| A mutual fund is a professionally managed type | | | | specific needs and preferences. |
| of collective investment scheme that pools | | | | Investment Banking is one of the most |
| money from many investors and invests it in | | | | competitive areas in the banking industry. Many |
| stocks, bonds, short-term money market | | | | investment banks seek to recruit candidates who |
| instruments, and/or other securities. Investing in | | | | are with top results from top universities or |
| mutual funds tends to lower the risk factor | | | | business schools. An investment banker has a |
| because they are the result of diverse | | | | wide scope for bright career in this field and you |
| investments. In order to get the most out of | | | | get best results in terms of handsome salaries. |
| your returns, without paying a high fee, you need | | | | This is a responsible job, which needs hard work, |
| to be aware of the different classes of mutual | | | | long working hours, stamina, excellent analytical |
| fund stocks and their advantages and | | | | abilities, good communication skills, aptitude for |
| disadvantages. Mutual fund classes show the type | | | | numbers. Investment banking is composed of |
| of stocks covered under each mutual fund. The | | | | different sectors and selection of one of them |
| most common mutual fund classes are A, B, and | | | | depends on the interests and capabilities of an |
| C. Class A stocks attract lower 12b-1 fees and | | | | investment banker. One of them is corporate |
| investing in such stocks makes you eligible to | | | | finance which includes debt and equity capital, |
| receive discounts. These types of stocks are | | | | appropriate capital structure, mergers and |
| considered the best to keep your investments | | | | acquisitions etc. Second is Sales and Trading which |
| for two or more years. Second type of mutual | | | | needs fast thinking and decision making, good |
| funds stock includes class B stocks which are | | | | communication skills etc. In this sector, one has to |
| characterized by their contingent deferred sales | | | | inform the clients about the opinion of the bank |
| charge. Generally, they are suitable for the | | | | on certain assets and markets. Additionally, |
| investors who have limited resources and are | | | | employees working in the sales and trading |
| looking for long term investments. Small investors | | | | department in investment bank need to have a |
| prefer these types of stocks because they are | | | | complete understanding of the research produced |
| not required to pay front-end fees and the | | | | by their company. |
| deferred sales charge keeps reducing. | | | | Third one is Research sector in which employees |
| Third type is class C stocks which are beneficial | | | | provide information to their clients about |
| for those who are planning to redeem the stocks | | | | up-to-date reports on certain areas of interest. |
| within a short span of time. This type of stocks is | | | | Analysts in the research department specialize in |
| preferred sometimes as you don't need to pay | | | | a specific business sector or area, thereby |
| the front-end fees. However, there are some | | | | developing reports that can be safely distributed |
| disadvantages of this type of stocks such as | | | | to clients. For entry level investment bankers, a |
| higher MER, zero discounts, lack of provision for | | | | position as a financial consultant is a good way to |
| automatic conversions and compulsory back-end | | | | get board on-the-job training with an investment |
| load etc. Mutual fund companies often charge a | | | | firm. Typically, entry level investment bankers |
| higher fee when you opt to invest in high risk high | | | | have to work hard and spend long hours acquiring |
| return stocks. So, before investing in any type of | | | | new clients. So, if you have a great amount of |
| stocks, be aware of all these factors. The analysis | | | | drive, determination and stamina, a career in |
| of the benefits and drawbacks of each class of | | | | investment banking could prove to be very |
| stocks will help you to select the most | | | | lucrative, exciting and rewarding. |
| appropriate investment option, based on your | | | | |