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Who is a Investment Banker?
The individual investor should act consistently as an investor and not as a speculator ~ Ben Graham
An investment banker is a financial expert who handles complex transactions for businesses and governments. They work with top firms like Goldman Sachs, Morgan Stanley, and JP Morgan to raise capital and manage large deals. Their key role involves buying and selling securities and guiding companies through important steps like mergers, acquisitions, and IPOs (Initial Public Offerings).
To start a career in investment banking, students can pursue courses like Chartered Accountancy or Marketing Management, which build the skills needed for this dynamic field.
Investment Banker in a Nutshell
An investment banker helps corporations and governments raise capital, manage mergers and acquisitions, and provide financial advice. They work in investment banks, handling tasks like underwriting and market making. The career is hierarchical, starting from analysts to managing directors, requiring strong financial knowledge and communication skills. Though lucrative, it demands long hours and high pressure.
Quick Facts for Investment Banker
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Industry
Finance
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Average Salary in India
₹152500
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Suitable for
Male, Female, Others
Individuals can take up a career in investment banking, which is not gender-specific. Men, women, and others can choose a career as investment bankers. Finance and investment is a field that supports every gender. Investment bankers are required to be involved in assessment and research which can be accomplished by anyone possessing appropriate qualifications.
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Any special needs
Yes
Candidates with physical disabilities can opt for a career as an Investment Banker. A career as an Investment Banker is well suited to everyone, even those with special needs. An individual with qualifications and skills can surely work as well as excel in Investment Banking.
Table of Contents for Investment Banker
What is the role of Investment Banker?
Investment bankers are financial experts and play a vital role in the world of finance. They handle very complex corporate financial transactions. They function as an intermediary between companies and investors. Here are some of the important roles they fulfil:
Investment bankers help companies by raising capital in the form of IPOs, issuance of bonds, or private equity.
They help in complex corporate transactions such as mergers and acquisitions.
Investment bankers provide financial advice to clients and conduct market research to identify market trends.
They help in assessing and mitigating financial risk associated with financial transactions.
Types of a Investment Banker
An investment banker can work in different job profiles along with investment banking. We have discussed other related job profiles along with their descriptions.
Financial Planner: A Financial Planner is a person qualified in investment and finance who helps individuals and corporations meet their long-term financial goals. A financial planner works over several factors like budgeting, investments, savings for retirement, tax planning, insurance coverage, and more.
Credit Manager: A credit manager is accountable for the entire credit granting process, including the continuous application of credit policies. As a credit manager, one is required to periodically review the credits of existing customers, and also assess the creditworthiness of potential customers, with the aim of optimising company sales along with bad debt losses.
Certified Management Accountant: Certified Management Accountant is a person who possesses knowledge in the areas of financial planning, analysis, control, decision support, and professional ethics. He or she works inside organisations of all sizes, industries, and types, including manufacturing and services, public and private enterprises, not-for-profit organisations, multinational corporations worldwide.
Accountant: An Accountant is responsible for ensuring that the company does not go overboard with expenses and deplete its coffers. He or she plays an important part in business operations; their duties include the collection, recording, analysing, and presentation of a company’s financial operations to the stakeholders. The role of an accountant can change if the company is large.
Financial Advisor: A Financial Advisor assesses one’s financial situation, understanding what one wants to do with his or her money, and helping in creating a plan to reach one’s financial objectives. He or she helps individuals and corporations to reduce spending, pay off their debt, and save and invest for the future.
Account Manager: An Account Manager directly deals with clients. He or she makes beneficial relationships with their clients and keeps a record of other beneficial contacts. Key account manager responsibilities include collecting all the necessary information about clients such as identification documents.
What is the workplace/work environment of Investment Banker like?
Investment bankers are also required to handle customer complaints and check for late payments. However, in large firms, Investment bankers are required to perform all the jobs provided by the small firms along with making final investment decisions. They manage the hiring and supervision of Investment Checkers and other employees in their department.
Does Investment Banker require travelling?
Not Likely
Investment bankers spend most of their working time in the office itself unless they are required to visit a client or firm for some new investment lending project. Individuals who opt for a career as investment bankers are required to travel to business plants and industries in order to interview existing and potential clients.
Time Pressure
Likely
Time pressure is considered moderate in the case of Investment Banker careers. Investment bankers usually work for forty hours per week. Sometimes, when the work pressure is more and they are required to accomplish a project in less time, their working hours may extend to 45-50 hours per week.
How to become a Investment Banker?
Steps to become a Investment Banker
Understanding how to become an investment banker in India is a crucial step for those aspiring to work in the world of high finance. Investment bankers play a pivotal role in shaping the financial landscape by advising on mergers, acquisitions, and capital raising. This section of the article will guide you through the essential steps and qualifications needed to find the answer to how to become an investment banker in India and embark on this rewarding career path within the Indian financial sector.
What are the skills and qualities required to become a/an Investment Banker?
To become an investment banker one is required to develop a certain skill set to work in this domain. There are several requirements to opt for an Investment Banking career path. We have mentioned below the skills required for an investment banking career.
Communication skills: Investment bankers also manage the customers and directly interact with them in order to conduct proper research for investment worthiness. Investment bankers are also required to conduct meetings and present their projects in front of clients and customers. It is important for investment bankers to possess good spoken and written communication skills.
Decision-making skills: Investment bankers are required to review the investment processes of their potential corporations along with managing the financial losses and gains for the firm. Hence it is important to possess accurate decision-making skills and be able to conduct a proper judgement.
Patience: Investment Banking is a task that requires a lot of awareness and precautions before taking a decision. Investment bankers are required to manage their staff along with supervising the financial reports which requires them to remain calm under pressure. Only proper confidence and calmness can ensure an appropriate result.
Numerical Ability: Investment Bankers are responsible for determining the investment worthiness of their potential corporations, he or she is required to calculate financial reports of individual customers and firms. Investment Banking is a task that involves a lot of accounting and mathematics. Hence, possessing a high level of numeracy skills is a must for excelling in the field.
Leadership: Investment bankers lead a huge team filled with aggressive and intelligent salespeople. They supervise and oversee the staff working with them. They are required to manage the work of each and every employee who works under their supervision.
Attention to Details: Investment Banking involves accounting, money losses, analyses of information, and data of customers and the investing department. There is a big pile of numerical data that is to be handled by the investment bankers. They must possess accuracy in calculations since a single mistake can result in a big hazard.
Organising skills: Investment bankers oversee big staff and supervise almost every customer's details personally, they are required to work under the proper organisation. With so much responsibility and work, comes the responsibility of managing the staff.
Critical thinking: Management of the investment department requires sharp critical thinking skills that involve using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions, or approaches to problems.
Active learning: Active learning involves understanding the implications of new information for both current and future problem-solving and decision making which is an important asset for employees working in investment banking.
Which certifications and internships can be helpful in becoming Investment Banker?
In India, aspiring candidates often strengthen their investment banker qualifications by pursuing specialisation or certification courses. Some certifications that individuals may opt for who want to establish a career as an investment banker are given below.
Internship Availability
The competition is very high and adding skills with the help of internships helps students to gain industry experience and become market-ready. Accountancy, operations, subject matter experts, online teaching, research, and stock trading, and management are some of the most popular fields and posts that offer internships in the Investment Banking career path.
An Investment Banker intern is required to gather data pertinent to the engagement through client interaction and site visits. He or she is required to design financial models in order to discount cash flow, market transaction, market multiple, and opt pricing analysis.
Investment Banker Jobs and Salaries
Junior investment banker
Permanent
- Average Salary 55000
Job Description
Roles and responsibilities of a junior investment banker include meeting applicants and potential customers to understand their loan requirements, gathering loan information based on specific criteria, analyzing and verifying applicants' financial information, explaining and presenting different financial investment options to the potential customers, presenting approval and rejection decisions to management, ensuring investment terms and conditions comply with government regulations.
Salary Description
For an entry-level position with less than 1 year of experience, an investment banker earns an initial pay of Rs. 50,000 per month. After gaining some experience, a junior investment banker can earn up to Rs. 70,000 per month. The top-level salary for the position of a junior investment banker is somewhere around 1.2 lakh per month which includes bonuses, tips, and overtime pay.
Senior investment banker
- Average Salary 250000
Job Description
Senior investment banker performs various job duties for his/her potential customers. There are few organisations where each investment banker performs different duties, while at others, employees are specialised, with different bankers performing different jobs. An investment banker is the head of a team dedicated to raise capitals by issuing bonds.
Salary Description
The salary of a senior investment banker depends on a number of factors, such as experience and the company where the person is working. The average salary of an investment banker is around Rs. 250000 per month whereas, at the highest levels, it can go above Rs. 550000 per month.
What is the job outlook for Investment Banker?
Investment bankers are in demand in a wide range of industries and businesses along with banks and investment rating agencies. There are several sectors such as finance, accounting, and information technology that require investment bankers to uplift their customer support and manage the finances of their firm. The job of investment banking is one of the demanding as well as high paying around the world.
Frequently Asked Questions for Investment Banker
Que. What are the duties of an investment banker?
Ans.The job duties of an investment banker can include a variety of duties. However, the major job duties of an investment banker include management, supervision, sales work, tax planning, management and customers investment records, and investment planning.
Que. What makes a good investment banker?
Ans.The best investment bankers are able to motivate the people around them and make them feel valued. They should have a good working relationship with the sales department and be involved in the sales process from the moment a customer is given investment terms.
Que. What is the role of Financial Planner?
Ans.Financial planners help people in maintaining their finances and projects. They help in defining financial goals for their clients, for example when the client will be using their savings and what they’ll be using it for. Financial planners are required to know personal as well as professional and financial information about their clients and further use this data to create projections and accomplish their client’s goals.
Que. Is it hard to be an investment banker?
Ans.Becoming an investment banker can be challenging due to the demanding work hours and competitive environment, but it's not impossible with dedication and the right qualifications.
Que. Is MBA necessary for investment banking?
Ans.While an MBA can be beneficial for networking and career advancement in investment banking, it's not always necessary. Relevant skills and experience can also open doors in this field.
Que. What is the qualification for investment banker after 12th?
Ans.To become an investment banker after 12th grade, one typically needs to pursue a bachelor's degree in finance or a related field and gain relevant internships or experience.
Que. What is investment banker job?
Ans.An investment banker's job involves advising clients on financial strategies, mergers and acquisitions, and raising capital. They work on complex financial transactions to help businesses achieve their financial goals.
Que. How to become an investment banker after engineering?
Ans.If you have an engineering background and want to become an investment banker, consider pursuing a master's in finance or a related field, while also networking and gaining relevant internships to make the transition into finance.
Que. Is it hard to be an investment banker?
Ans.Becoming an investment banker can be challenging due to the demanding work hours and competitive environment, but it's not impossible with dedication and the right qualifications.
Que. Is MBA necessary for investment banking?
Ans.While an MBA can be beneficial for networking and career advancement in investment banking, it's not always necessary. Relevant skills and experience can also open doors in this field.
Que. What is the qualification for investment banker after 12th?
Ans.To become an investment banker after 12th grade, one typically needs to pursue a bachelor's degree in finance or a related field and gain relevant internships or experience.
Que. What is investment banker job?
Ans.An investment banker's job involves advising clients on financial strategies, mergers and acquisitions, and raising capital. They work on complex financial transactions to help businesses achieve their financial goals.
Que. How to become an investment banker after engineering?
Ans.If you have an engineering background and want to become an investment banker, consider pursuing a master's in finance or a related field, while also networking and gaining relevant internships to make the transition into finance.
Que. What does an investment banker do?
Ans.An investment banker performs various job duties for his/her potential customers. There are few organisations where each investment banker performs different duties, while at others, an employee is specialised, with different bankers performing different jobs. The investment banker is the head of a team dedicated to raise capitals by issuing bonds. The team is full of aggressive salespeople, each having a large contact list of leads from which to solicit investment business.
Que. What is an investment banker’s salary?
Ans.An investment banker with entry-level and less than one year of experience is expected to earn between Rs. 8 lakhs to Rs. 10 lakhs per annum which includes tips, bonuses, and overtime pay. After some advancement and with the experience of five to nine years, investment management professionals are expected to earn somewhere between Rs. 36 lakhs to Rs. 40 lakhs annually.
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Questions related to Investment Banker
what is salary of an investment banker ?
Hi,
An investment banker in India can earn anywhere from 10 to 50 lakhs, depending upon their skills, the college they pass out from, the company they are working with. If you are good in finance, maths, economics, accounting, and you continuously show that passion during your studies, you will definitely get a good paying job.
Answer laterwhat procedure should I follow to be an investment banker from pcm stream?
Hi,
Essentially, for an investment banker you must have knowledge about finance, economics, maths, accounting. If you are an engineering student, you can become an investment banker by pursuing BTech in Mathematic and Computing, given that your financial knowledge is very very strong.
There is no specific degree to become an investment banker, with investment banks hiring graduates from most subject areas. However, degrees like economics, business, mathematics and finance can give you an advantage. Financial literacy and confidence with numbers is a prerequisite to be successful in this career. Combination of spreadsheet, accounting and legal skills.
How do I become an investment banker after a B.Tech in mathematics and computing?
Hello,
Essentially, investment bankers are financial advisors to corporations and, in some cases, to governments. They help their clients raise money. That may mean issuing stock, floating a bond, negotiating the acquisition of a rival company, or arranging the sale of the company itself.
- There is no specific degree to become an investment banker, with investment banks hiring graduates from most subject areas. However, transferable skills from degrees like economics, business, mathematics and finance can give you an advantage.
- Financial literacy and confidence with numbers is a prerequisite to be successful in this career
- A person taking up a career in this field should have high resilience and the ability to face the consequences when things get tough
- Combination of spreadsheet, accounting and legal skills.
- Strong, professional communication ability is an important characteristic of an investment banker
- Good numerical skills
- Excellent team leadership and teamwork skills are required for a successful investment banker.
Hope this helps!!!
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Did you know?
Fact 1
Baring Brothers, founded in 1762, was the first modern investment bank.
Fact 2
Investment banking grew in India after economic reforms in the 1990s.
Fact 3
Investment bankers work 80-100 hours weekly during busy periods.
Fact 4
Mumbai hosts India’s major investment banks and the Bombay Stock Exchange (est. 1875).
Fact 5
Global investment banking revenues exceeded $100 billion annually before the pandemic.
