How to Become an Investment Banker: Career Guide, Courses, After 12th, Jobs, Salary and Scope

21-Oct-2022

An Investment banking job is said to be among the most exciting and challenging careers in the finance-related field. The field of finance is naturally marked by fluctuation, rise, and fall in the market, professionals must be dynamically and efficiently equipped to perform under such circumstances and remain updated at all times. The job hence demands highly qualified, well-trained, and experienced professionals to take on such challenging roles. Investment bankers are professionals with high and strong financial aptitude coupled with excellent knowledge of the market. The trail toward an Investing banking job seems difficult, yet with a proper and targeted educational plan, no profession is too tough to land.

Today in this article, we shall largely discuss how one can become an Investment banker and the numerous possibilities available within the investment banking spectrum, salary pattern, and the extent of the Investment banking field.

Let us first understand what Investment banking entails to understand better the journey leading up to becoming an Investment banker.

How to Become an Investment Banker

The main responsibility of investment bankers is to raise funds for businesses, governments, and other financial institutions. Investment bankers serve as financial advisors to the government as well as to different financial institutions. Investment bankers, in summary, are industry professionals in financial services with strong analytical skills and persuasive communication talents that support institutional clients in tasks like capital raising and mergers and acquisitions.

Aspiring students can enroll in undergraduate or Postgraduate programs in Investment Banking Banking or Finance courses to learn how to become an investment banker. To become an investment banker, students can also get an MBA in finance or become a Chartered Financial Analyst. Investment bankers can also be chartered accountants or CA students after finishing the necessary coursework. To become an investment banker, there are a number of measures that may be taken, like picking the right subject combinations, getting ready for entrance examinations, picking the right colleges, etc.

Investment Banking Career Path

Building your career from the ground up is crucial if you want to work in banking. If someone chooses to pursue a career in banking, practice in this area should begin as soon as possible. Students who want to work in banking should prioritize subjects like math, finance, marketing accounting, and economics that are connected to the business world. Aspiring individuals must begin preparing for several banking entrance exams or various MBA entrance exams like the CAT, MAT, SNAP, NMAT, and XAT, among others. Multiple opportunities have emerged, given the needs and demands of professionals in the job market. Investing in a graduate or PG program in Investment Banking will help in achieving your goal faster and easier.

A few of the study plans that aspirants may take up after completing higher secondary education or college are discussed briefly below:

Graduation

For greater career chances in the Investment banking profession, students should earn a Bachelor's degree in disciplines including the following :

Banking
Finance
Business Studies
management
Economics
Accounting

Students with degrees in Engineering, mathematics, physics, computer science, financial engineering, information technology, corporate/business law, and other fields from different academic backgrounds can easily apply for this job. To get into the best B-schools for higher study, students should start preparing for the CAT and other banking admission tests as early as the UG level.

Post Graduate or PG Program in Investment Banking

The majority of reputable banking positions are more inclined or majorly need candidates to be PG-qualified. Therefore, after graduating, you must pursue a master's degree in a pertinent discipline. Enrolling in a Post Graduate program in Investment banking is ideally the best way. While there are numerous degree courses, job-oriented courses designed particularly to train prospective bankers are a better option for those whose objective is to start soon as a banker. Such course programs are oriented toward the job market and train professionals in the fundamentals of Investment banking and several other concepts aligning with industry trends and demand.

The Postgraduate Programme in Investment Banking is typically designed to give professionals the skills they need to manage various aspects of investment banking roles and responsibilities, including asset management, security valuation, and other derivatives instruments, to achieve specific investment objectives for the benefit of investors. The course also seeks to provide high net-worth individuals with access to the various functional areas of investment banking, such as Mergers & Acquisitions, Investment, Portfolio Management, and Investment Advisory Services. Additionally, most training covers the methods and tools required to optimize the risk-return framework across different asset classes.

Other PG Programs in Investment Banking

Getting an MBA in Banking and Finance is another fine option. Another Post Graduate course that opens up good opportunities is M.Com, which is well-liked by most aspirants. A few other Post Graduate programs ideal for Investment banking are:

Postgraduate Diploma in Banking Management,
Postgraduate Diploma in Banking and Financial Services,
Postgraduate Diploma in Banking and Banking Operations
PG program in Operations Management
Advanced Certificate Courses in Commercial Banking or Law and Loan Management.

Skills Crucial for Investment Banking Profession

Any individual who wants to work in banking should possess a certain set of skills. We have listed the most critical ones below:

Analytical and Problem-Solving Skills
Mathematical abilities & skills
Exceptional Communication Skills
Ability to see well and look deeply
Ability to Manage Your Time
Leader-like Attributes
Proactive and optimistic outlook
Possessing effective interpersonal and teamwork abilities
Multitasking abilities
A capacity for pressured work

Technical Skills Required

There are several technical skills that an Investment Banker must have prowess in. A typical PG Program in Investment Banking will focus on providing these requisite skills:

Analytical thinking
Equity Financing
Underwriting Deals
Innovation
Financial modeling
Asset management
Risk management

Understanding the Scope of PG Program in Investment Banking

Jobs after Post Graduate Program in Investment Banking

Apart from the numerous banking and Financial job opportunities, within the area of Investment Banking itself, there are several job profiles. The roles may differ in each job profile and position.

Let us learn about a few of the major positions in Investment Banking.

Actuaries

Actuaries are experts in the financial sector who carry out risk analysis and create strategies for lowering financial risks. Deep knowledge of arithmetic, economics, computer technology, and statistics is required of actuaries. They aid the company in becoming ready for shifting circumstances.

Finance Managers

Finance Managers are in charge of assessing the organization's overall financial situation. They support managing spending, calculating profitability, controlling cash flow, and creating financial data.

Quantitative Risk Analyst

A quantitative risk analyst aids in the analysis of portfolios and business strategies to determine risk and performance, assists in the development of solutions to enhance a company's financial stability, and conducts research and develops cutting-edge methods to manage financial risk.

Regulatory Reporting Accountant

The regulatory reporting accountant is in charge of reporting financial data. They take care of legal compliance, make sure that technical requirements are met, and produce the necessary reports for senior management.

Portfolio Manager

Investment decisions are made by portfolio managers. They are also referred to as investment portfolio designers and professionals in the financial markets. Asset management is one of their areas of expertise, along with minimizing market and financial risks.

Mergers & Acquisitions

These bankers are expected to have a specific understanding of Financial modeling. They specialize in offering companies advice and plans in the event of mergers and acquisitions.

Salary Pattern

In India, an investment banker makes an average pay of about INR 9.08 LPA. The average monthly compensation for an investment banker, according to Glassdoor, is between INR 70,000 and 1,77,500. However, a number of other elements, such as title, knowledge, abilities, experience, etc., can affect income. In India, an investment banker can earn up to 90 LPA.

The salary packages vary depending on the hierarchy and profile. The average salary of Investment bankers in different positions in India are:

Director Investment Banker INR35.00 L per annum
Investment Banker Analyst INR 8.02 L per annum
Investment Banker Associate INR 19.11 L per annum
Vice President Investment Banker INR 56.30 L per annum

Other Salary Packages in India

Actuaries- INR 13 L annually
Finance Managers- INR11 L annually
Quantitative Risk Analyst -INR 17.50 L annually
Regulatory Reporting Accountant -INR 13.56 L annually
Portfolio Manager -INR 11.2 L annually
Mergers & Acquisitions -INR 10.57 L annually

Top Hiring Organizations

Banking sectors have a special space for Investment bankers as they play crucial roles. Even stock markets rely on them. In India, the following giants are the top recruiters for experienced as well as fresh professionals to fill the Investment Banker position across numerous sectors:

J P Morgan
Barclays
ICICI Bank
Kotak Mahindra
Yes Bank
UBM Bank
HSBC
Ernst & Young
IIFL

Investment banking is an excellent career prospect with attractive salary packages. As professionals gain expertise and experience, they can start their own businesses and make executive decisions for the company. They may also work for different businesses and organizations as a freelance investment banker. Apart from the handsome salary, the numerous working opportunities come along with job security.

Professional investment bankers can operate from any location in the world because of the skills they develop through practice. They can readily find employment anywhere across the globe, given they have expertise and experience. Sign up for your Post Graduate Program in Investment Banking now and get your dreams of enjoying one of the most elite jobs rolling.