CFA : Career Path to Investment Banking

Investment Banking as an industry has been there for quite some time. But it’s only recently that the field is gaining immense popularity and growth. That’s because more and more people are becoming aware of the benefits of investing early. From teenagers to retired people, everyone is busy investing either in mutual funds, stocks, gold bonds, real estate, crypto, NFTs or even policies. The catch behind investments is that they need to be profitable. While some investments come with a risk factor and high returns, some come with zero risk but basic returns. No matter what investment stream you choose, the market will always be volatile and that’s why you need an expert who can guide you through. That’s where the role of an Investment Banker comes in. They not only help individuals make profitable investments but also advise companies to make future-safe investments. Every company today, be it an SME or an MNC requires an Investment Banker that is well aware of the latest changes in the field of investments and guides them correctly.

Find out all about Investment Bank as a field and as a profession through this detailed article for all investment enthusiasts.

What Exactly is Investment Banking?

To explain Investment Banking in simple terms, we can say that it’s a division of banking that is created with the purpose of generating capital for governments, firms and individuals related to them. Some of the major purposes of the investment banking field are as follows

• Facilitating mergers and acquisitions
• Generating the sale of company stocks
• Management of assets
• Underwriting 
• Equity research
• Raising capital debt
• Launching new products
• Insuring bonds

Full-service banks offer all these services as they plan and manage finance projects for larger organizations. Many full-service or investment banks are associated with larger global banks like Goldman Sachs, JP Morgan, Bank of America, Credit Suisse and Deutsche Bank. There are popular investment banks in India as well that are trusted by plenty of people, some of them are JM Financial Institutions and Securities, IDBI Bank, MAPE Capital Advisors, etc.

What Do Investment Banks Do?

As the name suggests, investment banks assist corporations in large and complicated financial transactions. These monetary transactions could include IPOs, M&A, liquidation or even a takeover. Investment banks hire Investment Bankers to help governments, organizations and individuals to make these big-ticket investments. They plan large projects by identifying the risks involved. Since Investment Bankers are well aware of the latest products in the market and can easily predict their growth or downfall, they are sure to direct their clients accordingly. Here are some of the major tasks that investment banks carry out. 

• They serve as the mediators between the company and investors
• Offer consultation based on the company or individual’s net worth
• Identifying future risks on the suggesting products accordingly
• Facilitates broker trades for institutions as well as investors
• Raising capital for companies with potential

How To Become An Investment Banker

Becoming an Investment Banker isn’t as it may seem. Since this exciting job also comes with an immense risk factor, the profession must ensure that you possess the necessary skills to invest and raise capital for different public and private organisations. Here’s what you need to have to become an Investment Banker.

• Pass your 10+2: Before you get into any professional course, you need to complete your basic education which falls under the eligibility criteria for almost every professional course.

• Earn a Bachelor’s degree: To master the complexities of the Investment Banking industry you need to understand the finance and banking industry first. And for that, you’ll need a graduation degree in either B.Com or BAF.

• Get a professional degree in CFA: CFA or Chartered Financial Analyst is a prestigious professional qualification with four cut-throat levels that not only equip you with the workings of the investment industry but also the skills you’ll need to invest right.
• Work experience: Apart from a strong passion for researching the market and investing, you’ll also require some level of training to become a true expert. If you’ve cleared all your CFA levels then the mandatory work experience you’ll require would be about 36 months.

A Career In Investment Banking

A career in investment banking is extremely exciting and at the same time extremely rewarding. When working for an Indian or International investment bank, apart from your regular income, you’d be making a handsome amount only through investments. However, you’ll need certain skills to be successful in your career as an Investment Banker. Here are some of the essential skills required –

Top Skills For An Investment Banker

• Analytical prowess
• In-depth knowledge of the markets
• Excellent communication and convincing skills
• Quick problem-solving skills and adaptability
• Project and time-management skills

Countries You Can Work In After Completing CFA

Chartered Financial Analyst is a globally recognised course that enables you to work in several countries. Want to know which are the top hiring countries for CFA professionals? Here’s a glimpse.

• UAE
• Hong Kong 
• China
• Canada
• USA
• Australia
• South Africa

Salary of CFA

There’s no dearth of opportunities and excellent packages for each of those who have completed their CFA. Here’s a look into the base package of a CFA professional. After becoming a successful Investment Banker, you can expect an income of anywhere from 10 lpa to 15 lpa.

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Companies That Hire Investment Bankers

The demand for Investment Bankers is constantly growing due to the fast-paced progression of the financial and technological field. In India and abroad, every company and every industry requires an Investment Banker. Here’s a look into some of the top jobs currently available for Investment Bankers in India.

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If you wish to become a successful Investment Banker the best pathway to becoming one is through completing your professional degree in CFA. To pursue your Chartered Financial Analyst degree from a prestigious learning provider click on the WhatsApp Icon on this blog and get in touch with our experts directly.