Sunday, November 16, 2014

The Specialized 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.

For many firms, one tenth of their investment is alternatively invested in these alternative assets, and this job is carried out by the analysts trained specially for this type of work. The novelty of the branch provides great career options for those looking to try themselves out in the investment business with less competition and significantly lower pressure. The job of the analysts in asset classes, however does not differ greatly from that of a security analyst.

People trying to avoid the high level of competitiveness and all the stress characteristic of the traditional financial market, will find in this option the absence of these mishaps. Although, this is a job that requires similar abilities to those needed in an investment analyst.

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.

This non-profit organization was founded in 2002 and it is the leader in the field world-wide. While initially present only in the United States, today they gather around 6,900 analysts worldwide in more than 80 countries. A combination of a quick business mind, a relevant education and enough experience is a certain way of ensuring an exciting, stimulating and profitable career.




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