How to Become a Investment Banker in 2023? Complete Career Guide

An investment banker is responsible for handling matters related to mergers and acquisitions, investments, and management of monetary funds of a company. It requires candidates to possess immense market knowledge, sharp analytical skills, and excellent decision-makers. India has seen a massive growth in investment banker salary in India by 10.8% as per statistics.

Aspirants must pursue PG level education in MBA or achieve a CFA advanced certification to land a job as an Investment Banker. After gaining relevant experience, an investment banker's salary can go up to INR 20 LPA and above.

Table of Contents

• How to Become an Investment Banker?
• Who is an Investment Banker?
• What Does an Investment Banker Do?
• Investment Banking: Courses, Colleges and Study Material
• Types of Investment Bankers
• Skills Required to Become an Investment Banker
• Salary of Investment Banker
• Top Recruiters and Sectors for Investment Bankers
• Pros and Cons of Becoming an Investment Banker

How to Become an Investment Banker?

Investment Banking is a white-collared job with extreme potential for growth in terms of career and salary. Aspirants who wish to know how to become an Investment Banker after 12th can refer to the below steps. 

• Step 1: Complete 10+2
• Step 2:Pursue UG Level Education
• Step 3: Pursue Master's Degree
• Step 4: Add an Advanced Certification or Doctorate
• Step 5: Take an Internship
• Step 6: Build Network
• Step 7: Apply for a Job
• Step 8: Upskill your Career

Step 1: Complete 10+2

Candidates wishing to pursue investment banking after class 10 can check the below points.

• Candidates can choose a stream, like Science, Arts, and Commerce. 
• However, a combination of Mathematics, Economics and Accountancy will prove beneficial in the long term.
• Students must score a minimum of 50% marks at 10+2 levels.

Steps 2: Pursue UG Level Education

Candidates must take admission to an undergraduate degree course, such as B.Com. B.A Finance, B.A Economics, BBA, to become an Investment Banker. 

Studying subjects such as Mathematics, Accounting, Taxation, Financial Management, Investment, Data Analytics, Business Administration, and Corporate Finance will help them grow in the field of investment banking and help them gain knowledge of the industry. 

Step 3: Secure a Master’s Degree 

Students who want to become an Investment Banker at a top company must obtain a master’s degree for the following reasons:

• Getting an advanced degree boosts acquiring posts in the Investment Banking industry at a higher position. 
• Besides the PG degrees, candidates from other backgrounds can also make a career as Investment Bankers, wherein they must take advanced PG programmes.
• Candidates can apply to the National Stock Exchange (NSE) Academy for six to nine-month programmes in Management Accounting, Investment Banking and Capital Markets, Banks and Financial Planning and more. 

Step 4: Add an Advanced Certification or Doctorate

Candidates in India must up-skill by adding higher education and certifications to their resume, which will place them in top finance and banking companies. Two ways to enhance one's career as an Investment Banker are acquiring a Doctorate or getting a certification.

1. Doctorate

Aspirants can pursue a PhD in Finance and Banking, PhD in Taxation, PhD in Accounting and Management, etc., to land a position as an Investment Banker. However, for admission to PhD level, students must score at least 55% and meet the cutoff requirement for UGC NET and CSIR UGC NET. 

Candidates will learn topics such as microstructures of markets, asset pricing theory, business research foundations, finance research methods, corporate finance theory, and more. PhD programmes are usually for 3 years. 

2. Certification

Candidates can pursue professional certifications such as CFA (Chartered Financial Analyst). Here, they will learn macro and micro-level concepts with both theory and practical education on investment and finance. 

Such certification courses can last from 1 to 4 years. Another certification one could pursue is the Postgraduate Certificate Programme in Investment Banking by IIM.

Step 5: Take an Internship

Before applying for a full-time job, candidates must apply for an internship as an Investment Banker for the following reasons:

• This will not only add experience to the resume but also equip candidates with hands-on training and skills, which is sometimes not achievable through course learning. 
• Candidates can work with the Finance team of companies and work on research analysis of market trends, learn financial models and learn all about private equity.
•  Candidates will also work on daily administrative tasks such as creating reports, presentations, filling, indexing etc. 

Step 6: Build Network

Networking is an important aspect of being a successful Investment Banker. Candidates must interact with industry professionals to land a position in a Fortune 500 company. As one of the most competitive fields, candidates must keep excellent rapport and relationships with professionals who can hire and recommend. 

Step 7: Apply for a Job

Often candidates get hired at companies they intern at due to their performance and networking skills. However, other routes to land a job include applying to campus placements and online applications. Candidates need to know their craft well and prepare for the interview round, which is a crucial part of becoming an Investment Banker. Candidates might initially land a job as an Investment Banker Analyst or Associate.

Step 8: Upskill Your Career

Once candidates begin working, they must advance their careers by participating in on-job training programmes and certifications offered by the organisation. This will help candidates stay up-to-date in such a competitive industry and climb up to higher management roles as Investment Bankers. 

Who is an Investment Banker?

An Investment Banker is responsible for assessing a company’s financial requirements and raising capital to meet their needs. In short, they are connected to all money-related matters to generate, expand or acquire businesses for a specific venture.

Investment Banker implements their skills to help an organisation make investments-related calls, such as buying stocks and securities. Additionally, an Investment Banker acts as a mediator between two companies and brings through deals, transactions, mergers and acquisitions.

What Does an Investment Banker Do?

Candidates interested in knowing what investment bankers do, need to know that they handle an array of financial responsibilities within an organisation. Some of the functions of an Investment Banker are,

1. Research and Analyse

Investment Bankers are responsible for researching and analysing market trends, reports, data, and other monetary information. After assessing all the mentioned variables, they make informed financial decisions in terms of investments market deals and other ventures a company should step into.

2. Detect Risk Factors

Investment Bankers always watch the market environment and how the investing spectrum is affected by any economic and market changes. It is their responsibility to foresee any risk and advise businesses.

3.Assess Valuations

Investment bankers assess the business’s valuations using financial models and calculations. Moreover, they make reports on the company’s daily performance. Future market predictions and forecasts also fall under their domain.

4. Acts as Advisors

Investment Bankers act as advisors to a company. They guide organisations in issuing securities, public offerings and pricing stocks. Moreover, they assist companies in approving municipal bonds, making debt and equity offering investments in private or public funds, etc. 

5. Administrative Tasks

Investment Bankers carry out daily administrative tasks such as preparing presentations, researching reports, checking transactions, outlining timelines, responding to emails and phone calls, organising investment meetings, etc. 

As an Investment Banker, the candidate must ensure that the company follows all legal rules directed by financial institutions and regulatory bodies. 

Investment Banking: Courses and Study Material

Aspiring candidates must know of the Investment Banking courses and study material offered in India.

Investment Banking Courses

All Investment Banking courses can be pursued Online and in regular mode. Some popular courses students can take are mentioned in the table below with other details. Therefore students who want to know how to become an Investment banker can check the course list.

Investment Banking Study Material

Candidates pursuing other programmes but wanting to get acquainted with Investment Banking subjects can refer to the following books. These books are taught at UG and PG levels for Finance-related courses in Investment Banking.

• Financial Modelling and Valuation, by Paul Pignataro
• Investment Banking Valuation, Leveraged Buyouts and Mergers & Acquisitions, by Joshua Rosenbaum
• Middle Market M&A, by Kenneth H Marks
• The Best Book on Investment Banking Careers, by Donna Khalife
• The Man Who Solved the Market, by Gregory Zuckerman

Types of Investment Bankers

The Finance and Banking Industry is a progressing competitive Industry in India. Candidates can take up the role of an Investment Banker at both large and small companies. The career progression for an Investment Banker is mentioned below. Candidates can check the different roles below.

1. Investment Banker Analyst

An Investment Banker Analyst works in different finance, healthcare, and manufacturing industries. They help create reports by performing market analysis, preparing presentations and working on other administrative tasks. This is an entry-level position. 

2. Associate Investment Banker

An associate-level Investment Banker is involved in arranging meetings to discuss the market trends and how they will affect the company's investment plans. Moreover, they perform financial analysis using financial models to tackle market challenges. 

3.VP Investment Banker

Vice President Investment Banker candidates will deal with top-level management like Directors, Managing Directors and others. Further, the VP Investment Banker handles all business deal discussions with clients. They approve proposals, and terms sheets and develop legal agreements. 

4. Director Investment Banker

An Investment Banker heads the team of associate and analyst Investment Bankers. They manage the company's portfolio and manage the monetary funds of the organisation and play a huge role in deciding the purchase and sale of securities and working capital.

Skills Required to Become an Investment Banker

Some top skills a candidate must possess on their journey of becoming an Investment Banker are mentioned below.

Expert in Statistics

An Investment Banker will need to implement their knowledge of statistics to read and decode data and market trends. With the help of statistical tools, they can calculate risks and help make scientific decisions regarding investments.

Tech Savvy

Candidates must be well acquainted with the understanding of technology in modern markets, as they will work with various systems to obtain data, analyse them using software and deal with computer management systems regularly.

Analytical Skills

Candidates must have excellent mathematical and analytical skills to excel in Investment Banking. An Investment Banker must be able to identify opportunities for profits and identify risks to avert losses. They must be able to make decisions based on their analysis of the market and the company's financial position.

Presentation Skills

An Investment Banker must present information convincingly with the help of technology and presentation. Moreover, with their communication, they must be able to highlight all key areas of importance and transparently present them to avoid errors. 

Salary of Investment Banker

The average investment banker salary in India is INR 9.61 Lac per annum. An entry-level Investment Banker at an Analyst level will receive a package of INR 2.5 to 3.5 Lac per annum. However, with experience and advanced degrees, a candidate can earn an average salary of an investment banker in India of up to INR 20.50 Lac per annum. 

Further, we will check the company-wise, position-wise, qualification-wise, and experience-wise average annual salary of an Investment Banker in India. 

Post-wise Salary of Investment Banker

As per their job profile, an Investment Banker can receive an annual average package of INR 6.66 LPA to INR 8.91 LPA in India. 

Company-wise Salary of Investment Banker

The table below showcases the average annual salary of an Investment Banker at different organisations in India. An average package ranges from INR 6.02 LPA to INR 21.63 LPA.

Qualification-wise Salary of Investment Banker

Educational qualifications play a huge role in determining the package of an Investment Banker. The more certification and advanced education a candidate pursues, the higher the investment banker's salary.

Experience-wise Salary of Investment Banker

The investment banker salary in India based on the experience years is mentioned in the table below.

Top Recruiters for Investment Bankers

Some of the top recruiters in the sectors of mergers and acquisitions, sales and trading, capital marks, private equity etc, and Investment Bankers are, 

• JP Morgan
• Goldman Sachs
• Accenture
• HSBC
• Citi Bank
• Barclays
• Wells Fargo
• BNP Paribas
• Wipro
• IBM

Pros and Cons of Becoming an Investment Banker

Candidates must know there are both pros and cons of the Investment Banking profession. Therefore, some pointers students must keep in mind are mentioned below.

Pros of Becoming an Investment Banker

Some of the Pros of becoming an Investment Banker are,

• The salary packages are very high and competitive, making it an alluring career option in the Finance Industry.
• The initial struggle helps candidates get their desired position and expands their scope of work as an Investment Banker.
• Candidates have various opportunities and exciting challenges as an Investment Banker. 
• Candidates are privileged to mingle with the whos and whos of the financing industry.
• Candidates with analytical skills have the opportunity to grow manifolds and create impactful financial solutions for a company.

Cons of Becoming an Investment Banker

The cons of becoming an Investment Banker in India are mentioned in the pointers below.

• It is a highly stressful job that might not suit every candidate well.
• A lack of work-life balance impacts the personal lives of Investment Bankers.
• It is deemed a high-risk job, as it deals with the ups and downs of the market.
• Due to the sudden surge in AI software, there is a shortage of jobs in the financial sector. 
• The job of an Investment Banker is highly affected by the socioeconomic conditions of a country.