If you want to start a lucrative career in finance, becoming an investment banker is one of the best options. Let’s learn how to start your career as an Investment banker.
Investment banking is a financial institution division that provides consulting services to governments, corporations, and institutions in the market. It assists in capital raising from the primary markets for businesses using initial public offerings (IPOs), follow-on public offerings or FPO, and facilitates corporate company mergers and acquisitions (M&A).
Investment banks serve as middlemen for creditors and businesses in the market. Further, investment banks also function as primary brokerage and wealth management facilities in coordination with their investment research enterprises.
An investment banker is a finance expert who guides top-level management to raise funds for short-term and long-term operations and growth, adopt investment strategies to assure financial security and improve the financial portfolio. They provide various financial services, such as financial advice and consultation regarding securities. Usually, an Investment banker works with a team comprising the managing director, vice president, associates, analysts and other officers.
Investment Bankers examine a firm’s financial position and capital requirements and plan a suitable strategy for achieving predetermined financial goals. They include the process of raising capital, administering securities, investments, and fundraising from the capital markets for organizations, firms or other this kind of entities or, in some cases, governments.
Investment bankers also create essential financial strategies for mergers-acquisitions and asset management and oversee the company’s IPO (Initial Public Offering). They also help corporations navigate the most complex and vital business decisions, such as mergers and acquisitions.
Generally, the field of investment banking is vast, and their role ranges from entry-level to top-level positions, from executive and vice president.
Further, an investment banker is a person who identifies risk and market dynamics to reduce their negative impact on the business model.
Finally, Investment bankers help to decide the pricing of financial instruments and navigate regulatory requirements, as well as help clients with specific tax issues and find a feasible solution to minimize tax accountability and maximize returns.
The IB (investment banking) sector is growing fast and furious. A career is a crucial decision to make. So before deciding, let’s discuss why to start a career as an investment banker. I believe there are four reasons to select your career as an investment banker.
With globalization and continuous development, the need for skilled investment bankers is growing fast. An investment banker is not only demanded by corporate firms, but the government also needs an experienced investment banker.
The investment banking sector is growing; it is expected to grow by 8.5% by 2025. The investment sector is a complex platform, and demand for an expert is needed. However, with changing market conditions, the order for an investment banker may vary from place to place, company to company.
A successful investment banker can easily earn a high salary and colossal commission. Due to earning potential of a career as an investment banker, it is more desirable.
An investment banker’s career earns quite well off compared to other financial sector job positions.
Generally, investment bankers can easily interact with senior-level officers of big companies, corporations, business entities and governments.
It will provide them tremendous networking opportunities, which can be helpful professionally and personally. This network connection can help you during your promotion, or they can refer you to excellent options.
The investment banker sector is a dynamic and constantly changing market. So this will pull an investment banker into that bubble in which already learned skills and knowledge is essential, but one needs to update himself with the required changes.
Thus this will provide constant growth and new learning experience throughout your career journey. Apart from market changes, one needs to get up to date with changing technology to progress and grow in their career.
To start a career as an Investment banker, one needs top-tier education in finance, an excellent knowledge of analytics, critical thinking, strategic planning, mathematical skill, and a great time of experience.
After clearing the 10+2 examination, one has to pursue a bachelor’s degree in commerce, finance, maths, accounting, taxation law or any other area with at least a 50% minimum aggregate score. However, reputed commerce college students are given more priority.
If you built your financial expertise and finance knowledge at the former education level, then your career journey as an investment banker becomes easy. Some reputed institutes offer entrance tests to get admission to reputed colleges.
Here is a list of suitable commerce degree and certification courses to start your career as an Investment banker;
It becomes easier for a candidate to enter in IB industry if he has selected top colleges like IIMs, IITs, ISB, FMS, IIFT etc. So before choosing an institute, always keep this thing in mind.
Generally, it will take two years to complete your master’s degree through a regular college. One can opt for a Postgraduate Certificate Programme in Investment Banking (PGCPIB) offered by the Indian Institute of Management. The National Stock Exchange (NSE) Academy provides certification programmes in financial modelling, financial planning and business analytics, which consist six-nine month duration.
To get admission to a reputed and elite college, one must crack a good score in the entrance exam—for example, CAT, XAT, CMAT, MAT, SNAP etc.
A chartered certification programme is always suggested to enhance your investment banker career. Among all chartered programmes, CFA is the most prominent and promising certification as this programme offers intensive and practical training in investment and finance.
Apart from CFA, one can opt CA or CS certification programme. Further, one should also work on non-tech skills for a better career as an investment banker.
Only a degree is not enough to start your career as an investment banker; your real-life experience and a knack for numbers are essential. Internship programmes will help you advance your skills and provide the required expertise.
Simuntenuosely, this will also help create good networking, which will count as the boom in your career. Honestly, a paid internship at a reputed college is also advisable to opt for as this will enhance your expertise and make you a more desirable candidate.
To find an internship programme, one can opt for online sources or through campus placement, networking, or HR consultation. Your position in the IB sector is based on your internship performance.
It will take approximately seven years to be an investment banker after a 10+2 examination. After the 10+2 examination, it will take 3-4 years to finish your graduation. After graduation, it will take two years to complete a master’s degree.
One can opt for certification courses like CA, CFA or any other techniques while your graduates or master’s degree. You need another three to six years to earn a doctorate or PhD.
You can start your career as an investment banker after graduation. Along with degree certificates and experience, your career path boom. Furthermore, with work, one can opt masters or doctorate.
The salary of an investment banker includes not only base salary but also commission, profit share, bonus etc. An investment banker is the most rewarding job and salary, which depends on his skills, experience, position and performance of a company, growth of an industry, the economic position of a market etc.
Averagely an investment banker can earn a 40-80% bonus, depending on the position of the banker. As per the report shown in the figure by Glassdoor, the average salary of an investment banker in India is 3-40 lakh rupees annually.
While the initial years in this profession are rewarding, within 4-5 years, the potential of this job increases exponentially. The salary of an investment banker highly depends on the company you work in, your position of work and your location of work. Here I am sharing all data from the viewpoint of three aspects.
A company’s position is crucial when determining an investment banker’s salary. Here is a list that shows the average annual salary of an Investment Banker in different organizations for your reference.
The qualification and level of an investment banker is another essential factor when deciding the salary of an investment banker. An entry-level fresher analyst in Investment Banking earns around Rs 6-8 lacs per annum on average in India. While an experienced Investment Banker with 5-10 years of experience earns around 15-30 lacs, and with 10 to 20 years of experience, one can reach around 30-40 lacs.
The salary of an investment banker may vary based on location. Here is a list of the highest-paying cities for an investment banker:
The career of an investment banker is growing globally. Generally, all countries need a professional investment banker. However, here is a list oh a country that is offering the highest payback to investment bankers:
It is the most rewarding job, and salary ranges between INR 3 lakhs to INR 70 lakhs per annum, including shared profits and bonuses, depending on the experience, type of work, exposure and name of the company and brand. Digitization, coupled with growing technologies, has paved an excellent path for the future of Investment Bankers.
Top Recruiters for Investment Banking in India
No, being an investment banker is not a 9-5 job. It consists of long-hectic hours of work and long hours of meeting with top management. However, this is worth taking in terms of pay, salary and prestige.
One can develop skills and experience over time. However, the image and impact of a CFA Certification are unparalleled. CFA certification must have a certificate to achieve booming growth in your career as an investment banker.
Other similar roles can include:
A mid-career Finance Professional with 4-9 years of experience earns an average salary of ₹6.3 Lakhs per year, while an experienced Finance Professional with 10-20 years of experience earns an average salary of ₹14 Lakhs per year.
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