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Investment Banking is a specialized banking branch whose priority is to help firms with finance-related issues such as raising funds, underwriting acquisitions, and assisting mergers. People with innovative ideas will often need professionals in finance to deal with money and loans for the growth of their organization. However, the field tends to be complex and demands exquisite skills in finance. In this article, we provide you with a complete guide on how to become an investment banker.
Investment banking provides outstanding career opportunities for individuals with promising talent. So, it’s no wonder ambition-driven people with robust goals choose investment banking as their career path. If you’re interested in investing in banking your career, keep reading the article.
Who is an Investment Banker?
People often confuse investment banking with other financial jobs. Investment bankers are leading professionals with expertise in financial knowledge who provide services to companies, governments, and investors.
They provide services like ideas to raise capital, get business loans, issue stocks and bonds, set prices for securities, negotiate mergers, and manage investments. Investment bankers are responsible for helping their client organizations traverse financial difficulties.
For instance, if a client organization wants a merger with a company, the investment banker will underwrite the acquisition, conduct value analysis, assist with due diligence and negotiations, and close the settlements on financial terms. Sometimes, investment bankers start the merger to increase the stock price and prevent the client organizations from bankruptcy.
Investment Banker: Qualifications Required
Investment banking is a competitive field where investment bankers need profound skills to prosper. Before focusing on how to become an investment banker, you need to know the educational qualifications to become one.
- An investment banker qualification will include having an undergraduate degree in one of the following streams.
- Finance
- Accountancy
- Commerce
- Economics
- Business
2. Investment banker requirements often include a master’s degree if you want to have prospects. But a bachelor’s degree is adequate for entry-level jobs, and you can work your way up. You can also do internships in an investment bank to gain experience.
But how long does it take to become an investment banker? Well, it depends on you. The timeframe varies if you pursue your career right after your bachelor’s degree compared to pursuing it after a master’s or doctorate. It may take up to 7 years to be a successful investment banker.
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Investment Banker: Skills Required
Is investment banking hard? Yes, which is why having the necessary educational qualifications may be inadequate. The investment banker’s requirements may include specialized skills. Below mentioned pointers list the skills required for investment banking:
- Communication: An investment banker must have good communication skills to meet clients’ needs. With good communication skills, you can negotiate your client’s demands.
- Leadership: is an expected skill in investment bankers as they must lead a negotiation or merger of the client organisation.
- Accounting: The investment banker will be skilled enough to analyze and report the financial transactions of the client firm. They should be able to maintain a balance sheet with loss and profit statements.
- Critical thinking: is a much-needed skill for an investment banker to work on large statistical data and develop exit strategies. They will help their client organization tackle their financial crisis with critical thinking skills.
Steps to Become an Investment Banker in India
The key to investment banking is acquiring the preferred education and skills. It is time to focus on how to become an investment banker, which gets you started with the basic steps. If you’re wondering how to become an investment banker after the 12th, there are five essential steps. Let’s see them one by one.
Step 1: Choose The Right Undergraduate Course
How to start a career in investment banking? After completing the 12th standard, choosing the right course will get you one step closer to becoming an investment banker. Pursuing BBA or any other B.A. course with finance streams is suggested.
Step 2: Pursue a Master’s Degree in Finance
A bachelor’s degree is enough to get an entry-level job in investment banking. However pursuing a master’s degree will increase your value among competitors. A master’s degree will give you a shot at a more sophisticated job on the corporate ladder.
Step 3: Gain Work Experience in Finance-Related Roles
The next step is to join internships with credible investment banks to gain work experience. No matter your talent, investment banking will need experience to succeed.
Step 4: Clear Relevant Certification Courses
You can always thrive for more; this competitive field has room for improvement. Get certified in popular finance-related courses. For instance, get a Chartered Financial Analyst (CFA) certificate and keep up with the rest of the world.
Step 5: Build A Professional Network
If you want to crave your career path, you need a professional network you can trust and lean on. Ensure you have established a smooth relationship with your clients and fellow bankers. Conduct informal interviews to get the best jobs and internships.
Top Investment Banking Firms in India
India is a developing country housing top investment banking firms, including some global investment banks. These investment banks offer blooming opportunities that make investment bankers a thriving career in India. We provide a list of top investment banks in India here.
| S.no | Top Investment Banking Firms |
| 1. | Avendus Capital, Mumbai. |
| 2. | Axis Capital Limited, Mumbai. |
| 3. | Edelweiss Financial Services, Mumbai. |
| 4. | JM Financial Institutions Securities, Mumbai. |
| 5. | ICICI Securities Limited, Mumbai. |
| 6. | IDBI Capital, Mumbai. |
| 7. | O3 Capital Global Advisory Services, Mumbai. |
| 8. | Goldman Sachs – US-based, Bangalore. |
| 9. | JP Morgan Chase – US-based, Mumbai. |
| 10. | Citi Bank – US-based, Mumbai. |
| 11. | Morgan Stanley – US-based, Mumbai, and Bengaluru. |
| 12. | Bank of America Merrill Lynch – US-based, Mumbai, Bengaluru, Chennai, and Delhi NCR. |
| 13. | Barclays Bank – United Kingdom, Delhi NCR, Mumbai, and Pune. |
| 14. | HSBC – United Kingdom, Delhi NCR, Mumbai, and Bengaluru. |
| 15. | Credit Suisse – Switzerland-based, Mumbai. |
Also Read: Top 20 Venture Capitalists in India for NRI Investment
Avendus Capital
Avendus Capital is a Mumbai-based financial services firm that provides custom solutions. The firm specialises in asset management, credit solutions, investment banking, and wealth management. The firm cares about its employees and offers them a remarkable environment that enables them to grow. It also provides distinctive career opportunities for students and experienced professionals that allow them to achieve greater heights.
Axis Capital Limited
Axis Capital Limited is a wholly-owned subsidiary of Axis Bank with expertise in servicing the financial needs of companies, government entities, and private investors. It provides focused solutions in investment banking and institutional equities. Axis Capital appreciates fresh thoughts and innovation regardless of age and experience. It allows the employees to work with veteran leaders and innovators to make their career paths.
Edelweiss Financial Services
Edelweiss Financial Services is a leading financial services conglomerate that provides financial consultancies. It provides a professional ecosystem that values personal and professional aspirations with composure. With divergent business and roles, challenging grounds, and a constant focus on self-development, it helps its employees grow.
Goldman Sachs
The Goldman Sachs Group is a global financial firm that provides distinctive financial services worldwide. It provides financial services to companies, governments, and investors. Goldman Sachs considers its people as their greatest assets. It takes utmost care in recruiting individuals to uphold its principles. It presents opportunities to collaborate with global leaders, while team-driven learning promotes individual talents.
JP Morgan Chase
JP Morgan Chase is a renowned investment banking company for its wide range of financial services. It offers phenomenal client services, supports the growth of its employees, and upholds integrity and responsibility. As a talent-driven firm, it provides a diverse workspace for its employees where everyone feels like they belong. JP Morgan Chase provides full-time jobs, apprenticeships, and internships to help graduates learn and develop.
Salary of an Investment Banker in India
Investment banking owes its popularity to the high salary range. But make no mistake; the work pressure is as high as the salary. However, it’s worth the struggle. Unfortunately, the salary of an investment banker in India is considerably low compared to salaries in foreign countries.
Because Indian investment banking firms provide services at low prices, an investment banker’s salary ranges between ₹ 1.8 Lakhs to ₹ 39.2 Lakhs with an average annual salary of ₹ 4.0 Lakhs per annum. The salary package will vary according to your location and experience.
Challenges Faced in Investment Banking
Every field has pros and cons, and investment banking is no exception. Investment bankers are talented enough to tackle any financial crisis but sometimes face considerable challenges. Here we explain some of the common challenges in investment banking.
Competitive Job Market
Investment banking is a competitive job market with many leading companies on the ground as it offers a high salary range. The increasing demand for finance professionals to assist organizations leads to the field’s competitive nature. It is possible to get rejected even with astonishing skills in this field. To get your dream job, you must always be at the top of your game.
Long Working Hours
As fancy as it looks, investment bankers are associated with long working hours. A survey indicates that an investment banker works around 80 hours a week. This may increase to around 100 hours a week, depending on the situation.
High Work Pressure
As an investment banker, you often experience high work pressure. It can be stressful sometimes as you must finish your work to meet deadlines. Sometimes it’s also implied by the client. To be successful, you have to be ready to tackle work-life balance.
Wrapping Up
By now, we hope you understand the definition, education qualification, and how to become an investment banker. All challenges apart, investment banking, is still one of the leading professions worldwide. If you’re a finance geek who loves crunching numbers, investment banking will be a great career path. But remember, it is a competitive field full of talented graduates and experienced professionals.
So, we advise you to learn as much as possible and get certified in popular investment banking courses. In a field as competitive as investment banking, nothing is ever enough. Learning will always be a part of your growth.
Evaluate numerous career choices to choose the right career path for yourself. Dive into our guide on Career Advice.
Frequently Asked Questions (FAQ’s)
Q1. What qualifications do you need to be an investment banker?
Ans. To become an investment banker in 2024, you must have certain qualifications. Some qualifications include an undergraduate degree in one of the financial streams (Finance, Accountancy, Commerce, Economics, and Business) without exception. Optionally, you can follow up with a master’s degree and a doctorate to get high-level jobs in the common chain.
Q2. How do I get into investment banking?
Ans. To enter investment banking, you must complete your bachelor’s degree mandatorily. A master’s degree is preferred if you want great prospects. As for experience in the field, join internships or a full-time job offered by an investment bank with credibility. Then, you can work your way up in the corporate chain.
Q3. Which course is best for investment bankers?
Ans. A wide range of financial courses exist to study to become an investment banker. However, an MBA in Finance is best suited for entering the Investment Banking Industry. This postgraduate degree is one of the widest avenues as it includes all the necessary concepts, including business management, accounting, and finance & financial analysis.
Q4. Is an MBA necessary for investment banking?
Ans. An MBA degree is not entirely necessary to become an investment banker. You can get an entry-level position in investment banking with a bachelor’s degree in finance streams. But without a postgraduate degree, navigating this competitive field is hard. Enough experience will also play a key role in becoming a successful investment banker.
Q5. Who earns more, CA or investment banker?
Ans. Investment bankers typically see significant earnings growth over time, thanks to performance-based bonuses, equity shares, and high salaries at senior levels, such as Managing Director or Partner in investment firms. These financial rewards often outpace those in other industries, especially as professionals climb the career ladder.
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