Who is Investment Banker?
Investment banking is a subset of financial services provided by financial institutions and banks that assist state and federal governments, companies, and commercial and non-commercial banks with various transactions. It is primarily a financial advising sector that advises clients on different investments. Additionally, it focuses on managing and growing customers' financial assets. Investment bankers advise their customers on investment strategies and assist in executing such strategies.
This implies that investment bankers effectively operate as counsellors and brokers, analysing their customers' requirements and then recommending the appropriate solutions. Once the customer has chosen a course of action, it is up to the bankers to negotiate acquisitions and mergers, always keeping the client's best interests in mind.
Typical day at work
What does Investment Banker do?
Investment bankers assist their customers in raising funds in the capital markets via the issuance of debt or the sale of stock in their businesses. This position involves supporting clients with mergers and acquisitions (M & M&As) and advising them on novel investment options such as derivatives. Investment bankers may take on two roles: portfolio managers and fund managers.
While these professionals often work in offices, they may go to clients' locations to conduct meetings and presentations. Investment fund managers help their customers in identifying the most advantageous investment plan. Their objective is to assist their customers in making the most profit possible from their assets. Clients will meet with them to discuss their investment aims and needs.
Additionally, they may be responsible for analysing businesses and investment options to identify which ones are the most likely to be safe investments. As part of their tasks, they may be responsible for supervising investment purchases or transactions. Additionally, they monitor their customers' investments closely to ensure they operate as intended.
Investment bankers essentially serve as counsellors and brokers, assessing their customers' requirements and then assisting them in identifying and capitalising on excellent possibilities to satisfy those needs. Once the customer has determined their preferred course of action, it is up to the bankers to negotiate acquisitions and mergers while keeping the client's best interests in mind. In addition, investment bankers assist businesses in investing their assets to raise the portfolio value of their holdings.
- Collaborate and communicate with client firms, product groupings, and industry associations.
- Assist clients in managing their transactions and assist with capital structure, valuation, and risk management.
- Construct transactions and negotiate favourable conditions
- Assemble loans
- Interaction with corporate finance departments and capital markets specialists, among others.
- Maintain an eye on market circumstances (debt or equity capital markets)
- Connect with other financial strategy, derivatives, currency trading, convertibles, and equity derivatives experts.
- Work in mergers, acquisitions to set up deals, equity and fixed income research
- Take on equities, bonds, currencies, options or futures transactions for large institutional investors
- Facilitating the development of vehicle financing to channel cash flows to investors
- Deliver information about particular securities to institutional investors
- Maintain interface with portfolio managers, firm’s analysts, and traders
- Develop financial models to value debt and equity for mergers, acquisitions, and capital raising transactions
- Conduct various valuation methods: comparable companies, precedents, and DCF
- Provide recommendations for product offerings, private equity transactions, mergers and acquisitions, and valuations.
- Prepare and review financing materials such as investment memoranda, management presentations and pitchbooks, for clients
- Grow relationships with new and existing clients
- Execute due diligence, research, analysis, and documentation of live transactions
- Create presentations for client portfolios
- Raise capital through issuing debt or equity securities
- Valuation of transactions and financial activities, such as the performance of bonds and stocks
- Guide organizations in raising public or private funds over equity or debt offerings
- Perform business valuation analyses by using transaction comps, discounted cash flow, and leveraged buyout methods
- Research on company and industry for prospective clients and new business
- Participate in and manage all stages of a transaction, from the opening pitch to the closing investment contract.
Abilities & aptitude needed
What are the skills, abilities & aptitude needed to become Investment Banker?
- Financial literacy, comfort with numbers, immaculate research, mathematical and analytical abilities are necessary for success in this job. Additionally, one should be proficient in Microsoft Office, particularly Microsoft Excel and VBA. As a result, those with excellent professional communication and presentation abilities will also profit.
- A person considering a career in this profession must possess a high level of resilience and the capacity to deal with the repercussions when times get tough. The job is ideal for self-assured people with boundless passion, high achievers who are ambitious and competitive, with an exceptional work ethic and the capacity to operate under extreme pressure. Investment bankers must manage their time and tasks well, which involves focus, commitment, and a high level of energy.
- Along with strong leadership and teamwork abilities, one must be able to operate in a fast-paced setting with long work hours and little supervision. In addition, individuals must have an eye for detail and the ability to plan and monitor overlapping work to excel in this field.
- The excellent interpersonal, negotiating, and persuading abilities will benefit the investment banker's career. In addition, knowledge of transaction structure and closing principles will be advantageous. Investment bankers will also need sound judgement and decision-making abilities to make sound judgments.
Which course I can pursue?
Which are the best colleges to attend to become Investment Banker?
Presidency College, Chennai
Chennai | UGCNIRF Rank : 3
National Law University, Jodhpur
Jodhpur, Rajasthan | National Law University, JodhpurNIRF Rank : 6
Loyola College, Chennai
Chennai, Tamil Nadu | University of Madras, ChennaiNIRF Rank : 6
Hans Raj College, Delhi
Delhi | Delhi University,UGCNIRF Rank : 9
Savitribai Phule Pune University, Pune
Pune, Maharashtra | Savitribai Phule Pune University, PuneNIRF Rank : 10
St. Xavier`s College, Kolkata
Kolkata, West Bengal | UGCNIRF Rank : 10
Madras Christian College, Chennai
Chennai | University of MadrasNIRF Rank : 13
PSG College of Arts and Science, Coimbatore
Coimbatore, Tamil Nadu | Bharathiar University, CoimbatoreNIRF Rank : 17
Banasthali Vidyapith, Banasthali
Jaipur, Rajasthan | UGCNIRF Rank : 19
SVKM`s Narsee Monjee Institute of Management Studies, Mumbai
Mumbai, Maharashtra | ?AACSB?, ?AMBA?, ?UGC?, ?AIUNIRF Rank : 20
Siksha 'O' Anusandhan, Bhubaneswar
Bhuvaneshwar, Odisha | Biju Patnaik University of Technology,UGC,NAACNIRF Rank : 21
PSGR Krishnammal College for Women, Coimbatore
Coimbatore, Tamil Nadu | Bharathiar University, CoimbatoreNIRF Rank : 22
Symbiosis International University, Pune
Lavale, Maharashtra | Symbiosis International University, PuneNIRF Rank : 22
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur
Nagpur, Maharashtra | UGC,AIUNIRF Rank : 29
Mar Ivanios College, Thiruvananthapuram
Thiruvananthapuram | University of Kerala,UGCNIRF Rank : 29
Scott Christian College, Nagercoil
Nagercoil, Tamil Nadu | Manonmaniam Sundaranar University, TirunelveliNIRF Rank : 30
Women`s Christian College, Chennai
Chennai | University of MadrasNIRF Rank : 32
Thiagarajar College, Madurai
Madurai, Tamil Nadu | Madurai Kamaraj University, MaduraiNIRF Rank : 34
Loyola Institute of Business Administration, Chennai
Chennai, Tamil Nadu |NIRF Rank : 36
Lovely Professional University
Delhi | University Grants Commission (UGC)NIRF Rank : 38
Shanmugha Arts Science Technology and Research Academy, Thanjavur
Thanjur, Tamil nadu | NAAC, UGC, NAAC-ANIRF Rank : 38
St. Joseph's College, Tiruchirappalli
Tiruchirappalli, Tamil Nadu | Bharathidasan University, TiruchirappalliNIRF Rank : 39
Banaras Hindu University, Varanasi
Varanasi | ACU AIU NAAC UGCNIRF Rank : 39
Alliance University, Bengaluru
Bengaluru | UCCNIRF Rank : 42
Xavier University, Bhubaneswar
Bhubaneshwar | UGC,NBA,AIUNIRF Rank : 44
National Institute of Technology Durgapur
Durgapur, West Bengal | Deemed UniversityNIRF Rank : 46
Sri Padmavati Mahila Visvavidyalayam, Tirupathi
Tirupati, Andhra Pradesh | UGCNIRF Rank : 46
Vellore Institute of Technology, Vellore
Vellore | UGCNIRF Rank : 46
Sathyabama Institute of Science and Technology, Chennai
Chennai, Tamil Nadu | Sathyabama University, ChennaiNIRF Rank : 47
Govt. College for Women, Thiruvananthapuram
Thiruvananthapuram Kerala | Kerela UniversityNIRF Rank : 47
Pt. Ravishankar Shukla University, Raipur
Raipur, Chhattisgarh | UGCNIRF Rank : 48
Amity University, Gautam Budh Nagar
NOIDA | UGC?, ?NAAC?, ?WASC?, ?AIU?, ?ACUNIRF Rank : 49
Kanchi Mamunivar Centre for Post Graduate Studies, Puducherry
Puducherry | Pondicherry UniversityNIRF Rank : 49
National Institute of Technology Silchar
Silchar, Assam | UGCNIRF Rank : 51
Lovely Professional University, Phagwara
Phagwara, Punjab | UGC, AIU, PCI, NCTE, COA, ACBSP,NIRF Rank : 52
VELS Institute of Science Technology and Advanced Studies, Chennai
Chennai, Tamil Nadu | ?UGC NAACNIRF Rank : 52
Kurukshetra University, Kurukshetra
Thanesar, Haryana | UGCNIRF Rank : 53
Sri Krishna Arts and Science College, Coimbatore
Coimbatore, Tamil Nadu | Bharathiar University, CoimbatoreNIRF Rank : 53
St. Thomas College, Thrissur
Thrissur, Kerala | Affiliated to University of CalicutNIRF Rank : 54
Institute of Management and Entrepreneurship Development, Pune
pune | university of puneNIRF Rank : 55
Sam Higginbottom Institute of Agriculture, Technology and Sciences, Allahabad
Allahabad, Uttar Pradesh | UGC, ACU AIU IAU IAUANIRF Rank : 56
Sacred Heart College, Ernakulam
Thevara, Kochi | Mahatma Gandhi University, KottayamNIRF Rank : 57
Stella Maris College for Women, Chennai
Chennai | University of MadrasNIRF Rank : 58
Koneru Lakshmaiah Education Foundation University(K L College of Engineering), Vaddeswaram
Guntur, Andhra Pradesh | University Grants Commission, All India Council for Technical EducationNIRF Rank : 58
St. Joseph`s College of Commerce, Bengaluru
Bengaluru, Karnataka | Bangalore University, BangaloreNIRF Rank : 61
St. Teresa's College, Ernakulam
Ernakulam Kochi, Kerala | Mahatma Gandhi University, KottayamNIRF Rank : 64
Shoolini University of Biotechnology and Management Sciences, Solan
Solan, Himachal Pradesh | UGCNIRF Rank : 65
Silver Jubilee Degree College, Kurnool
Kurnool | Rayalaseema UniversityNIRF Rank : 66
Mohanlal Sukhadia University, Udaipur
Udaipur, Rajasthan | Mohanlal Sukhadia University, UdaipurNIRF Rank : 67
NSHM Knowledge Campus, Kolkata
Kolkata, West Bengal | Maulana Abul Kalam Azad University of Technology, KolkataNIRF Rank : 68
Shaheed Sukhdev College of Business Studies, New Delhi
New Delhi, Delhi | University of Delhi, DelhiNIRF Rank : 70
Farook College, Kozhikode
Kozhikode, Kerala | CALICUT UNIVERSITY, CALICUTNIRF Rank : 71
SRM Institute of Science and Technology, Chennai
Kattankulathur, Tamil Nadu | SRM University, ChennaiNIRF Rank : 73
St. Xavier's College, Palayamkottai
Tirunelveli, Tamil Nadu | Manonmaniam Sundaranar University, TirunelveliNIRF Rank : 74
V. O. Chidambaram College, Tuticorin
Thoothukudi, Tamil Nadu | Manonmaniam Sundaranar University, TirunelveliNIRF Rank : 77
Lady Doak College, Madurai
Madurai | MKU,MaduraiNIRF Rank : 79
TKM College of Arts and Science, Kollam
Kollam | KU, ThiruvananthapuramNIRF Rank : 80
National Institute of Technology Goa
Bandoda, Goa | autonomous premier engineering and technology universityNIRF Rank : 87
Sri Venkateswara University, Tirupati
Tirupati, Andhra Pradesh | UGCNIRF Rank : 89
Hindustan Institute of Technology and Science, Chennai
Chennai | NAAC; UGCNIRF Rank : 95
IK Gujral Punjab Technical University, Kapurthala
jalandhar | UGC, AICTENIRF Rank : 96
Sri Meenakshi Government College for Women, Madurai
Madurai, Tamil Nadu | Madurai Kamaraj University, MaduraiNIRF Rank : 97
Muthurangam Govt. Arts College, Vellore
Vellore, Tamil Nadu | Thiruvalluvar University, VelloreNIRF Rank : 98
The Northcap University, Gurugram
Gurgaon, Haryana | BCI, NAAC, UGC, MHRD, AIUNIRF Rank : 117
YMCA University of Science and Technology, Faridabad
Faridabad, Haryana | UGCNIRF Rank : 144
PES University, Bengaluru
Bengaluru, Karnataka | AICTE, NAAC, UGCNIRF Rank : 149
Dr Vishwanath Karad MIT World Peace University, Pune
Pune, Maharashtra | UGCNIRF Rank : 154
Narula Institute of Technology, Kolkata
Kolkata, West Bengal | Maulana Abul Kalam Azad University of Technology, KolkataNIRF Rank : 160
Manav Rachna International Institute of Research and Studies, Faridabad
Faridabad, Haryana | Manav Rachna International University, FaridabadNIRF Rank : 164
Pimpri Chinchwad College of Engineering, Pune
Pimpri-Chinchwad, Maharashtra | Savitribai Phule Pune University, PuneNIRF Rank : 192
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Are there internships available for Investment Banker?
What does the future look like for Investment Banker?
The future growth prospects for investment banking professionals are excellent. Corporate finance, mergers and acquisitions, capital markets, and sales and trading are common employment domains. It often starts as an Analyst, a desk profession that entails researching the firm for which money is being sought, developing earning models, calculating returns ratios and comparing them to industry rivals.
With experience, the function transitions to Senior Analysts/Associates and Portfolio Managers, who pitch to customers and investors via presentations and conversations. Mergers and acquisitions, private equity, and debt syndication, among others, are specialities in which one might develop knowledge and abilities and advance to senior leadership positions. However, the work is very demanding and requires long hours.
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