You might be interested to pursue a career as an investment banker if you enjoy working long hours with numbers and want a career in banking and finance. People from across the globe are pursuing careers in investment banking and aspire to become investment bankers.
For those seeking a challenging career in the modern financial-corporate world, a career as an Investment Banker is a profitable business. In addition to being in demand, it also assures a high growth trajectory, meaning that every bit of effort you put in will be rewarded handsomely in terms of cash, recognition, and job satisfaction.
In this blog, we shall be discussing everything you need to know about the investment banking industry and how you can establish a career as an Investment banker. Read on!
What does an Investment Banker do?
To build your career as an Investment Banker, you must know the responsibilities that you will have to undertake. Investment Bankers typically carry out the following tasks:
- Analyze, support, and plan mergers and acquisitions to benefit their clients as much as possible.
- Create presentations and proposals with a timeline, risks, and benefits list.
- Ensure adherence to the laws and rules that financial regulatory organizations have established.
- To make better financial decisions, you must research, analyze market reports and data, and gather information.
- Keep an eye on the current investing environment, spot risks related to particular projects, and advise clients on moving forward.
- Perform daily financial metric calculations, financial modelling, and company valuations to forecast business performance.
- Respond to phone calls and emails, schedule meetings, and arrange travel among other administrative tasks.
- To raise private or public funds, one may issue securities, underwrite municipal bonds, and conduct debt and equity offerings.
- Provide guidance to businesses on stock price initiation, managing initial public offerings, and securities issuance.
Read this blog and find out more about your career as an Investment Banker- How to become an Investment Banker.
Job roles for an Investment Banker
If you want to pursue a career as an Investment Banker, here’s a list of the different job roles you can consider.
- Analyst / Junior Analyst: Entry-level position requiring 1–2 years of relevant experience from a candidate. Typically, graduates are hired for this position. The work demands a candidate to undertake basic duties such as creating presentations, analyzing basic financial data, etc.
- Associate or Senior Analyst: Candidates may be promoted to Associate or Senior Analyst roles after three to four years of experience. Pitching ideas is typically the responsibility of associates, which aids in locating investors and winning over clients. Any candidate who wishes to accept an associate-level position in the field will benefit from having an MBA.
- Leadership Positions: With more expertise in the industry, investment bankers can assume management positions in investment banking firms, such as vice presidents and managing directors. Although these are well-paying jobs, applicants must have extensive training and work experience in the industry.
Career path to become an Investment Banker
When we decide on a career, most often we are confused about the path we must follow. But you don’t need to worry. We’ve got you covered with that too! To pursue a career as an Investment Banker, you can follow these paths.
Path 1:
Complete your 10+2 in the Commerce field and opt for an undergraduate degree such as B.Com or BBA. You can also take up a postgraduate course in a specific specialization depending on your field of interest in the investment banking sector.
Path 2:
Complete your 10+2 in the Commerce or Arts field and opt for an undergraduate degree such as BA in Finance, or BA in Economics, or any other finance undergraduate degree. You can also take up a postgraduate course in a specific specialization depending on your field of interest in the investment banking sector.
How much does an Investment Banker earn in different stages of their Career?
In your career as an Investment Banker, this is what your earnings will look like.
Level | Salary |
Entry-level | INR 3.5 LPA |
Average | INR 10 LPA |
Experienced | INR 20 LPA – INR 50 LPA |
Skills required to be an Investment Banker
Do you think you possess all the skills needed to pursue a career as an Investment Banker? Check this list!
- Analytical Skills: An applicant must also possess analytical skills, which are essential. Working on research and financial models calls for a strong analytical mind that can pick up on those concepts quickly and adapt.
- Basic financial knowledge: You must have a foundational understanding of finance in order to enter the world of finance. A recruiter in finance would not be eager to hire candidates if they lacked fundamental financial literacy. It requires an understanding of three fundamental financial statements, including the cash flow statement, balance sheet, and profit and loss account.
- Excel and PowerPoint Basic & Advanced Ideas: Applicants must understand PowerPoint and Excel’s basic and advanced concepts because working with PowerPoint and Excel presentations makes up 80% of the work in investment banking.
- Financial Modeling: A solid understanding of financial modelling is recommended if one wishes to pursue a career in investment banking. Investment bankers constantly look for candidates who can create models from scratch as they work on models day and night.
- Mathematics Skills: It is one of the essential skills for surviving in the investment banking industry and is essential for pursuing a career in this field. Investment banking is not the place for you if you lack the fundamental skills of computation and problem-solving.
Is Investment Banking a good career option?
The field of investment banking is vast. Alongside banks and investment rating agencies, investment bankers are in demand across a variety of industries and businesses. Many industries, including automakers, retail giants, and even utilities and energy providers, offer investment to their clients and depend on investment bankers to handle it for them. Building a path to a career as an investment banker, portfolio manager, or loan or trust manager is the goal of an investment banking career. Investment bankers are needed in a number of industries, including finance, accounting, and information technology, to improve customer support and oversee business finances.
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Industries hiring Investment Bankers
Are you wondering what employment opportunities the career as an Investment Banker would provide? Take a look at this list.
- Accounting
- Finance
- Information technology
- Mergers and Acquisitions (M&A)
- Private Equity etc.
- Sales and Trading
Top Recruiters In India
- Accenture
- Bank of America Merrill Lynch
- Citi
- Citigroup
- Goldman Sachs
- HSBC
- JP Morgan
- Morgan Stanley
- Wells Fargo
Courses to upskill as an Investment Banker
If you want to know how to pursue a career as an Investment Banker, consider taking these courses to enhance your knowledge of the investment industry.
Courses | Duration |
Banking and Financial Institutions | 1-3 months |
Financial Markets | 1-3 months |
Investment Banking: Financial Analysis & Valuation | 1-3 months |
Investment Management | 3-6 months |
Private Equity & Venture Capital | 1- months |
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Educational qualifications to be an Investment Banker
If you want to pursue a career as an Investment Banker, here are a few options you can consider.
Degrees in India
Here’s a list of a few undergraduate and postgraduate degree programs that you can study in India.
Undergraduate degree programs in India
- Bachelor of Arts (BA) in Finance / Economics
- Bachelor of Business Administration (BBA) in Finance
- Bachelor of Commerce (B.Com) Hons.
Postgraduate degree programs in India
Courses | Duration |
MBA | 2 years |
M.Com | 2 years |
MA in Economics | 2 years |
Here’s a list of the specializations you can choose from.
MBA Specialisations | M.Com. Specializations |
Business Management | Banking Marketing |
Finance | Finance |
Marketing Management | Marketing |
Sales and Marketing | Taxation |
Degrees abroad
Here’s a list of a few undergraduate and postgraduate degree programs that you can study abroad.
Undergraduate degree programs in India
- Bachelor of Arts in Finance and Investment with the sandwich year (Honors)
- Bachelor of Science in Business Administration- Real Estate Investment Management
- Bachelor of Science in Finance and Investment (Honors)
Postgraduate degree programs abroad
Course Name | Duration |
Master of Finance – Corporate Finance and Investment Banking | 1-2 years |
MSc Finance and Investment | 1 year |
MSc in Project Analysis, Finance, and Investment | 1-2 years |
References
Books you can read
- Financial Modeling and Valuation
- Investment Banking: Valuation, Leveraged Buyouts and Mergers, and Acquisition
- Middle-market M&A
- The Best Book on Investment Banking Careers
- The Man who solved the Market
That’s all you needed to know about how you can pursue a career as an Investment Banker. We hope this blog helped you and answered all your questions about the field of investment banking. Good luck!
FAQs related to a career as an Investment Banker
Do investment bankers have to have strong math skills?
You employ very basic math. Or to put it another way, math. As a result, you only need to be competent with numbers and not a math genius.
What does an investment banker do?
Investment bankers essentially serve as financial advisors to businesses and, occasionally, governments. They help their clients raise money. This might entail issuing stock or bonds, negotiating the purchase of a rival firm, or setting up the sale of the company itself.
What degree is best for working in investment banking?
Entry-level positions at an investment bank typically call for a bachelor’s degree in finance or economics. Business and accounting are two other well-liked academic specialities.
What is the salary of an investment banker in India?
In India, the average annual salary for an investment banker is between Rs.8 lakh and Rs.12 lakh.
What job roles can I pursue as an Investment banker?
Account Manager
Bank Manager
Business Analyst
Chief Financial Officer
Equity Research Analyst
Financial Analyst
Relationship Manager
Research Analyst
What are the skills required to become an Investment Banker?
Analytical Skills
Basic financial knowledge
Excel and PowerPoint Basic & Advanced Ideas
Financial Modeling
Mathematics Skills