All You Need to Know About a Career in Investment Banking

You might be surprised to know that the global financial market was priced at a whopping $20,490.46 billion in 2020, making it one of the biggest financial years in history. Having said that, it is understood how big today’s financial markets have grown and are further expanding.

However, investment banking plays a significant role in making this expansion successful. Investment banking is a prominent field of finance that deals with the choices of investment to make in different businesses. It helps aid businesses with the right and needed investments for which the bankers earn high salaries and commissions in return.

In all, investment banking is a great career choice to pursue in today’s time as it offers valuable gains throughout your career.

What is Investment Banking?

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It is a banking service that serves businesses, corporations, institutions, and governments by providing advisory services for mergers and acquisitions (M&A) and underwriting (capital raising).

Investment banks are an intermediary between the organisation and the investor and help navigate their client through complex investment decisions.

The investment banking field has various job profiles ranging from entry-level investment bankers to senior-level positions like chief investment officer or executive vice president.

Let us glance at some of the most crucial aspects of investment banking:

• Fundamentally investment banking is related to raising money for organisations, governments, individuals, etc.
• Investment bankers also facilitate reorganisations, broker trades, and mergers and acquisitions for both private investors and institutions.
• Investment bankers also do activities like underwriting a new debt or purchasing or selling equity securities.
• Investment bankers strategically plan and manage the financial aspects of projects initiated by corporations, businesses, and other entities.

What Does an Investment Banker Do?

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The job responsibilities of an investment banker may include the following activities:

Capital Raising

An investment banker’s primary job is raising capital for their clients. Investment bankers can raise money through Initial Public Offerings (IPOs) or sell shares to investors through private placements. Other than that, investment bankers also do the issuing and selling of bonds to raise capital for businesses.

Mergers and Acquisitions

M&A is the process of consolidation of various business assets of an enterprise through financial transactions between two or more companies. An enterprise might purchase, absorb, acquire major assets, offer the company stocks, or take over the whole company through M&A procedures. Investment bankers usually guide, structure, and commence the entire process.

Corporate Restructuring

It is a process initiated by a corporate entity to modify its capital structure and workflow significantly. It is usually done when a company is experiencing a financial crisis and wishes to move out of the loop of failures. The process can be carried out by a banking professional like an investment banker.

Private Placement of Capital

It is an alternative to IPO and includes selling stock shares or bonds to pre-selected institutions and investors rather than publicly selling them on the open market.

Debt & Equity Advisory Services

Investment bankers are experts when it comes to advising on debts and equities. They understand the market and its intricacies and can guide you with the best way to close your debts or purchase equities for profitable businesses.

Bond Issuance

An investment bank is an intermediary between the bond-issuing organisation and its investors. From the offer to the sale to the acquisition, the entire process is carried out by investment bankers.

Mutual Fund Advisory Services

Lastly, investment bankers exhibit their expert skills and knowledge in mutual funds. Mutual funds have recently become highly popular because of their high-yielding benefits. An investment banker can help you advise on which mutual funds should be taken and which ones to avoid.

What are the Skills Required to Be an Investment Banker?

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An investment banker is a financial professional who must have immense knowledge and practical skills to guide their client to profitable investments. Here are a few must-have skills for investment bankers:

1. Financial Modelling

It includes creating several financial models like 3-statement models, LBO models, discounted cash flow (DCF) models, and more for streamlined financial results.

2. Business Valuation

An investment banker must learn crucial valuation methods like DCF analysis, precedent transactions, and comparable company analysis.

3. Relationship Management

This is one of the essential skills required by investment bankers. Handling your clients with confidence and conviction ensures that they show trust in you and your organisation.

4. Transaction Documents

Be ready to deal with many documents if you become an investment banker. Some everyday activities include preparing documents, investment teasers, confidentiality agreements, confidential information memorandum (CIM), term sheets, and more.

5. Pitch Books and Presentations

It is one of the most challenging as well as interesting aspects of investment banking. It includes building PowerPoint presentations and pitch books to pitch ideas to prospective clients.

6. Sales and Business Development

An investment banker must have excellent sales skills as their primary job is meeting prospective clients and pitching them ideas to make a profitable deal for both parties.

7. Negotiations

You might need to develop excellent negotiation skills if pursuing an investment banking career. Negotiations are a vital part of the deal you are about to make with a client. Hence, not being able to negotiate well can turn out to be highly disadvantageous for you.

 How to Become an Investment Banker?

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Becoming an investment banker has never been easier than it is now. There are countless investment banking courses available that you can pursue to become an investment banker.

However, choosing the right course and institution for your studies is a serious concern to consider. But do not worry. We are here to provide you with the details of one of the best institutions to commence your investment banking career.

Glancing At IMS ProSchool’s Investment Banking Course

IMS ProSchool is a leading educational institute that offers exceptional career-building courses in various fields. They are known to provide the best market-specific skills that help students get jobs after the course effortlessly.

IMS ProSchool in association with AIMA has specifically designed a Post Graduate Certificate In Management Investment Banking course for the students. The course consists of crucial financial subjects like Business Statistics, Financial Management, Business Communications, and much more. These subjects enable the candidate to develop skills and knowledge in the financial sector.

Eligibility: To enrol for this course, the candidates must have completed their graduation or should be currently studying in their last year of graduation.

Benefits

• Wide scope of investment banking jobs.
• Jobs with lucrative packages.
• Multiple career opportunities across the globe.

Learn More About IMS ProSchool Investment Banking Course!

Alternative Choices for an Investment Banking Career

In today’s financially dominated world, several career choices must be made. In case you do not find an investment banking career appropriate for you, but you still wish to be a part of the financial sector, here are some of the courses to consider:

• Chartered Financial Analyst (CFA)

It is a postgraduate professional certification that enables candidates to secure a career in equity research, capital market, portfolio management, etc. It is certainly one of the best courses designed for getting a high-end job in the financial industry.

Learn More About this Course

• Certified Financial Planning (CFP)

CFP is one of the most recognised qualifications in the field of financial planning and wealth management. It allows the candidates to get acquainted with current industry trends and learn to manage finances in an organisation.

Learn More About this Course 

Career Options After an Investment Banking Course

The competition for investment banking jobs is extensive in the financial industry. That is why we suggest you upgrade your skills with the best institute to set yourself apart from the competition. Pursuing an investment banking course will help you obtain the following job profiles:

• Investment Banker
• Analyst
• Financial Associate
• Equity Specialist
• Relationship Manager
• Financial Advisor
• Vice President
• Director
• Managing Director

Ready to Start Your Investment Banking Career?

The first step to your investment banking career starts with enrolling in a professional investment banking course. It helps you learn about the industry and nurtures you with knowledge and skills to become an excellent investment banker and score high-position jobs in top corporations. Start your journey with IMS ProSchool today and define your dreams to become an investment banker.

Take a Free Demo Class with IMS ProSchool Today!

 Frequently Asked Questions

• How much average salary does an investment banker earn?

The salary of an investment banker ranges between ₹ 2.0 Lakhs to ₹ 40.0 Lakhs depending on your skills and seniority. The annual average salary for a fresher is  ₹ 4.8 Lakhs in India.

• Why should you consider an investment banking course from IMS ProSchool?

IMS ProSchool’s offered investment banking course is a specifically designed course that allows the students to become proficient and specialised in the field in just 1 year. It is a cost-effective option that saves a plethora of time for candidates which they can use to earn experience and practical knowledge of subjects.

• What job profiles and industries does the investment banking course by IMS ProSchool prepare you for?

The investment banking program by IMS prepares you for beginner and intermediate-level financial advisory roles, investment banking operations, and research-based roles for banking and corporate industries.

• What is the future of the investment banking industry?

Investment banking is a fast-growing industry with hundred of investment banks worldwide offering financial advisory for corporations of all types. Candidates pursuing investment banking currently will have multiple benefits of higher income and better growth.