If you are keen to grow money out of money, you should consider the career option- investment banker. The career option has a huge prospect of growth in an emerging economy like India due to the presence of various untapped sectors. The investment banking sector is expected to grow at a rate of 7% from 2022 to 2032.
Getting to the top of this lucrative career option requires a combination of education, skills, experience, and a bit of luck. Here are the guidelines on how to become an investment banker in India.
Who is an Investment Banker?
They are the individuals who work as part of the financial institution and help them to grow their financial assets for clients, corporations, and governments. They usually work at investment banks, and they are often expected to have a good grasp of market trading activities and profitable securities. It may include structuring an acquisition, a merger, or a sale for clients. Investment bankers are professionals with high financial aptitude, and they are usually at the centre of decision-making for any major deals between associations.
Role of Investment Banker
Primary duties are as follows:
- They advise companies on buying, selling, or merging with other companies.
- They help companies issue securities (stocks and bonds) to raise capital.
- They do the valuation of companies or assets.
- They provide strategic financial advice to clients.
Process to become an investment banker
Step 1: Get an Investment Banker qualifications
A bachelor’s degree in economics and finance is majorly needed to start your career as an investment banker. You can also obtain a degree in other common education backgrounds like business and accounting. Moreover, there are individual financial institutions that also employ candidates who have a good understanding of financial assets and investing if not have a degree in the above-mentioned fields.
You can start with the following courses:
- Bachelor of Arts(BA) in Economics/Finance
- Bachelor of Commerce(B.Com) Hons
- Bachelor of Business Administration(BBA) in Finance
- Online Investment Banking Course
- Charted Financial Analyst (CFA) Programme
Look out for top-rated institutions that offer the above courses as if you have graduated from well-known school, it is where you have the highest likelihood of being noticed.
Step 2: Go for a Master’s or Certification
While you can still get a job with your bachelor’s degree, having an advanced degree is a plus point for improving your opportunities. After 2-3 experience, it becomes essential for an individual to upgrade their skills and knowledge. You can go for a master’s degree in business administration (MBA ) in finance or opt for certification courses. Besides, an advanced degree in mathematics can also be an added advantage to your career profile.
Useful Certifications:
Here is the list of useful certification courses that will help you in an investment banking job profile:
| S.No. | Course | Description |
| 1. | Chartered Financial Analyst (CFA) | This course covers a deep understanding of portfolio management and investment analysis. It is important for asset management and equities research. |
| 2. | Financial Risk Manager (FRM) | This course is important for investment bankers who manage and assess financial risks, especially in trading and derivatives. |
| 3. | Certified Investment Banking Associate (CIBA) | This course covers financial modelling, valuation techniques, and M&A processes. It plays a crucial role in deal-making and advisory roles. |
| 4. | Series 7 and Series 63/66 Licenses | Professionals involved with the sale of securities and investment products must possess these licenses. The Financial Industry Regulatory Authority (FINRA) requires them. Series 63/66 focuses on state law and ethics, and Series 7 deals with general securities. |
Step 3: Apply for an Internship
Internships can always be a beneficial option if you have first to know the basics of any profession. It provides a path for students or freshers also to obtain full-time employment. Looking for an internship will also give you a try in your desired field and to explore the work and culture. It is the best and perfect way to start your career.
Also, you will get an advantage to be a pro in the skills most organizations demand.
Below are some of the skills required for investment banking:
- Excellent number-crunching abilities
- Strong Written and Verbal Communication
- Analytical Skills
- Management and Leadership Skills
Step 4: Build Contacts
Investment Bankers usually spend their time selling. They are generally involved in convincing and providing money to the. They are the final power behind mergers and acquisitions of private companies and Fortune 500 companies. Hence, networking is an essential part of their job and a critical one. You need to make connections with people who have the authority to hire you and recommend more contacts. Investment bankers spend most of their time with people who understand them and give their money to them. If you are not a part of their culture and their routine, it is tough to break in.
After obtaining a suitable degree with top-notch institutes and networking widely, you can see yourself moving in the right direction. Keep advancing your career and input time and hard work. This is the career option that requires hard work and ambition to keep the money flowing into your bank accounts.
Top 5 Investment Banking Companies in India
Top companies offer a different level of work experience. Here are the five dream companies for Investment banking jobs:
- JPMorgan Chase & Co.
- Morgan Stanley
- Goldman Sachs
- Barclays
- Axis Bank
Investment Banker salary in India
The average salary of an Investment Banker in India is 19.8 LPA. However, it can vary depending on the company, certifications, experience, and skills. Here is the table that depicts the starting salary of an Investment banker in India and growth with gaining experience.
| S.No. | Experience (years) | Salary (LPA) |
| 1. | 0-1 | 5-7 |
| 2. | 1-4 | 8-13 |
| 3. | 5-9 | 16-20 |
| 4. | 10-19 | 23-27 |
| 5. | 20+ | 35+ |
Life of an Investment Banker
The life of an investment banker is quite stressful and demanding. Here’s an overview:
- Usually, they need to work for long hours. It can be 70 hours a week during peak season.
- Their day includes financial analysis, preparing presentations, meeting with clients, and coordinating deals.
- They have to meet strict deadlines, which often leads to stress.
- Their job requires precision and depth.
- They get high salaries, bonuses, and decent financial rewards.
- It’s a progressive career path with opportunities to reach top positions in a company.
How to become an investment banker abroad?
You have to take care of the below parameters when you are planning to go abroad for a banking profile. Follow these guidelines to secure your investment banking job abroad:
- Understand the investment banking requirement in the target country
- Ensure your financial qualifications are recognized in that country
- Work in a MNC bank
- Explore the visa options and work permit requirements
- Get CFA or other globally recognized certifications
- Connect with people living in that country
- Make professional networks via online platforms
- Consider the cost of living and cultural differences
