The Investment Banking career offers an attractive destination for those ready to burn mid night oil and dream of earning fat pay packages. It involves working on deals to raise equity and debt capital for companies as well as mergers & acquisitions. The Investment Bankers provide valuation estimations of the financial and corporate deals of the companies. The career of an investment banker generally follows a standard path with five levels including Analyst, Associate, Vice President, Director and Managing Director. It is one of the highest paying jobs and career prospect for young professionals looking out for higher wages and executive posts.
What is Investment Banking:
Although the professional elements associated with this career option are very high, there is least awareness about different aspects related to this field for choosing it as mainstream career platform. Investment banking typically involves job responsibilities like underwriting, selling and trading securities, providing financial advisory services, managing assets and facilitating mergers. Investment bank as a whole works in different arrays of financial environment providing services to variety of stakeholders, governments, companies, non-profit organizations and individuals to help them raise money in capital markets.
Thus, role of investment bank can be analyzed to be of a mediator between investor and issuer where it helps in raising funds for specific firm. Role of investment bank is important in certain services like ‘Merger and Acquisition’ wherein it maintains optimum relations and balance between the buyer and seller sides of the deal. In addition, Investment banker also has to assist the companies finance division for redesigning ideas in equity and debt for overcoming financially distressed situation.
Differentiating Investment Banking
Previously investment banks and commercial banks were treated as separate entities because commercial banks used to be places for deposition of savings and money and in turn taking advantage of commercial and retail loans. Now these commercial banks have become one-stop-bank shops as they are providing more and more investment banking services to all of their clientele.There is very much difference in brokerage firms and broker dealers although there are still some misconceptions and misunderstandings regarding relativity of these three entities. Brokerage firm usually applies commission whenever it is involved in purchase and sale of stocks, mutual funds and bonds whereas, Broker firm also carries out same functions but trades on its own account. Apart from these two Investment bank is a broker dealer that provides financial services to corporations and companies.
What you need, to be an Investment Banker?
As you have understood the wide variety of functions and services provided by investment banks, you should understand some of the core competencies and skills that you should have before you go further.
- You should be able enough to provide logical evaluation of valuation estimates
- Tremendous work stamina and multitasking personality
- Better communication skills along with effective mental and emotional capabilities
- Ability to differentiate yourself from crowd
- In born zeal, passion and enthusiasm for finance
Courses in Investment Banking:
If you are choosing a career in investment banking then there are many institutes offering courses in investment banking for undergraduates and for postgraduates. Whereas, some institutes are known to provide Diploma and Certificate courses in the same genre. Minimum qualification required for the under graduate program is 10+2 pass and for post graduation course candidate should be graduate in the relevant field. Undertaking a course of investment banking requires you to have upright knowledge required in this profession with the help of wok shops and will let you understand different job opportunities available as an investment banker.
Leading Investment Banking Institutes
To make a career in investment banking follow some of these acclaimed institutes where your dreams will surely turn in to reality
- School of Investment Banking, Mumbai
- Planman Center for Higher Education (CHE), Delhi/NCR
- Institute of Chartered Financial Analysts of India University (ICFAI), Tripura
- The Society of Certified Investment Bankers, Hyderabad
Scope: Career as Investment Banker
Although, requirement and job openings for investment banker are constantly on rise you have to prepare yourself for fierce competitive yet easy recruiting process. With increasing competition, it is difficult to acquire this job without prior experience and industry exposure so it is better to undertake internship seriously and gain some valuable experience. However, on campus, interviews and networking will always help you achieve these jobs effortlessly and for additional opportunities, you can surf internet and other job portals. Some aspects like thorough knowledge of recruitment process, mock interviews, brushed qualitative skills, advanced analytical abilities and flawless confident communication skills are key points to crack interviews.
Jobs in Investment Banking :
As of today, even commercial banks have investment bank services they are in need of investment banker hence even large cap entities and local banks have similar openings. Some of the countries that are in constant requirements of experienced and intelligent investment bankers are Hong Kong, Tokyo, London, Moscow, Switzerland, Malaysia and Singapore.Some of the knowledge of large cap players that will help you shape your career I right manner includes Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers, Citigroup, Credit Suisse First Boston and JPMorgan Chase.
Some top investment banking companies in India where you can apply for investment banker post are JP Morgan , USB AG, Goldman Sach, Deutsche Bank, HSBC, Morgan Stanley, ICICI Securities, Kotak Mahindra, SBI Capital Markets and Ambit Corp Finance.