Today investment banking is one of the most lucrative career options for finance students in India. It involves keeping a track of the economy and the markets, having knowledge of critical financial concepts, and understanding of technology tools. It is one of the very few subfields in the world of finance which requires an end-to-end approach in finance for professionals to qualify and make it big.
While an investment banking course will set you up with the basics and take you deeper, this intro guide will come in handy as you sit down to plan.
Core of Investment Banking
The core function of investment banking lies in advice. Here, a team of experts assess the financial situation (historic) of a company and provide counsel in all associated affairs, help leaders make decisions in terms of mergers and acquisitions (M&As), and ensure that the financial infrastructure of the company is well-maintained and future-proof. For example, a conglomerate (Walmart) looking to acquire a startup (Flipkart) will turn to investment banking to understand the pros and cons of such an acquisition.
An investment banking professional typically undertakes the following tasks:
- Assessment of historical financial framework of the company
- Underwriting stock issues and other portfolios
- Examination financial statements, books, and all related materials
- Projecting the company as a safe, growing investment and attract investors
Apart from these tasks, investment banking majorly has to do with improving the projected state of a company. If it is a listed company, all the dealings that it does will impact its share price, and further influence the investors’ stance on it. Today, most corporations and organizations use investment banking professionals to assist them in their day-to-day financial decisions.
Skills Required for Investment Banking Career
Investment banking is a great choice for students who are interested in the stock market and the economy. Having a natural interest as well as knowhow of how the economy works will give an upper hand when it comes to landing jobs in the field.
This is why a natural interest in trading, stocks, mutual funds, taxation, and the global economy is the default requirement. Other than that, this is the list of select skills that are in demand:
- Strong mathematical and analytical skills
- Accountancy, bookkeeping, taxation
- Knowledge of the global economy
- Understanding of economics and key concepts such as markets, mutual funds
Another important skill is communication and relationship building. Experts have rightly suggested that the companies that have wide hands and an extensive client network perform the best. This is because they are capable of improving the prospects for any company by providing better financial counsel. And for all these, the ability to communicate well and maintain relationships is important.
For students, the focus should be on understanding basic concepts. Enrolling in an investment banking course can help you get started. Whether you want to proceed or not will depend on how you fell when you start studying.
Hard Skills Needed for Investment Banking Jobs
Considering that technology is continuously helping us improve our work, there are a set of tools and skills that you should master:
- Debt and equity finance
- Derivatives
- Traditional trading
- Corporate bonds
- Trend analysis
- Comparative Finance
• Fund flow analysis
This is not an exhaustive list but only the most common skills. The key would be to learn the basics of investment banking and then focus on individual concepts.
Investment banking aids corporations to make better financial decisions and thereby help in their growth and development. If you are a student who is interested in exploring the field as a career option, you can easily do it by joining an investment banking course. Understanding the concepts will set you up for a career path that is one of the best in India.
