13 answers
Kushi
Student
Telangana, Telangana, India
1
Question
Asked
725 views
What career should i choose? Investment banking or management consulting
I need to choose either investment banking or management consulting ,so that i can select my electives accordingly in my MBA for example if I choose IB(Investment Banking) i would be opting finance related electives if not then I would be taking generalists courses...but i am sensitive to stress and Iam an ambivert ...I love finance and stock market....what should I choose? I know investment banking gives a lot of salary compared to management consulting but not sure whether I can sacrifice my work-life balance.....I love to travel so I want to choose management consulting but not sure whether i have good problem solving skills.....Iam utterly confused i just want your opinion on this issue .......By the way I am a computer science major in my under graduation i am doing a career change because I like finance and I cant imagine myself doing debugging everyday in my life I want more realistic and people oriented and business oriented job Thank you very much
13 answers
Michelle M.
Entertainment Industry
1225
Answers
Updated
Michelle’s Answer
This is a very interesting question. You've stated that you are sensitive to stress, so think twice if you really want to go into investment banking. Most careers that have to do with gain of money will pull you to the extrovert side as well as challenge your stress level. Also, pay attention to what is happening with the economy right now and ask yourself what will it be like in the future. Management consulting will require very sharp problem solving skills but could possibly be less stressful and more variety in your work day. But you've stated that your problem solving skills need honing. That's not so bad since you do plan to go for a Masters degree. Perhaps that's where you can build your skill with problem solving abilities. The more you learn, the better you will be.
The best thing to do would be to talk in depth and in detail to both a financial investor and a management consultant. Get an idea of what their daily work schedule and duties are. People are usually very happy to help someone with information when they are just on the education and career path.
I also want to add that you should not project salary. The truth is, salaries are based upon what a company offers and that depends on many factors. Try not to equate your degree to a guarentee of high income. Once you graduate and apply for jobs, companies will inform you of what salary they offer and you may not be disappointed.
Although I am far removed from both of these fields of work, I hope that I helped in a general way. Best wishes to you and never stop exploring !
The best thing to do would be to talk in depth and in detail to both a financial investor and a management consultant. Get an idea of what their daily work schedule and duties are. People are usually very happy to help someone with information when they are just on the education and career path.
I also want to add that you should not project salary. The truth is, salaries are based upon what a company offers and that depends on many factors. Try not to equate your degree to a guarentee of high income. Once you graduate and apply for jobs, companies will inform you of what salary they offer and you may not be disappointed.
Although I am far removed from both of these fields of work, I hope that I helped in a general way. Best wishes to you and never stop exploring !
Trevor Dawson
Consulting
99
Answers
Dallas, Texas
Updated
Trevor’s Answer
I would also consider the strength of your college in supporting the skills necessary for each of these careers. Both are rewarding and lucrative career paths. You should also see if you can find a mentor in these spaces to help you make a decision.
Thanks for the advice.
Kushi
Jody Muniz, P.E.
Project Manager / Forensic Engineer
22
Answers
Houston, Texas
Updated
Jody’s Answer
Hello Kushi ! you have an important crossroad in your path ! I will give you "free" advice and in my opinion only, you cannot make a wrong decision because there is no wrong decision. You have two great options. What do you want to do the most? What I have accomplished in my career is learning to deal with "stressful jobs" and I have also learned to have a poker face. I have gotten so good with my poker face that my co-workers have told my managers behind closed doors that " he doesn't care". They think that because I don't run around in circles because the sky is falling like chicken-little and worry about things I cannot control. I very much do care, and I do get scared, and I do get stressed, and I have learned to control what I can control and deal with the results. I have also learned thru multiple levels of stressful jobs how to control my emotions in public settings. I recommend you Write down your long-term goals. Your resume and your CV are yours to write for your future. Computers are the future of everything and your pending possible degree in computer science could easily be enhanced by a master's degree in Finance , if you so choose to stay in computer science. I am 61 years old and I have been a life-long student doing my own research and my own training thru the several business units I have worked with. I am a Licensed Civil Engineer certified by examination and I am also a Licensed Mechanical Engineer due to my work experience in the power plant, automotive manufacturing, and my past work experience with NASA. I kept important work diaries and I submitted my past work experiences to the State Board of Engineers and was approved to have a Mechanical Engineering License based on my past work project experiences that I accepted. All of them were above my previous level and were very stressful and I learned from my mistakes and had successful projects despite the minor mistakes. Kushi, your future is yours to make and you will be successful, I have no doubt about that. The big question is - How successful do you want to be ? Your decisions and your actions will take you where you want to go. I salute you !
Your advice was so helpful!
Kushi
I will also recommend that you lose your fear of failure and lose your fear of getting out of your comfort zone. Failure is defined as " undesirable results" from your actions. My past failures have helped me be successful when I was forced to change my plans and many times I was pushed out of my comfort zone. You will grow at a faster rate when you leave your comfort zone.
Jody Muniz, P.E.
Hung Tran
Director, Consulting
3
Answers
Fremont, California
Updated
Hung’s Answer
Hello Kushi,
I was a math major when I was young. Solving Geometry and Calculus problems were my hobbies. As I grew, I became an Accountant by necessity as my parents could not send me money anymore. I was going to be a Doctor, like my parents wanted. I was from capitalist Vietnam and got an F-1 student visa to study in the US. Vietnam fell to the communists the spring of my freshman year. I finished my BA at night and took my CPA and was quickly promoted to Corporate Controller. I worked for 2 public companies. Then I spent the next 20 years as CFO of 6 or 7 start-ups. I was co-founder of the last two. The last one was particularly interesting as it focused on technical accounting. We first did technical accounting consulting, then build a stock compensation ledger system for private companies. I programmed most of the difficult algorithms and reports for the system. We had Facebook, Airbnb, Stripe, Yelp as clients when they were private. Then I went on to lead the equity practice (stock comp is a big part of equity) at a top 20 US accounting firm. Now I am a consultant on my own, focusing on equity accounting, including equity system implementation and IPOs.
So, my advise to you is Management Consulting is easier than Investment Banking. Investment Banking is harder to get into because you have a lot of competition from very smart people and there are fewer jobs. It also relies heavily on building relationships and luck. If you did a lot of research and the company your firm invested into is a failure, that will not get you the promotion you want. A couple of those and you will be out the door.
Management Consulting is not easy either. You also have a lot of competition from very smart people. The key to success here is to specialize into something very difficult. Here are some of the hot business/ accounting consulting areas: Large system implementation (in more fancy terms: Strategy and Transformation, Business and Digital Transformation, Automation and Robotics, AI, etc.), M&A (Transaction Advisory Services), Technical Accounting (this one includes IPOs and SEC Reporting, as well as the technical accounting aspects of the other 2 areas - this is the one I chose, or perhaps it chose me). All of it relies heavily on data and what to do with it, i.e. how to obtain, manipulate, record and present it, all in compliance with guidance from the FASB and the SEC.
On work-life balance: No such thing if you want to be at the top, but you can work hard and get close. At work, work hard and smart, train well (know the task well and put your heart and mind into developing your subordinates), and delegate as much as possible. At home, you may be the CFO and your wife may be working part time or not all all, but you still do the cooking, cleaning, laundry, do homework with your kids, fix stuff around the house, and take your family on well-planned vacations. I did not understand that at first, so my first marriage was a failure, but I am well-trained now :)
Good Luck and reach out if you need more help,
Hung Tran
I was a math major when I was young. Solving Geometry and Calculus problems were my hobbies. As I grew, I became an Accountant by necessity as my parents could not send me money anymore. I was going to be a Doctor, like my parents wanted. I was from capitalist Vietnam and got an F-1 student visa to study in the US. Vietnam fell to the communists the spring of my freshman year. I finished my BA at night and took my CPA and was quickly promoted to Corporate Controller. I worked for 2 public companies. Then I spent the next 20 years as CFO of 6 or 7 start-ups. I was co-founder of the last two. The last one was particularly interesting as it focused on technical accounting. We first did technical accounting consulting, then build a stock compensation ledger system for private companies. I programmed most of the difficult algorithms and reports for the system. We had Facebook, Airbnb, Stripe, Yelp as clients when they were private. Then I went on to lead the equity practice (stock comp is a big part of equity) at a top 20 US accounting firm. Now I am a consultant on my own, focusing on equity accounting, including equity system implementation and IPOs.
So, my advise to you is Management Consulting is easier than Investment Banking. Investment Banking is harder to get into because you have a lot of competition from very smart people and there are fewer jobs. It also relies heavily on building relationships and luck. If you did a lot of research and the company your firm invested into is a failure, that will not get you the promotion you want. A couple of those and you will be out the door.
Management Consulting is not easy either. You also have a lot of competition from very smart people. The key to success here is to specialize into something very difficult. Here are some of the hot business/ accounting consulting areas: Large system implementation (in more fancy terms: Strategy and Transformation, Business and Digital Transformation, Automation and Robotics, AI, etc.), M&A (Transaction Advisory Services), Technical Accounting (this one includes IPOs and SEC Reporting, as well as the technical accounting aspects of the other 2 areas - this is the one I chose, or perhaps it chose me). All of it relies heavily on data and what to do with it, i.e. how to obtain, manipulate, record and present it, all in compliance with guidance from the FASB and the SEC.
On work-life balance: No such thing if you want to be at the top, but you can work hard and get close. At work, work hard and smart, train well (know the task well and put your heart and mind into developing your subordinates), and delegate as much as possible. At home, you may be the CFO and your wife may be working part time or not all all, but you still do the cooking, cleaning, laundry, do homework with your kids, fix stuff around the house, and take your family on well-planned vacations. I did not understand that at first, so my first marriage was a failure, but I am well-trained now :)
Good Luck and reach out if you need more help,
Hung Tran
Brian J.
Strategy
4
Answers
Round Rock, Texas
Updated
Brian’s Answer
To explore further which career path may be right for you to pursue, I recommend you reach out to your university's career services and/or alumni outreach organization to request to be put in contact with alumni who graduated from your university and went into the career fields in which you are interested. Meet with some of those alumni and learn more about the work content, what they enjoy or don't enjoy about their jobs, the companies they are with, their opportunities for career advancement, etc. As alumni, they will most likely be very happy to assist. This additional insight should help you decide which path to pursue. Future course work, internships, etc. will further shape your decision-making.
Subrat Kumar Dash
Consultant
6
Answers
Bengaluru, Karnataka, India
Updated
Subrat Kumar’s Answer
Choosing between investment banking and management consulting can be a tough decision, and there are pros and cons to each career path. Here are some things to consider that may help you make a decision:
Investment Banking:
Pros:
High salary potential and potential for significant financial rewards
Exposure to the financial markets and a deep understanding of finance and accounting principles
Opportunities to work with high-profile clients and on large, complex deals
Opportunities for international travel and working with clients in different countries and cultures
Cons:
Long hours and high stress levels are common in investment banking, which can make it difficult to maintain a good work-life balance
Investment banking can be highly competitive and demanding, which may not be suitable for everyone
The work can be highly specialized and focused on finance and accounting, which may not be as diverse as other careers
Management Consulting:
Pros:
Opportunities to work with a wide range of clients across industries, providing exposure to different business models and problems
Management consulting can provide a strong foundation in problem-solving and strategic thinking, which can be valuable in many careers
The work can be intellectually stimulating and varied, with a focus on research and analysis
Opportunities for international travel and working with clients in different countries and cultures
Cons:
Work-life balance can be challenging, especially during busy periods or when traveling frequently
The pace of work can be intense, with tight deadlines and high expectations from clients
The work can be highly collaborative and focused on team dynamics, which may not be suitable for those who prefer to work independently
Ultimately, the decision between investment banking and management consulting should be based on your personal interests, strengths, and career goals. If you love finance and the stock market and are willing to work hard and handle stress, investment banking may be a good fit.
However, if you prefer a more varied and people-oriented role, and are interested in problem-solving and strategy, management consulting may be a better option. Both careers can be rewarding and offer opportunities for growth and advancement. It may be helpful to talk to people who work in both fields, as well as to do more research on each career to help you make an informed decision.
Investment Banking:
Pros:
High salary potential and potential for significant financial rewards
Exposure to the financial markets and a deep understanding of finance and accounting principles
Opportunities to work with high-profile clients and on large, complex deals
Opportunities for international travel and working with clients in different countries and cultures
Cons:
Long hours and high stress levels are common in investment banking, which can make it difficult to maintain a good work-life balance
Investment banking can be highly competitive and demanding, which may not be suitable for everyone
The work can be highly specialized and focused on finance and accounting, which may not be as diverse as other careers
Management Consulting:
Pros:
Opportunities to work with a wide range of clients across industries, providing exposure to different business models and problems
Management consulting can provide a strong foundation in problem-solving and strategic thinking, which can be valuable in many careers
The work can be intellectually stimulating and varied, with a focus on research and analysis
Opportunities for international travel and working with clients in different countries and cultures
Cons:
Work-life balance can be challenging, especially during busy periods or when traveling frequently
The pace of work can be intense, with tight deadlines and high expectations from clients
The work can be highly collaborative and focused on team dynamics, which may not be suitable for those who prefer to work independently
Ultimately, the decision between investment banking and management consulting should be based on your personal interests, strengths, and career goals. If you love finance and the stock market and are willing to work hard and handle stress, investment banking may be a good fit.
However, if you prefer a more varied and people-oriented role, and are interested in problem-solving and strategy, management consulting may be a better option. Both careers can be rewarding and offer opportunities for growth and advancement. It may be helpful to talk to people who work in both fields, as well as to do more research on each career to help you make an informed decision.
Sounak Biswas
10
Answers
Kolkata, West Bengal, India
Updated
Sounak’s Answer
First decide which of the two would make you happy, provide you with charm and job satisfaction. If money makes you more happy go for it. If work life balance is important go for it.
Ishita Mishra
investment banking
1
Answer
London, England, United Kingdom
Updated
Ishita’s Answer
While this is a tough choice, I believe you should consider the fundamentals of both career paths. There are of course common skill sets that each career demands like problem solving, presentation skills, communication skills etc. But, it boils down to whether you like solving cases more or analyzing financials. If you have a penchant for finance and are passionate about investments and developments in stock markets, I would say go for banking. Sure, you sleep for a fewer hours but the job plays well for you to enjoy vacations. Consulting definitely provides travelling options but remember those are work and not leisure. Having said that, consulting does give you a better work-life balance and probably more sustainable in the long run.
Paul E. Rodriguez
Engagement Financial Advisor
17
Answers
Freeport
Updated
Paul E.’s Answer
That is answer that you truly have to find within. What are the pros and cons of each position, and how does that align with your goals, passions, work/life balance expectations, travel expectations. earning potential expectations? This will require research. You have to hold yourself accountable and find that answer based on which of these 2 positions excites your more. Which one can you see yourself doing for the rest of your life? Which one will result in you waking up every day and being happy?
Lastly, and totally unrelated to the above... which of the 2 positions is more sustainable long-term? Research AI and how it impacts both fields. Which one will retain a human element for the longest amount of time. This is a new world we live in.
Good luck!
Lastly, and totally unrelated to the above... which of the 2 positions is more sustainable long-term? Research AI and how it impacts both fields. Which one will retain a human element for the longest amount of time. This is a new world we live in.
Good luck!
Eva Liu
Strategy & Operations
1
Answer
Chicago, Illinois
Updated
Eva’s Answer
Hi Kushi - I have worked in both management consulting and investment banking and I believe they can both provide you with great technical skills that can be used in different industries although post-investment banking opportunities will likely result in more finance roles.
A few additional considerations:
- Consider using some of the extracurricular activities during your MBA program to help you figure out whether you will enjoy management consulting or investment banking more. While recruiting for both management consulting and investment banking happen early in your MBA journey, it might help you make a better decision to actually try doing a pro-bono consulting project or attend events hosted by the Finance club versus having made the decision and only doing certain extracurricular activities.
- From my experience, both investment banking and consulting are very demanding jobs with tough lifestyles. There are a few firms within each sector that might offer slightly better work-life balance but you should look into that when you are recruiting and have a realistic expectation for you are getting yourself into.
- Where do you want to live? There are more management consulting roles spread out across different cities while more investment banking roles are located in financial hubs.
A few additional considerations:
- Consider using some of the extracurricular activities during your MBA program to help you figure out whether you will enjoy management consulting or investment banking more. While recruiting for both management consulting and investment banking happen early in your MBA journey, it might help you make a better decision to actually try doing a pro-bono consulting project or attend events hosted by the Finance club versus having made the decision and only doing certain extracurricular activities.
- From my experience, both investment banking and consulting are very demanding jobs with tough lifestyles. There are a few firms within each sector that might offer slightly better work-life balance but you should look into that when you are recruiting and have a realistic expectation for you are getting yourself into.
- Where do you want to live? There are more management consulting roles spread out across different cities while more investment banking roles are located in financial hubs.
Chris Tywanick
Finance Consultant
4
Answers
New York, New York
Updated
Chris’s Answer
I think both jobs can be stressful due to their highly competitive nature. I would say investment banking is likely another level of stress beyond consulting.
I would caution that investment banking is actually not all that focused on the stock market. It is primarily focused on active deals - merger and acquisition activity in the capital markets. This can be very different than focusing on the stock market (although there is inevitably overlap).
If you are unsure, I generally think consulting is the better route to go as it will expose you to many different industries and types of work. Then once you find a nice you enjoy, you can dive deeper into that area. Someone once described consulting to me as the "undecided major" of first jobs, and I have found that to be very true.
I would caution that investment banking is actually not all that focused on the stock market. It is primarily focused on active deals - merger and acquisition activity in the capital markets. This can be very different than focusing on the stock market (although there is inevitably overlap).
If you are unsure, I generally think consulting is the better route to go as it will expose you to many different industries and types of work. Then once you find a nice you enjoy, you can dive deeper into that area. Someone once described consulting to me as the "undecided major" of first jobs, and I have found that to be very true.
Kuntesh Chokshi
Sales
3
Answers
Plano, Texas
Updated
Kuntesh’s Answer
Both are fantastic options.
Here is a critical point to consider on Both roles
- work-life balance : you should be able to manage work-life balance if you have understanding spouse and until kids are in elementary school (5th grade). They both are fantastic roles.
Here is a critical point to consider on Investment Banking role
- Finance is forward looking and since you like it your opportunities will exist thoughtout your career. In your inital 10 years this could be less exciting role since you are building your knowledge & skill set but then on it will reap rewards and these are 'transferrable' skills across All industries. You will be the master of numbers.
Here is a critical point to consider on Management Consulting role
- This is give you depth on industries you work on. You will be Jack of all. This will be exciting role every day as long as you keep learning aboout the industry and grow your acumen. This will help you decide which industry you would like to be part of for the rest of your career based on your priorities.
Good Luck!
Here is a critical point to consider on Both roles
- work-life balance : you should be able to manage work-life balance if you have understanding spouse and until kids are in elementary school (5th grade). They both are fantastic roles.
Here is a critical point to consider on Investment Banking role
- Finance is forward looking and since you like it your opportunities will exist thoughtout your career. In your inital 10 years this could be less exciting role since you are building your knowledge & skill set but then on it will reap rewards and these are 'transferrable' skills across All industries. You will be the master of numbers.
Here is a critical point to consider on Management Consulting role
- This is give you depth on industries you work on. You will be Jack of all. This will be exciting role every day as long as you keep learning aboout the industry and grow your acumen. This will help you decide which industry you would like to be part of for the rest of your career based on your priorities.
Good Luck!
Raghu Ambalavanan CPTD®
Organisational Development
2
Answers
Bengaluru, Karnataka, India
Updated
Raghu’s Answer
IB is likely to keep you restricted to the Banking and Financial industry, whereas consulting could help you broaden your options. That said, I would also suggest you give importance towards what your interests are. If you have a passion for and entirely interested in IB, then may be you should go with it.
Delete Comment
Flag Comment