Investment Banking: Can It Be A Career Option For You?

Investment banking isn’t one specific service or function. It is an umbrella term for a range of activities:

  • Underwriting, selling, and trading securities (stocks and bonds)
  • Providing financial advisory services, such as M&A advice
  • Managing assets

Investment banks offer these services to companies, governments, non-profit institutions, and individuals.

An Investment banker helps an organization to raise funds thorough series of study of the market trends, risk involved in investments and the prevalent economic conditions.

An investment banker provides wide-range of services including endorsing securities, trading of stock and bond, facilitating mergers and acquisitions, maintaining broker-dealer operations and providing financial guidance regarding pricing of securities, issuing and placement of stocks.

Careers in investment banking require strong quantitative abilities combined with excellent sales skills, not to mention a large measure of self-confidence.Dedication, commitment, hard work, devotion is necessary to excel in this field.

A proficient investment banker can fetch high returns to the company. One has to be enthusiastic, passionate, pro-active, quick decision makers and should be able to handle difficult circumstances with ease, to become a good investment banker.

The payoff for those who survive this grind is that compensation packages can be extremely generous, allowing a successful person to build a fortune within a relatively short period of time.

Eligibility

Courses in the field of investment banking are conducted at under graduate as well as at post graduate levels, in the field of investment banking. Diploma and certificate courses are also offered by some institutes. Minimum qualification for under graduate program in investment banking is 10+2. For post-graduation, one has to be a graduate in the relevant field. Workshops are conducted by many institutions.

  • Fresh Graduates (e.g. those who have recently completed courses such as B.Com/B.Tech etc from a top college)
  • Post Graduates (e.g. those who have recently completed a MBA or Masters degree from a top college)
  • Working Professionals
  • Chartered Accountants (Preferred degrees from top colleges include specializations in Accounting, Finance, Management, Commerce, Economics, Mathematics, Sciences, Engineering.)

Institutes

In the current scenario, career as an investment banker can be a good option. Several institutions are now offering training and education in this field.

Some of the prominent institutes are:

Pay Package
A beginner can earn anywhere between Rs20000-Rs30000 per month, in the field of investment banking. With experience, an investment banker can get higher salary package.

Career Prospects

Investment banking is one of the most favored career options among the youth of India as it is a money-spinning job that provides opportunities to grow.

Numerous openings are waiting for specialists in this field. Banks are in dire need of skilled investment bankers, who can contribute more towards the growth of the organization. With India emerging as an economic powerhouse, an increasing number of global bulge bracket investment banks have entered and/or are looking to enter the Indian market.

Additionally, India’s rise as a major offshore hub for high end analytics has created a number of financial services companies. However as major investment banks and financial services companies look to build scale, they are faced with an acute skills shortage.

Some of the major areas are:

  • Merger & acquisition work should be in demand, especially as corporate restructurings increase in number.
  • Capital markets work (such as securities underwriting)
  • Distressed debt, however, will be one capital markets area with growth prospects.
  • Emerging markets will be the other capital markets area worth looking into.
  • Boutique firms report booming M&A business, and generally are much stronger than their larger rivals.

Major Pluses about Careers in Investment Banking

  • Big bucks. This industry pays more than just about any other you can think of.
  • Excellent opportunity to learn the financial aspects of business inside out.
  • Work with talented, intelligent, hardworking people.
  • Build a network of networked people.
  • Your life is the market—riding a bull is exciting and lucrative.

Major Minuses about Careers in Investment Banking

  • How many different ways can you say, “Work your tail off ?”
  • No job security—only the unemployment line has more people who have
  • been fired.
  • The work can be tedious, especially at the lower levels.
  • The industry has more than its share of big egos, abrasive personalities, and
  • workaholics.

However, you shouldn’t go into investment banking just for the money—the lifestyle is too demanding. To survive in investment banking, much less to do well, you’ll need to like the work itself. And, even if you love the work, an investment banking career can still be a tough road. So if you like fast-paced, deal-oriented work; are at ease with numbers and analysis; have a tolerance for risk; and don’t mind putting your personal life on hold for the sake of your job, then investment banking may be a great career choice. But if this doesn’t sound like you, a job in investment banking could turn out to be a bad dream come true.

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