Investment Banker Career Information
An investment banker deals with corporate houses. They manage shares and capital formation of a company. They also manage capital market operations on behalf of the company. Investment banking operations mainly revolve around investment management on behalf of corporate clients.
What an Investment Banker does
Your work as an investment banker would involve advising companies on capital formation, mergers, acquisitions, investments and managing capital assets. As an investment banker, you will have to liaise with businesses, governments, nonprofit institutions and individuals.
As an investment banker, you will look into the financial aspects like advising a company or a client on financial transaction, selling and trading the securities, researching the company's background and the market before making any investments, etc. As an investment banker, you also have to analyse and make recommendations to the company, based on the market and competitors.
As an investment banker, your job will also involve extensive research on industries and companies. You will have to find out opportunities to invest in profitable shares, debentures and other financial instruments. As an investment banker, you will also invest and control the portfolio of shares, decide which shares to buy and which to sell to gain maximum returns.
As an investment banker, you have to excel and be accurate in terms of business information as the investor will totally depend on your reports. You have an important role to perform for the company. Yours is a high-risk job. You will have to face the criticism and failure at times.
Initially, you will join as an Analyst. As an analyst, you will be responsible for writing reports, maintaining spreadsheets, trading stock options, research, etc. As an investment banker, you will have to put in long hours at work to get the projects completed on time.
As an investment banker, you need to have a good knowledge of the business world and the latest market developments. Team spirit is the key to climb up the ladder, as you have to work in harmony with people of different temperaments.
Having a good network will help you get more business as well as earn more rewards. As you graduate to higher levels like that of Director, Managing Director and others the risk is higher. As an investment banker, you will be evaluated on the basis of your performance.
Job Opportunities:
As an investment banker, you will find employment with:
• Broking Firms
• Mutual funds
• Investment banks
• Financial services companies
• Pension funds and other financial institutions
• Insurance companies
Career Prospects:
Capital markets all over the world as well as in India are witnessing major changes. With escalating interests of domestic and international players in India there is an increasing demand for a more systematic approach in investments made in the capital market.
SEBI (Stock Exchange Board of India) is also bringing in mandatory transparency in the dealings. All this has opened lot of avenues for people planning a career in financial sectors.
Economic growth and liberalisation has opened up considerably large number of opportunities in various organisations like mutual funds, investment consultancy, broker firms, insurance companies, merchant banks, pension funds and other financial institutions.
A number of MNC are looking at India as a business destination. Many of the MNC enter the Indian markets through mergers and acquisitions and Indian companies are also looking at expanding their base in the international markets. All these opportunities have spelled out jobs for the Investment Manager.
Abilities & Traits Required
As an investment banker you need to have:
• A combination of strong analytical and interpersonal skills
• Good communication skills
• Sales skills
• Creative ability
• Ability to take initiative
• Ability to work long hours
• Good networking
• Mathematical skills
• Ability to keep calm and work under pressure
• Ability to forecast
• Conviction
Your success as an investment banker, mainly depends upon your ability to communicate, willingness to travel, hard work and the number of profitable deals you clinch for the company.
Qualifications
A Degree in MBA with specialisation in Finance or Chartered Accountancy is preferred. PhD in Economics and relevant experience in the industry can also get you a good job.
Salary
This job is highly rewarding, as far as the money aspect is concerned. Junior Manager gets Rs 400000 -500000 p.a. The high end is actually a dollar salary converted into Indian rupees. Average package paid to MBA from premier business schools is around Rs 900000 p.a.
With 5-6 years experience you could earn Rs 1200000 - 10000000 p.a., depending on the organisation and the position you would be working in.