In the financial-corporate modern world, investment banking is a lucrative career choice for aspirants looking for a challenging profession where every ounce of your hard work is paid off well both monetarily and in terms of recognition and job satisfaction.
The investment banking sector is a growing field, it is expected to grow by 8.5% by 2023
What an investment banker does?
An investment banker is a finance expert who manages the finances and investment decisions of a company, a bank, or a financial institute. The job role incorporates duties like raising capital, administer securities, investments, and fundraising from the capital markets.
Investment bankers also create vital financial strategies for mergers and acquisitions and asset management.
On the whole, an investment banker is responsible for most of the finance manager for an organization. Their key goal is to raise the required funds for operations and growth, make investments and assure financial security, and improve the overall financial portfolio of the company.
What are the qualifications required to be an investment banker? Read on!
Graduation
If you study business, commerce or economics, these are standard ways to enter into inv banking. Even with the base of engineering, one can get into investment banking. Finance/Accountancy/Commerce graduates can find entry-level job opportunities in investment banking. For instance, graduates can join as an intern at investment/brokerage firms or joining a bank/financial institute as a Junior Analyst. The average salary for an intern in the investment banking/ venture capital/ private equities company is in a few lacs. While this might seem like a suitable entry pathway to investment banking, the lack of specialized training, higher qualification, and experience can hold you back from bagging high-profile and well-paying job roles in this domain. Hence at undergrad level, you can pursue a degree in any field to get into inv banking but only grad degree will not suffice. You must meet other necessary criteria for this domain.
MBA Finance:
MBA (Finance) is one of the widest avenues for entering into the IB Industry. Since this postgraduate course covers all vital disciplines such as business management, accounting, marketing, commercial acumen, finance & financial analysis, it grooms students for an investment banking career. Plus, learners get ample opportunities to network with peers and industry experts. Equipped with an MBA (Finance) degree, candidates can land lucrative roles in banking, financial services, insurance, fintech, and startups. MBA with finance specialization is a very strong field of study as it opens many doors to enter into various industries such as investment banking, Research Analyst, Asset Management, Equity Management, Financial Consulting, etc.
CFA
For a Chartered Financial Analyst, making a way into the investment banking domain is a cinch. Since your educational qualification already opens up the gateway to the IB industry, you can find suitable employment prospects in reputed banks, financial institutes, investment firms, brokerage firms, insurance agencies, and management consultancies. CFA is not going out of demand in the coming future rather it is going to be the most demanded job profession in coming. The need for financial experts is growing and the same is being reflected in the competitive salary these professionals procure.
CA
Chartered Accountant is yet another one of the preferred qualifications for working as an investment banker. As a CA, the candidate is well trained in Finance, Money Markets, Equities, Securities, Mergers & Acquisitions, IPO listing, and Law, among others. This helps them to lock and load for working in banking and non-banking institutes as an investment banker.
“Where on one hand, CFA will help enhance your Analytical, decision making and solving skills, CA on the other hand, helps you become expert in accounting, regulatory standards and data analysis.
It is one of those professions where merely having a degree does not suffice – you need a knack for numbers and real-life experience
Apart from the educational qualifications, there are certain skills that are needed for becoming an investment banker, such as:
1. Analytics
The skill of data analysis, research, visualization of data, critical thinking and problem solving constitutes the analytical skills. These are important skills to be had for a professional. It is the ability to segregate the bigger problem statement into smaller categories and then approach these problem statements with a strategy. Investment banking in India and abroad demand these analytical skills.
2. Quantitative skills: You must have hands on knowledge into either of these: Economics, Mathematics or engineering. If you are from non-quant background than CFA or FRM is the ultimate course which helps you become expert in these skills. Other than this, you must work on your valuation skills, for example you must know how you will value a company l. You need to have valuation technology and understanding of how valuation works.
3. Calculative skills
A job in banking and finance can never be secure until you have strong mathematical skills. You must be very good in numbers in order to excel in this profession.
4. Finance knowledge : From basic accounting like maintaining a balance sheet to creating Profit & Loss statements, investment bankers must be proficient in basic finance skills. Financial knowledge requires someone to be held responsible for multiple tasks such as accounting, financial management, etc. Along with the hard skill certain soft skills are also required such as communication, interpersonal, etc.
Roles:
In addition to building strong client relationships, an investment banker may be involved in any of the following financial advisory activities for corporate clients:
Capital Raising
Private Placement of Capital
Mergers, Acquisitions & Divestitures
Corporate Restructuring
Debt & Equity Advisory Services
Bond Issuance & Pricing on Bond Markets
Hedge Fund, Mutual Fund, & Pension Fund Advisory Services.
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