Highlights
- MBA in Finance and an MBA in Banking and Finance are 2 of the most preferred degrees by major investment banks when hiring investment bankers globally
- The salary of an Investment Banker is way higher as compared to that of the salary of a Chartered Accountant which is INR 15 LPA and 10 LPA respectively
- Some of the top designations for Investment Bankers are, Foreign Exchange Trader, Finance Director and Hedge Fund Analyst, with an average median salary of INR 40 LPA, 37 LPA and 27 LPA respectively
- As per a report by the Economic Times, salaries offered by investment banks such as Deutsche Bank at IIM Ahmedabad ranged up to INR 1.4 Crore, with the base salary reaching to 70 LPA
Investment Bankers are primarily in charge of raising capital for corporations, governments and other financial entities. Investment Bankers are financial services sector experts with strong analytical capabilities and convincing communication skills that assist institutional clients in activities such as capital raising, mergers and acquisitions. To become an Investment Banker aspiring students can pursue undergraduate or postgraduate banking courses or management courses such as MBA or MBA Finance. Chartered Accountants or students completing CA courses are also eligible to become Investment Bankers. Though pursuing an MBA is the traditional route for becoming an Investment Banker, a degree from any Ivy League college will help candidates land a lucrative Investment Banker job. As an Investment Banker with an experience of over 22 years, one can earn up to INR 30 LPA and in certain cases even above. The Average Salary of Investment Bankers ranges between INR 7.50 LPA – 11 LPA. Some of the top recruiters for Investment Bankers are Goldman Sachs, JP Morgan and Morgan Stanley.
Table of Contents
- How to Become an Investment Banker: Quick Facts
- What Does an Investment Banker do?
- How Long Does it Take to Become an Investment Banker?
- Steps to Become an Investment Banker
- Types of Investment Bankers
- How to become an Investment Banker in India
- How to become an Investment Banker after 12th
- Investment Banking Courses
- Benefits of Becoming an Investment Banker
- Skills Required to become an Investment Banker
- Salary of Investment Banker in India
- How to become an Investment Banker: FAQs
How to Become an Investment Banker: Quick Facts
| Industry | Banking & Finance |
| Eligibility | Students must clear Class 12th along with Undergraduate or Postgraduate Degree in Banking or Finance |
| Top Recruiters | Goldman Sachs, Merrill Lynch, Morgan Stanley, JP Morgan and HSBC |
| Average Starting Salary | INR 7.50 LPA – 11 LPA |
| Highest Salary | INR 47.70 LPA – 50 LPA |
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What Does an Investment Banker Do?
Some of the major responsibilities of an Investment Banker are listed below for your reference,
- Investment Bankers review and analyse numerous market reports and databases to acquire pertinent information for taking calls on various financial decisions
- They keep an eye on the current investing environment, spot dangers related to particular projects, and give customers advice on moving forward
- They perform daily financial metric computations, financial modelling, and firm valuations to forecast business performance
- Investment Bankers create presentations and proposals that include a timeline, risks, and rewards list
- They raise private or public cash, issue securities, underwrite municipal bonds, and conduct debt and equity sales
- They provide guidance to businesses on stock price initiation, managing initial public offerings, and securities issuance
- They analyse, assist, and plan mergers and acquisitions to benefit their clients as much as possible
- They ensure adherence to the laws and rules that financial regulatory organisations have issued
How Long Does it Take to Become an Investment Banker
It typically takes around 4 – 6 years to become an Investment Banker. Candidates are usually hired after they complete their graduation and preferably postgraduation in relevant subjects or courses.
Steps to Become an Investment Banker
The profession of Investment Banking is to serve as a facilitator between a company and investors. They help to raise capital for companies, Governments and other entities. Here 5 steps are discussed.
- Clear class 12 Board Exams: Candidates aspiring to become an Investment Banker must complete their higher secondary education (10+2) with a minimum aggregate score of 50% or equivalent CGPA from a recognised board. For 10+2 board exams, candidates have the option of choosing between the arts, commerce, or science streams. However, studying mathematics, accountancy, economics, business, and computer technology in the commerce stream may be more beneficial.
- Complete Graduation in Relevant Field: A bachelor's degree is required to obtain an entry-level career with an investment bank. Bachelor of Commerce (B.Com), Bachelor of Arts (B.A.) in finance, B.A. Economics; and BBA Finance are among the top choice for becoming an Investment Banker. While each program's curriculum varies, candidates may study mathematics, accounting, economics, financial management, corporate finance, investing, taxation, data analytics, and business administration, among other subjects.
- Obtain a Master’s Degree: For aspiring investment bankers, a 2-year Master of Business Administration (MBA) in financial management is a sought-after postgraduate degree. Apart from this Master of Science (MS) in Finance can also be pursued by candidates aspiring to become an Investment Banker. The National Stock Exchange (NSE) Academy offers postgraduate programmes in investment banking and capital markets, banks and financial planning, business analytics, and management accounting that last six to nine months.
- Get a Certification: A Chartered Financial Analyst (CFA) professional credential can help candidates advance their career as an Investment Banker. The CFA programme provides intensive and practical investment and financial training. Economics, corporate finance, derivatives, equity investments, alternative investments, financial reporting and analysis, and quantitative approaches are among the subjects candidates can choose to study. After completing graduation bachelor's degree, candidates can apply for this programme. The duration of the course might range from one to four years.
- Pursue an Internship: Internships in investment banking can be found on employment sites such as Indeed and bank websites, as well as through campus placements, networking, and HR consultancies. Investment bank internships can run anywhere from two months to two years. Candidates can learn to improve their communication, presentation, and negotiation abilities in addition to financial training. They may be offered a permanent career as an investment banker based on how well they perform during the internship.
Types of Investment Bankers
Investment Bankers aid large complex financial transactions for companies, governments, and other entities. The industry is flooded by large and small investment bankers as per their work. The professional career of an investment banker progresses along a fairly standard path. Some of them are mentioned below:
- Investment Banker Analyst: They are professionals usually slotted in industry-specific categories like finance, healthcare, manufacturing, or emerging markets. Their responsibility is to talk to company executives and investors and try to build cases for or against investments in specific firms or industries.
- Investment Banker Associates: They play the role of the ‘middleman’ and their main responsibilities include creating and formatting slides, arranging client meetings and performing financial analysis. They tend to produce much more complex financial models than analysts and bear the responsibility of more complicated challenges.
- VP Investment Banker: They talk with the Directors and MDs to figure out what they want and translate it into achievable tasks. He or She also develops relationships with new potential clients, at least as the VP becomes more senior and moves toward the SVP / Director level.
- Director Investment Banker: They meet with new companies that might become clients in the future, listening to their concerns, and answering their questions. They also meet with private equity and venture capital firms to discuss their portfolio companies and which ones might need to sell, go public, or raise capital.
Check: MBA finance Private Companies
How to Become an Investment Banker in India
Investment Bankers in India are in huge demand for innumerable job opportunities along with the lucrative salary package that tags along with it. Investment Bankers are expected to have a good knowledge of market trading activities and profitable securities in the upcoming days. In order to become an Investment Banker, candidates are expected to start preparing right from their schools, wherein they can choose relevant subjects and streams that would eventually help them understand the foundation of the subject.
Discussed below are few of the essential steps that can be taken up in order to become an Investment Banker in India.
- School Level Preparation: Students aspiring to become an Investment Banker must choose commerce for their class 12th board exams. Having Mathematics and Accounts will be easier for them to clear their entrance examination for further Undergraduate and Postgraduate courses and become an investment banker.
How to Become an Investment Banker after 12th
- UG Preparation: Candidates after clearing their intermediate can opt for various undergraduate courses to gain knowledge on how to become an Investment Banker. The duration of these courses is 3 years and throughout they will be taught the details and intricacies of the banking and commerce industry.
- PG Preparation: Post completing undergraduate courses, candidates can pursue PG or PG Diploma courses in the related field that will provide them in-depth knowledge about the course. Hence, having a PG degree will give the candidate more knowledge about the profession and help him become an investment banker.
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Investment Banking Courses
There are several courses that can be pursued by candidates aspiring to become an Investment Banker. These courses have their basic roots and foundation into commerce and banking. Some of them include BCom, and BBA for undergraduate courses and MCom and MBA for postgraduate courses. These courses can be pursued both in regular or distance mode depending on the convenience of the candidate.
Discussed below are some of the commonly pursued courses in order to become an Investment Banker for your reference.
Bachelor of Commerce (B.Com)
BCom or Bachelor of Commerce is a 3-year undergraduate course in the field of commerce, covering subjects such as Accounting, Investment, Taxation, Economics, Financial Management, etc. This course has been designed to offer eligible candidates specialization in a wide range of skills required in the finance and Investment sector. Students after completing the BBA course and comleting subsequent PG course will become an investment banker.
Admission Process: BCom Hons admissions are based on the system of merit-based admissions, followed by a personal interview round. There are some colleges that conduct their own entrance tests for BCom Hons. Below given are the steps for applying for BCom Hons.
- Candidates must narrow down the colleges that they want to apply on the official website of the college that they are interested in.
- They need to fill the details and pay the prescribed fees with required documents if needed.
- Finally, candidates need to check the college website for recent updates and notifications with regards to the same.
- After the announcement of the result, candidates are required to pay the admission fee and lock their seat in the college.
Entrance Exam: The list of entrance exams conducted for enrolling students for BCom courses are tabulated below for your reference,
BBA Finance is a 3 year Undergraduate course aiming to give practical and theoretical knowledge to the students of various financial components like investment, insurance etc. This course prepares graduates to success at the entry level in finance and business. It covers the topics like Basic Business Statistics, Introduction to modern business, Business Laws, Introduction to computers, micro economics, Macroeconomics etc.
Students will become an investment banker after completing BBA finance and doing the PG courses.
Admission Process: BBA Finance admission is a very simple process if the guidelines are adhered to. The steps for the application to BBA Finance course are as mentioned below:
- Candidates need to find a suitable college offering BAA Finance course and register via the mode available.
- They need to fill in all the details like academic details, personal details, previous year marksheets, etc.
- They need to pay the requisite registration fee for the BBA Finance course.
- Post completing all the formalities, candidates can secure their seats if they are eligible for the course.
Entrance Exam: BBA Finance admission for most of the colleges is done on the merit score obtained in national level entrance tests such as IPU CET, DU JAT, NPAT etc. Some colleges conduct their own entrance exams like SET, MET BBA , etc. Some of the exams are mentioned below.
| Examinations | Registration Dates | Exam Dates |
|---|---|---|
| SET | Till April 2024 | May 2024 |
| NMIMS NPAT | 1st week of December 2024 | May 2024 |
MBA Financial Management
MBA Financial Management is a 2-year postgraduate course aiming at producing skilled professionals for managerial and related positions in the Investment and Finance industry. This course imparts education about Investment, administration, budgeting, investment outcomes and monitoring of financial assets.
Admission Process: Admission to the MBA Financial Management course is based on entrance exams. However, few colleges also take students on the basis of marks scored at the undergraduate level. The application process for the same is mentioned below:
- Candidates need to submit the application online to the colleges or universities they are interested in for admission.
- In order to get shortlisted for further rounds of admission, candidates need to score above the minimum qualifying percentile set by the respective college or university.
- After the written test, special group discussion (GD) and personal interview rounds are conducted to prepare the final merit list of selected candidates.
- After the admission process, the final allotment of seats to the students takes place and the candidate is required to deposit the course fee and register for the respective academic year.
Entrance Exam: The list of entrance exams conducted for enrolling students for MBA courses is tabulated for your reference,
| Entrance Exam | Application Period | Exam Date |
|---|---|---|
| CAT | August 5 – September 21 2023 | November 26, 2024 |
| SNAP | August 23 – September 23, 2023 |
Test 1: December 10, 2023 Test 2: December 17, 2023 Test 3: December 22, 2023 |
| XAT | July 15 – November 30, 2023 | January 7, 2024 |
| NMAT | August 1 – October 10, 2024 | December 19, 2024 |
Benefits of Becoming an Investment Banker
Just like any other profession, Investment Bankers have various perks and benefits. This profession is considered to be one of the most money making professions in the world. Some of the benefits of career as an Investment Banker are mentioned below:
- Salary: An Investment Banker can make around INR 5 LPA – 8 LPA depending upon their experience. With gradual experience and knowledge they can open their own start-ups and take executive decisions for the firm. They can also work as a freelance Investment Banker for various firms and organisations.
- Job Security: With proper skills that professional Investment Bankers gain through their practice, they can work from any corner of the world. They can easily get a job anywhere in the world if they have a perfect skill set in the relative field.
- Positive Impact of the Career: Investment Bankers act as a mediators between the sellers and investors. They are in-charge of making suitable development and progress of the market by making it more efficient, thereby having an impact in business growth that further helps the economy.
- Higher Studies: Professional Investment Bankers can also opt for Masters or PhD courses in the related field. Candidates can conduct research in the field of investment and related fields. They can also publish their thesis for the aspirants who want to become an Investment Banker.
- Unique Experience: Investment Banking is an unique field of Business Management, where people can work as per their capability and knowledge. They also gain a lot of experience as it's a continuous learning process where every time they learn a strategy and a new technique.
Skills Required to Become an Investment Banker
The main qualities of a good Investment Banking aspirant are having a strong analytical mind with the ability to work as a team. They should also be able to possess a critical bent of mind and willingness to learn new things.
Some of the skills to become an Investment Banker are tabulated below for your reference.
| Arranging Financing | Equity Financing | Underwriting Deals |
| Analytical Skills | Negotiating Mergers and Acquisitions | Financial Knowledge |
| Structuring & Closing Principles | IT Skills | Calculative Skills |
Salary of Investment Banker
There are several determining factors on which the Salary of an Investment Banker depends such as their qualifucations, experience, residing location and designation. Tabulated below is the average salary of an Investment Banker based on their designations for your reference.
| Specializations | Average Annual Salary (INR) |
|---|---|
| Investment Banker Analyst | 7.82 L |
| Investment Banker Associates | 11.35 L |
| VP Investment Banker | 36.67 L |
| Director Investment Banker | 40 L |
How to Become an Investment Banker: FAQs
Ques. What are some of the top courses that students can opt for becoming an Investment Banker?
Ans. Some of the top courses that the students can opt for are BA in finance, BBA Finance and Investment, MBA Investment Banking and some other certificate and diploma courses. These courses will provide specialised knowledge in the field of Investment Banking and it's related field.
Ques. What is the average cost to become an Investment Banker in India ?
Ans. The average cost to become an Investment Banker ranges from INR 50,000 to INR 4,00,000. If the candidates opt to study in government colleges then the average fees will be less as compared to the private ones.
Ques. What will be the major responsibility of the Investment Banker?
Ans. Some of the top responsibility of the Investment Banker are
- They help companies and other departments to raise money for expansion and improvement.
- They also arrange the sale of stock and equity financing.
- They help clients increase their financial portfolio and make good profitable decisions when it comes to investing their money.
- They act as an advisor and manage transactions for clients to the organisation.
- They Undertake transactions in equities, bonds, currencies, options or futures for large institutional investors.
- Investment Bankers work as mediators or brokers between two parties and are often responsible for setting up deals or facilitating mergers and acquisitions.
Ques. How much will it cost to become an Investment Banker abroad?
Ans. The average cost that the Indian Students will have to bear to become an Investment Banker abroad ranges from INR 20,00,000 to INR 1 Cr.
Ques. Is there any scholarship option for the students abroad to become an Investment Banker?
Ans. Yes, there are various countries offering scholarships to meritorious students. They need to fulfill the mentioned criteria to be eligible and avail the scholarship. Some of the scholarship covers all the expenses of students from living to extra stipends.
Ques. What are the qualities that every Investment Banker must possess?
Ans. An Investment Banker must be Highly ambitious, Competitive, Detail oriented, Quantitative, Polished and presentable to excel in their profession. These are some of the professions that will help them to last long in the industry.
Ques. What are the types of Investment Banker Jobs?
Ans. Investment Bankers work with corporations, governments, and other large financial institutions to help them raise capital or to advise them with regards to strategy. Some of the types for Investment Banking jobs are mentioned below:
- Mergers and Acquisitions (M&A)
- Underwriting
- Private Equity
- Venture Capital
- Trading Jobs
Ques. What are the career paths for the Investment Bankers?
Ans. Below given is the career path for the Investment Bankers:
- Analyst: They are usually people just out of college or employees with 1 or 2 years of experience. They are involved in data collection, creating presentations, and basic analysis of financial data in the organisation.
- Associate: After 2 to 4 years of experience, they are promoted to the level of an associate, with additional responsibilities like client interaction and managing a team of 4-5 analysts.
- Vice President: A VP is usually an expert in investment banking with experience in a variety of projects and deals.They are responsible for maintaining client relationships and making sure the operational efficiency at each level of hierarchy underneath.
- Director or Managing Director: It is a very senior post in the investment banking domain and can be achieved only after 10 to 20 years of experience. They are responsible for getting more business and converting potential clients into actual deals.
Ques. What role an Internship plays in the field of Investment Banking?
Ans. Internship plays a vital role during the course that the students are pursuing. It helps the students to understand the basic functioning of an organisation and key concepts of the profession.
Ques. Is it good to practice as a professional Investment Banker abroad?
Ans. It totally depends on the priorities of the person doing the job. However, they can earn more money abroad as compared to India.
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