Investment Banking is a part of the job role for financial analysts who make a career in specializing in investment banking. Investment banking Jobs are common in large companies like Goldman Sachs, JP Morgan, Morgan Stanley, Edelweiss and many others. Banks like ICICI, Citi, large private Equity institutions like Blackstone, corporate firms like Reliance and Mahindra and Mahindra, large Multinational companies that engage in large amounts of fundraising, restructuring and, M and A and most others also have investment banking roles. These are normally Bulge-Investment banks. You also have firms/boutique banks like Piper Jaffray, Avendus Capital and many others who also offer services in investment banking and need investment bankers.
Types of Analysts
The BA/Business Analyst and FA/Financial analyst in investment banking have almost identical functional roles in an investment bank which involves data investigation of both external and internal clients and using their research of these to prepare project reports, make inferences, and recommend business decisions. The FA helps make those tricky financial decisions after studying the financial databases on whether to buy/sell/hold securities and explains why. Some may even need to work on mergers, buying and selling decisions of companies after careful evaluation of PIB databases, financial statements, and spotting trends to make predictions and forecasts.
The BA is required more to make operational and management decisions which are data-based. Though investment related their decisions, forecasts, etc are on the business models, workflow, technical systems involved, work processes and inter-department connections related to overall efficiency, employee productivity, etc. They spot trends that influence the operational and management decisions in short.
Investment Banking Career Options and Routes
Table of Contents
- Various types of investment banks
- Buy-side investment firms.
- Real-estate segment.
- Sell-side firms.
- Insurance and allied companies
- Data-driven companies.
- Brokers and their firms.
- Acquisitions and Mergers sector.
- Private and Debt Equity
Investment Banking Job responsibilities
- Investments, Acquisitions, and Mergers:
Investment bankers in M and A are intermediaries who help a client/ company to buy, sell, acquire, sell assets. They need excellent skills in analyzing businesses, financial statements, preparing reports, SWOT analysis, and vision to generate options that aid the clients both external and internal. The job responsibilities include Asset valuation, potential insights into synergies, legal angles, financial analysis and other responsibilities like negotiating, marketing, sales, management tasks, financial modeling, risk evaluation and management, forecasting trends and possibilities.
The skills required are the ability to wear many roles with ease. Mastery in financial analysis and forecasting, dealing with large data volumes, presentation skills, communication skills, and many others are required to be successful in this satisfying but long-hours type of job.
- Private Fundraising:
Since investment banking does cover a variety of financial instruments it is essential to have a wide knowledge of the financial markets, great data analytics skills, personal skills in communication, team-play, etc. The kind of job roles will differ on the source from where the investments are raised in the firm. For example, Kotak and Goldman are bulge investors who involve in activities like Book Running, the Equity Market, issue of IPOs and rights issues. In contrast Map and Avendus Capital are boutique banks that raise capital from Private markets, Equity firms and individuals with High Net-Worth.
- Markets in Private Equity:
Investment banking jobs could be on both the buy or sell sides of firms. Opportunities exist in Venture Capital, Private Equity firms, mutual fund dealers and bankers. The job relates to the evaluation of opportunities, price forecasting, and market investments advice.
At the onset of your career as a junior analyst, you will need to enhance your proficiency in database usage, spreadsheets, presentations in PowerPoint, other relevant software applications and Microsoft Excel. Senior analysts will, however, have to work on the crucial aspects of presentation skills, long working hours, mentoring juniors effectively, and building interpersonal relationships.
A financial analyst career requires long working hours, preparation and a flair for financial analysis. Other than job-satisfaction, the career provides excellent payouts and a horde of opportunities.
- Essential Skills:
Foundational graduation in Finance, economics, statistics, etc would be very desirable. Most courses provide boot camps for those who do not have a finance background. Based on your plans, specialization choices, eligibility, and resources various courses provide certification. The most coveted of these is the CFA certification.
One will require non-technical and non-transferable skills like
• Fluency in quantitative skills.
• Creative problem-solving skills.
• Inferential and beyond-data approach.
• Well-honed presentation skills.
• Excellent presentation, reporting, and data-skills.
• Excellent interpersonal skills.
• Team skills that need to be both communicative and collaborative.
• Able to work long hours under demands, ambiguity, and pressure.
• Financial integrity,discipline and dedication.
• An absorptive learner who can work on best practices in the absence of SOPs.
Financial analysts also require fine-tuned technical skills for working with large amounts of data. They include the data-skills of a data analyst with research and interpretation experience in financial data.
- Required Technical skills:
• VB Macros and Microsoft Excel suite.
• Software manipulation and use of data analysis techniques.
• Basic accounting and financial concepts
• Financial analysis, inferences, forecasting, and asset valuation.
• Creation of financial and data models with tools and graphics.
• Visual data presentations in Excel.
• Preparation of accounting statements.
• Interpretation and preparation of Ratio analysis.
• Multiple-companies comparitive performance analysis.
• SWOT analysis.
• The Discounted-Cash-Flow valuation techniques.
• Application of best practices to multiple-source databases.
• PowerPoint and statistical packages.
Average Salary of Investment Banking Analyst
Financial Analysts according to Indeed draw an average pay-band of 65k to 110k$ in the US. They also get great incentives and perks that are almost equal to their earnings and are lucrative.
In conclusion, if you have a flair for financial analysis and wish to work as an analyst in the financial field then do an Investment banking course with certification to open the doors to a rewarding career. The Imarticus course teaches you the best tools and such courses are particularly advantageous to your career because of the global robust curriculum, hands-on practice on popular tools, an industry-relevant project involving real-time live data, and excellent mentorship provided which makes you industry-ready from day one. Why wait?