How to Prepare for a Finance Internship: What Does an Investment Manager Do?

If you’re passionate about finance, an internship is the best way of kickstarting your career.

Where there’s people, there’s business; and where’s business, there’s finance. You’ll find financial roles practically everywhere in the world. And if you gain the right skills and experience, you’ll be able to transfer your knowledge wherever you go.

When it comes to finance, there’s plenty of room to specialize. You might choose to branch out into accounting, managing and assessing the finances of businesses and individuals. Or you could focus on insurance, working with other professionals (including doctors, lawyers and law enforcement) to assess risk and make claims. 

And, of course, you could turn to investment. Here, you’ll be working with stocks and shares as you research and predict their performance. You’ll typically be working with other firms as you analyze risk, measure performance, and offer general support. 

It’s a demanding sector of a demanding industry. And the financial sector is increasingly oversubscribed – universities pump out more and more graduates every year, and many are drawn towards the opportunities that this industry offers.

An internship is a risk-free way of getting a sense of a given industry. After all, online guides and testimonies only tell half the story. You’ll want to get a warts-and-all understanding of just what exactly a job in this sector is like – and the only way to do that is through work experience.

In this case, you’ll work with an investment company as you develop your key skills and knowledge. You’ll have genuine experience to draw on for future interviews and applications, setting yourself apart from those with only a theoretical knowledge of the industry. 

It’s widely known that firms are always more likely to employ successful interns or placement students than outside applicants. They already know you and your work ethic; and you’ll already have a rapport with the team. If you’ve demonstrated your abilities successfully, you’ll be top of the list for job openings. 

The biggest finance opportunities tend to be clustered around big cities – particularly capitals. World-famous examples include Bank of America, Citigroup and Deutsche Bank. Big firms often have graduate schemes to hire their staff straight out of college. 

But there’s also countless smaller banks and financial companies across the world. From building societies to local insurance brokers. In fact, finance and insurance represents about 7.4 percent (or $1.5 trillion) of U.S. GDP. So there’s a wealth of opportunity wherever you go.

But if you’re looking for an investment management internship, you’ve probably never had direct experience in the role. So you might be curious about the typical tasks and responsibilities an investment manager might be expected to undertake. 

So read on for a comprehensive look at the role of an investment manager – what it’s like, and what exactly you should do to prepare yourself. 

To begin with, let’s think about some of the skills and attributes you’ll need to exercise in this role. As well as some tips on getting them into shape if you need it!

Of course, there are a few universal attributes that success in any role requires. Including hard work and dedication. We’re assuming that you’ve already got these – otherwise, you wouldn’t be here. So let’s think about a few specific skills.

First up, you’ll need a logical mindset. Financial firms are looking for the ability to think critically and make decisions at pace. This includes rationally analyzing situations and coming up with creative solutions. These skills are necessary in plenty of workplaces. But when it comes to investment you’ll be exercising them every day as you give sound financial advice to your clients. 

The latest skills surveys in the UK have concluded that nearly half of all employers still struggle to find complex analytical skills in their candidates. So if you feel like you’re a little lacking in this area, you’re not alone. What can you do to improve your skills in preparation for your internship?

First and foremost, you’ll want to spend some time being more creative. While you might think that creativity and logic are conflicting skills, they do in fact go hand-in-hand. Drawing, learning an instrument or writing creatively are all creative endeavors; but the process of learning and improving these skills will keep your mind sharp and help you focus for longer periods of time. 

Another key method of improving your logical thinking is questioning. While it may sound simple, the art of questioning to improve your mind goes back to antiquity – there’s a reason Socratic questioning is still employed today! By questioning your assumptions and everyday biases, you’ll come to improve your critical thinking skills as you think deeply about the world around you. 

We can all fall into group-think, confirmation bias, and appeals to authority – and if you haven’t heard of these logical fallacies, do some research and expand your horizons. Your thinking skills are sure to grow.

Next up are attention to detail and accuracy skills. This is another basic point, but it’s one of the building blocks of finance. In this sector, you’ll be handling huge amounts of other people’s money – get it wrong and it’s a recipe for disaster. 

Remaining accurate and focused is the best way of ensuring success. So how do you improve these skills if you’re lacking?

A simple way is to reduce your screen time. We’re all spending more time on screens, both at work and at home. Many social media apps are designed to catch and keep our attention by appealing to our addictive tendencies – whether that’s infinite scrolling or ‘intermittent reinforcement’. The effect is clear – we’re less productive and we’re losing our attention spans. 

Fortunately, there are ways of combating this. If you need it, you can set a limit on your browsing time per day; and some scientists recommend turning your phone display to monochrome to remind yourself of its addictive nature. 

However you choose to overcome it, limiting the time you spend on screens is a great way of improving both your concentration and your overall mental health.

Another way of improving these skills is to get yourself organized. Offloading your thoughts into a diary is a useful way of pulling together all of your tasks, responsibilities and plans. It means that you won’t forget anything, all while freeing up your mental space. And seeing something written down can often make you consider things in a different light. 

The world has become increasingly interconnected over the past few decades, and finance is no exception. And with the COVID-19 pandemic having accelerated the rush online, banks and financial institutions are offering more and more services over the internet. From greater personalization to faster solutions, customers are growing accustomed to conducting their business online or via an app. 

Large firms have identified a digital skills gap among many employees. So if you need to brush up on your existing skills – or learn something new – take some time out to become digitally literate. Immerse yourself online – browse the web and download a range of apps to get to grips with every aspect of day-to-day technology. And for something more formal, there’s plenty of online courses, accredited programs and video tutorials covering everything from Microsoft Excel to YouTube.

It’s also a good idea to do some general reading about your sector. What are the latest developments in finance and investment? Who are the key players in the industry, and what can you learn from them? Having a wide knowledge of the industry will demonstrate your passion to interviewers. And if you do your research beforehand, you’ll be prepared for everything your investment management internship can throw at you.

Now you know the key skills that you’ll be exercising in your internship, the next question is: what exactly does an investment manager do?

The role can differ depending on the size, location and purpose of your firm. But here are a few key responsibilities that you’ll hold.

Investment goals can be quite different depending on the type of investor and purpose behind the investment. For example, investments may be made by financial institutions like banks and pension funds; or they could be made by wealthy private investors looking for a high rate of return. And some invest to establish future savings for their children or loved ones. 

Differing investors will have a variety of goals and intentions, and will all need a different level of personalized care. That’s where your skills in setting investment objectives come in. Here you’ll work closely with clients to offer tailored service, assessing their goals and interests before making the appropriate recommendations. 

You’ll also be offering ongoing investment counselling in your role. This will include drawing up a budget and producing regular reports on the investments you’re managing, including their success and future potential. You’ll be constantly re-evaluating and improving your investment portfolios to ensure they achieve the maximum profitability. 

People skills will be a must here – you’re the first port of call for your client, meaning that you’re the face of any profits or loss being made. A sympathetic manner and clear, concise communication skills are key.

The slightest market movement can spell disaster or success for your clients – and it’s your job to keep tight track of everything. You’ll often be reading major financial papers, including the Financial Times and the Wall Street Journal, to stay on top of the big movements across the world. And you’ll be scouring the web, including services like Newswire, for everything else. 

The restructuring of management in one firm can have a knock-on effect on the next – so you’ll need to meet with your team to decide whether it affects their credit rating. It can be tough to stay abreast of everything; but you’ll draw on the knowledge and talent of your colleagues to pool your information and make collective decisions.

As an investment manager, you can expect to be working long hours in a high-pressure environment.  The work is primarily office-based, but you might make occasional visits to other firms to meet management or make financial assessments. And larger firms often offer opportunities to work abroad. You’ll work closely with a team of fellow analysts; early on in your career, you’ll be supporting senior investment managers, growing into your own caseload as you progress in the sector. 

As you might expect, there’s room for high earnings in this role – with bonuses on top. Salaries will rise after five to eight years, commensurate with your experience. So if you’re excited by the opportunities of finance, global travel, and high-stakes independent working, you’ll want to consider investment management.

If you’re passionate about finance and investment, and you’re looking to stand out in a crowded field, consider an internship.

Work experience with a financial firm is a fantastic way of boosting your skill-set and developing your industry knowledge. In a highly competitive job market, it will demonstrate your passion and dedication to future employers. And it’s the chance to take a risk-free dip into the industry as you consider whether it’s right for you.

But if you do want to undertake financial work experience, make sure to prepare thoroughly. From researching the industry to preparing your key skills, be ready for what awaits you. 

In an industry where analysis is vital, logical thinking is key. You’ll be making high-stakes decisions at pace, drawing upon a range of knowledge and industry information as you think critically about investments and their future potential. To boost your logical thinking, get creative! Fire the synapses in your brain by drawing, writing or downloading brain training apps. The more you engage your mind and think about the world, the better equipped you’ll be to face the challenges of your financial internship.

You’ll also be employing your attention to detail skills as you manage huge volumes of money. This is an industry where human error can be catastrophic, so you’ll need to be as organized and accurate as possible. To improve these skills, keep a diary of your tasks and responsibilities to ensure your mind stays uncluttered; if you write it down, you won’t forget it. And seeing things down on the page can also help you see your thoughts in a new light.

Lastly, digital skills are vital in an industry where customers expect high personalization and instant response. Dedicate time to really getting to grips with spreadsheet software and financial apps.

At Beyond Academy, we offer a range of financial internships across 14 different international destinations. From Dublin to Paris to Sydney, our international internship programs are a fantastic way to kickstart your career. We’ll factor in your existing skills and career goals when designing your program, to build an internship that works for you. So if you’d like to find out more and want to begin planning your dream finance investment internship, contact us and go Beyond!