Saturday, November 15, 2014

Tips For A Career As An Alternative Investment Analyst

By Mayra Pierce


When talking about investment, the first thing that comes to mind is the well-known practice of investing in stocks, bonds and cash as a means of acquiring money in the long run. However, a less popular and equally lucrative practice, are alternative investments, usually done by the specialized alternative investment analyst.Unlike the traditional form, this one does not relate to putting money into stocks, bonds, or cash, but is associated with real estate, derivatives, commodities, hedge funds and many others.

The subjects are not bonds, stocks or cash, but 'palpable' assets, such as different commodities, real estate or derivatives. There are also many hedge funds invested in. The trained analysts, therefore look for and analyze opportunities in this field, and, according to research, many firms choose to put in 10% of their resources into this practice.

The analysts who operate in asset classes, however does not have to follow the ups and downs of the stock market, but instead should look at the 'real prices' moving up and down in the world. Some of these investments, like forests, are relatively new, and therefore analysts do not have much research data at their disposal, while some have a very long tradition, like precious metals.

Just like other similar businesses, the analysts who work or operate in the asset classes must have a sharp mind, and a good sense for business opportunities. The number of potential investments is more diverse, as these range from stamps all the way to oil and other commodities.

Many financial experts favor putting money into asset classes other than stocks, bonds, and cash, as the returns are not in direct correlation to the returns on traditional investment. Furthermore, the career in this lucrative field, and the associated market is to a great extent less regulated than stocks, bonds and cash investment market.

With highly competitive environments like Wall Street or the London Stock Exchange, it comes as no surprise that many experts choose 'the alternative way'. The fluctuating and uncertain nature of the stock exchange markets, especially after the Wall Street crash, is providing an incentive for large firms to allocate some of their resources in other directions.

Another advantage of a career to join the analysts in the asset classes is that it is much easier to launch a solo profession, and that freelancing is much easier, as mutual funds are usually more difficult to step into. For those wishing to embark on this career path, the best way of obtaining the necessary education for the job is through the chartered association for these analysts.

It is the leading institution that consists of nearly 7,000 members from all corners of the world. This exciting, stimulating and profitable career is a fantastic choice for all sharp business minds who wish to trade in more than just paper and number, who desire a more dynamic career than that of looking at a screen, and who are confident that they know a good business opportunity when they see it!




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