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Investment banking associate vs investment advisor

The differences between investment banking associates and investment advisors can be seen in a few details. Each job has different responsibilities and duties. It typically takes 2-4 years to become both an investment banking associate and an investment advisor. Additionally, an investment banking associate has an average salary of $119,967, which is higher than the $105,377 average annual salary of an investment advisor.

The top three skills for an investment banking associate include capital markets, healthcare and discounted cash flow. The most important skills for an investment advisor are exceptional client, risk management, and client relationships.

Investment banking associate vs investment advisor overview

Investment Banking AssociateInvestment Advisor
Yearly salary$119,967$105,377
Hourly rate$57.68$50.66
Growth rate9%15%
Number of jobs39,51663,438
Job satisfaction--
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 76%
Average age4045
Years of experience44

What does an investment banking associate do?

An investment banking associate is in charge of performing support tasks for clients, ensuring efficiency and client satisfaction. They are primarily responsible for identifying and meeting clients' needs, assisting them in reaching their financial goals. They typically determine investment opportunities for clients, putting financial histories and records into consideration. They must thoroughly discuss terms, helping clients gain a deep understanding of the subject while building positive relationships. Furthermore, an investment banking associate may perform clerical tasks such as processing documentation and payments, producing progress reports, and performing calls and correspondence.

What does an investment advisor do?

An investment advisor is responsible for managing the clients' financial portfolios, advising them of investment options according to their financial goals and objectives, and their ability to handle risks. Investment advisors should have excellent knowledge of the investment policies, providing the clients with the best financial strategies according to their interests. They also determine their expenses, income, and credit scores to identify a comprehensive financial plan. An investment advisor helps the clients with cash management techniques, as well as conducting data analysis on financial market projections.

Investment banking associate vs investment advisor salary

Investment banking associates and investment advisors have different pay scales, as shown below.

Investment Banking AssociateInvestment Advisor
Average salary$119,967$105,377
Salary rangeBetween $73,000 And $195,000Between $60,000 And $184,000
Highest paying CitySan Francisco, CANew York, NY
Highest paying stateOregonNew York
Best paying companyBloombergMcKinsey & Company Inc
Best paying industryFinanceTelecommunication

Differences between investment banking associate and investment advisor education

There are a few differences between an investment banking associate and an investment advisor in terms of educational background:

Investment Banking AssociateInvestment Advisor
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 76%
Most common majorFinanceBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Minnesota - Twin Cities

Investment banking associate vs investment advisor demographics

Here are the differences between investment banking associates' and investment advisors' demographics:

Investment Banking AssociateInvestment Advisor
Average age4045
Gender ratioMale, 78.6% Female, 21.4%Male, 72.3% Female, 27.7%
Race ratioBlack or African American, 5.6% Unknown, 4.5% Hispanic or Latino, 7.7% Asian, 14.1% White, 68.0% American Indian and Alaska Native, 0.1%Black or African American, 5.6% Unknown, 4.4% Hispanic or Latino, 9.4% Asian, 8.2% White, 72.3% American Indian and Alaska Native, 0.1%
LGBT Percentage7%5%

Differences between investment banking associate and investment advisor duties and responsibilities

Investment banking associate example responsibilities.

  • Achieve the highest grades in a bank run 5 day advance equity derivatives course.
  • Manage ongoing maintenance of prospective investor pipeline using SalesForce software.
  • Create valuation models associate with above projects, specifically LBO, DCF and accretion/dilution analysis.
  • Perform extensive valuations of private and public companies through comparable company and DCF analyses.
  • Attend global healthcare conference in Miami and meet with prospective clients/investors
  • Create business analysis regarding the firm's origination and execution capabilities.
  • Show more

Investment advisor example responsibilities.

  • Manage and strengthen customer relationships through cross-selling and up-selling to maximize retention and income generation by contacting existing and prospective customers.
  • Obtain skills with different financial programs and tools such as Morningstar and NetX360.
  • Advise and recommend insurance products including, fix and variable annuities, and term life.
  • Focus on macroeconomic fundamentals, high yield, distress debt, volatility and macro base cross-asset statistical strategies.
  • Communicate information to clients on various products offer such as equity funds, bond funds, annuities, and money markets.
  • Identify client- specific and regulatory reporting requirements, review purchase and redemption activity, securities settlements, and cash movements.
  • Show more

Investment banking associate vs investment advisor skills

Common investment banking associate skills
  • Capital Markets, 7%
  • Healthcare, 6%
  • Discounted Cash Flow, 6%
  • Private Equity, 4%
  • Capital Raising, 4%
  • Securities, 4%
Common investment advisor skills
  • Exceptional Client, 12%
  • Risk Management, 10%
  • Client Relationships, 9%
  • Health Insurance, 8%
  • Business Development, 7%
  • FINRA, 5%

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