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Career as Investment Banker

Investment Bankers work with companies and government to issue securities, help investors purchase securities, manage financial assets, trade securities and provide financial advice.

Job Profile

Career as Investment Banker

With industries, corporates, start-ups and even governments wanting to raise capital for their expansion, the role of an Investment banker is expected to grow, both in India and abroad. A career in investment banking begins as an Analyst. The job involves research on the Organisation for which the capital has to be raised.

Creating earning models and returns ratios and comparisons with industry peers are jobs handled by Analysts. With experience, the role changes to Senior Analysts/Associates and Portfolio Managers who pitch, with presentations and discussions with clients and investors. The job is mainly a desk job for an Analyst, with seniors touring to various places to scout for investors. It’s a team project where all members contribute to the project, and a model is created for presentation to the investors.

Mergers and Acquisitions, Private Equity, Debt syndication etc. are specializations where one can gain expertise and skills and jump to senior leadership roles. However, the job is very stressful with long hours researching the industry etc. An investment banker spends an average of 12-18 hours in the office, having no personal time. In India, most jobs are in the financial capital, i.e. Mumbai. Recent years many MNC banks etc. have opened their branches in Bengaluru, Hyderabad and Delhi. Few top Investment banking organisations to kick start a career is:

Name of Job/Role

Average Salary offered (at 2 to 5 years of work experience)

Top Recruiting Companies

Investment Bank Analyst

9.55 to 14.55 Lakh

JP Morgan Chase

Investment Bank Analyst

8.5 to 17.15 Lakh

Goldman Sachs

Analyst

14Lakh

Bank of America Merrill Lynch

Investment  Analyst

3.6 to 4.6 Lakh

Citigroup

Investment Banking Analyst

21.5          Lakh

Morgan Stanley

Investment  Analyst

2 to 10.77 Lakh

Deutsche Bank

Investment Banking Analyst

16 Lakh

Credit Suisse

Investment Banking Analyst

8.7 to 11.2 Lakh

Barclays Capital

Investment Banking Analyst

6.13 Lakh

Kotak Mahindra Bank

Future Growth Prospects and How to get there faster

The future growth prospects are quick and it would take about 3 years for a person to be promoted to Associate from Analyst. Similarly, the AVP or VP post is achievable after about 2-3 years of experience as Senior Associate/Analyst. One can jump the normal promotional avenues and shift to a similar organisation by upskilling and even by undertaking one of the numerous certification courses or online courses. Career prospects are highly dependent on the economic, capital market and business climate and the jobs are directly proportional. If sentiments are down, in any particular industry, the Analysts tracking that industry or projects are affected. Pink slips are very common and immediate in this sector. So the shelf life of an investment banker is short and highly risky.

Pros and Cons of an Investment Banker

Pros

  • Highly paying salary
  • Large Bonus
  • Lavish lifestyle for self and family
  • Good professional knowledge about industries, market etc.
  • Quick promotions and leadership roles

Cons

  • Highly stressful
  • Long hours of work
  • Risky job as dependent on Capital market
  • Dependent on business sentiments and investors perception
  • No time for family/ personal relaxation
  • Stress-related health issues

How do I get there?

No special study of subject or stream is mandatory to be an Investment Banker. Anyone with love of Mathematics and Analytical mind can aspire to be an Investment Banker. A finance or commerce background at the graduate level with an MBA (Finance) can kick start a career in this field. Many Diploma and certification courses like Masters in Financial control, Diploma in Financial Analysis, Investment Banking and Equity Research, Portfolio Management and Security Analysis, Banking and Finance, Investment and Business Research, Global Investment & Financial Planning can also be pursued to hone skills in this field. Chartered Financial Analyst (CFA) would be the premium qualification to secure a senior position in top Investment banking companies

How much does it cost?

A B. Com. (Hon) of 3 years duration from a named University will cost about Rs 2-3 lakh. Cost for 2-years MBA in finance will range between Rs 25000/-in Delhi University to Rs 35 lakh in ISB Hyderabad.  One can also pursue CFA course, for which there are training institutes charging tuition fees.

What are the Top Colleges where one should be studying to become an Investment Banker

As mentioned earlier, no specific stream of studies is mandatory to take up this career. However, an MBA in Finance /Banking is an added advantage.  There are few Institutes in India specifically imparting Investment Banking specialization like the School of Investment Banking in Mumbai, Postgraduate in Investment banking and capital market by NSE Academy. One can also pursue MBA from renowned Universities in UK/USA, which will cost about Rs 35-45 Lakh.

Sr. No.

Name of College, City

Programme Fees (in Rs)

  1.  

B.Com(Hons), Jain college Bengaluru

2.5 to 3 Lakh for 3 years course

  1.  

MBA Finance

 2.5 to 35 Lakh for a 2-Year full- time course

  1.  

CFA

The Coaching classes cost about Rs 75000/-

  1.  

School of Investment Banking Mumbai

3 Lakh for the 1-Year certification course

  1.  

Postgraduate certification in Investment banking & Research by NSE Academy

3.33 Lakh for 11 months full-time course

  1.  

Certified program in Investment banking by BSE

1.65 Lakh for the 1-Year program

Books and other Study Material

  • Investment Banking by Joshua Rosenbaum & Joshua Pearl
  • Middle Market M & A: Handbook for Investment Banking and Business Consulting (Wiley Finance 10)
  • The Accidental Investment Banker - Jonathan A. Knee.
  • Business Of Investment Banking - K. Thomas Liaw
  • Investment Banking: Concepts, Analyses and Cases by Pratap Subramanyam.

What if this career does not work out for me? What are the other options for a person with these credentials?

Most Investment Bankers like to give up this high-stress job after about 10-15 years and shift to a slower-paced job. Some of the options are:

  • Consulting jobs
  • Venture Capitalist
  • Set up Investment/PE firm
  • Advisor to Corporates
  • Corporate Financing
  • Startups
  • Academician

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Content on this page is by Career Expert
Mrs. Kum Kum Tandon
MA (Psychology), M.Ed, Diploma in Educational Psychology, Vocational Guidance & Counseling (NCERT, Delhi) | View Complete Profile
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