Statement of Intent, Personal Statement Example

My father is an engineer by profession and founded his own company which builds equipment for railways in China. He even holds patents and though he has always loved his work, he never forced his own opinions on my as to what I should do with my life. It is not uncommon in China and probably in the U.S. also for children to go into the same career as their father, especially if the family already has an established business but my father always encouraged me to discover my own strengths and interests and choose a career accordingly. He always encouraged me to continuously improve myself and as a result I developed love for learning and continue to read on a wide range of subject matters including business, finance, science, politics, history, and psychology etc. Not surprisingly, I have also read extensively on investing and economic structures and believe that China may also have its own financial crises on the pattern of internet bubble and 2007 financial crisis in the U.S. and it may happen sooner than later.

Historically, capitalism has proven itself to be the best market system but the financial crisis over the last few decades prove that capitalism may be best but even it is not without its flaws. In addition, President Roosevelt’s handling of the country’s affairs during the Great Depression is a further proof that minimum government intervention is necessary for efficient functioning of the economy. This may be one reason why China has fared better than many countries during the recent financial crisis because Chinese market system could be seen as a hybrid of capitalism and state-control though the system is still evolving and there is much to be done. Chinese financial markets structure is still immature and extensive reforms are needed to improve transparency and competition. But even observers in the west including U.S. admit it is just a matter of time before China becomes the world’s largest economy and China’s record growth rates and huge markets will ensure entry of foreign investors for decades to come. This will only add to the issue of speculation and inflated stock prices in China’s financial sector which still has not faced crisis due to government’s extensive resources as well as never-ending optimism of foreign investors in the Chinese economy. Even the best economies are forced to correct imperfections and China would be no exception.

Of all the investment theories I have studied, the concepts of value investing have impressed me the most because they are just common sense. The timelessness of value investing principles is also supported by the recent findings in the fields of finance and economics that market participants do not always collectively engage in rational decision making and are also influenced by emotions and ‘mob mentality’. This is why we have periods of bubbles and busts. Like U.S., Chinese financial markets will also become the playground of international investors from all over the world and this will only add to the volatility of financial markets. This is why I want to join a small group of Chinese investors who take a disciplined approach to investing by carefully studying the underlying value of the companies rather than basing their investment decisions on market sentiments.

One of the reasons I want to pursue my graduate studies at University of Massachusetts, Boston (UMass, Boston) is that one of my favorite authors, Dr. James L. Grant is also a faculty member here. During my research, I also came across Dr. Grant’s book Foundations of Economic Value Added whose ideas I incorporated into my undergraduate dissertation. Dr. Grant inspired me to research about other faculty members at the university and my research led me to discover Professor Lal C. Chugh’s theories on International Capital Markets and Inflation Protected Securities as well as Professor Eric W. Hayden’s focus on healthcare finance. The work of these respected faculty members has influenced my views on the functioning of markets and economic sectors and I am excited at the opportunity of personally interacting with them during my graduate studies at the UMass, Boston.

The education at UMass, Boston will help me strengthen my skills and strengths in Finance and provide me with a balanced view of different finance and economic concepts. The MSF Program will also provide me with a solid foundation for future CFA plans. But I also understand that technical skills may be important but they are not everything and I hope to benefit from interaction with diverse student body in improving my communication and teamwork skills and expand my perspectives on globalization.

I am believe an education from UMass, Boston will provide me with career opportunities at some of the leading financial companies such as Morgan Stanley and J.P. Morgan where I can build strong foundational skills and develop better understanding of the way financial markets function. In addition, these companies also have operations in major Chinese metropolitan cities including Shanghai and Beijing, thus, I will be able to gain experience in both the U.S. and international markets with them. These insights will provide me with better understanding of the strengths and shortcomings of the financial markets and develop more objective investment philosophy. I have always believed in objective and independent thinking and the presence of so many world-class finance professors at UMass, Boston will be instrumental in strengthening my understanding of the behavior of the financial markets around the world.