How to Become an Investment Banker?

Investment banking is one of the most sought-after careers in the finance industry, as it offers high pay, global opportunities, and better career outcomes. An investment banker assists companies in raising capital and guides them on investment decisions, including mergers and acquisitions. 

In this blog, we will discuss the steps you need to take to become an investment banker. We will also cover the key roles and responsibilities of an investment banker.

Who is an Investment Banker?

An investment banker is a financial expert who works with corporations, governments, and other large institutions to raise capital and manage complex financial transactions. Unlike commercial bankers who serve the general public, investment bankers primarily serve large corporations, governments, and institutional investors such as hedge funds and private equity firms. 

Apart from this, they also assist companies in getting business loans, issuing stocks and bonds, setting securities prices, allocating resources, raising capital, and managing investments. In short, they are the link between public or private organizations and investors. 

Roles and Responsibilities of an Investment Banker

An investment banker performs a wide range of duties every day. These roles and responsibilities are related to financial operations for different financial deals and investment ventures. Here are some of the key roles and responsibilities of an investment banker:

1. Raising capital: They help companies and clients raise capital by issuing and selling securities, such as bonds and stocks, to investors. This includes managing initial public offerings (IPOs) and pricing new issues.

2. Mergers and Acquisitions (M&A): They guide companies on buying, selling, or merging with other businesses. This includes negotiation, deal structuring, and valuation. 

3. Securities trading: Several investment banks have sales and trading divisions that buy and sell securities for clients or the bank itself. They must follow strict rules and policies to prevent insider trading and conflicts of interest.

4. Advisory services: They advise corporations, governments, and other clients on risk management, market entry, and major financial decisions. 

5. Asset management: The asset management division of investment banks handles large investment portfolios for institutions and high-net-worth clients to maximize returns and manage risk. 

Now that you know who an investment banker is and what tasks they perform, let’s understand the steps to become one.

How to Become an Investment Banker? 

Follow these main steps to become an investment banker:

1. Pursue a relevant bachelor’s degree

After completing high school, pursue a bachelor’s degree in a field relevant to investment banking, such as finance, accounting, economics, or business administration. Employers at top investment banks also consider candidates with degrees in engineering, mathematics, and physics.

2. Gain internship experience

Internships are important, as they help in gaining real-life experience, building a network, and potentially getting a full-time job offer. Several investment banks offer summer programs for students to gain practical experience, learn essential skills, and receive mentorship from senior bankers. 

3. Secure an entry-level analyst position

One of the most important steps to enter investment banking is securing an entry-level analyst position. In this role, you focus on data analysis, creating presentations, and building financial models. 

4. Pursue higher education

Though it is not mandatory, earning an MBA or a master’s degree in finance from a top-tier institution can boost your career and lead to an associate position.

5. Earn professional certifications

Professional certifications like the Financial Risk Manager (FRM), Financial Modeling & Valuation Analyst (FMVA), or Chartered Financial Analyst (CFA) are highly valued in investment banking, as they show expertise in investment banking and ethics.

If you want to build a strong foundation in this field, enrolling in our Investment Banking Course can help you get started. This program helps you master financial modelling, valuation, venture capital, mergers and acquisitions, debt and equity capital markets, and risk management.

Conclusion    

Investment banking is one of the most rewarding career paths in India for financial professionals. With the right mix of degree, skills, and certifications, you can build a successful career as an investment banker and work in a top investment bank. Though the journey to becoming an investment banker is challenging and demands dedication and patience, it also opens doors to global opportunities.