Here is all you need to know about investment banking to decide if it’s right for you and how to kickstart your career in the field of Investment Banking.
About Investment Banker
Investment bankers provide organizations with advice on the right kind of securities to issue, such as stocks or bonds, as well as the best methods, timing, and prices for doing so. They also take care of underwriting, which is the process of placing the securities with investors.
They not only work with privately held and publicly traded businesses but also underwrite municipal bonds and other debt products.
We’ll talk about the following topics:
Who is an Investment Banker?
Investment bankers are investment professionals that use their knowledge of the financial services sector, analytical prowess, and compelling communication skills to assist institutional clients in tasks like mergers & acquisitions and capital raising.
Investment bankers provide corporate financing services to a wide range of clients, including new businesses, well-established corporations, and in certain situations, even governments. They are important contributors to the financial expansion and development of a company, organization, or other corporate body, regardless of whether they work for an investment bank or the investment banking branch of a company.
A high-level position like the executive vice president and entry-level positions in the field of investment banking are both included under the umbrella term “investment banker.”
One of an investment bank’s primary roles is to act as a go-between for businesses looking to obtain capital through the issuance of securities and private or institutional investors eager to swap cash for securities. These transactions are handled entirely by investment bankers.
An investment banker serves potential clients in a variety of capacities that widen the Investment Banking path. Few companies have investment bankers who execute a variety of tasks, whereas, in others, each banker has a specialized role and does that role.
The leader of a team working to raise funds through bond issuance is an investment banker. Each member of the team is a competitive salesperson with a vast contact list of prospects from which to source investment business.
Go through Is Investment Banking a Good Career? blog first to know whether this career is for you or not.
Why A Career In Investment Banking?
Early in your career, you can develop expertise in creating extensive, intricate financial models by working in investment banking.
Even while they aren’t always terrific investors, bankers do spend a lot of time on valuation work, which can be a great way to start your career.
The majority of the projects that bankers work on are top secret until they are made public, and when they are, they typically appear on the front page of the business section.
This offers a really persuasive motive to enter the sector and is likely to tickle the interviewer’s ego if you say something to this effect.
The exposure to and familiarity with financial modeling is one of the main reasons why working in investment banking can actually be the career you want.
In contrast to the majority of other positions, Analysts and Associates have the chance to work on developing various sorts of financial models for significant transactions.
Yes, new bankers must perform many drudgery tasks (such as printing and binding pitchbooks, editing text, etc.), but they also get knowledge in one of the most in-demand financial abilities.
Investment Banker Responsibility
Careers in investment banking assist their clients in raising money on the capital markets by selling equity in their companies or issuing debt. Organizations use investment bankers to supervise the underwriting of new debt and equity securities for many kinds of firms.
Working in investment banking entails counseling customers(CRM) on novel investment opportunities like derivatives and helping them with mergers and acquisitions. In certain organizations, investment banking has a variety of responsibilities, whilst in others, staff members are specialized, with individual bankers handling distinct tasks.
An investment banker’s duties include contacting past-due clients by phone and letter. They are also in charge of managing the department that handles business financial collections.
An investment banker’s responsibilities also include regularly reporting on the status and data of the fund and investment department, in addition to overseeing a group of collection agents and avoiding financial losses.
In investment Banking, Sales growth, entry into new international markets, better financing terms, a decrease in bad debt reserves, actionable economic knowledge, protection against non-payment and catastrophic loss, The duties of investment managers include, among other things, boosting sales and profitability and fostering better connections with lenders.
Planning for taxes can take many different shapes. Investment bankers frequently assist businesses and individuals in addressing specific tax challenges and identifying workable solutions to maximize potential tax returns and reduce tax liability.
Investment bankers are in charge of managing the assets of various corporations and assisting them with their investment portfolios by outlining how and in which kinds of investments one should be investing.
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Investment Banking Career Path
Many future investment bankers begin their careers by participating in investment banking internship programs when they are undergraduate students. Although it is not necessary to complete an internship to enter the field, it is a great way to start.
A bachelor’s degree can be used to start a career as an investment banking analyst, who does research and generates analytical reports for more senior staff members. Another excellent option to start gaining expertise is to work as a financial analyst for a wealth management company, bank, hedge fund, or other financial institution.
Typically, an analyst can advance into a junior-level role as an associate investment banker with several years of experience and a track record of great performance. A highly qualified individual with a master’s degree and a solid resume but minimal experience in investment banking may also be eligible for this post.
The majority of new workers receive extensive on-the-job training, which may take up to two months.
The majority of investment banking activities, including the planning, structuring, and execution of significant financial transactions, are eventually engaged in by junior investment bankers.
Junior bankers can advance into senior roles controlling transactions from beginning to end with a strong performance to brighten up their career path in Investment Banking.
Different Roles In Investment Banking
To discover more about the numerous Investment Banker job roles, let’s now get more precise.
The Investment Banker career path is as follows:
Certified Management Accountant
An individual who has expertise in financial planning, analysis, control, decision-support, and professional ethics is known as a certified management accountant. They are employed by businesses of all sizes, in all sectors, and in all kinds, including manufacturing, services, nonprofits, public sector organizations, academic institutions, international conglomerates, and for-profit businesses.
A professional who manages and oversees credit management and makes judgments about credit limits is known as a credit manager specialist. The scope of a credit manager’s responsibilities can vary, though. Every stage of the credit-granting process, including the continuous application of credit policies, must be under the supervision of a credit manager.
An expert in investments and money who works with businesses and individuals to meet their long-term financial goals is known as a financial planner. A financial planner determines an appropriate class of investments for clients after discussing with them their goals, risk tolerance, and stages of life or business.
Ensuring that the company does not overspend and run out of money is the responsibility of a person who decides to pursue a career as an accountant. Accountants are crucial to business operations; their responsibilities include gathering, recording, analyzing, and presenting financial operations to stakeholders.
A candidate who desires a position as an account manager with direct client contact. He or she develops ties with clients that are advantageous and keeps track of other advantageous contacts. The main duties of an account manager include gathering all the essential data on their clients, such as identification credentials.
A career as a financial advisor requires one to evaluate one’s financial situation, find out what one wants to do with their money, and assist in the creation of a strategy to reach those goals. He or she supports businesses and people in cutting back on spending, clearing debt, and setting aside money for the future.
Salary of Investment Banker
Monthly Salaries(In rupees)
- Average Salary 24000
- Starting Salary 20000
- Junior Level Salary 20000
- Senior Level Salary 41000
Investment banking interns are compensated with a manageable stipend. The stipend amount depends on the interns’ abilities, projects, and tasks because nearly all of them are recent graduates with little to no experience. The minimal monthly salary is, however, approximately Rs. 20,000. For interns with increased responsibility, the mid-level stipend can reach Rs. 30,000 per month. The monthly stipend, which takes into account incentives, tips, and overtime compensation, might reach up to Rs. 40,000 for an intern with exceptional talents and few open tasks.
Junior Investment Banker
Monthly Salaries( In rupees)
- Average Salary 64000
- Starting Salary 50000
- Junior Level Salary 50000
- Senior Level Salary 100000
Investment bankers start off with a monthly salary of Rs. 50,000 for entry-level jobs with less than one year of experience. A junior investment banker can make up to Rs. 70,000 per month after obtaining some experience.
They often earn a top-level compensation of roughly 1.2 lakh per month, which includes bonuses, tips, and overtime pay.
Senior Investment Banker
Monthly Salaries(In rupees)
- Average Salary 240000
- Starting Salary 120000
- Junior Level Salary 150000
- Senior Level Salary 580000
A senior investment banker’s pay is influenced by a variety of variables, including their level of experience and employer. An investment banker’s compensation ranges from roughly Rs. 250000 per month to over Rs. 550000 per month at the highest echelons.
You can even earn a lot in India as an Investment Banker. To know the whole breakdown go through Investment Banker Salary in India Blog.
You now have a comprehensive concept of what an Investment Banker is supposed to do, what skills to hone, and what a possible career path might entail. It’s a rewarding path from both a financial and personal one given the increasing responsibilities.
This blog aims to assist beginners by providing guidance on how to improve their knowledge of Investment Banking, its responsibilities, various jobs, and the astronomical salaries paid to product managers in many areas.
We trust that everything is now apparent, and we tried to broaden your perspective on Investment Banking.