Investment banking related jobs are one of the highly paid jobs in India. Investment Banking helps in growing the client’s assets by providing financial advice. Here the financial advice is given by the investment bankers.
Through the investment made on behalf of clients or companies, Investment bankers earn high and get a rewarding position in their industry, this job is equally challenging. Investment bankers play different roles and take responsibility. In addition, this career requires high intelligence and analytical skills and involves high stress.
This article answers all about investment bankers and your skills to become the best investment banker in India. Now let’s get started.
What Is Investment Banking?
Investment banking is a well-known field in the financial sector that works to maintain and grow the client’s financial assets.
This field helps government, businesses, and other services provide financial advice and proper guidelines to support their assets’ growth.
Also, it is a private company that is different from commercial and retail banks.
What does an investment banker do?
Investment bankers work as financial advisors to governments and private corporations or individuals and help their client’s assets multiply. Apart from this, investment bankers offer multiple services.
Roles of the Investment Banker
To become the best investment banker in India, you must possess the skill set given below.
Arranging Financing
A crucial role of an investment banker is to arrange finances for a company. For instance, imagine this scenario. A company wants to build a large factory to manufacture goods but lacks financial support. So what they do is try to issue a bond and raise money for the project.
The bond’s cost will be paid with the profit made from the increased production. An investment broker does the planning and arranging for the financing.
Equity Financing
Equity financing also means selling bonds or stock of a company essential for its financial growth. And it involves various steps like preparing a prospectus for investors, managing the marketing process and pricing the offerings. The investment banker takes care of all the steps and ensures the equity financing of a company.
Negotiating Mergers and Acquisitions
Merging or acquiring a company with another company is a lengthy process that involves planning and negotiation. Here, investment bankers play an advisory role and act as the company’s representatives.
Arranging the private placements
Investment bankers help arrange private placements for companies that don’t like to go public. So they prefer private placements, overstock or bond markets.
Underwriting deals
When investment bankers make the arrangements for market financing, they are also involved in underwriting the deals for their clients. Once the underwriting is done, they sell the shares with a net profit.
This is a risky process as the company relies on the investment bankers’ financial plans and hopes for a profit.
Scope of Investment Bankers in India
If you have a bachelor’s degree in economics, finance, accounting or business, you will get an entry-level position in an investment bank. However, taking up multiple certification courses, a master’s degree or even a doctorate can help you level up your position as an investment banker.
In addition to this, you must possess good communication skills and the right attitude towards the people and the job.
Careers in Investment Banking
Investment bankers have opportunities to shine in multiple careers listed below:
Corporate Finance – Helping in increasing the shareholder value through various strategies.
Merger and acquisition – planning and helping combine two firms or acquire a company.
Capital market – Dealing with debt and equity markets.
Sales and trading – This job has the fastest growth rate among other investment banking profiles.
Top 7 investment banking companies in India
If you are confident that you have the skillset and can be the best investment banker in India, you can easily get placed in a top investment banking company.
Indian companies:
- Avendus Capital
- Edelweiss Financial Services Limited
- Axis Capital Limited
- ICICI Securities Limited
- Avendus Capital Pvt. Ltd.
- JM Financial Institutions Securities
- O3 Capital Global Advisory Services
International investment banks in India:
- Barclays Capital
- B. N. P. Paribas
- Citi Bank
- Deutsche Bank
- Credit Suisse
Pros and Cons of an Investment banker as a career choice
- Investment banking can provide you with high earning potential with good commissions.
- The investment banking field has a high demand for investment bankers with high intelligence and analytical skills. So you will keep on levelling up your skills.
- Investment bankers get an exciting benefits package that contains insurance coverage, stock options, and bonus opportunities.
- You get the chance to work and interact with the senior officers of their organisation. This helps them build personal and professional relationships with them and thus quickly build a robust network.
Cons:
- The investment banker job is not for everyone. It is pretty stressful.
- You cannot get a work-life balance.
- Automation and AI are a slight reduction of this type of job.
- It is a job with high risks as it depends on the market.
- The competition is pretty high.
Conclusion
Investment bankers are an intermediate between a company and the financial markets and help the clients’ assets multiply. Also, these bankers allow new firms to enter the public sector.
The scope of an investment banker in India is high, and anyone with an eligible degree and high analytical skills can shine well in this job profile.
However, this job requires much attention and dedication, and you can’t expect a work-life balance. It also involves significant risks, and you need to have a sharp brain to deal with them and need continuous up-gradation of your skills to become the best investment banker in India.
