How to Start a Career in Investment Banking?

Investment banking is a great job option for analytical students with strong math skills. Investment banking is a suitable career for someone skilled in math. Investment bankers should also have a good mind for laws and regulations to navigate the complex legal landscape surrounding investment banking. To become an investment banker, students pursue an education in finance. While you can begin as an investment banker with a bachelor's degree, most eventually pursue a master's degree.

Capital raising is a large component of being an investment banker which includes selling securities to investors, facilitating IPOs, and book building—the practice of estimating a company’s value before it goes public on the stock market. Investment bankers also facilitate mergers and acquisitions and provide hedge, mutual, and pension fund advisory services.

Investment Banker: Highlights

Industry	Banking & Finance
Eligibility	Students must clear Class 12th along with an Undergraduate or Postgraduate Degree in Banking or Finance
Top Recruiters	Goldman Sachs, Merrill Lynch, Morgan Stanley, JP Morgan and HSBC
Average Starting Salary	INR 7.50 LPA – 11 LPA
Highest Salary	INR 47.70 LPA – 50 LPA

 What Qualifications Do I Need To Become An Investment Banker?

You must have a bachelor’s degree in economics, finance, business, or accounting to apply for a fresher position with an investment bank. To become an investment banker after the 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, enrol 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. 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.

Certain hard skills are required to be an investment banker-

How to Become an Investment Banker in India

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

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 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 program, 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.

Investment Banking: Roles & their Responsibilities

Role	Responsibilities
Capital Raising	Investment bankers play a critical role in helping companies raise capital through IPOs, bond issuances, or private placements. They organize such deals to maximize the client’s financial status.
Mergers and Acquisitions (M&A)	Investment bankers counsel clients in mergers, acquisitions, or divestitures. They will analyze the financial implications, negotiate terms, and assist in executing strategic transactions such as mergers and acquisitions.
Advisory Services	They advise clients on strategic financial issues, including capital structure optimization, shareholder value enhancement, and challenges in Venture Capital. This can be done by assessing prospective investments, divestitures, or restructuring projects.
Risk Management	Investment bankers help clients manage financial risks through hedging strategies for currency fluctuations, interest rate changes, and commodity prices. This allows clients to protect their financial positions under volatile markets.
Financial Modeling and Analysis	Investment bankers use advanced financial models to evaluate and predict the consequences likely to result from different economic transactions. This involves carrying out valuation metrics, conducting due diligence, and assessing the financial implications of strategic decisions.
Client Relationship Management	Relationship with clients is one factor contributing to an investment banker’s responsibilities. They prove to be reliable counsellors, knowing the needs of customers and coming up with financial solutions customized for specific business goals.

Investment Banking: Courses & fee

Following are some of the Investment Banking courses in India:

Course Type	Description	Duration	Fee (?)
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 modelling, valuation, and 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 modelling, valuation, and pitch preparation.	Varies (self-paced)	INR 1,000 – 10,000+
Boot camps	Intensive, short-term programs focusing on practical skills like financial modelling, data analysis, and interview preparation.	4-8 Weeks	INR 50,000 – 1L+

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+

Frequently Asked Questions: (FAQs)

Ques. What kind of education do I need to become CEO?

Ans. Including this education:

1. A bachelor's degree in finance, economics, accounting, or business is typical.
2. Top programs and firms may favour graduates from prestigious universities.
3. An MBA or Master's in Finance can be beneficial for advancement, but not always required for entry-level positions.

Ques. Are there any certifications that help?

Ans. While not mandatory, these can boost your resume:

1. Chartered Financial Analyst (CFA) designation: demonstrates advanced financial knowledge.
2. Series 7 and Series 63 licenses: required to sell securities in the U.S. (licensing requirements may vary by country).

Ques. What skills are important for investment banking?

Ans. These skills are important for investment banking:

1. Strong analytical and problem-solving skills
2. Excellent communication and interpersonal skills
3. Teamwork and collaboration abilities
4. Financial modelling and valuation expertise
5. Proficiency in Excel and other financial software

Ques. What are the typical career steps in investment banking?

Ans. These typical career steps in investment banking are:

1. Analyst: Entry-level role responsible for financial modelling, research, and creating presentations.
2. Associate: Manages teams of analysts, works on complex deals, and interacts with clients.
3. Vice President: Leads deal teams, manages client relationships, and brings in new business.
4. Director: Oversees multiple teams and deals, focusing on strategic initiatives.
5. Managing Director: Senior-level role with leadership responsibilities for a business unit or department.

Ques. Is investment banking a good fit for me?

Ans. Consider these factors:

1. Long hours and demanding work environment: Be prepared for intense pressure and long workdays.
2. Strong work ethic and dedication: Success requires a commitment to excellence.
3. Analytical and problem-solving skills: You'll need to break down complex financial situations.
4. Excellent communication skills: You'll present information and proposals to clients and colleagues.

Ques. Where can I find more information?

1. Investment banking industry websites and publications.
2. Online resources like Investopedia or The Wall Street Journal.
3. Career centres at universities with strong business programs.