How to Become an Investment Banker?

How to Become an Investment Banker: Investment Banking deals with helping corporations, investors and governments with complex and large financial transactions. It’s a challenging profession that requires a top-notch finance education along with a great deal of mathematical, analytical, and critical thinking skills.

Learning more about this sought-after profession can help you decide whether to pursue this career path. In this post, we will discuss how to become an investment banker and learn what these professionals do daily.

Who Is An Investment Banker?

Well, an Investment Banker is basically a highly skilled professional who offers various financial services to investors, companies, and governments. They assist companies in issuing bonds and stocks, getting business loans, raising stock capital, setting prices for securities, managing investment portfolios, negotiating mergers, and allocating resources.

They’re the vital link between public or private investors and companies. They provide financial consultation and advice on security issuance, such as bonds and stocks, regarding how and when to issue them and the optimal price for each security.

Most investment bankers also assist investors with services and advice to purchase those securities. Some may even perform underwriting duties for municipal bonds and guide clients with acquisitions and mergers.

What Does An Investment Banker Do?

An Investment Banker performs various responsibilities concerning financial processes for several Investment ventures and financial transactions. They work in teams composed of directors, managing directors, associates and analysts, and vice presidents, and each unit covers particular market sectors and industries.

They often adjust their work schedules to cater to different time zones in order to ensure seamless support to their clients. They have long working hours and have to deal with high-tension situations often.

Investment bankers usually perform the following responsibilities:

• Study and analyze many databases and market reports, as well as gather relevant data for financial decision-making.
• Track the recent investing climate, pinpoint risks linked with particular projects and guide clients on proceeding forward with them.
• Conduct company valuations, financial metric calculations, and financial modelling daily in order to predict company performance.
• Prepare proposals and presentations outlining timelines, benefits, and risks.
• Performs administrative tasks such as responding to phone calls and emails, making travel arrangements and organising meetings.
• Prepare, revise, edit and present pitchbooks, research reports, transaction documents, and PowerPoint presentations.
• Underwrite municipal bonds, Issue securities, and make equity and debt offerings in order to raise public or private funds.
• Guide enterprises to manage initial public offerings, issue securities, and set initial stock prices.
• Inspect, support and coordinate acquisitions and mergers to bring their clients the highest value.
• Guarantee compliance with legal rules and regulations established by financial regulatory agencies.

What Qualifications Do I Need To Become An Investment Banker?

You must have a bachelor’s degree in economics, finance, business or accounting in order to apply for a fresher position with an investment bank. You may enhance your prospects with a doctorate or a master’s degree. It also helps to work on improving your interpersonal and communication skills.

Is It Hard To Become An Investment Banker?

Becoming an investment banker is challenging and strenuous due to the demanding and stressful nature of the profession. They often have to work for more than 80 hours weekly, deal with high-pressure situations, and follow strict regulations. They should have a terrific grasp of accounting, mathematics, finance, economics, data analytics, statistics, and banking technology.

Moreover, they should have top-notch communication skills and an outgoing and confident personality in order to interact and build relations with influential people.

How To Become An Investment Banker In India?

If you’re thinking how to be an investment banker in India, consider taking these steps:

• Step 1: Complete 10+2
• Step 2: Clear College Entrance Examinations
• Step 3: Earn a Bachelor’s Degree
• Step 4: Obtain a Master’s Degree
• Step 5: Acquire a Doctorate
• Step 6: Get a Certification
• Step 7: Pursue an Internship
• Step 8: Find a Job
• Step 9: Advance Your Career

How Long Does It Take to Become An Investment Banker?

Becoming a full-fledged investment banker in India takes seven or more years. After your 10+2 examination, you must invest approximately three or four years in order to earn a bachelor’s degree. You may then do a two-year master’s degree course. If you plan to opt for a doctorate programme, it takes you another 3 to 6 years. Also, if you want to earn certifications, it can take you anywhere between 6 months and 4 years.

Steps To Become An Investment Banker

Below are the detailed steps on becoming an investment Banker in India:

Step 1: Complete 10+2

You must complete your higher secondary education with more than 50% marks in aggregate from a recognised board. You may choose arts, science, or commerce streams in your 10+2. However, choosing a commerce stream will be more beneficial with subjects like accountancy, mathematics, computer technology, economics, and business.

Step 2: Clear College Entrance Examinations

To get admission to the top colleges to complete your graduation or post-graduation programme, you must secure high ranks in national or state-level competitive entrance examinations. Some entrance examinations you can sit after completing your 10+2 are as follows:

• Common Entrance Test
• State Eligibility Test
• Delhi University Joint Admission Test
• Christ University Entrance Test

To get admission to master’s degree courses such as the Master of Business Administration, you can sit in the following examinations:

• Graduate Management Admission Test
• Narsee Monjee Institute of Management Studies Management Aptitude Test
• Symbiosis National Aptitude Test
• Common Admission Test
• Xavier Aptitude Test

For doctorate programmes, you need to clear examinations like:

• Council of Scientific and Industrial Research University Grants Commission National Eligibility Test
• University Grants Commission National Eligibility Test

Step 3: Earn a Bachelor’s Degree

Securing an entry-level position with an investment bank requires earning a three or four-year bachelor’s degree. Several options include earning a Bachelor of Commerce, a Bachelor of Business Administration in Finance, a Bachelor of Arts in Finance, and a Bachelor of Arts in Economics. Although the syllabus varies for each course, you may cover subjects like accounting, mathematics, financial management, economics, taxation, corporate finance, investment, business administration, and data analytics.

Step 4: Obtain a Master’s Degree

Pursuing a two-year Master of Business Administration degree in financial management is a highly sought-after postgraduate qualification for aspiring investment bankers. Alternatively, you can also do a Master of Science in finance. The National Stock Exchange Academy provides six to nine months of postgraduate programmes in business analytics and management accounting, banks and financial planning, and investment banking and capital markets.

Step 5: Acquire a Doctorate

To pursue PhD in finance and banking, you need to score over 55% marks at the postgraduate level and clear the cut-off percentage in the CSIR UGC NET and UGC NET. The syllabus includes subjects such as corporate finance theory, asset pricing theory, foundations of business research and microstructure of markets, and research methods in finance. The PhD programme spans three years.

Step 6: Get a Certification

You can improve your career opportunities with a Chartered Financial Analyst professional certification. This programme offers practical and intensive training in investment and finance. Candidates can study corporate finance, economics, derivatives, alternative investments, equity investments, analysis of quantitative methods, and financial reporting. You can register yourself for this course after clearing your bachelor’s degree. The course duration ranges between one and four years.

Candidates can also do the Postgraduate Certificate Programme in Investment Banking put forward by the Indian Institute of Management. The National Stock Exchange Academy provides certification programmes for financial planning, business analytics, and financial modelling.

Step 7: Pursue an Internship

You can discover investment banking internships on online job portals and bank websites, as well as through campus placements, HR consultancies, and networking. Internships in investment banks generally last from two months to two years. Besides financial training, you may improve your presentation, communication, and negotiation skills. Based on your performance during the internship, you may receive an offer for a permanent position as an out-and-out investment banker.

Step 8: Find a Job

Securing a job offer occurs directly following your internship, via a campus job interview, or by applying to open positions with financial advisory companies or investment banks. Prepare for your interview by revisiting fundamental finance concepts, private equity, and financial modelling. You can compile and practise answering commonly asked questions to make yourself interview-ready.

Step 9: Advance Your Career

Engaging in employer-backed training programmes and pursuing additional certification programmes helps you enhance your investment banking education and remain competitive. You can learn new skills, stay informed about industry advancements, connect with influential leaders and acquire more work experience in corporate finance and investment. This can assist you in progressing into higher-level management roles.

How To become An Investment Banker After 12th?

To become an investment banker after 12th, start by completing your 10+2 with at least 50% or an equivalent CGPA from a recognized board, with a strong base in mathematics, economics, and commerce. Pursue an undergraduate degree in fields like BCom, BBA, BA Economics, or BSc Mathematics. Alternatively, consider professional courses such as CA, CS, or CFA. Next, enroll in a master’s program like MBA, MCom, MA Economics, or MSc Mathematics, or opt for specialized courses like PGDM, PGDBM, or PGDFM to gain advanced knowledge.

Investment Banking Courses

Following are some of the Investment Banking courses in India:

Course Type	Description	Duration	Cost (₹)
Master’s in Business Administration (MBA) with Finance Specialization	Comprehensive program covering core finance, investment banking practices, soft skills, and industry exposure.	2 Years	INR 10L – 30L+
Postgraduate Diploma in Investment Banking (PGDIB)	Focused program on investment banking topics like M&A, financial modeling, valuation, deal structuring.	1 Year	INR 3L – 10L
Bachelor’s Degree in Finance (BCom, BBA)	Provides core finance knowledge, quantitative skills, and foundation for further studies.	3-4 Years	INR 1L – 5L+
Investment Banking Certification Programs (CFA, FRM, NISM)	Internationally recognized certifications demonstrating expertise in specific areas.	Varies (CFA: 3 levels, FRM: 2 levels, NISM: Varies)	CFA: INR 70,000+, FRM: $1,150+, NISM: Varies
Online Courses	Flexible, affordable options covering specific investment banking skills like financial modeling, valuation, pitch preparation.	Varies (self-paced)	INR 1,000 – 10,000+
Bootcamps	Intensive, short-term programs focusing on practical skills like financial modeling, data analysis, and interview preparation.	4-8 Weeks	INR 50,000 – 1L+

Types Of Investment Bankers

In India, investment bankers typically work in three main categories:

1. Bulge Bracket Investment Banks: These are global giants like Goldman Sachs, JP Morgan, Citibank, and HSBC. They offer a wide range of services, including mergers & acquisitions (M&A), capital markets (debt and equity issuance), and trading. In India, they primarily focus on large-cap deals and multinational clients.

2. Domestic Investment Banks: These are Indian-based firms like ICICI Securities, Axis Capital, Edelweiss, and SBI Capital. They cater to a broader range of clients, including domestic corporates, mid-sized companies, and even startups. Their services may be similar to bulge bracket firms, but may also include specialized offerings like wealth management or private equity.

3. Boutique Investment Banks: These are smaller, specialized firms focusing on specific sectors or types of transactions. They offer niche expertise and personalized attention to clients. In India, they might specialize in infrastructure, healthcare, or clean energy sectors.

How Much Money Do Investment Bankers Make A Year?

In India, the salaries of investment bankers differ depending on experience, location, and the company. The average salary of an investment banker in India is ₹6,56,817 annually while experienced managing directors can earn over ₹1 crore. However, your salary varies based on experience, location, and other factors. Typically, investment bankers who have completed their graduation from renowned colleges or are employed by large banks may enjoy higher base salaries and attractive bonuses.

Salary Of Investment Bankers In India

Below are the estimated salary of Investment Bankers in India:

Experience Level	Average Annual Salary (₹)	Range (₹)
Analyst (0-2 years)	5-8 Lakhs	3-12 Lakhs
Associate (2-4 years)	8-12 Lakhs	5-15 Lakhs
Vice President (5-7 years)	15-25 Lakhs	10-30 Lakhs
Director (8+ years)	25-40 Lakhs	20-50 Lakhs
Managing Director (10+ years)	50 Lakhs+	30 Lakhs+

Benefits Of Becoming An Investment Banker

1. High Earning Potential: Investment banking offers the chance for significant income growth, with top performers potentially earning well into six or seven figures, including substantial annual bonuses.
2. Financial Security: Working for established financial institutions provides stability and security, often accompanied by competitive benefits such as health insurance, retirement plans, and paid time off.
3. Challenging Work: Investment banking involves tackling complex transactions, providing continuous learning and mental engagement. You’ll be solving challenging problems and staying updated on financial trends.
4. Exposure to Different Industries: The job allows you to work with a variety of businesses across sectors, offering insights into diverse markets, economic trends, and industry dynamics.
5. Development of Valuable Skills: Investment banking hones sought-after skills like analytical thinking, problem-solving, communication, persuasion, teamwork, and collaboration, which are applicable in various careers.
6. Networking Opportunities: Building relationships with decision-makers and influential individuals in different sectors creates opportunities for future career paths and provides access to a valuable professional network.
7. Sense of Achievement: Successfully navigating complex deals and witnessing their impact can be highly rewarding, providing a strong sense of accomplishment in your career.

Conclusion

To become an investment banker, start by focusing on your education in finance or a related field. Get practical experience through internships and build a strong network in the industry. We hope you understand that an investment banking career isn’t a piece of cake– you must work hard to earn your position in this highly competitive sector. However, with the correct qualifications and skills, there will be no stopping you! Best wishes!

Related Resources:

• What is Investment Banking?
• Investment Banker Salary in India 2024
• Chartered Financial Analyst (CFA) : Full Form, Levels, Syllabus
• Top 10 Career Options After 12th Commerce 2024

How To Become An Investment Banker – FAQs

How Long Does It Take To Become An Investment Banker?

The timeline to become an investment banker can vary, but a common path includes obtaining a bachelor’s degree (usually 3-4 years), gaining relevant work experience (1-2 years), and possibly pursuing an advanced degree like an MBA (1-2 years). In total, it may take around 5-8 years or more.

Is It Hard To Become An Investment Banker?

Yes, it can be challenging. The competition is fierce, and the job often requires long hours and a high level of dedication.

Is MBA Good For Investment Banking?

Yes, an MBA can be beneficial for a career in investment banking. Many investment bankers hold MBAs, and top investment banks often recruit from MBA programs.

What Can I Do After 12th To Become An Investment Banker?

Pursue a bachelor’s degree in finance, economics, or a related field. Gain internships and relevant work experience to strengthen your resume. Consider pursuing advanced degrees for better opportunities.

Which Subject Is Best For Investment Banking?

Subjects like finance, economics, business, accounting, or related fields are ideal for a career in investment banking.

Can I Become An Investment Banker Without An MBA?

Yes, it’s possible. Many investment bankers have succeeded without an MBA.

How Many Years Does It Take To Become An Investment Banker After 12th?

It typically takes around 5-8 years or more after completing 12th to become an investment banker, including obtaining a bachelor’s degree, gaining work experience, and possibly pursuing an advanced degree.

Do Investment Bankers Earn Well?

Yes, investment bankers generally earn high salaries and bonuses, especially at top-tier investment banks.

Is CFA Enough For Investment Banking?

While a Chartered Financial Analyst (CFA) designation is respected in the finance industry, it may not be sufficient alone for a career in investment banking.