<p>Which is better ?</p>
<p>Investment banking or Investment management?</p>
<p>Say, I don't want to settle in this and would be looking for good exits after 2-3 years. Which of these provide better experience and better exits?</p>
<p>IM is totally unlike IB. If you are doing well, you wouldn't want to exit.</p>
<p>yeah, i understand..</p>
<p>IM is dealing with people.. IB is dealing with companies.. right?</p>
<p>anyways, can you compare both ?</p>
<p>Ehhh not really, I suggest you do some research.</p>
<p>From someone who has worked in both, IB is more dealing with people than IM is. IM is making investments in various securities (stocks, bonds, derivatives, etc), while IB is underwriting offerings for companies that are clients as well as other strategic and advisory work for them. IB, even in this environment, will probably still have more straight out of college positions and may give you a more overview experience.</p>
<p>I agree, maybe at the lower levels IB is mostly numbers and presentations, but in general its all about relationships and selling ideas (mergers, restructuring, etc)</p>
<p>so..
IM is management of securities for private investors or institutions to reach specific goals..</p>
<p>and
IB is raising funds for a company, by issuing and selling the securities in a capital market...</p>
<p>IB sounds better to me.. but IM is also getting popular... so just looking to compare, which is better to intern in...</p>
<p>Thanks for the reply gellino and C-Revs..
I believe, in IB.. the people would be CEO's of big companies, unlike IM... Which adds more experience !</p>
<p>^Except that the hours in IB can be double that of IM. Also, as a junior person in IB, you're not necessarily getting more exposure to senior executives. The burnout rate is also very high as in my IB analyst class only 12% even stayed on to become an associate after three years. It is typical for people to start in IB, get some general corporate finance experience and then move to some aspect of IM and develop an expertise while living a lifestyle that is more long-term sustainable.</p>
<p>IM is a reputable and respected business. You get judged purely on results rather than volume of deals whether good or bad.</p>
<p>IB- sell-side, you are trying to get people on the buy-side to purchase your offerings, this includes pitchbooks, etc. Also the m&a as well as advisory for bug clients</p>
<p>IM- buy-side, manage people's money. Mainly with mutual funds or for insititutional investors (this includes 401K money, pensions, etc.) and rich people's funds. The sexier side of asset management is Private equity and hedge funds which are hard to break in to and taking a shellacking right now.</p>
<p>All in all, if you work in IB after grad youre looking at the run of the mill pitchbook, research, model making that others do. In IM you are geared more toward client management, portfolio analysis and if youre given some responsibility youll be doing some research into various securities. IM is generally smaller than IB especially in regards to hiring, so the class wont be as large. But from what I've heard it is a bit better for a broad intro to stocks and the secondary markets. However, the downside is that the pay is lower and normally IB is more reputable as far as name recognition is concerned.</p>
<p>Thats a basic breakdown</p>
<p>I'm also interested in investment management. Does anyone know how competitive entry into the industry is compared to investment banking? Do the long hours, high stress, high salary characteristics of IB also apply to IM?</p>
<p>You can read this forum to get an idea of the difficulty of getting into IM.</p>
<p>CFA</a> Exam Discussion at AnalystForum for Chartered Financial Analyst candidates :: CFA Forums</p>
<p>People have passed several levels of CFA , yet never get in the door. Entry is mostly through top MBA career recruiting.</p>