If you’re a business or finance major who is interested in a career in investment banking, then you probably already know what it is and are wondering about how to break into this competitive field.
Investment banking is one of the most popular terms in the financial sector. Many seasoned professionals and graduates nowadays aspire to work at jobs in investment banking. It is perhaps one of the most difficult, lucrative, and well-paid careers on the planet.
Recruiters are picky and choosy in selecting the top talent because there are so many people striving to be Investment Bankers and so few jobs available. It makes it more difficult for newcomers to break into this high-profile industry.
Nonetheless, if you have an analytical mind and a strong desire to work in Investment Banking, you can succeed with the correct education and knowledge.
You can also check out this article, to know more about potential careers in finance you can pursue after a BCom.
What is Investment Banking?
Investment banking is the process of raising funds for a company’s future activities, such as expansion or repayment of debt. The term “investment” refers to the capital contributed by the investor and the term “banking” refers to the process of raising these funds from investors.
Because it does not accept deposits, an investment bank differs from a commercial or retail bank. Candidates interested in pursuing a career in investment banking should consider the following firms:
- JP Morgan
- Goldman Sachs
- Deutsche Bank
- Citibank, etc.
Why should you work in investment banking?
Many young millennials are attracted to this line of work because of its status and possible earnings, but this should not be their primary motivation. People who work in investment banking usually need to have a practical approach and be able to think outside the box in order to be innovative. The following are some genuine reasons why Investment Banking could be a smart career choice for you:
- You’re interested in learning skills like Excel and financial modeling as an investment banking analyst.
- You’re curious about high-profile deals, financial markets, and how businesses make financial decisions.
- You thrive in a fast-paced, long-hours workplace.
Optional Courses for a Career in Investment Banking
MBA Finance is preferred by investment bankers over other profiles as a top applicant profile. MBA Finance provides students everything they need to know about finance, accounting, business acumen, marketing, financial analysis, management consulting, and accounting expertise in the IB arena. Investment banking is a synthesis of various disciplines with a focus on money.
It is significantly easier for candidates from top-tier universities (IIMs/IITs, ISB, FMS, Xavier’s, IIFT, etc.) to break into the IB industry.
If you have a Chartered Financial Analyst (CFA) Charter, you can easily break into the investment banking profession. However, if you are a CFA Level 3 or CFA Level 2 candidate, you can also apply for IB. Investment banking, management consulting, hedge funds, mutual funds, brokerage businesses, insurance, investment firms, and other industries prefer CFAs.
A Chartered Accountant (CA) is another desirable educational need. Because of its pay structure and popularity among CA students, a considerable number of CAs are moving to the Investment Banking Industry. Another career path for CAs is to join the Investment Banking Financial Due Diligence team.
Bachelors in any commerce field
A graduate degree in any finance or commerce-related field is the bare minimum educational qualification for pursuing core finance fields. However, graduating will only allow you to enter IB at the entry-level (Intern). If you have a degree from a reputable institution, you can advance to the Analyst or Junior Analyst level.
After graduation, you can work as an Investment Banker right away, but you’ll need to have a lot of experience, expertise, and additional qualifications to stay in the field.
Skills Required To Get Jobs In Investing Banking
If you are seeking to get jobs in Investment Banking, then the following skills can go a long way for you:
It is also a necessary talent for any applicant. Working on research and financial models necessitates a sharp analytical mind capable of fast learning and adapting to new situations.
Mathematics is one of the most important abilities for a successful career in investment banking. Investment banking is not the correct career path for you if you lack fundamental math and problem-solving skills.
Basic Finance Knowledge
If you lack basic financial expertise, such as knowledge of the three basic statements (Profit & Loss Account, Balance Sheet, and Cash Flow Statement), analysis of the three accounts, ratios, securities, and present values, no finance recruiter will hire you.
Finance expertise is required to pass any interview for a finance position or one in a related field. An Investment Banker is responsible for all facets of finance, and candidates must be well-versed in all of them.
Basic & Advanced Ideas of Powerpoint and Excel
Because 80 percent of Investment Banking job involves dealing with Excel and PowerPoint presentations, aspirants must understand both the basic and advanced concepts of both applications.
A solid understanding of financial modeling is an advantage for any recruiter. Investment bankers are always on the lookout for someone who can create models from the ground up, as they work on them every day.
Salary and Job profiles for Investment Bankers in India
A career in Investment Banking is highly sought out, and one of the reasons for this is the high compensation. With typical job profiles, below is the basic investment banker salary in India and abroad:
Top 10 Colleges in India for Investment Banking Careers
There are a variety of courses available to help you advance your career as an investment banker. In India, there are numerous colleges that provide management education. For your convenience, we’ve compiled a list of the best colleges in India:
- Indian Institute of Management, Bangalore
- Indian College of Business, Hyderabad
- Bharathiar University, Coimbatore
- Indian Institute of Management Ahmedabad, Ahmedabad
- Indian Institute of Management, Kozhikode
- MICA, Ahmedabad
- School of Management Studies, Delhi
- Shaheed Sukhdev College of Business Studies, Delhi University
- Keshav Mahavidyalaya, Delhi University
- Lala Lajpat Rai College of Communication & Economics, Mumbai
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