How to become an Investment Banker in India

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In the modern world of financial-corporate, investment banking is a flourishing career choice for aspirants looking for an ambitious profession. Therefore the question arises of how to become an investment banker.

Indeed it is a challenging job that may sometimes cost your sleep and balance. But you’ll be rewarded if you’re good at your work. You will undergo immense personal growth and steady career development.

Once you establish yourself as an investment banker, various more outstanding, stable, relaxed financial careers await you. The investment banking sector is a growing field; it is expected to grow 9-10 percent by 2022.

Eligibility criteria for becoming an Investment Banker

The eligibility criterion as an investment banker may vary across sectors and companies. So to become an investment banker in India, you must have:

1. Bachelor’s degree

Commerce graduates can apply for an entry-level job in investment banking. Graduates can intern at investment firms or join any financial institute as Junior Analysts.

However, as a graduate, you must go up the corporate ladder through hard work, diligence, and performance. The average salary for an intern in the investment is ₹4.9 Lakhs per year.

2. MBA (Finance)

MBA (Finance) is one of the best paths to enter the investment banker Industry. It covers all vital topics like business management, accounting, marketing, commercial acumen, and financial analysis.

Indeed, It grooms students for an investment banking career. Moreover, learners get broad opportunities of networking with peers and industry experts. Equipped with an MBA (Finance) degree, candidates can get a position in banking, financial services, insurance, and many more.

3. CFA

A Chartered Financial Analyst, making a way into investment banking is a sure-fire. Because your educational qualification already opens up the gateway to the Investment banking industry.

One can find appropriate employment prospects in reputed banks, financial institutes, investment firms, brokerage firms, insurance agencies, and management consultancies.

4. CA

As a CA, the candidate is well trained in Finance, Money Markets, Equities, Securities, Mergers and Acquisitions, IPO listing, and Law. It supports them in working as an investment banker in banking and non-banking institutes.

The Educational Qualifications and Skills that are Required to Become an Investment Banker

1. Analytics

Analytics skills are one of the crucial elements in the investment banking industry. Maybe it is Finance Modeling or Fiscal Research. An Analytical mindset will help you build a progressive career in this field during recruitment. Thus, enrolling in a short-term Business Analytics certification course would be a good idea to become an Investment banker.

Analytics Skill includes data analysis, research, data visualization, critical thinking, and problem-solving. It builds the potential to segregate the significant problem statement into smaller categories. And then solve these problems with a strategy. Analytical skills are in great demand not only in India but also abroad.

2. Calculative skills

A job in banking and finance can never be complete until you have strong mathematical skills because investment bankers’ work deals with playing with numbers. So calculative skills must be your strong suit.

3. Finance Knowledge

Investment bankers must be proficient in basic finance skills and accounting knowledge like maintaining a balance sheet and creating Profit & Loss statements. Financial Knowledge requires such as accounting, financial management, etc.

Along with the hard skills, specific soft skills are also necessary, such as communication, interpersonal, leadership, etc.

4. IT Skills

For IT skills, investment banking professionals must be well acquainted with tools like Excel, PowerPoint, ERP, SQL, etc. Moreover, they need a fundamental knowledge of Blockchain and APIs.

Along with the other skills, IT professionals should know data analysis, project management, and program management skills.

Become an Investment Banker – It’s benefits.

As mentioned before, investment banking is a blooming career selection. This is the perfect fit for you if you love working around meeting with high-profile clients, making pitch books, preparing offers, making fiscal projections, and identifying the latest avenues for wealth generation.

The average base salary for an Investment banker in India is around 12 lakhs. Investment bankers can expect a 40-70 percent bonus yearly, depending on their company’s financial performance per fiscal year.

While the initial years in this profession are challenging because you need to work on your skillset and Knowledge. However, within 4-5 years, the potential of this job increases tremendously.

Besides these monetary benefits, there are several other benefits of becoming an investment banker.

Personal growth

While working in this industry, you will analyze that each day is a learning curve; before you call it a day, there is a new skill, Knowledge, or expertise under your sleeve. Working in this fast-paced environment will enhance your personal growth and help you perform better.

A good professional gets hired by top companies with higher salary growth. They can make their career both nationally and internationally as well.

Professional Development

Investment banking delivers fast, professional growth. Most companies reward investment bankers with hefty bonuses and other gifts for their performance, hard work, and effort.

Investment banking brings a lot of growth to one’s career. Professionals with good experience and proper skillsets can also get a chance to enter a company’s C Suite.

Building self-esteem

Once you establish yourself as a legitimate and trustworthy professional, you will be well known and vaulted by your seniors, colleagues, and clients. They will always recommend guidance and direction in financial matters.

It will boost your self-esteem and continually motivate you to do better.

Conclusion

By now, you must have understood that an investment banking career is full of opportunities and competition. Indeed, you have to work hard to earn your position in this cut-throat industry.

Thus, it is best to start your learning journey under professional guidance. Enrolling in the best institution to pursue MBA programs and short-term certifications related to Investment Banking.

When you start your journey as a street-smart professional with the proper qualifications and skill set, there’ll be no stopping you!

FAQs

1. Is CFA better than CA?

Ans- CFA is an option to pursue if you are interested in finance-related work. But if someone wants to expand their dimension of expertise and interest in various fields, then MBA in Finance is the best option.

2. Do investment banks ask for GMAT?

Ans- GMAT is vital to enter into a reputed institution. The banks focus more on hard skills and soft skills. Furthermore, they would be looking at the experience and skills.
But some companies ask for the GMAT score during the recruiting process.

3. How to start a career in investment banking?

Ans- To begin a career in investment banking, You need to pass 10+2, then pursue a UG, PG, or Doctorate, depending upon the level of education you want.