Investment Banking as a career is a lucrative option provided you get the science and the math of it right. Those of you who dream of it as a job with an AC room and sitting and number crunching on your phone, then sorry lads and ladies, investment banking is a lot more than that.
Understand the job of an investment banker is that of high responsibility because you will be managing the money of every single one of your client., and one wrong decision can ruin theirs as well as your life. Even though this is a job that comes with good money, a lot of responsibility and stress is in the package too.
Know how you can become one!
- Preferred not mandatory to have Commerce as the main subject in 11 and 12 for basic knowledge of economics and finance.
- Any bachelor’s degree with relevant knowledge of the working of stock, regression, QT, market trends etc.
- Masters degree in finance is preferred. This can either be an MBA in finance, MA in finance, MA in statistics or CFA. Remember, that your Master’s degree has the most relevance here so chose to go for one wisely after thinking through nicely and confidently.
This education pattern works not jut in India, but in many countries around the world, so if investment banking is a serious plan, then all the students here shall plan accordingly.
Besides from education, an investment bankers has to be exceptionally good with his/her portfolio that they manage either as an internship, case study or serious work. They have to show at least a 10% growth in their client’s securities and minimum losses for them to get established with either a firm or their own business.
Investment Bankers are of two types: Portfolio managers or Financiers. Even though the work environment is typical office, these professionals still go out to carry out the deals too.
They use money pooled from multiple clients to buy and sell assets to earn a profit. For this they research market trends, study the stocks, probable investment lookout etc. Portfolio managers may handle a portfolio individually or as part of a team of investment professionals.
These are the Investment Bankers working with companies for budget control and revenue increasing. This comprises for everything like raising money for new business, mergers, trading of company stock etc. Since they are exclusive in their respective working departments, the areas are limited to healthcare, power, hospitality etc.
Remember if you want to be an investment banker, then besides good and relevant work experience and knowledge, you need to have a very strong knowledge of the working of the market and a well-developed intuition. These factors combined, help a lot to understand the market and come forward with it. Investment banker isn’t usually an entry-level position. Instead, college graduates typically begin as analysts and work with an associate or more senior-level managers. Analysts assist in the research and study of market data and industry trends. Some firms prefer candidates who have analytical experience within a given job description like M&A.
Again, go for it only when you understand its working thoroughly and are a peson who loves taking risks and has the ability to control the happenings when things go out of hands completely.
Best of luck!