The practice of investing is common in the world of finance. This process involves purchasing something in the hopes that it will increase in value over time to provide income. There are many ways to invest, including purchasing real estate, bonds, stocks, or gold. Within the finance sector, investing most commonly refers to purchasing an asset like mutual funds or exchange-traded funds in order to grow money over time. One important aspect of receiving professional investing training to set yourself up for a career change is learning what kinds of fields and industries that training will help you find work in. Each industry has different requirements and expectations for prospective employees, and you should consider these expectations when you start your training. This is true for students who have an idea of what kind of work they want to do and for those who aren’t yet sure what path they want to take after learning investing skills.

What is Investing?

In the most basic sense, investing involves purchasing an asset at a lower price and selling it for more than this value. The return on this investment is a capital gain. One way to make money investing is to sell assets for profit and earn returns on them. The amount the investment gains between when it’s purchased and sold is referred to as appreciation. Another way investing operates is when individuals purchase and hold assets that generate income. In this instance, the goal isn’t to sell the asset to realize its capital gains but to purchase assets capable of generating cash flow in the long term and hang onto it.

When they speak about investing, people often refer to financial markets in which investors come together to purchase and sell assets like bonds or stocks. It’s common for stocks to pay Investors dividends, which take the form of additional stock or cash distributed by public companies to shareholders. Those who work in income investing strive to earn a steady income flow from dividends without selling stock shares. Those who invest are looking to make compound interest on their investment. This occurs when the initial investment begins to earn returns of its own. Compound interest helps many individuals reach their investment goals for educational expenses or retirement. 

Investment takes many forms. The most common types are stocks, bonds, mutual funds, exchange-traded funds (ETFs), and certificates of deposit (CDs). Stocks, also known as shares or equities, are the most widely known investment type. Those who purchase stock buy ownership stakes in a publicly traded company, such as Microsoft or Apple. When purchasing bonds, individuals lend money to an entity like the government or a business. Local governments issue municipal bonds, whereas companies issue corporate bonds, and the US Treasury issues Treasury notes, bills, and bonds, all of which are debt instruments purchased by investors. Mutual funds consist of a pool of money from many investors. This pool is broadly invested in many companies and is either actively or passively managed. ETFs operate similarly to mutual funds in that they are a group of investments tracking a market index. However, unlike mutual funds bought through a fund company, ETF shares are purchased and sold on stock markets. CDs are low-risk investments in which the investor provides the bank with a specified amount of money for a determined period and receives interest. 

What Can You Do with Investing Skills?

Knowledge of investing extends well beyond the realm of stock brokers and Wall Street. Today, strategies for investing have both professional and personal applications. Unlike in the past, where investments were largely handled by finance professionals like Stock Brokers, nowadays, anyone with an internet connection can invest in the market using mobile applications. One of the essential components of investing is selecting assets that are expected to increase in value over time. This can include bonds, mutual funds, ETFs, or in physical assets like real estate, cars, watches, or jewelry. 

Those who know how to make sound investments and understand core financial principles can pursue careers in many in-demand fields. Investment Bankers serve as financial advisors for corporations who issue bond shares or stock to help their company raise money or merge with other companies. Financial Analysts are hired to perform tasks like monitoring market trends, studying financial statements, and creating financial models for their organization. Stockbrokers are licensed professionals who purchase and sell securities like stocks on behalf of clients. Within the banking sector, Bankers who have investment knowledge and financial literacy meet individually with clients and help these individuals manage their financial needs. Additionally, investment knowledge is widely used in FinTech. Those who work in this industry design new financial technology, such as banking and investing applications.

Common Industries That Use Investing

One reason so many professionals want to learn about investing is that it can open the doors to many high-paying career paths. The following sections will explore several core industries in which knowledge of investing comes in handy and how this skill factors into the daily professional tasks of those who work in these industries.

Financial Analytics

Those who work in financial analytics are trained to work with historical data to determine how their organization performed in the past, how it’s doing today, and what profit margins are projected for the future. This data-intensive career path requires financial literacy, as well as a background in data analytics, mathematics, and research. On a daily basis, Financial Analysts may perform tasks like monitoring the conditions of the stock market to provide their clients with sound investment strategies. They also write reports, follow financial metrics, and keep company leaders abreast of any financial turns or promising developments. Financial Analysts who work in the US make a yearly salary of $100,000. This procession is expected to experience an 8% job growth over the next decade, which is slightly above the national average growth anticipated in other fields.

Data Science

Although it’s not necessarily synonymous with investing, those who work in the data science industry often combine their knowledge of computer science and programming with financial training in investment products, financial marketing, and financial instruments. With the help of data science tools, Investors are able to quickly manipulate data and extract meaningful insights from these numbers. This information is valuable because it provides companies with more accurate financial insights. Because of the valuable role data science techniques play in investing, more financial professionals than ever are turning to data analytics to help them more effectively perform their jobs.

The average pay in the US for a Data Scientist is competitive; these professionals earn approximately $108,000 annually. The job outlook for Data Scientists is also quite strong. From 2022 to 2032, this profession is projected to experience a 35% growth, which is much faster than the national average in other fields.

FinTech

FinTech, short for financial technology, is another industry in which investment knowledge is an asset. FinTech is a broad field that pertains to the technology, software, or applications that were created to help individuals and organizations digitally access and manage various types of financial transactions and activities. Some common examples of FinTech at work include robo-advisors, PayPal, Venmo, payment applications, and cryptocurrencies.

As digital tools have continued to grow in popularity over the last decade, the field of FinTech has met the increasing demand from customers to help them manage financial challenges and attain their financial goals. Today, FinTech is used for many tasks, such as lending, budgeting, banking, and investing. The field of FinTech is constantly changing investment management practices. With the advent of machine learning and AI, as well as the onslaught of big data, those who work in FinTech help clients optimize their portfolios, reduce investment risks, and spot new investment opportunities. Automated wealth advisors, also known as robo-advisors, are now commonly used to assist Investors with their investments. 

Those who work in FinTech have many prospective career options with accompanying high salaries. Cybersecurity Analysts earn a six-figure salary in the US and can expect to make approximately $120,000 a year. Experts predict that 53,000 jobs will be added in this sector over the next decade, which yields a 32% growth in open positions. This estimate is well above the projected growth rate in other professions. Those who work as Computer and Information Research Scientists also earn a competitive salary in the US; these professionals make around $145,000 a year. 

Commercial Banking

The commercial banking industry is another sector in which investment skills are valued. In commercial banking, financial institutions like banks accept deposits and offer customers different financial and banking products. These banks generate income by earning interest on different loan types, including auto loans, mortgages, personal loans, and business loans. The customer offers the bank a deposit that provides the capital on which these loans are made. Within the commercial banking sector, banks earn most of their revenue via loans from businesses or individual customers. These loans are made at different interest rates, which are determined by factors like macroeconomic performance, the federal funds rate, the prime rate, and the debtors’ creditworthiness. 

Those who work in banking may be paid very different salaries, depending on their employer and line of banking. For example, Bankers earn $35,000 a year, whereas Investment Bankers earn $77,000 annually.

Retirement

The retirement industry is one of the most prominent sectors in the US. It plays an integral role in ensuring that individuals can remain financially stable and secure as they advance in age. This industry is currently experiencing many rapid changes, including shifting demographics, technological advancements, and changing government regulations. In order to handle these changes, the retirement industry strives to provide individuals with more personalized and flexible retirement plans and portfolios that meet their needs. It’s common for individuals of all ages to invest in their retirement. They often consult with financial professionals like Investment Bankers to do so. Typically, retirement portfolios include a mix of cash investments alongside stocks and bonds, which are expected to provide a steady income stream into retirement.

Learn Investing Skills with Noble Desktop

If you’re interested in learning how to invest like a pro, let Noble Desktop help. Noble offers classes in corporate finance, business investing, and stock market investing so that learners at all levels can find coursework that meets their professional needs.

In Noble’s Stock Market Investing class, participants explore the core components of the stock market, including valuation, investing, and stock movements. Students study financial statements, valuation techniques like DCF analysis and P/E ratios, and the factors that affect stock prices. Those enrolled study recent earnings releases and valuation multiples from companies like Apple and Google to establish a framework for investing. By course completion, all learners will have a robust understanding of financial markets.

Noble also offers a Financial Analyst Training Program that takes learners from basic spreadsheet skills into intermediate-level Excel training. Participants study financial accounting and corporate finance concepts and create a valuation model for a public company. This comprehensive program prepares students to work with basic Excel concepts, such as shortcuts, formulas, functions, and PivotTables. Learners then move into more complex spreadsheet skills, such as working with cash flow projection tools and financial functions. Instruction is also provided on DCF modeling techniques and corporate valuation principles.

This bootcamp is designed to prepare students for a job at a top financial firm. Those interested in enrolling will find it helpful to have prior knowledge of finance and accounting. A short pre-learning guide is sent to all students one week before class begins.

In Noble’s Financial Modeling Bootcamp, students receive hands-on training in core accounting and finance concepts. Participants study corporate valuation, finance, and accounting in this intensive program. They also build a financial DCF model based on a real company using Excel. Prior financial experience is helpful, though not required, as a prerequisite. Additionally, intermediate-level Excel for business knowledge is required, including knowledge of iF statements, PivotTables, and VLOOKUP. 

All Noble classes are taught in person in New York City and are also available live online. Tuition includes the option of a free course retake for up to a year.