Investment Banking is undoubtedly one of the most prestigious fields in the field of finance. Becoming an Investment Banker requires more than just impressive education qualifications. It requires cutting-edge analytical skills, a great understanding of the market and the latest investments, and good intuition. When you hear about the profession of Investment Banking you may feel that it’s limited to guiding customers towards the best investments and helping them grow their money. But there is much more to this job role than what meets the eye. Investment Banking also has several sub-roles under the main profession, which depending on your interest level, you can choose.
Intrigued to know about what these different types of Investment Banking jobs are? Here’s a glimpse.
Different Types of Investment Banking Jobs
- Banker: A Banker, as the name suggests, is the person who handles the bank’s corporate and private clients. They keep a tab on their investment portfolios and suggest the best investment options based on the level of risk the client is willing to take. They also have additional duties of passing loans and approving larger transactions. General Bankers aren’t investment experts but they do possess a vast amount of knowledge on investments.
- Mergers & Acquisitions Banker: Every company needs an advisor once they have merged with another company or acquired a small part of it. These professionals have excellent skills in financial modelling and base all their decisions on suggestions on the crux of it. Those who have completed their course and then wish to specialise in mergers and acquisitions, can take a course in financial modelling separately.
- Underwriting Manager: The most important role of an Investment Banker is to raise capital for firms with potential. This role falls under the profession of an Underwriting Manager. The professionals working in this section of the investment industry need to master their concepts in equity and debt. These professionals act as the link between their clients and trades, determining which investment pathway works well for both parties in terms of monetary growth and security. These professionals also need to work closely with Security Sales Professionals to understand the latest changes in the market.
- Investment Banking Analysts: These professionals analyse everything that’s investment-related and suggest the best investment deals. From a firm’s financial position to the market fluctuations and the future growth overview comprising all data. They also analyse the mergers and acquisitions and if any massive transactions are made by the company. Their job role also includes researching and highlighting bonds, stocks, and other securities.
- Private Equity Associate: One of the most prestigious positions most Investment Bankers often choose is Private Equity. These professionals are solely responsible for procuring the equity of securities. They further help the clients figure out which company is the right choice for private equity buyout and which ones you sell based on the profitability. The compensation these professionals receive is unmatched.
- Venture Capital: An emerging part of the investment industry, is the venture capital profession. In Private Equity, funds are raised to invest in established companies, whereas in venture capital, funds are raised to support emerging startups. While some of them do tend to fail, there are some startups that rise to another level giving you 10x returns on your investment. A Venture Capital Analyst guides you toward these profitable investments.
We hope that with this detailed guide on different types of Investment Banking Jobs, you are able to find the right career path for yourself. Unsure about how to get into the field of investment banking? The answer to that is the Chartered Financial Analyst course. Start your journey towards the exciting field of investments through CFA today! Click on the WhatsApp Icon at the side of this blog to get in touch with our CFA experts.
What are the services of investment banking?
Investment banking as industry deals with mergers and acquisitions, stocks, bonds, private equity and venture capital investments.
What are the functions of investment banking?
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.
Which banks are called investment banks?
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.