A career in investment banking is among the prestigious choices across the globe. Make mention of the best cities and you get the chance to live there if you pursue a career in Investment banking. Additionally, you are paid hefty amounts of salary and your work dedication is rewarded with quick promotions, all of these give you career satisfaction.
If you are interested in a career in Investment Banking, and wondering if pursuing a career in investment banking will prove a wise decision, this post will clear your qualms.
Let us go a little more in-depth about the nuances of the Investment banking career and understand why a career in Investment banking is good and ideal.
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Factors that make a Career in Investment Banking Ideal
Many reasons would be compelling for individuals to take up a career in investment banking, however, we have listed the most crucial factors as discussed below:
Work in valuation and financial modeling
Early in your career, you can develop expertise in creating extensive, intricate financial models by working in investment banking. Even while they aren't always terrific investors, bankers do spend a lot of time on valuation work, which can be a great way to start your career.
Exposure to prominent transactions
The majority of the projects that bankers work on are top secret until they are made public, and when they are, they typically appear on the front page of the business section. This offers a highly persuasive motive to enter the sector and is likely to tickle the interviewer's ego if you say something to this effect.
Challenging and a long learning curve
It will help you stand out as a candidate for jobs if you can acknowledge that IB requires exceptionally long hours and that you're truly inspired by the task. It can be good to make comparisons to your own experiences, like competing in a very difficult event or as an exceptional musician or athlete.
Skills needed for making an entry into the Investment Banking Career
The minimum requirement to pursue an Investment banking career is to be a graduate/ CA/ CFA/ MBA from a top business school. The educational qualification required is relatively high as Investment bankers are required to perform complicated actions on financial transactions which are in nature very complex. Another additional factor is to possess competency and be highly skilled in numerous skill sets, which include the following:
Strong analytical skills and number crunching prowess
Excellent communication Skills
Leadership quality
Excellent in teamwork
The caliber of working under pressure and handling stressful situations
Investment Banking Certification
Apart from the educational qualification, Investment banking certifications are a great deal helpful for aspiring individuals. Employers, Business corporates, and Business schools often use Investment Banking Certifications to assess the potential of the candidates. Certifications are also essential for aspiring individuals to check and test their skills, and knowledge and review concepts to navigate what levels of experience and courses they might need in their future course of career plans. Investment banking Certification programs are available in numerous avenues with accessibility online. Individuals who have completed their MBA/ CA/CFA may enhance their knowledge base with job-oriented training and get a more in-depth education.
Most common job opportunities in Investment Banking
The field of Investment Banking offers numerous roles and job profiles that skilled professionals can take up. Let us discuss a few of the major job positions in an investment banking career.
Underwriting: One of the main responsibilities of investment banks is underwriting, which aids in generating capital for businesses and governments through the issue of shares and debt.
Mergers and Acquisitions (M&A): Professionals can work in this division which offers strategic advice to businesses looking to merge or purchase another business. They advise on business valuation to buyers and sellers along with the price and structure of a transaction, negotiation, and implementation. These individuals have the particular knowledge necessary to ensure that such transactions make sense and will benefit the company in the long run.
Private Equity: One of the most renowned jobs nowadays is private equity. It entails investing in an asset class made up of debt and equity held by businesses that are not publicly traded. A few instances of well-known private equity companies are Blackstone and KKR.
Venture Capital: This job designation is somehow parallel to that of private Equity. The sole distinction is that Venture capital invests in new businesses, whereas Private Equity only works with well-established ones. A unique set of talents are needed to become a venture capitalist because part of their job involves selecting startups with enormous future potential. For the majority of businesses, the likelihood of failure is relatively high, yet a small number of winners can balance out a sizable number of losers.
Equity Research: One of the key facets of an investment banking career is equity research. They include both buy-side and sell-side research, which makes it easier to trade securities. Although their reports are typically intended for internal use, they may sell them to hedge funds or mutual fund managers to make more money.
Proprietary Training: This vocation is practiced by some companies. It is a trading desk that allows traders a platform to trade in various securities such as equity, bonds, currencies, or commodities using the firm's own money rather than the money of the depositor.
Asset Management: Investment banking professionals also function as an asset management firm, managing huge portfolios for a variety of clients, such as insurance companies and pension funds. Using the proper blend of various products in their portfolio, such as equity, bonds, real estate, etc., they assist their customers in reaching their goals.
Starting from the various job opportunities to the value Investment bankers garner, a career in Investment banking is without a doubt ideal.