Mckinsey, Bain, BCG type consultant working with entrepreneurs, CEOs, etc., understanding businesses and then entering the world of VC, with that network to tap into. Read Aviral Bhatnagar's Quora and Linkedin for this.
10. Stock Analyst/Financial Analyst: Usually CAs, CFAs preferred, and in top firms, usually someone with a practical track record is given more weightage. MBAs are also taken for such positions, but very limited positions, and only top colleges.
11. Private Equity - usually 3 to 5 positions per top University during placements. Typical route is similar to VC, working with IBanks or Consultants and then joining a PE firm through an industry contact, internal recommendation. Pedigree, alma-mater, etc., all these matter.
A lot of these details you can learn on http://wallstreetoasis.com and http://quantnet.com . These are both great websites and will help clarify the nature of many of the jobs I mentioned up here and many others I have missed.
Unlike in CS, it's usually not prevalent to get a job in finance without a degree. The top rung jobs with incredible pay and soul sold to the devil are reserved to the IIM, Harvard, Stanford, Wharton, Booth, etc., MBAs, top ranked CAs in the country.
CFA definitely helps, but never as a standalone degree/diploma. An MBA + CFA (especially if you have the CFA before you sit for MBA placements) is a very potent combination. A Masters in CS with a CFA is also a brilliant combo, especially for quant funds.
This research I did back in 2018 when I was applying for my Masters Degree. I never considered MBA as my opinion is that MBA is useless, especially for the cost paid. I was considering only MS in Finance, MS in Quant/Computational Finance/Financial Mathematics, MS in CS.
So, it seems like it's indeed possible to become a junior VC right out of MBA. @TarunNayak2905 has done it out of his ISB MBA. He'll add his views on what made it possible. https://twitter.com/TarunNayak2905/status/1298186225904259072?s=20
This and few other Quora answers describe Aviral Bhatnagar's experience of breaking into the field as Junior VC. Check out http://ajuniorvc.com for more insights on the life of a VC. https://qr.ae/pN2Wpu
