Investment Banking is one of the fascinating fields in the world of finance. Nowadays, people worldwide are aspiring to be Investment Bankers and making a career in Investment Banking. If you are reading this right now, then the chances are that you know about investment banking that how extremely demanding it is with the analysts working 100 hours per week. Probably, you are interested in exploring more about Investment Banking. But, for others who are here to learn, let’s begin with the basics in the blog curated for you on making a career in Investment Banking with investment banker salary in India & abroad.
This Blog Includes:
- What is Investment Banking?
- Why Investment Banking?
- How to Become an Investment Banker?
- Process and Training
- Course Options for Making a Career in Investment Banking
- Top 10 Universities Abroad for Investment Banking Courses
- Books and Study Material to Become Investment Banker
- Investment Banker Salary in India & Job Profiles
- Skills Required
What is Investment Banking?
Broadly, an investment bank is a private company that provides services related to finance and other services to corporations, individuals, and governments. It provides services like raising financial capital by underwriting or behaving as the client’s agent in the issuance of securities. It may also facilitate companies involved in mergers and acquisitions (M&A), and assist with ancillary areas such as trading of derivatives and equity securities, market making, and FICC services. An investment bank is different from a commercial bank and a retail bank because it does not accept deposits. Candidates can look at some popular investment banks below for making a career in Investment Banking:
- JP Morgan
- Goldman Sachs
- Deutsche Bank
- Citibank, etc.
Why Investment Banking?
Generally, many young millennials are drawn to this field of work due to its prestige and earning potential, but that should not be the main factor for their ambition. People going into investment banking usually need to have a practical mindset and think out of the box for innovative purposes. Below are some genuine reasons why Investment Banking as a carrier might be a good choice for you:
- You’re interested in the skills you’ll gain as an investment banking analyst, such as Excel, and financial modeling.
- You want to learn more about high profile transactions, financial markets, and how a company makes financial decisions.
- You thrive in a fast-paced environment with long hours.
How to Become an Investment Banker?
Making a career in Investment Banking is a multi-step procedure that will need education, ambition, networks, hard work, and sometimes smart work. So if you are motivated enough for making a career in Investment Banking then keep on reading the following discussed points:
- Job Roles: Investment Banking positions (increasing order of seniority) are; Analyst, Associate, VP, Director, Managing Director·
- Eligibility: Investment bankers can hail from various backgrounds but being a crackerjack at mathematics is significant. It would be best if candidates had a bachelor’s degree in finance, accounting, economics, or mathematics. But aspirants from other fields like computer science, liberal arts, or physics can also tread on this path. Entry-level positions like analysts require only a bachelor’s degree, but MBAs and CFAs are most common for higher levels. A degree in Law or a master’s in financial mathematics may also be helpful.
- Internship: An excellent way to get the gist of making a career in Investment Banking and create a professional network is to do an internship. It can help candidates to be well-versed with the details of investment banking. Connections are of enormous relevance while thinking of Investment Banking as a career choice. ·
- Top Employers: After getting the education part right, aspirants need to concentrate mainly on networking while still in school to land a job as a banker. Central investment banks recruit analysts and associates from top business schools and interns who have worked with them. So, if you are not an alumnus of a prestigious B-school or could not get the right internship, then connections are the only thing you can rely on.
Process and Training
Enlisted are the steps of process and training on how to make a career in Investment Banking:
- Investment Bankers undergo a rigorous period of training through their employers. This training can last up to several weeks, and it helps new analysts with principles of accounting, markets, risk, financial statement analysis, and financial modeling. They also learn about negotiation skills, presentation skills, and communication.
- Becoming an analyst is easier as compared to the higher positions in the hierarchy. Directly after your bachelor’s degree, you can aim to be an analyst. But, it can take three or more years of working experience and a higher level degree to move upward to positions like an associate.
- Lastly, come to the role of hustling and motivation to become an Investment Banker. Candidates can learn more about the requirements and training process by visiting large investment banks such as Goldman Sachs and JP Morgan. These organizations detail the various programs they are offering for undergrads, graduates, and experienced professionals.
Course Options for Making a Career in Investment Banking
The field of Investment Banking is extremely competitive. Finishing an expert program in an exceedingly connected stream makes a student a perfect candidate for employment. Check out the popular courses for Investment Banking that you can consider:
Top 10 Universities Abroad for Investment Banking Courses
Investment Bankers are in demand across the globe. We have curated a list of top business schools that will take you one step closer to your dream of how to become an investment banker:
- University of Pennsylvania
- New York University
- The University of Michigan at Ann Arbor
- Harvard University
- Cornell University
- Princeton University
- Columbia University
- Boston University
- National University of Singapore
- London Business School
Top 10 Colleges in India for Career in Investment Banking
There are numerous courses you can take to build your career as an Investment Banker. Management courses are available in uncountable colleges in India. Here is a list of top colleges in India for you:
- Indian Institute of Management, Bangalore
- Indian College of Business, Hyderabad
- Bharathiar University, Coimbatore
- Indian Institute of Management Ahmedabad, Ahmedabad
- Indian Institute of Management, Kozhikode
- MICA, Ahmedabad
- School of Management Studies, Delhi
- Shaheed Sukhdev College of Business Studies, Delhi University
- Keshav Mahavidyalaya, Delhi University
- Lala Lajpat Rai College of Communication & Economics, Mumbai
Books and Study Material to Become Investment Banker
For preparing yourself in the field of investment banking it is highly recommended to start with undergraduate-level courses by utilising school-level study materials and books. On the other hand, those who are above the intermediate level and are applying for MBA programmes must refer to MBA entrance examination related books. In order to prepare your aptitude skills for an Investment Banking related interview, here is a list of books you can study from.
|Investment Banking: Valuation, Leveraged Buyouts and Mergers and Acquisition||Joshua Rosenbaum, Joshua Pearl||Wiley|
|The Best Book on Investment Banking Careers||Donna Khalife||Hyperlink|
|The Man who solved the Market||Gregory Zuckerman||Penguin|
|Middle-market M&A||Kenneth H. Marks, Robert T. Slee, Christian W. Blees, Michael R. Nall||Wiley|
|Financial Modeling and Valuation||Paul Pignataro||Wiley|
Investment Banker Salary in India & Job Profiles
An investment banker is one of the most sought-after professions and one of the contributing factors to this is high-paying jobs. Here is the basic investment banker salary in India & abroad with popular job profiles :
|Category||Salary per annum in INR||Salary per annum in USD|
|Financial Analyst||5 lakhs – 8 lakhs||6,800 – 10,900|
|Account Manager||7 lakhs – 12 lakhs||9,500 – 16,000|
|Relationship Manager||7 lakhs – 9 lakhs||9,500 – 12,300|
|Business Analyst||6 lakhs – 12 lakhs||8,200 – 16,000|
|Bank Manager||6 lakhs – 10 lakhs||8,200 – 13,600|
|Research Analyst||6 lakhs – 10 lakhs||8,200 – 13,600|
|Chief Financial Officer||15 lakhs – 20 lakhs||20,500 – 27,300|
|Equity Research Analyst||7.5 lakhs – 12 lakhs||10,200 – 16,000|
- Mathematical Skills: For making a career in Investment Banking, mathematics is one of the key skills for sustaining in the Investment Banking Industry. If you have no basic knowledge of calculations and solving problems then Investment Banking is not the right place for you.
- Analytical Skills: It is also an integral skill an aspirant must possess. Working on research and financial models requires a great analytical mind to learn and adapt to those quickly.
- Basic Knowledge of Finance: Entering into the finance world would definitely ask you to be aware of basic knowledge of Finance. No finance recruiter would be keen on hiring candidates if they are lacking in basic financial knowledge. It includes knowledge of three basic statements such as Profit & Loss Account, Balance Sheet, and Cash Flow Statement.
- Basic & Advanced Ideas of Powerpoint and Excel: Aspirants are required to know the basic and advanced ideas of both the tools because 80% of the work of Investment Banking consists of working on Excel and PowerPoint presentations.
- Financial Modeling is a Plus: For making a career in Investment Banking, it would be best to have a sound knowledge of Financial Modeling. Investment Bankers work day and night on models, they are always in search of aspirants who can build models from scratch.
On average investment banker’s salary in India ranges between Rs. 8 lakhs to 12 lakhs per annum.
First-year investment bankers earn about Rs.6 lakhs to 8 lakhs per annum.
Kunal Shah became the youngest partner at Goldman Sachs and the youngest investment banker of India.
JPMorgan Chase, Goldman Sachs, BofA Securities, Morgan Stanley are some of the biggest investment banks.
We hope you find our blog on Making a Career in Investment Banking and investment banker salary in India & abroad insightful. If you are also aspired to become an Investment Banker contact a Leverage Edu expert today and bridge the gap between dreams and reality. We can have the most experienced and successful investment bankers in the country to mentor you and guide you about Investment Banking.