11 months ago
If you're thinking of studying to one day take up a role in investment, you’ll more than likely be following a lucrative career path. According to Indeed, the basic wage for an investment analyst is $70,000, with many professionals hitting over $150,000 – before bonuses. To be successful, you’ll need to apply yourself properly and learn what investing is all about. The best starting point is through experience, typically by trying your own small scale investments in college. Teach yourself about how the world works, and you'll realize that investments stem from real world events and experiences. From there, you can become an experienced investor and forge your career.
Identifying the market
Certain markets are hotter than others, while some have an evergreen nature. Real estate is one such market. When you think about it, homes and new buildings will always be in need, and so the industry will likely always bring results – according to Investopedia, you’ll average 9.5% over 20 years, which is a respectable figure. Having properties in your investment portfolio will bring you cash over time through rent and investments, and can be utilized for equity release later in life to bring a supplemental income.
This varies by state – for example, the reverse mortgage laws in Indiana stipulate brokerage through a counselor, whereas there is a greater level of flexibility in Virginia. Throughout your working life and retirement, property makes an excellent investment. You can get into property investments as a college student by investing in exchange-traded funds - ETFs. Examples of these include Vanguard and Schwab. This is a good way to start learning about how the market moves.
The technology market
Like the housing market will always grow, there will always be a need for technological innovation. New technologies like block chain, cryptocurrency and various fintech applications are hot news right now and every week sees a new flood of investment. Most recent of these investments is the Kuwaiti $200m investment fund for technology, reported by Reuters to be launched on January 20th.
For the investor just starting out, keep your eye for exciting new technologies and think about their impact on the world around you. Think about how you use digital technology - what services do you need? What can be upgraded? What might the banking services of the future look like? Students are in a great place to pre-empt new innovations, given the amount of technology you'll typically use. Turn that into educated guesses on the direction of new tech companies.
Turning to the environment
With climate change a very real and dangerous challenge for world governments, environmental, or ‘green’ investment, is starting to become a big factor for investors. Just last year, the Global Green Bond initiative was launched by the World Bank, who found $1.5tn was required in green investment every single year. This is a market that will definitely continue to grow at a startling rate, and a fantastic option for any new investor that will also put you at the forefront of industry events. This sort of involvement seeps into other industries, too. Young people are generally willing to spend more for produce they know is ethically sourced - according to Inc, a huge 73% of millennials shop this way. Putting money into responsibly sourced goods anywhere is likely to bring profits.
The world of investment is massive and full of opportunities. Picking the right ones will define you in your career. Start small today, and then look to key industries to make your mark and develop experience.
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