"Investment in Knowledge pays the best interest," is an age-old adage. But the contemporary maxim differs, "Investment in Investment Banking pays the bills." As a lucrative sector in the Financial industry, a career in Investment Banking helps a capitalist venture grow financially at an exponential rate.
Want to become a Kingmaker?
Then settle for Investment BanKing.
About Investment Banking:
Investment Banking is a process that helps corporate companies, government organizations, and individuals to create capital. Investment Banks are private institutions that provide the necessary financial services to these institutions.
Investment Banking encompasses a whole range of activities such as brokering issuance of securities, facilitating mergers and acquisitions, underwriting debt and equity securities, and assisting in the sale of companies.
Investment Banks are usually associated with or subsidiaries of huge banking institutions. Unlike commercial and retail banks, they don't accept deposits. Other services include trading of derivatives and equity securities, market making, and FICC services.
Who is an Investment Banker?
Investment Bankers help companies create and manage financial assets. Their primary role is to give financial advice to corporate institutions, individuals and government organizations. They help their clients to make sensible investment decisions.
A company's growth and profitability depend on its ability to invest with minimum risks. As a financial advisor, an Investment Banker assesses the financial risks associated with the undertakings of the company to prevent major losses.
They keep themselves abreast of the investing trends and customize their recommendations to current and future economic states. For companies wanting to go public, they participate in the Initial Public Offering (IPO) and buy their shares. They will be sold at a markup price by the Investment Banks.
A career in Investment Banking is highly competitive and filled with its share of perils. However, when the right decision is made at the right time, an Investment Banker can hit the motherlode. The efficacy of an Investment Banker depends on his trading and analytical skills.
Investment Banking Eligibility:
The candidates should have a Bachelor's degree in Finance, Accounting, Economics, or Mathematics. Investment Banking eligibility is applicable for students who have graduated in Computer Science, Liberal Arts, or Physics as well.
For high-level positions, they should have completed the Master of Business Administration (MBA) in Finance and the Chartered Financial Analyst (CFA) program. A degree in Law or a Master's in Financial Mathematics is also considered for a career in Investment Banking.
Investment Banking eligibility also depends on the marks secured by the candidates in their Bachelor's or Master's program. They should have obtained a minimum of 55% aggregate marks in the qualifying examination.
Investment Banking Courses:
Students yearning to make it big in the finance industry can choose Investment Banking. It is filled with challenges and exciting opportunities for those who want to become Investment Bankers. Investment Banking courses prepare aspirants for a successful career.
Some of the most sought-after Investment Banking courses after 12th grade are listed below:
| Courses | Duration and Eligibility |
| Bachelor of Commerce (B.Com) (Hons.) | Duration: 3 Years Eligibility: The students should have passed 10+2 or equivalent from any recognized Board in India with Accountancy, Business Studies, Economics or Mathematics as core subjects. |
| Bachelor of Arts (BA) in Finance | Duration: 3 Years Eligibility: The students should have passed 10+2 or equivalent from any recognized Board in India with Accountancy, Business Studies, Economics or Mathematics as core subjects. |
| Bachelor of Business Administration (BBA) in Finance | Duration: 3 Years Eligibility: The students should have passed 10+2 or equivalent from any recognized Board in India with Accountancy, Business Studies, Economics or Mathematics as core subjects. |
| Bachelor of Arts (BA) in Economics | Duration: 3 Years Eligibility: The students should have passed 10+2 or equivalent from any recognized Board in India with Accountancy, Business Studies, Economics or Mathematics as core subjects. |
A Certification Program in Chartered Financial Analyst (CFA) is also considered as one of the Investment Banking courses after 12th grade.
Investment Banking Colleges in India:
Some of the top Investment Banking Colleges in India are listed below:
- Indian College of Business, Hyderabad
- Bharathiar University, Coimbatore
- Bangalore Institute of Technology, Bangalore
- Indian Institute of Management Ahmedabad, Ahmedabad
- Aditya Institute of Management Studies and Research, Bangalore
- Indian Institute of Management, Kozhikode
- Acharya Bangalore Business School, Bangalore
These Investment Banking colleges in India provide ample opportunities for students to test their skills in trading, stock exchange, financial analysis and other aspects required for an Investment Banker.
Investment Banker Roles:
The profession is structured and requires maintaining a certain level of hierarchy. At entry-level, the individuals are tested in their analytical and trading skills before being made permanent or given a promotion.
Some of the Investment Banker roles and responsibilities include:
- Performing valuation methods such as comparable companies, precedents and DCF.
- Guiding and advising companies during their restructuring process.
- Developing different financial models to value debt and equity for mergers, acquisitions, and raising capital.
- Conducting background checks, research, analysis, and documenting live transactions.
- Being in touch with the current stock market trend for better analysis.
The varied nature of the job provides abundant opportunities for candidates to explore Investment Banker roles. An Investment Banker can change their job profile. Some of the other Investment Banker roles worth looking into are:
- Financial Analyst
- Business Analyst
- Research Analyst
- Equity Research Analyst
- Chief Financial Officer
Investment Banker Salary in India:
For an individual with less than one year of experience, the Investment Banker salary in India is about Rs. 6,10,000 PA. An Investment Banker with 1-4 years of experience earns about Rs. 8,00,000 PA including tips, bonus, and overtime pay.
An Investment Banker with 5-9 years of experience earns an average salary of Rs. 15,48,000 PA. An Investment Banker with more than 10 years of experience gets about Rs. 29,47,000 PA. Thus, the average Investment Banker salary in India is around Rs. 9,25,000 PA.
Conclusion:
Those who want to etch a name in their career can always try becoming an Investment Banker. It requires the ability to handle pressure, work with numbers and the presence of mind to bring huge profits to a company.
You have the power to determine a company's future. Take a calculated risk to reap the rewards.
