Everything You Need to Know About a Career in Investment Banking

Everything You Need to Know About a Career in Investment Banking

Investment banking is one of the most lucrative career choices in the industry. One can earn very high salary right out of graduation. At the same time, it is also one of the most challenging careers that deters one from aiming for a career in investment banking. A fresh graduate can earn up to $1,00,000 in starting salary as investment banking analyst. Investment banking industry is also notorious for grueling working hours and stressful environment.

What is investment banking?

Investment banking involves high –level corporate transactions that decide the course of an entire organization. An investment banker assists high –profile business owners raise capital for expansion, product launch, restructuring, and participate in mergers & acquisitions. IPO (Initial Public Offering) is a major task for which companies reach out to investment bankers.

Additionally, investment bankers issue bonds and assist HNIs (High Net Worth Individuals) make profitable investment decisions, and receive a commensurate commission on the profit along with a fixed fee. Though investment bankers make a lot of money, it doesn’t come easy. An investment banker clocks in as much as 80 hours of work in a week.

What skills do you need to become an investment banker?

An investment banker needs a gamut of skills to excel in an investment banking career. The following are the critical skills required to succeed in investment banking.

1. Technical skills – Comprehensive understanding of finance skills is important to excel in investment banking. Building financial model, financial statements, cash flow analysis, due diligence, etc. is essential to effectively work in investment banking. Consequently, investment bankers are expected to have strong numerical aptitude and propensity to solve mathematical challenges.

2. Interpersonal and communication skills – Investment bankers communicate with high –profile business owners and HNIs. They often get together for short meetings and investment discussions. Therefore, investment bankers should have strong and impeccable communication skills. 

3. Salesmanship: Investment bankers are tasked with the responsibility to find profitable investment opportunities for business owners. In turn, these opportunities should be sold to high-net worth individuals to generate income for investment banks in the form of fee. Therefore, bankers require good salesmanship.

4. Entrepreneurial skills: The primary goal of investment banking is to help companies grow. Investment bankers should possess the ability to identify growth opportunities.

5. Presentation skills: Investment bankers often meet business owners, HNIs, investors, and high-profile business delegates at unfamiliar places. Thus, investment bankers should be able to present themselves well. Good dressing sense, confidence, and authoritative tone

How to make a career in investment banking?

Finance graduates can apply for summer internships at investment banks, which upon successful completion, turn into full –time opportunity. A fresh out of school graduate mandatorily needs internship to apply for investment banking analyst role. Further, MBA in finance with a good GPA leads to investment banking as banks prefer to hire MBA for investment banking analyst positions.

Final word

Investment banking industry offers lucrative job opportunities but it is also one of the most challenging jobs to be in. Taking an investment banking certification can significantly increase chances of getting a job in investment –related roles and ease the way into a job.

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