What Does An Investment Banker Do
Investment bankers strategize with client corporations to determine the best route for funding new projects or continuing operations. Often working with a team, they analyze financial data to form a proposal for selling bonds or stocks. They may also suggest taking on loan debt or combine these solutions into a comprehensive plan. Once they decide on a strategy, the investment banker creates a full company profile and shifts to the sales side of the job.
Entry-level investment bankers usually participate in post-hire training that can last several months. They plan with clients, analyze data, write reports, and facilitate sales, building experience at each stage of the process. Within 2-3 years of working for a company, investment bankers can advance to lead teams and oversee client accounts.
Successful investment bankers need the educational background to assess an organizations financial standing and the tenacity to engage in high-level sales. Aspiring professionals should consider the competitive nature of the field and make sure to network extensively. The section below outlines some important skills for investment bankers.
Whats The Recruiting And Networking Process Once You Get In
Many schools will tell you that recruiting starts after you arrive on campus or that networking with alumni beforehand offers no advantages.
Do not believe them. Recruiting for MBA investment banking roles starts the minute you confirm your attendance at a specific business school.
You need to do the following once you confirm your plans:
You should start with the pre-MBA internship point because its best to set it up early.
Next, you should do some basic technical preparation, especially if you have limited accounting and finance knowledge.
You dont need to go all-out because you only need to know enough to sound well-informed when networking.
Who Earns More Ca Or Mba
The average salary of a CA in India is between Rs 7-10 lakh. As far as MBAs are concerned, their salary package depends on their employer. Those who graduate from top IIMs command a salary of Rs 18-22 LPA, but the same is not true for those graduates who pass out from Tier-II and Tier-III colleges.
You May Like: How To Invest In Singapore
All About Investment Banking And Mba
Wall Street. Capital City. Margin Call. Equity. Do any of these ring a bell? Giving a peek into the world of the moolah business, these are only some of the best works talking about the intriguing world of finance. While there is more to finance than what meets the eye, where the world is big and the opportunities bigger, what remains one of the most fascinating and extremely popular career tracks for students post-MBA is: Investment Banking .
As for any other career, there is never a guaranteed trajectory which can decide whether you make it or break it! But today, were going to try and uncover the mystical world of investment banking and help you understand how an MBA can be a great way to explore it.
Investment Banking Cover Letter
Cover letters are usually not required for fresh out of school recruits in the big investment banks. They typically rely on resumes.
However, it is a good practice to invest some time in crafting a good cover letter that leaves a positive impression and eggs the recruiters to be interested in the candidate.
We have covered the various aspects of an investment banking cover letter for both the experienced and inexperienced applicant here in this article Investment Banking Cover Letter tips and samples. To summarize though, inexperienced candidates should cover these four aspects in their cover letters
Introduction: Who are you. Where are you studying, interning. How did you find us, etc.
Background: What is your relevant internship or education experience. What skills do you have to offer?
Fit: Why do you consider this to be a good fit to your career?
Conclusion: Summarize, thank and direct them towards your resume. Also provide contact information for future correspondence. For the experienced, the cover letter should be like narrative story telling, emphasizing achievements and relevant skills gained thus far and how they would translate into a successful career in the recruiting firm.
Recommended Reading: Is Austin Real Estate A Good Investment
Top Undergraduate Universities In The Uk
This group includes the London School of Economics , the University College London and the Imperial College London . The main advantage they share is the close proximity to the London Financial hub. LSEs Accounting & Finance and Business & Management Studies rank in the worlds top 10 by QS, Times Higher Education and US News, while UCL and ICL are all top 10 European schools.
This includes the Universities of Cambridge and Oxford, two oldest and most prestigious schools in the UK. Known for academic excellence, both have ranked worlds first by multiple journals, with 100% of their subjects in the top 10. Oxbridge finance graduates are top hires for Investment Banks, Asset Managers and Management Consulting groups.
University of Warwick
Warwick is one of the few non-London/Oxbridge universities well-regarded by Investment Bankers. Warwicks Economics department ranked first in 2020 by the Good University Guide, surpassing both Oxford and Cambridge. Its Mathematics department belongs to the top four of the UK.
University of Bristol
Bristol is particularly well-known for its quality in Economics, Finance and Management. Its Business and Management Studies ranks fourth nationally in the Guardian University Guide.
Required Experience For Investment Bankers
Employers often expect investment bankers to enter the field having completed some work as an intern. Internships often provide important networking opportunities that lead to potential job opportunities. Undergraduates and MBA students can take part in internships. A typical internship takes place over 8-10 weeks, often during the summer.
Investment banking follows a fairly rigid advancement structure. Employees can expect 2-3 years of entry-level work before advancing to the next level. With an MBA, a new investment banker may advance more quickly or qualify for further job opportunities. By pursuing an online MBA, students can gain crucial work experience and complete their studies at the same time.
Don’t Miss: What To Invest Money In As A Teenager
Investment Banking From Non
After completing my under graduation in business and qualifying as a Chartered Accountant in 2015, I started with an American bulge bracket bank in their Institutional Risk Management division as a Credit Analyst covering Financial Institutions clients.
That gave me an invaluable exposure to institutional banking and enabled me to work on M& A financing deals with some really talented bankers. In parallel, I earned my FRM charter and completed two levels of the CFA program.
After my promotion to Senior Credit Analyst in 2018, I got an opportunity to work as a Senior Analyst in the Investment Banking Division covering FIG clients it was the perfect transition for me to look at the same set of clients through different product lenses.
In the Investment Banking Division, I supported senior bankers on live deals and pitches and networked across New York and London offices.
After interacting with FIG bankers who were from top B-schools in the US, I knew two things:
I started planning in-advance for that transition. It was difficult to manage GMAT preparation along with a demanding role in Investment Banking, but I am glad that I got the GMAT out of the way early in the process.
How Much Preparation And Networking Time Is Required
It depends on your profile and how much you already know.
For example, if you already have a strong accounting and finance background, you might just need to spend 1-2 months reviewing and completing a few practice case studies and modeling tests.
But if youre entering business school from a completely different career, you might need closer to 6-9 months of study to absorb the concepts.
With networking, the appropriate start date varies based on the timing of on-campus recruiting at your school, but some approximate guidelines would be:
- # of Informational Interviews: Youll likely need 50+ networking calls across all the banks to get a significant boost.
- Time Required: Expect 3-4 months because you have to research alumni, reach out, follow up, send thank-you notes, etc., while working or studying full-time.
When conducting this outreach, you should focus on Associates and VPs initially and get referrals to the senior bankers above them once youve spoken.
Recommended Reading: Artificial Intelligence Return On Investment
Mba Investment Banking Recruiting: What Else
These are the most important points about investment banking recruiting at the MBA level.
The biggest mistake, by far, is assuming that you can use an MBA degree to explore your career options or figure out your life.
If youre interested in other industries or you are not using the degree to earn more money, that might work to some extent.
But if you want to do investment banking, you need to be laser-focused on your goal before the program even begins.
Do that, and the degree will pay for itself within your first few years on the job.
Education Requirements For Investment Bankers
Employers expect each investment banker to complete a bachelors degree at minimum, and most require an MBA if not at the entry level, then prior to advancement. Students who pursue a bachelors degree unrelated to business may wish to complete an MBA immediately after graduation. Various majors may contribute to industry-specific knowledge, while business majors such as accounting, finance, and economics can lead more directly to entry-level jobs.
With an MBA, prospective employees can receive top consideration, secure faster advancement, and earn higher salaries. Some employers even offer financial aid for workers pursuing an MBA.
MBA graduates can demonstrate levels of knowledge and experience that employers appreciate. By selecting a concentration like finance or economics, students further hone their skills for a competitive job market. Employees need new hires with a strong ability to analyze financial data and understand current market trends, making these concentrations particularly useful.
Graduates who wish to work in certain industries can pursue related concentrations, such as healthcare management or real estate. Different industries can require very specific knowledge, and a strong understanding of the inner workings of the field can significantly boost a graduates job prospects.
Don’t Miss: Can I Invest In Scion Asset Management
Skills Required To Become An Investment Banker
The main qualities of a good Investment Banking aspirant are having a strong analytical mind with the ability to work as a team. They should also be able to possess a critical bent of mind and willingness to learn new things.
Some of the skills to become an Investment Banker are tabulated below for your reference,
|INR 5 LPA to INR 8 LPA|
You Have Too Much Full
With this one, it depends on what you mean by too much.
If you have 20+ years of work experience, youre not going to win post-MBA Associate roles anywhere because youre overqualified, so the answer is target other industries.
But if you have, say, 10 years of work experience, and other candidates have only 3-5 years, there are options.
Once again, you could target boutique firms where sales and client skills matter more than the number of hours you can grind away.
Another idea might be to try side paths into the industry, such as working at PE or VC portfolio companies and moving in from there.
For more ideas, see our article on How to Break into the Finance Industry as an Older Candidate.
Also Check: Best Investments For Accredited Investors
Engage With Key Business Leaders
Engage with key business leaders on industry-defining transactions and trends through our Nicholas Center Speaker Series. Each year we host approximately 20 speakers on campus on a variety of finance topics. Past events include:
- A Wall Street Journal Reporter on activist investing
- Jim Chanos on cryptocurrencies
- A CFO discussing a her board uses when approving major M& A deals
Top 5 Overall As % Of Class Size*
*for schools with 5 or more placements in Bulge Bracket & Elite Boutique roles
Most MBA applicants would already guess that Columbia, NYU Stern, Booth and Wharton have excellent investment banking placements, which has been confirmed by these statistics.
Other top MBA programs for banking placements may be under-appreciated by applicants, such as Cornell Johnson .
Attending an MBA program with a large total number of investment banking placements has certain advantages, such as a higher likelihood to meet fellow alumni during your career, or the fact that your MBA program has more leverage with banks .
However, smaller numbers of total investment banking placements do not necessarily indicate weakness in that MBA programs recruiting opportunities. It can also indicate that students at those schools prefer other career fields, or it can be related to a smaller student body.
Don’t Miss: How To Build A Good Investment Portfolio
Best Investment Banks To Work For In 2021
Those who say dont know and those who know dont say. Micheal Lewis
The above quote crisply summarizes why MBA graduates covet a career in Investment banking. Reserved for the brilliant few, only a handful from even the Top MBA programs get an opportunity to make careers in Investment Banking. Such is the allure of working in an Investment Bank on Wall Street. The literal heart of the economy.
Power, Prestige, and Dominance. An Investment banking job begets all this and more. However, what are the Best Investment Banks to Work for in 2020? In this article, we explore exactly that and more, here is a brief outline of the topics we will cover:
Investment Banking Job Applications
We cover some of the basics of getting noticed and recruited into the top i-banking firms. Along with the education and skills, it is important to know how to market your candidacy for such coveted positions. So, here is a sneak peek into tips for cover letters, resumes and standard i-banking interviews.
You May Like: Best Long Term Investments For Beginners
How To Become An Investment Banker In India
Investment Bankers in India are in huge demand as most of the people are getting interested in the investment industry. They are expected to have a good knowledge of market trading activities and profitable securities in the upcoming days.
- School Level Preparation: Students seeking to pursue a career as an Investment Banker at the high school level, then they must choose commerce at the Intermediate level. Having Mathematics and Accounts will be easier for you to clear your entrance examination for further Undergraduate and Postgraduate courses and become an investment banker.
Do I Need To Major In Finance To Get Into Investment Banking
The answer is no. Investment Banking recruits may come from a wide range of academic disciplines. The important thing is your performance. Youre better off studying a degree you enjoy with good grades rather than one that you dont with lower grades. In case youre not majoring in Finance or Economics, consider joining student-run funds or attending finance-related classes to show interest in the field and stand out to Investment Banks.
Also Check: How To Invest In Adidas Stock
What Those Newly Minted Finance Mbas Get Paid
Next, lets take a look at salaries. Graduates heading into financial services. Columbia Business School reported a median salary in finance of $134,718 overall, and $125,000 in investment banking. Wharton followed at a median of $130,000 starting salaries in finance, and $125,000 in investment banking. The average salary out of Cornell / Johnson increased slightly to $128,254 compared to last year in finance, and $137,738 was the average for those going into investment banking. Booth and NYU / Stern noted that the average salary for graduates entering finance was $125,000, and also the same for investment banking. In every case, an average signing bonus of approximately $40,000 to $50,000 was de rigueur.
Eligibility To Become Investment Banker
To become an Investment Banker in India, it is not mandatory to take up any particular course or stream. Any person who has a good understanding of financial assets and investing can potentially become an Investment Banker. Having said that, the field of Investment Banking is highly competitive and having completed a professional programme in a related stream does make a student an ideal candidate for a job.
The following courses are helpful for a candidate to get into entry-level positions in the field:
Bachelor of Commerce Hons.
Bachelor of Arts in Finance / Economics
Bachelor of Business Administration in Finance
Chartered Financial Analyst Programme
CFA is a programme dedicated to training professionals in the field of investment and finances and is one of the best ways to go into this field. Many top recruiting companies hire Investment Banking professionals who have completed a CFA course.
With undergraduate-level qualifications, a professional can get entry into the industry and gain some valuable experience. After 2 – 3 years of experience, it becomes essential for a candidate to go for a postgraduate-level course such as MBA Finance to grow in the field.
You May Like: How To Invest In Stocks From Your Phone