How to become an Investment Banker?
To become an Investment Banker, one must pursue graduation or post-graduation in fields like Finance or Banking. Although, candidates may also pursue Chartered Financial Analyst or MBA in Finance. Further, this field differs from retail and commercial banks as they don’t accept deposits. Moreover, one who wants to start a career in this field must have a practical mindset and creative mind.
What Is An Investment Banker?
An investment banker is a financial advisor to numerous financial institutions, including the government. Therefore, their primary aim is to raise capital for the government, corporations, and other firms they work for. Also, one should have good analytical and communication skills to convince clients to sell their services/products. Furthermore, they are responsible for mergers and acquisitions and raising capital.
The Different Types Of Investment Bank
Investment banking means advising on financial deals and managing services. Hence, their primary purpose behind this is to create capital for corporations, governments, and organizations. Therefore, its different types are as follows:
- Boutique Banks: Two subdivisons of Boutique banks are –
- Regional Boutique Banks: This small investment bank includes small organizations and firms based in local areas.
- Elite Boutique Banks: Most of the Elite Boutique Banks deal with high net-worth clients.
- Middle market Banks: The deal size of the middle market commences at the Boutique level and reaches the bulge bracket level.
- Bulge Bracket Banks: They handle the most complex and huge deals and manage multi-billionaire deals.
The Roles Of An Investment Banker
Experience plays an essential factor in this field. Further, it works completely based on hierarchy. Although, before reaching a desirable position, one has to go through a ladder of various posts in the firm. Moreover, the experience gained by an individual adds stars to the position. Further, below mentioned are the few roles that one goes throughout their career
Junior Analyst: A person who has work experience of 1- 2 years falls under this post. Graduates usually fill up this post. Further, this post requires the basic responsibilities of an investment banker, such as research, building financial models, supporting senior bankers, building relationships and many more.
Senior Analyst: One should have work experience of around 3-5 years for this post. Further, this is the next position for a person who gets promoted after working as a Junior Analyst. Further, an MBA degree in Investment Banking will help you get to this position.
Leadership Roles: In the bank, a leader has to oversee multiple departments and understand the functioning of these departments. Further, Leadership roles for an Investment Banker may include roles like managing director, vice president, and many more.
The Benefits Of Being An Investment Banker
- Highly pay scale
- Great opportunity to interact with others
- Numerous incentives
- You can become professional in a short interval
- Anyone can work in investment banking
Courses To Pursue to become A Successful Investment Banker
As per Global rating firm Moody’s, India will grow at a faster rate of 5.5% than the earlier projection of 4.8% in 2023 (Source-Economic Times). Hence, this is a good indicator for people looking to enter the Finance or Investment sector. Also, jobs in the Finance or Investment sector should see tremendous growth if India’s GDP grows faster than the other economies worldwide.
- MBA Financial Management
- MBA in Banking and Finance Management
- BBA in Finance Management
- BBA in Banking and Finance Management
- BBA in International Finance
- Chartered Financial Analyst (CFA)
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Conclusion
Investment banking provides an opportunity for each individual to enhance their profession. Moreover, these jobs have a high pay scale; therefore, pursuing a course in this field will help you in your career.
