Every year, a batch of young investment banking hopefuls walk into office buildings within the financial districts. All of them enter through the ground floor. Most work their way to the middle rungs of corporate life. An elite few, however, rise up to the top level. They have the skills, expertise and wisdom to hit the right turns in their career to eventually occupy the corner office on the top floor.
What is the secret to their success? How did they go from point A to B with minimal setbacks?
It takes several factors to become a successful investment banker in 2022. The right qualifications and personality traits can get you noticed by the big honchos of the financial industry. After all, investment banking is fast becoming the preferred designation for many graduates and financial professionals. It is one of the most rewarding careers that offer plenty of growth opportunities if you are ready to commit, work hard and follow the steps to achieve your goals. If you make the correct choices, you’ll soon take the office elevator to the top of the corporate ladder. So are you ready to learn how to become an investment banker?
What does an investment banker do?
The first step is to figure out what exactly are the job requirements. An efficient investment banking professional understands the nature of the financial markets and uses the knowledge to generate profits.
The responsibilities are:
- To use their financial knowledge to raise capital for companies
- Analyse and study current market trends and recent developments before making any decisions
- Identify potential investment opportunities and isolate risk factors
- Play a critical role in helping companies during mergers and acquisitions
- Possess the technical training in creating financial models, legal documents and reports
- Advice organizations and individuals on how to increase their net worth and assets
How to enter the industry?
Your resume must contain all the right qualifications to impress your recruiter. Here are the details of how to get into the investment advisory field.
You need one of the following qualifications for investment banking
|Course for investment banking||Application criteria|
|MBA in investment banking||You must be a graduate with an average of 50% from a recognised collegeStudents have to sit for entrance exams such as CAT, XAT, GMAT, CMAT & MAT|
|MBA in finance||You must be a graduate with an average of 50% from a recognised collegeStudents have to sit for entrance exams such as CAT, XAT, GMAT, CMAT & MAT|
|CFA||You must be a graduate from an authorised university, or a final year student during the application processYou will need a valid passport|
|PGCM in investment banking and capital markets||You must be a graduate with a minimum of 50 per cent from a recognised college|
Five skills every investment banker needs to be successful
1. Critical and analytical thinking
The ability to look at information, skilfully assess it and arrive at a logical conclusion is essential in finance. Investment professionals keep a sharp and steady mind when analysing events in a fast-paced environment. They must be able to handle complex challenges by reviewing the parts piece by piece and coming up with suitable solutions.
2. Industry knowledge and research-oriented
While there is a lot of learning on the job, you need to know the basic financial concepts like the back of your hand. The field is complex, and there are many variables to consider. A well-educated professional has a strong foundation in theory and technical skills.
3. Can work under pressure
Are you able to keep a cool head in a high-stress environment? Then you are made for the investment banking industry. You can use your abilities to eliminate the possibilities of risk and make adjustments when the situation demands it. Most well-trained professionals have the tools to maintain calm and forge ahead when challenges arise. If you are one of them, you’re perfect for the job.
4. Communication skills
Whether you work in a team, with other investors or clients, you need excellent communicative capabilities to convey your ideas coherently. Competent investment bankers can use their gift of the gab to persuade people to follow their suggestions. They have efficient presentation skills that showcase their deep industry knowledge and win over clients.
5 Networking skills
Connecting with people is a large part of your job. It is essential to use your networking skills to build a large and loyal base of clients. You will also collaborate with people within the company. Many projects will require experts from different levels in the organisation to help you in certain areas. You should be a good team player and pull the right people in for specific tasks. Your networking abilities also come into play at various industry events and gatherings. You can expand your contacts and interact with the movers and shakers. It’s a vital part of your job to create and maintain close relationships with other professionals, fellow employees and clients.
Job profiles in investment banking
1. Financial Advisor
If this is your chosen designation, your job involves helping investors achieve their financial goals. Your responsibilities are:
- To work with clients to manage their finances
- Create and execute strategies to boost their net worth
- Identify potential opportunities for investments
- Freshers start at around Rs 2 to 3 lakhs a year
- The average annual income for financial advisors is around Rs 4 to 5 lakhs
- Experienced professionals can earn up to Rs 17 to 20 lakhs per annum
2 Equity research analyst
As the title implies, your job is to research investment-related data. Some of the responsibilities are:
- A proper understanding of how the stock market functions
- Analyse the financial research and provide solutions
- Offer recommendations to senior analysts and portfolio managers
- Starting salaries are around Rs 3 – 5 lakhs a year
- Experienced analysts move up to Rs 10 – 13 lakhs per annum
- Senior analysts annually earn over Rs 19 lakhs
3. M&A manager
You play a crucial role in the mergers and acquisitions of new companies
- Locate and evaluate potential companies to acquire
- Carry out due diligence to check all the financial statements and reports
- Create strategies and analyse risk factors
- Junior hires start at around Rs 2 – 3 lakhs a year
- Experienced managers earn between Rs 15 – 19 lakhs per annum
- Seasoned professionals can take home over Rs 30 lakhs annually
4. Asset manager
You will play a key role in handling and enhancing the assets of various companies.
- You have to study the market and make decisions based on the research
- You investigate assets such as stocks, bonds, equities, property, and commodities
- You create strategies that help your clients receive a higher ROI
- Annual salaries for freshers start at around Rs 4 – 5 lakhs
- The average yearly income for asset managers is approximately Rs 9 – 10 lakhs
- More experienced managers can earn over Rs 13 lakhs per annum
Advantages of the Proschool’s PGCM IBCM Course
If you can’t get into the B-school of your choice, don’t worry. An MBA in investment banking is not the only way to break into this competitive industry. This post-graduate certificate course will help you achieve your dream career. It has some of the best features of a regular MBA course and condenses it into one intensive year of training. So you get all the benefits without wasting any time. Once you finish your course:
- You have the training and skills to advance in your career
- You get to work with the leading MNCs and the big 4
- You are on track to take on leadership roles as you gain more experience
- You get 1-year exemption in your MBA
The PGCM IBCM course with Proschool
IMS Proschool has collaborated with the All India Management Association (AIMA) to offer students a post-graduate certification in investment banking and capital markets. This course takes a more modern approach to the field, using unique learning technology and resources to make you an investment specialist.
You can even go on to obtain your post-graduate diploma in management, which is an equivalent certification to an MBA. Once you receive your PGCM, you can complete your second year of the course within five years.
Here are some of the incredible benefits of taking the PGCM course with IMS Proschool
- The program is for one year (as opposed to 2 years for an MBA)
- You receive AICTE-approved and NSDC certificates on completion
- You learn essential financial skills such as financial modelling and analytics
- You also study software systems such as Tableau and advanced Excel
- The syllabus focuses on theoretical knowledge as well as real-world business case studies
- There are trained and experienced teachers who are industry experts
If you have ever asked, “How can I become an investment banker?” this post has the answers you need. A PGCM in IBCM is one way to fast-track your career. After this course, you’ll enjoy many lucrative opportunities within the industry. You’ll have the expertise, knowledge and skills to rise and be a powerhouse investment banking professional.