Investment banking is both a difficult and lucrative profession. Well, I’m sure you’re aware that, as an investment banker, you’ll have to be eager to work no matter what.
Your career path as an investment banker will be rigorous; you will have to work long hours, do all-nighters, and crunch a lot of figures. However, just as investing pays off, so does hard work — both financially and in terms of recognition. If you work hard enough, you’ll be rewarded handsomely and experience tremendous personal growth.
Are you eager to work as an investment banker? Yes? Then read on as we explain what an investment banker does, what talents you’ll need, and why you should become one, among other things.
What are the Responsibilities of Investment Bankers?
Investment bankers are knowledgeable financial advisors that help banks and financial institutions manage their finances and investments by allocating resources, making investments, and raising cash for transactions and growth. Investment bankers must be brilliant at maths and have exceptional practical experience, in addition to having a degree.
Furthermore, investment bankers assist companies with sales, mergers and acquisitions, data and document preparation for public companies, and asset management. They’re ideal for enhancing a company’s financial portfolio. They do not, however, make any choices for the organisation; rather, they give advice.
Responsibilities:
An investment banker is responsible for a variety of financial procedures in connection with various financial transactions and investment endeavours. They usually operate in groups of managing directors, directors, vice presidents, associates, and analysts, each of whom is responsible for a certain industry or market segment.
Investment bankers frequently have to adapt their work schedules to suit clients in different time zones and work extremely long hours. They may have to deal with high-pressure circumstances at work, which may be unpleasant. They are normally in charge of the following tasks:
- Gather important information for financial decision-making by researching and analysing numerous market reports and databases.
- Monitor the current investment environment, identify potential risks associated with specific projects, and advise clients on how to proceed.
- To anticipate corporate success, we execute daily company valuations, financial modelling, and financial metric computations.
- Prepare presentations and proposals that provide a summary of the advantages, hazards, and timeframes.
- Respond to emails and phone calls, schedule meetings, and make travel arrangements, among other administrative chores.
- Research reports, pitchbooks, PPT presentations, and transaction paperwork must be written, edited, and delivered.
- To raise private or public capital, issue securities, underwrite municipal bonds, and conduct debt and equity offerings.
- Assist corporations with the issuance of securities, management of initial public offerings, and the determination of initial stock prices.
- To maximise value for their clients, they analyse, assist, and organise mergers and acquisitions.
- Ensure that financial regulatory authorities’ legal norms and regulations are followed.
The Benefits of Becoming an Investment Banker:
As an investment banker, you will have access to great benefits. Investment banking is a vacation job that offers rewarding monetary rewards in the early years, and then the job potential skyrockets.
Furthermore, working as an investment banker will allow you to experience significant personal growth. Every day, you’d learn a new talent, gain experience, and overcome a new difficulty. In addition, in investment banking, professional advancement is more rapid.
What Education and Experience Do I Need to Work as an Investment Banker??
An entry-level career with an investment bank often requires a bachelor’s degree in finance, economics, accounting, or business. A master’s degree or a PhD can help you advance in your career. Working on your communication and interpersonal skills may also be beneficial.
1- 10+2
You must have completed your upper secondary education (10+2) with a grade of at least 50% from a recognised board. In your 10+2, you have the option of choosing between the arts, commerce, or science streams. However, studying mathematics, accounting, economics, business, and computer technology in the commerce stream may be more beneficial.
2- Pass College Entrance Exams
You may need to achieve high scores on a state or national-level competitive entrance exam to obtain admission to select universities for your graduation or postgraduate degree. Some entrance exams you can give are:
- Common Entrance Test (CET)
- State Eligibility Test (SET)
- Delhi University Joint Admission Test (DU JAT)
- Christ University Entrance Test (CUET)
How Can You Become an Investment Banker?
If you’re interested in learning how to become an investment banker in India, explore the following steps:
1- Earn a Bachelor’s Degree
A three- or four-year bachelor’s degree is required to obtain an entry-level career with an investment bank. Degrees available include a Bachelor of Commerce (B.Com. ), a Bachelor of Arts (B.A.) in finance, a Bachelor of Arts (B.A.) in economics, and a Bachelor of Business Administration (BBA) in finance.You can do your bachelor’s from Marwadi University as it is currently the best university in Rajkot, Gujarat.
While each program’s curriculum varies, you may study mathematics, accounting, economics, financial management, corporate finance, investing, taxes, data analytics, and business administration, among other disciplines.
2- Obtain a Master’s Degree
For investment bankers, a two-year Master of Business Administration (MBA) in financial management is a favoured postgraduate qualification. A Master of Science (M.S.) in finance is also an option. The National Stock Exchange (NSE) Academy provides postgraduate programmes in investment banking and capital markets, banks and financial planning, business analytics, and management accounting that last six to nine months.
You can take the following exams to get into master’s degree programmes like the Master of Business Administration (MBA):
- GMAT (Graduate Management Admission Test)
- Narsee Monjee Institute of Management Studies: Management Aptitude Test (NMAT)
- Symbiosis National Aptitude Test (SNAP)
- The Common Admission Test (CAT)
- The Xavier Aptitute Test (XAT)
3- Acquire a Doctorate
A PhD in finance and banking may necessitate more than 55% of postgraduate marks, as well as passing the UGC NET and CSIR UGC NET cut-off percentages.The programme lasts for three years.
You might need to pass examinations like these to get into a doctoral programme:
- University Grants Commission National Eligibility Test (UGC NET)
- Council of Scientific and Industrial Research University Grants Commission National Eligibility Test (CSIR UGC NET)
4- Get a Certification
A Chartered Financial Analyst (CFA) professional credential can help you advance in your career. The CFA programme provides extensive and practical investing and financial instruction.
Economics, corporate finance, derivatives, equity investments, alternative investments, financial reporting and analysis, and quantitative approaches are among the subjects you can study. After earning your bachelor’s degree, you can apply for this programme. The duration of the course might range from one to four years.
You can also enrol in the Indian Institute of Management’s postgraduate Certificate Programme in Investment Banking (PGCPIB). The National Stock Exchange (NSE) Academy offers financial modelling, financial planning, and business analytics certification programmes.
5- Pursue an Internship
Internships in investment banking may be found on employment sites like Indeed, bank websites, and through college placements, networking, and human resources consultants. Investment bank internships might run anywhere from two months to two years.
You may learn to enhance your communication, presentation, and negotiating abilities in addition to financial training. Based on how well you do throughout your internship, you may be offered a permanent career as an investment banker.
6- Find a Job
You may receive a job offer immediately following your internship, via a campus employment interview, or by applying for open jobs with investment banks and financial advisory firms.
Review your core finance principles, financial modelling, and private equity to prepare for your interview. It might also help you build a list of frequently asked interview questions and practise answering them.
7- Advance Your Career
Employer-sponsored training programmes and other certification programmes can assist you in continuing your investment banking education and remaining competitive.
You may acquire new skills, keep up with business advancements, network with industry professionals, and expand your corporate finance and investing expertise. This may pave the way for you to rise to higher-level management positions.
Skills That You Require in Investment Banking:
- Strong Analytical Skills: In this highly competitive field, you must have strong analytical skills. Your analytical skills will help you advance in your career in areas such as research and financial modelling.
- You Must Have a Talent for Numbers: If math isn’t your strong suit and you don’t love performing it, an investment banking profession may not be for you. Because investment bankers spend so much of their time working with numbers and calculations, this is a must-have skill for you.
- Basic Financial Literacy: To ace the interview and stay in the financial profession, you’ll need to know the fundamentals of finance. Investment bankers are required to work in all facets of finance, so financial expertise is a must.
- Presentation and Excel Skills: The majority of work in investment banking will be centred on PowerPoint presentations and Excel spreadsheets. As a result, core abilities and understanding of both of these technologies should be present.
So, here it is- Everything you need to know about being an Investment Banker!!
