Seeking a Career in Investment Banking

During this COVID-19 erabusinesses are running losses due to lockdown across the globe,people are losing jobs; new opportunities are not being created even companies are cutting jobs to control the cash outflow. The scenario is the same across sectors and countries. In this present scenario when each of us is constantly living in a fear of losing a job it is the time to build some of the key skills to emerge a winner once this lockdown is over and things came back to normalcy. It is the time when one needs to sharpen one’s axe so that when things get normalized one can emerge as winner.

In the present circumstances’ jobs in the field of Finance are relatively safer as one can work from home instead if we compare it with sales jobs especially which involves face to face interaction. Even Finance has various profiles to offer, in this particular blog we will discuss ‘Investment Banking’ as a job profile for an MBA graduate in detail

Investment Banking is a very fascinating job profile for MBA graduates with Finance and Accounting specialization. At first one needs to understand ‘Investment Banks’, they are financial intermediaries that perform complex financial transactions and is mainly involved in the valuation of businesses related activities. Credit Suisse, Barclays Capital, JP Morgan Chase, Goldman Sachs are few of the major investment banks functioning around the world.

Now, coming to investment bankers as they the experts who have in-depth knowledge of current market conditions. The primary role of investment bankers is to advise clients on investments by proper evaluation of risk and return involved in the same. To reach the level of investment banker one need to move in a certain hierarchy as a finance graduate starts his/her career as an analyst with primary responsibility of preparing presentations, setting up conference calls and meetings, etc. With the experience of 3-4 years an analyst moves up in the ladder and reached the position of Associate with the added responsibility of client interaction and managing a team of 4-5 analysts. The next stage in the professional life of an investment banker is the Vice President who is being considered as the expert of the field with the responsibilities like maintaining the client relationship and overlook the operational efficiency at each level of the hierarchy underneath. The ultimate position to reach for an investment banker is to become Managing Director. Managing Director of an investment bank has the responsibility for increasing the business by converting the potential clients.

Investment bankers work on various profiles like Corporate Finance, Mergers and Acquisitions, Capital Market and Sales and Trading. Corporate Finance is the most widespread profile and is a foundation stone for Investment Banking. In this profile one needs to help clients in capital raising, providing recommendations on restructuring, and help to identify the potential sources of funds. Mergers and Acquisitions profile is built around the valuation of businesses and the negotiation of deals. The Capital Market profile requires a thorough understanding of the capital market and its volatility for both the instruments equity and bond. While the profile of Sales and Trading includes transaction responsibilities in equities, currencies, bonds, etc. on behalf of clients.

To be or not to be an Investment Banker one need to evaluate oneself as if one wishes to have a work-life balance then this profile is not for you. As investment banker profile requires a minimum of 100 hours of workweek along with the ability to perform under extreme pressure to meet multiple deadlines. So, before jumping into the profile need to evaluate yourself on the parameters like skillsets required along with your emotional quotient both of them need to be very high to sustain and perform well in life.

Saquib Akhter
PGDM 2019-21

Dr. Kumar Saurabh
Assistant Professor-Finance
IILM Graduate School of Management