How to Become an Investment Banker; Career Guide, Courses, Eligibility and Placements

In the financial-corporate modern world, investment banking is an attractive career option for candidates looking for a challenging profession. Apart from being a demanding career option, it promises a high growth trajectory – every ounce of your hard work is well paid off financially and in terms of recognition and job satisfaction.

When we say investment banking is a challenging career, we mean that sometimes it can take a toll on your sleep and mental balance because you have to crunch numbers, but keep in mind - if you are good at your work, if so, you will get a good reward. As you help your client or company succeed financially, you will undergo immense personal growth and receive gratifying monetary gains along with steady career growth.

Once you have established yourself as an investment banker, various major careers in finance await you for a more stable, more rewarding and relatively comfortable occupation in later life.

The investment banking sector is a growing sector, expected to grow by 8.5% by 2022. The job role of an investment banker is very important; they use their expertise to help their clients in the financial sector. They help raise capital in mergers and acquisitions using their analytical, motivational and communication skills. The purpose of this article is to provide a comprehensive overview of the steps involved in pursuing a career as an investment banker.

Who is an Investment Banker?

An investment banker is a finance specialist who manages the finances and investment decisions of a company, bank or financial institution. This is one of those professions where just having a degree is not enough – you need a knack for numbers and real-life experience.

The job role includes duties such as raising capital, managing securities, investing and raising funds from the capital markets. Investment bankers also create important financial strategies for mergers and acquisitions and asset management.

Overall, an investment banker is responsible for managing most of the finances of an organization. Their main goal is to raise the funds necessary for operations and growth, to invest and ensure financial security and to improve the overall financial portfolio of the company. However, investment bankers are not responsible for making any decisions – they act as expert financial guides to senior management.

Thus, investment bankers must have a mix of characteristics including the right educational qualifications, skill-set, foresight, networks and more than just luck to be successful.

Eligibility criteria for becoming an Investment Banker

The requirements for the position of investment banker vary between different sectors and companies. While a B.Com graduate can be considered for a job in an FMCG company, leading financial institutions prefer candidates with an MBA in Finance.

Apart from educational qualifications ranging from graduate to Chartered Accountant, in-depth knowledge of business, finance, economics and mathematics can give you an edge over regular candidates with no background in business and finance.

1. Bachelor’s degree

Finance, accountancy and commerce graduates have the potential to find entry-level job opportunities in the investment banking sector. For example, graduates can join investment/brokerage firms as trainees or as junior analysts in a bank/financial institution. However, as a graduate, you have to climb the corporate ladder through hard work, diligence and performance.

Although it may seem like a suitable entry route to investment banking, lack of specialized training, higher qualifications and experience may prevent you from securing high-profile and well-paid job roles in this field.

The average salary for a trainee in an investment banking/venture capital/private equity company is ₹ 5to6 lakh per annum). Trainees gain practical experience on the job. They get guidance from seniors and understand the industry information. They see how transactions happen in real life, and learn the art of negotiation and persuasion.

2. MBA (Finance)

MBA (Finance) IB is one of the widest opportunities for entry into the industry. Since this postgraduate course covers all the important subjects like business management, accounting, marketing, commercial skills, finance and financial analysis, it prepares students for investment banking careers. Additionally, learners get ample opportunities to network with peers and industry experts.

Armed with an MBA (Finance) degree, candidates can get lucrative roles in banking, financial services, insurance, fintech and startups. MBA with Finance specialization is a very strong field of study as it opens many doors for entry into various industries like Investment Banking, Research Analyst, Asset Management, Equity Management, Financial Consulting etc.

Finance is a domain that is the core of any company, for this experts and experienced professionals are entrusted with the task of handling the finance portfolio. And this is reflected in the compensation that finance professionals receive. An investment banker must have a very strong finance background.

3.  Chartered Financial Analyst (CFA)

For a Chartered Financial Analyst, entering the investment banking sector is a very easy task. Since your educational qualification already opens the gateway to the IB industry, you can find suitable employment prospects in reputed banks, financial institutions, investment firms, brokerage firms, insurance agencies and management consultancies.

The demand for CFA is not going to end in the coming future, rather it is going to become the most sought after job profession in the coming time. The need for financial experts is increasing and this is also reflected in the competitive salaries received by these professionals.

 4. Chartered Accountant (CA)

Chartered Accountant is one of the preferred qualifications to work as an investment banker. As a CA, the candidate is well trained in finance, money markets, equity, securities, mergers and acquisitions, IPO listing and law among others. This helps them to lock and load jobs in banking and non-banking institutions as investment bankers.

The scope of chartered accountant is increasing. There are many reasons for demand like startups are coming into the market, there are more taxpayers and the government is coming up with new rules and policies. Therefore a CA is entrusted with the responsibilities to manage the accounts.