Investment banking as we know it, has a role to play in an economy’s financial proceedings. Investment banks are a special part of the banking sector, their roles are quite different from regular banks. It’s best understood for its work as intermediaries that bridge the gap between financial markets and corporations. Its clients mostly consist of organizations, financial institutions, governments, and high-net-worth individuals. Thus, an aspiring investment banker needs to have sufficient knowledge of the field, as well as, an updated understanding of all the latest investment banking trends. To achieve that, you simply have to look out for investment banking fresher jobs, which are available in job portals.
What is the Scope of Investment Banking in the Present and Future?
The Investment Banking sector is a flourishing career path in the present economic atmosphere and will remain so in the future. After all, your roles and responsibilities as an investment banker play a significant part in shaping the economy. But to start on any career path, you have to succeed in the initial steps.
Some of the responsibilities of an investment banker include allocating capital efficiently by bringing together investors and companies, providing strategic advice to companies on several financial matters, assessing risks, and performing effective risk management to identify them.
Investment banks assist these huge companies in raising capital through various means. This process can involve several steps like estimating an investor’s current need by evaluating market conditions at the time, after which they can draft a prospective price range. The investment banker also has to consider price stability, underpricing, or a strong aftermarket.
A lot of planning and strategizing for demand and timing goes into the role, and through investment banking fresher jobs you can dive into each aspect. Some traditional ways investment bankers can raise capital are through equity financing and debt, bank loans, convertible debt, private placements, Initial Public Offerings (IPOs), private placements, venture capital, and private equity.
Besides Raising Capital, There Are Other Roles That Investment Banking Jobs in India Can Help You Explore:
Mergers and Acquisitions: The investment banks perform the role of establishing fair value for companies involved in the transaction. Here, investment bakers represent the buyers or the sellers they can study the market to approach companies with their strategic ideas. Through investment banking fresher jobs, you gain a better idea of the processes involved.
Financial advisory: Investment banking jobs in India allow them to work as financial advisors for corporations, institutions or government bodies. They can provide financial advice on matters involving risk management, corporate finance, capital structure optimization, etc.
Wealth Management: Investment banking jobs in India allow investment bankers to cater to many wealthy individuals, so they can provide them with personalized investment advice. It is an important role that enables high-net-worth individuals to make better financial decisions.
Research: Investment bankers are required to have a thorough understanding of the companies they will be assisting or the latest market trends, so they can provide valuable insights. Investment banking jobs for freshers help you to get started with this aspect. Proper research helps you make informed decisions and further contribute to the functions of financial markets.
What Skills Are Valuable for an Investment Banker?
To be successful in the field of investment banking, there are several technical and soft skills you need to consider. During your time in investment banking fresher jobs and internships, it is crucial to develop these set skills to prosper.
- Analytical thinking: In any given situation, you are required to find a solution by analyzing the problem. Many Investment Banking jobs for freshers present them with scenarios where they have to implement their analytical thinking by breaking down complex information.
- Resilience: The average work of an investment banker is demanding and challenging. In most cases, you can expect overtime work that has to be finished before deadlines and intense work pressure. With so much to give in, it’s not suitable for all but an investment banker needs to be resilient. As an aspiring investment banker, the best place to start is through investment banking fresher jobs, and internships. You won’t be expected to do the heavy work right away, but still be able to get the experience.
- Teamwork: This ability is often naturally present in individuals who are good at collaborating. Since investment baking is a team-centric career it is a necessary skill to have. If you aren’t good at working with teams, you can always start somewhere like investment banking fresher jobs, communicate with your colleagues, collaborate with decisions, and maintain a positive attitude.
- Time Management: Through effective time management you can have a proactive approach to decision-making. Sorting out your time can give you mental clarity to consider different options and come to the best conclusion. It’s best to work with a timetable, set realistic goals, and try to achieve them.
- Communication skills: As we know, communication is the key and it sums up the primary role of an investment banker. You can build your communication skills while working in investment banking fresher jobs or internships. The job will require you to cater to several clients, superiors, or corporate professionals and you need to be able to get your point across. Your advice and awareness of the industry will be valuable to them.
- Networking skills: If you are starting in a professional industry, it’s best if you start adding important contacts to your list. Networking proves to be a huge boon in your future professional life and your connections in the industry will be able to assist your growth.
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Can Freshers Prosper in Investment Banking Jobs?
Although freshers are not considered on par with an investment banker, they can work their way up. Investment banking jobs for freshers are designed to help them learn through their way of work. The common roles and responsibilities of an investment banker are listed below:
- Investment bankers perform the task of raising capital for several important corporations by issuing debt and selling equity or floating a bond issue.
- They analyze numerous databases and market reports to get hold of important data, after which they form an understanding and come to a decision.
- Their role also includes supervising identity risks regarding specific projects, understanding the current investing market, and offering their clients guidance on the same matters.
- They manage IPOs and other private equity placements by creating client portfolios and recruiting customers.
- Investment bankers are tasked with creating important legal and financial documents that are related to investment and financial banking proceedings.
- To perform certain tasks, an investment banker must stay updated with current market trends and forecasts.
- Investment bankers should analyze, support, and plan Mergers and Acquisitions for specific clients.
- On the other hand, they can attend to administrative tasks such as returning emails and calls to clients, organizing business travel, and scheduling meetings.
A fresher aspiring to be an investment banker will be trained as per their skills. But before they are qualified for the role they must prove their capabilities to the employer.
Most investment banking jobs in India ask for specific qualifications like a commerce background, a degree in MBA Finance, or prior experience in related fields like CFA and CA. Other than that, you are required to hold a graduation degree in any field before you are deemed qualified for fresher or intern positions.
The Investment banking career path is promising for freshers who can showcase the appropriate knowledge and skills, thus these newcomers can earn a sizable salary. According to AmbitionBox, the estimated salary for freshers with 0-4 years of experience can be 5 to 25 Lakhs in Kolkata, India. The average annual salary which is estimated based on 13 latest salaries, is approx 22 Lakhs. If you think you are best suited for a position in investment banking jobs for freshers, there are websites to look out for. Some of these are LinkedIn, Indeed, Naukri.com, Glassdoor, etc. Now let us discuss some of the entry-level positions and what you might need to do.
What Are Some Investment Banking Fresher Jobs in India?
Before you apply for investment banking fresher jobs, you should be aware of what each position demands from its applicants. Below is a list of positions suitable for applicants of investment banking fresher jobs:
1. Equity Research Analyst
This role enables you to work for both the buy-side and sell-side of companies, preferably in the securities industry where you can produce projections, research reports and make recommendations on stocks. Although there are some differences between the Equity Research Analyst role and the actual investment banking career path, it proves to be a lucrative career option for students with a background in Finance, Economics or related subjects. As a fresher in this position, enhancing your knowledge by performing your research and analysis boosts your chances to improve.
2. Financial Analyst
In the position of a Financial Analyst, you are expected to work for a wide range of activities which includes collecting useful data, organizing the information, analyzing historical results, making projections and forecasts, as well as, creating presentations or reports. Financial Analysts, unlike Investment bankers, dedicate their time to exploring client-related data and formulating models for other members of their team. Aspiring Analysts should present a relevant bachelor’s degree alongside having experience in the industry, which can easily be gained through fresher jobs.
3. Investment Banking Analyst
Investment banking analysts perform as intermediaries for investors and businesses. They help the ones who seek funding by bringing them new lucrative opportunities. A lot of different strategies have to be put in by the investment banking analyst to bring about financial success, for both parties. Furthermore, the role requires you to conduct research and review financial data. It oversees mergers and acquisitions, implements financial models to review deals and supervises IPOs and private equity settlements. Applicants for these investment banking fresher jobs are required to produce Bachelor’s or Master’s degrees in related fields.
4. Investment Banking Associate
As an Associate in investment banking, you are a customer representative who works in the financial industry. The role can include preparing cash flow models and drafting memorandums with clients and investors. Investment banking associates directly collaborate with client management teams as well as other third parties throughout diligence and marketing. They are expected to play a part in guiding interactions among important clients, private equity firms and so on. For fresher and entry-level positions, you must showcase a degree in any finance-related field and have the basic skills for what the job requires.
5. Business Analyst
In investment banking jobs for freshers, a business analyst role requires an individual to analyse internal and external data sources among other things. They can compile their findings to enable several leading businesses to make strategic decisions. Most of the time, their skills involve strong communication which is extremely important for building relationships with clients. Other than that, they act as intermediaries with stakeholders across multiple finance divisions. This career path is generally not as lucrative as investment banking fresher jobs, but Finance or Economics students can benefit from it. It is very much possible to pursue this field without any professional knowledge but any degree in Information technology, finance, economics, or computer science would have a stronger base.
6. The Hierarchy of Investment Banking Jobs
Just like other career paths, the investment banking domain gives you scope t grow your field and extend your knowledge. This means that you can increase your potential through investment banking fresher jobs and climb up the ladder to success, with the right amount of dedication given to work. Before that, you should take note of all the positions that come after you get promoted from investment banking fresher jobs.
7. Analysts
This is the entry-level position in investment banking and usually, jobs for analysts do not require high qualifications and skills from their applicants. Any student with a bachelor’s degree in either Economics, Finance, or Business administration can apply for this role even if they don’t have any knowledge regarding the investment banking domain. Analysts are responsible for several tasks within an investment banking firm including overseeing mergers and acquisitions and supervising private equity settlements or IPOs.
To further break down their responsibilities, there are financing, optimization, and hedging strategies that need to be applied by analysts based on their client’s needs. They also perform financial and valuation analysis in both industry and propriety models and participate in various recruiting as well as marketing activities in the firm.
Salary Expectations: The base minimum salary that you can earn as an investment banking analyst is 2 LPA. But depending on several factors, the salary could increase to 6.5 LPA.
8. Senior Analysts
Senior Analysts are in charge of several tasks involving resource management, data analyzing as well as identifying weaknesses and strengths of clients. This role falls under other investment banking fresher jobs, but unlike analyst positions, it requires more from its applicants. For instance, you must complete a bachelor’s degree and have 2-4 years of experience working on-site. You can also present its equivalent by working on internships. Thus, students are generally not preferred unless they can showcase their expertise in the industry.
Salary Expectations: In senior analyst positions, you can earn more than 9 LPA in India.
9. Investment Banking Associate
By following the traditional route, investment banking analysts will be promoted to the Associate role. Most associates come from MBA backgrounds or hold an advanced certification in corporate finance, which means these candidates get a higher chance of promotions. Your role here primarily comprises working as representatives who handle crucial advisory services and financial transactions. Despite ranking higher in the hierarchy, some responsibilities given to Associates can be similar to Analysts.
Salary Expectations: As per several sources, the highest salary you could earn as an investment banking associate in India is INR 40 lakhs per year.
10. Vice President
In comparison to senior-level investment banking jobs in India, the vice president position is the lowest. You are mainly asked to complete pitch books and handle client relations, which may sound like nothing at first but is a difficult transition from the tasks allotted to analysts. Vice Presidents in investment banking firms overlook the tasks performed by junior-level associates and analysts, aside from negotiating with clients, buyers, sellers, and investors and handling deals or process-related requests. This position is prestigious in comparison to analyst and associate positions and requires you to have appropriate skills to thrive in the industry.
Salary Expectations: Candidates bearing more than 12 years of industry knowledge are capable of earning as high as INR 70 lakhs yearly.
11. Senior Vice President
It is the second-highest position that you can achieve promotions for, along with various career benefits. This position holds great value for both the team members and clients. The roles and responsibilities shifted significantly from the previous positions, where the focus was on high-net-worth clients and diverted to forming business relations. You will be tasked with implementing communication strategies, managing teams, preparing budgets for business plans, solving internal and external issues, and working and developing relations with businesses and government bodies.
Salary Expectations: In Senior vice president positions for investment banking firms, the amount of hard work you put in will reward you with a salary package of INR 99 lakhs per year.
12. Managing Director
Managing Directors are highly skilled professionals who are responsible for leading their respective divisions, driving business growth, managing client relationships, overseeing deal execution, handling financial performance and managing expertise in the industry. With these responsibilities, you might be able to understand the gravity of the position as well as the time and effort behind the role. Managing Directors (MD) are the highest position you can get when climbing the hierarchy in the investment banking career path.
It takes a great amount of skill to reach this rank and sometimes your luck might have a part to play. They are individuals who wield great power and authority and are responsible for the profitability of investment banks. They often do not take direct actions involving a deal but since they oversee its execution, junior-level employees are made to work under strict supervision. Managing Directors have the power to reward hard-working employees under them while removing the ones that are not efficient.
Salary Expectations: Considering the roles and responsibilities, your position as a managing director in India can earn you up to INR 1.4 to 1.5 crore yearly.
Conclusion
We can conclude that even though investment banking is a highly sought-after career, there are specific challenges faced by freshers. To be qualified for investment banking jobs in India, you have to showcase that level of expertise. As discussed in this article, there are various ways one could develop their skills, either through fresher jobs or through professional courses. The challenges and competitiveness in the field are similar to several others. But if you could sail through it without any hindrances, the result could be highly rewarding.
Frequently Asked Questions
Q) What are some investment banking guidebooks for freshers?
There are some investment banking books that you can benefit from such as ‘The Business of Venture Capital’, ‘Investment Banking for Dummies’, ‘Investment Banking Explained’, and more. These titles can provide you with some necessary advice on how to approach certain areas in investment banking.
Q) What is the salary of an investment banking fresher job?
According to several sources, the investment banking fresher could earn up to 9 LPA, with an average income of 3 LPA. In most entry-level investment banking positions, the fresher could earn around 30,000 to 60,000 INR per month, which is a good sum.
Q) What are the top investment banking firms in India?
To name some top investment banking firms, we have Axis Capital Limited, J.P Morgan, Barclays Bank, HSBC, Edelweiss Financial Services, etc. These companies are well-reputed and provide career growth opportunities to many aspiring investment bankers.