When companies and business owners want to raise capital to fund their operations, they often consider their finance ratio. They also go to an investment bank for advice and other assistance. An investment banker works with investment banks to find buyers for securities and raise capital for companies. They also help establishments through complex processes like mergers and acquisitions. But they must understand the finance and investment market to achieve these.
Investment banking is a lucrative career for prospects who want a challenging profession. Although very demanding, its entry-level jobs provide six-figure salaries and establishment. Professionals in the field earn millions of dollars every year with job security. The career promises a high growth trajectory with awesome rewards if you are good at what you do.
You also experience personal growth with steady career developments while helping your clients succeed financially, But getting to the top of this field is a multi-step process that requires a combination of many things. These include educational qualification, foresight, ambition, hard work, multiple skills, experience, and connections.
Who is an investment banker?
An investment banker is someone that provides financial services to companies, organisations, business owners, and other corporate clients. They are finance experts who manage the finances and investment decisions of financial institutes. They also help raise required funds and administer securities required for investments with their knack for numbers and real-life experience.
Investment bankers create vital financial strategies for asset management and improve the overall financial portfolio of the company. They also act as expert financial guides to senior management for buying and selling securities.
Qualifications to become an investment banker
Earn a bachelor degree
Gaining an entry-level position as an investment bank requires a bachelor’s degree. You can obtain a Bachelor of Commerce, Finance, Economics, or Business Administration in finance. During your course, you will cover subjects like mathematics, accounting, economics, and financial management. They will also teach you corporate finance, investment, taxation, data analytics, and business administration.
After your bachelor’s degree, you can join an investment firm or a /financial institute as an intern or Junior Analyst. However, you have to work hard with diligence to climb the corporate ladder. Although you can get a job with a bachelor’s degree, having an advanced degree can improve your prospects. Getting an advanced degree in business administration, or becoming a chartered financial analyst can add to your resume and paycheck.
This is because a lack of higher qualifications and experience can prevent you from getting high-profile and well-paying job roles.
Obtain Master degree in finance
A master’s degree in finance is one of the most sought-after postgraduate degrees for investment bankers. It provides lucrative roles in banking, financial services, insurance, fintech, and other industries. It is an avenue to enter into the IB Industry because it grooms students for an investment banking career. A master’s degree in finance also provides opportunities for students to network with peers and industry experts.
CFA Certification is a finance certification conferred by the Chartered Financial Analyst Institute to professionals. The program is a three-part exam that tests candidates’ knowledge and aptitude in finance. These include fundamentals of investment tools, valuing assets, portfolio management, and wealth planning. Therefore, you need to appear for the CFA exam to become a Chartered Financial Analyst.
Making your way into the investment banking domain is often a cinch with a CFA Certification. This is because your educational qualification has already opened up the gateway to the investment banking industry. It also provides suitable employment prospects in reputable management consultancies, financial institutes, investment firms, and insurance agencies.
Get a doctorate
Ph.D. in finance is also a good option for investment bankers that want to reach the peak of the industry. But they need more than 55% marks at the postgraduate level to register for a doctorate. They must also meet the cut-off percentage in the UGC NET and the CSIR UGC NET. They will learn and understand more advanced courses on finance.
These include asset pricing theory, corporate finance theory, research methods in finance, business research, the microstructure of markets, and many more. These give them an upper edge with higher salary packages than other investment bankers.
A degree in Chartered Accountant
Chartered Accountant is another degree option if you want to become an investment banker. A Chartered Accountant is a person with qualified certification from a statutory body to handle the accounting and taxation of a business. They are well trained in Finance, Money Markets, Equities, Securities, Mergers and Acquisitions, Law, and many more. These allow them to work in banking and non-banking institutes as an investment banker.
Investment bankers are mediators between security issuers and investors. They also help or advise their clients on how to manage and invest their various financial assets. Therefore, they need to understand investment basics to raise capital and contribute financial consultancy assistance to their clients.