Guide to Become an Investment Banker

Investment banking is a specialised type of financial service that assists organisations and institutions in raising capital. It is one of the most lucrative and demanding careers in the finance industry.  Investment banks understand the needs of corporations and provide guidance and services to manage their financial activities. 

Investment bankers advise clients on the advantages and risks of each proposed transaction. Furthermore, they have access to a wide network of global contacts that allows them to source capital from multiple sources. In order to be successful, investment bankers need to have a keen eye for trends in order to identify potential opportunities and make sound investment decisions. 

Who are Investment Bankers?

• Investment bankers are finance professionals who play a major role in helping companies, institutions, organisations, and individuals make important financial decisions.

• They provide advice on how to achieve financial goals and offer a wide range of services, including underwriting, sales and trading, equity research, commercial banking, retail banking, and more.

• They also often develop market strategies for public and private companies, such as mergers and acquisitions, initial public offerings, and other corporate transactions.  

• Moreover, they must have strong negotiation and communication skills to effectively structure deals and manage clients.

• To become an investment banker, you will need a bachelor's degree in finance, economics, or a related field. It is also essential to have a strong understanding of financial markets and products, as well as excellent analytical, mathematical, problem-solving, and communication skills. 

What do Investment bankers do?

Investment banking is a fast-paced and highly demanding job requiring long hours and excellent analytic, financial, and communication skills. Below given pointer will help you understand the basic day-to-day responsibility of an investment banker:

• Investment bankers' duties include researching and analysing market reports, databases, and other financial sources to gather relevant information for decisions, preparing presentations and proposals, issuing securities, underwriting bonds, and analysing mergers and acquisitions.

• They are responsible for researching and analysing investment opportunities, monitoring current markets, and making recommendations based on their findings.

• They are also involved in making debt and equity offerings to raise funds.

• They are expected to complete administrative tasks, such as responding to emails, organising meetings, making travel arrangements, and ensuring regulatory compliance.

• They advise companies on initiating stock prices, handling initial public offerings, and issuing securities.

Steps to become an Investment Banker

The role of an investment banker is one of critical importance as they are responsible for executing financial transactions between two entities. The following given is the step by guidance in becoming an investment banker:

• To become an investment banker, it is essential for candidates to have a solid educational foundation, particularly with regards to 10+2. A minimum score of 50% aggregate or equivalent CGPA is required from a recognised board. Candidates have the option of choosing between the arts, commerce, or science streams when it comes to the 10+2 board exams.

• An undergraduate degree in finance, economics, accounting, or business administration is a prerequisite for any aspiring Investment Banker. Getting a degree in one of these fields from a recognised university is essential to enter the world of Investment Banking. Depending on the university and program, coursework may include mathematics, accounting, economics, financial management, corporate finance, investing, taxation, data analytics, and business administration. 

• An MBA in financial management or a Master of Science (MS) in finance can be highly beneficial for those aspiring to become investment bankers. A two-year MBA degree in financial management can provide a comprehensive understanding of the field, with courses in areas like accounting, economics, business analytics, and management. 

Meanwhile, the National Stock Exchange (NSE) Academy offers postgraduate programs in investment banking and capital markets, banks and financial planning, business analytics, and management accounting that can last from six to nine months. Both of these programs can equip aspiring bankers with the essential skills, knowledge, and understanding to enter the investment banking field. They also provide the opportunity to network and develop contacts with professionals in the industry, giving students a competitive edge when seeking employment.

• The Chartered Financial Analyst (CFA) professional credential is a great way for those looking to advance their career as an Investment Banker. With an intense and practical investment and financial training curriculum, CFA candidates are exposed to a wide range of topics, from economics, corporate finance, derivatives, equity investments, alternative investments, financial reporting, and analysis, to quantitative approaches. The program can take anywhere from one to four years to complete depending on the candidate's prior knowledge and experience. It is important to note, however, that to become a CFA candidate, one must first have completed a bachelor's degree. 

• Investment banking internships offer a unique opportunity to gain valuable experience and develop important skills. Interns can expect to gain an understanding of the financial markets and a firm’s investment banking activities. They will learn financial analysis and develop their presentation, communication, and negotiation skills. Additionally, interns may be exposed to capital markets, mergers and acquisitions, and other banking operations. Internships generally range from two months to two years, and successful completion of an internship can lead to a permanent career as an investment banker.

Top colleges for investment banking:

College Name	NIRF Ranking	Average Fees (INR)	Exam Accepted	Average Salary (INR)
Indian Institute of Management (IIM- Kozhikode), Kozhikode	5	19 Lakhs	CAT, GMAT	18.5 LPA
IIM, Lucknow	6	14 Lakhs	CAT	24 LPA
Symbiosis Institute of Management Studies, Pune	17	15-30 Lakhs	SNAP	23 LPA
K. J. Somaiya Institute of Management Studies and Research, Mumbai	71	16 Lakhs	CAT/ XAT/ CMAT/ GMAT/ NMAT and MAH MCA CE	10 LPA
School of Business, UPES, Dehradun	41	8-26 Lakhs	CAT, GMAT	7-8 LPA
Christ University, Bangalore	71	7-8 Lakhs	CAT/ GMAT/ MAT/ XAT/ CMAT/ ATMA	8 LPA
Department of Management Sciences, Pune	17	30-40K	MAT, XAT, GMAT, CAT, CMAT, ATMA, MAH CET	7.6 LPA
MIT School Of Management, Pune	116	7.5 Lakhs	MHT CET, CAT, MAT, GMAT, XAT, CMAT	5 LPA
New Delhi Institute of Management (NDIM), New Delhi	100-130	10 Lakhs	CAT, XAT, CMAT, MAT, ATMA, GMAT	6.5 LPA

Salary of Investment Banker in India

One of the factors that make being an investment banker one of the most sought-after careers is the high salary. The base salary for investment bankers in India and around the world for common job profiles is as follows:

Job Role	Job Description	Average Salary (INR)
Account Manager	Making sure each department satisfies the needs of its clients and customers is the responsibility of an account manager. They deal with client complaints, resolve their problems, and maintain a good connection between the two sides for future business dealings.	7-12 LPA
Bank Manager	A bank manager is likely to have full control over all aspects of the business, including market analysis, forecasting, setting financial objectives, and accomplishing branch business goals. They will also be in charge of controlling expenses and fund allocation.	6-10 LPA
Business Analyst	Business analysts evaluate an organisation's performance and work with it to enhance its systems and processes. In order to find solutions to business challenges, they perform research and analysis. They then assist in introducing these solutions to businesses and their customers.	6-12 LPA
Chief Financial Analyst	They frequently work for banks and insurance firms and must be certified by the international Chartered Financial Analyst Institute in order to do so. They are responsible for data gathering and analysis, budget creation, and client financial or investment counselling.	15-20 LPA
Equity Research Analyst	To assist portfolio managers in making more educated investment decisions, equity analysts examine stocks. To understand and forecast a given security's behavioural outlook, equity researchers use a variety of approaches, including problem-solving techniques, data interpretation, and other tools.	7.5-12 LPA
Financial Analyst	They analyse and evaluate the operating records, financial statements, proposals, investment prospects, rate of return, and capital expenditures.	5-8 LPA
Relationship Manager	In addition to meeting customer needs and fostering strong client relationships, relationship managers often look for possibilities to forge new connections and expand existing business relationships.	7-9 LPA
Research Analyst	A research analyst conducts research, gathers and analyses data, and then uses the information to solve problems and enhance a company's decision-making and efficiency.	6 - 10 LPA

Some of the top investment banking companies in India that hire investment bankers are:

• Avendus Capital
• Axis Capital Limited
• Edelweiss Financial Services Limited
• JM Financial Institutions Securities
• IDBI Capital
• Veda Corporate Advisors
• J.P. Morgan
• Accenture
• Wipro
• Goldman Sachs
• HSBC
• Citigroup

Skills required : Investment Banker

Investment banking is a highly competitive career and requires dedication and hard work. Below given are the skills required to become a successful investment banker: 

• Communication skills: On a daily basis, these professionals communicate with a wide range of stakeholders, including coworkers, supervisors, and clients. For all investment bankers, being able to speak clearly to various audiences is essential.

• Analytical skills: To analyse large sets of economic data and draw conclusions from their results, investment bankers require analytical abilities.

• Decision-making: For their clients, investment bankers must make important decisions. They must understand how to examine trends to make intelligent investment decisions.

• Multi-tasking: As Investment bankers have multiple tasks, it is important to decide which task needs to be done first while keeping the balance among other tasks as well. 

• Detail-Oreinted: The high risks of investment banking require careful attention to every detail. Even a minor error might make the difference between a company going bankrupt and one that succeeds after securing funding in this high-stress work environment. 

Conclusion:

Although the job of an investment banker can be demanding, it can also be very rewarding. Investment bankers can make substantial salaries, enjoy job security, and be well-respected in the business world. With the right qualifications and hard work, individuals can have a successful career in investment banking. To gain an edge in the competitive job market for investment banking, individuals should consider pursuing a degree in a related field and enrolling in specialised training courses.  Sunstone  helps you create your professional portfolio that will 200% increase the chances of your placement with our 100% placement assistance. The curriculum at Sunstone is designed to enhance employability by providing capstone projects to help grow students professionally and personally.

FAQ - Investment Banker

Is a master’s degree necessary for becoming an investment banker?

Companies in India don't require a Master's degree to hire junior analysts. Nowadays, a lot of banks recruit students right out of undergrad programs, and there are lots of internship opportunities for students. However, earning a master's degree will increase your chances of getting a rich job in a high-ranking position.

Is it hard to become Investment Banker?

Because of the demanding and stressful nature of the job, becoming an investment banker can be fairly difficult. Investment bankers frequently work more than 80 hours per week while still having to adhere to rigorous rules and handle stressful situations.

How long will it take to become an Investment Banker?

To become an investment banker, 4-6 years are typically required. You might be hired as an investment banker after graduation if you are currently studying for an appropriate undergraduate or graduate degree from a prominent university.