How to become an Investment Banker?

If you are interested in making money out of money, then you should seriously consider making a career out of investment banking. In other words, investment banking is essentially about matching the expectations of people who have the capital with people who need the capital. This can be structured at various stages of the life cycle of a venture starting from the ideating stage to the listing at stock markets. An investment banker advises clients on various options such as mergers, acquisitions and joint ventures etc. to optimise valuation.

To be more precise, investment banking involves advisory services, trading securities, selling and underwriting securities for companies, individuals and governments.

A background in finance, economics, or math is essential for investment banking and you need an excellent grasp of economics and the ability to use analytical and numerical tools. MBA in Finance is the best course for this career. If you get into a good MBA programme do not hesitate to take it up, even if you need a loan. There are excellent chances for pay-back after a good MBA programme. There are also PG diploma and degree programmes in investment banking and equity research, security analysis, portfolio management and investment banking, and other such courses for entry into this career. It also helps to have some work experience in banking; you could intern in a bank.

Daily Schedule: The day begins in the morning, around 8 and usually there are no fixed timings. On most days, it is a 12 to 14 hour work day spent doing research, analytics, reading, meetings, presentations, networking, team building etc. It also involves around 10 working days of travel in a month.

A typical day in the life of investment banking professional:

8am: Day begins in office
9am: Significant time spent on con-calls/skype calls across time zones 
Noon: Brief the team members, prepare a report
8pm: Leave for home

Pay Scale: On an average, a fresher in this domain can expect a package of Rs. 20 lakh per annum and there is no upper limit on pay scale as the same is directly proportionate to the value contribution of the professional to the size and value of the deals

Skills/Traits Required:

• High research/analytical frame of mind
• Top of the line communication
• Widely read and informed and thinking out of the box - a natural innovator
• Should have ability to handle difficult situations and offer timely troubleshooting
• Should have a flair for analysing figures and forecast sales and budget
• Should have sound technical knowledge
• Should have good command over the English language

Qualifications Needed: One can follow this sector from any stream - science, commerce or arts. However, it is important to have competency in maths, economics and business studies on the path. A bachelor’s degree in business administration is a usual pre-requisite. You can follow it up with an MBA or choose to get some work experience. Either ways, you will learn a lot.

Advantages & Disadvantages:

• Extremely challenging and intellectually stimulating job
• Money is good
• The profession can open the patjto entrepreneurship
• Helps in networking
• High-pressure job
• Involves long hours
• Excessive competition

Institutes where you can study:

• Indian Institute of Foreign Trade (IIFT), New Delhi
• Shaheed Sukhdev College of Business Studies, Delhi University
• Guru Gobind Singh College of Commerce, Delhi University
• Faculty of Management Studies (FMS), Delhi University
• Narsee Monjee Institute of Management Studies, Mumbai
• XLRI, School of Business and Human Resources, Jharkhand
• Institute of Management and Technology (IMT), Ghaziabad
• Indian Institutes of Management (IIMs)
   

Future Prospects: Investment banking has a huge prospect for growth in an emerging economy like India due to the presence of vast untapped sectors, high entrepreneurial energy and innovation possibilities for structuring win/win solutions.

Source: hindustantimes.com