A career in investment banking is a high-profile one with high salary compensation and job satisfaction. The job has a lot of responsibility like dealing with bonds, mergers and acquisitions, securities, debts, stocks, and derivatives. The investment bankers help the clients to invest their money in a way that yields the highest possible returns.
It is a fast-paced and rewarding job that more graduates are behind it nowadays. Moreover, it paves the way for bigger careers like wealth management, venture capital, or entrepreneurship. To become a successful investment banker is a challenge as you need to keep your endurance level high all the time. Still, you can always keep your career flying high by possessing, market research, analytical, verbal and written communication skills apart from holding an investment banking certification.
Let’s move forward and understand the career path to become a successful investment banker.
Job profile of an investment banker
An investment banker works with companies and government and helps them raise money by creating securities like bonds, stocks, or other financial entities that can be sold in capital markets. They also structure the complex financial details for businesses to buy or sell assets, acquire or merge with other companies, help investors purchase securities, trade securities, provide financial advice, and so forth.
To summarise, an investment banking professional interface with corporate finance groups, capital market professional government, banks, portfolio managers, analysts, traders, and more. Some of the roles and responsibilities include-
- Liaise with client companies
- Act as an advisor for clients
- Manage client transactions
- Structure deals and negotiate terms
- Track capital markets
- Set up deals for mergers and acquisitions
- Transact equities, currencies, or bonds
- Redirect cash flows to investors
- Evaluate and mitigate investment risks
To become an investment banker, you should have the following educational qualification(s).
How to become an investment banker
- Commerce or science background in class 12 is required.
- Graduation in the field like finance, accounting, security analysis, mathematics, computer science, physics, portfolio management and investment is highly desirable. Further, the candidate can take an internship in investment banking to become an investment analyst.
- A post-graduate degree in financial mathematics, business economics, financial analysis, investment banking and equity research
A one-year program in banking and finance, investment and business research, global investment, financial planning, portfolio management and security analysis after graduation is appreciated.
- Earning an investment banking certification is required
- Career Profile: Associate>VP> Director
Certified investment bankers are placed in reputed financial industries. It includes top-level investment banks, regional investment banks, middle-market, financial specialist firms, trading firms, capital markets, government, program trading, technical analysis, firms working in bond-trading, and so forth.
Some of the popular recruiting companies include Goldman Sachs, Deutsche banks, ICICI, IDBI, KPMG, Morgan Stanley, Standard Chartered Bank, and so forth.
In the US, a first-year banker targets annual earnings of at least $140,000. In addition, they receive a bonus amount also.
The Closing Line:
If you have a passion for finance, then investment banking is the ideal choice for your career.