Investment Banker Course In India: Eligibility | Institutes | Jobs
Investment Banker Course: A great opportunity is knocking on your door if you hail from a background in Finance & Management. Here we would like to share with our readers, insights on ‘How to become an Investment Banker’ and what are the prerequisites if you are looking for a flourishing career in this field.
So, to begin with, the very first question that strikes in the mind of every aspiring individual is what exactly this profession is all about? Investment Bankers are the individuals who help organizations in making wise decisions that can benefit them & execute strategies that ensure their financial growth.
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Investment Banker Course In India
Investors always go through a great brainstorming session to develop a systematic approach on where, when & how they should invest because even a slight mistake can become an obstacle in the path of a company’s growth. This profession requires individuals with good skills in finance, decision-making, somebody who understands the ecosystem of marketing & trading and the most important of all, ‘Real Life Mathematics’.
Let’s have a glance at some important pointers so that the picture gets clearer in your mind-
Eligibility
Being an investment banker is not everybody’s cup of tea, what sets apart an individual is his/her experience on investment and the necessary qualifications that can help you to get the gist of this field from the core.
Following are the educational programs that would make it easy for you to grab a great opportunity at the entry-level-
- Bachelor of Commerce (B.Com) Hons.
- Bachelor of Arts (BA) in Finance / Economics
- Bachelor of Business Administration (BBA) in Finance
- Chartered Financial Analyst (CFA) Programme
These UG programs can provide the platform you deserve, and then you are ready to explore the various dimensions of this exciting and competitive field.
Best Institutions for Investment Banking Course
The institutions play an essential role if you are looking for a good learning environment and an ideal mentor who can guide you to apply your theoretical concepts in the industry.
Following are the institutions that provide courses in Investment Banking in India-
- Indian School of Business, Hyderabad
- Indian Institute of Management, Ahmedabad
- Indian Institute of Management, Kozhikode
- Faculty of Management Studies, Delhi
- National Institute of Securities Markets, Mumbai
- Lovely Professional University(LPU), Jalandhar
- Chandigarh University
- National College, Thane
- Orange School Of Business, Maharashtra
- Indian Institute of Management, Indore
- Indian Institute of Management, Bangalore
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Investment Banking Job Prospects
Experience is something that always comes first in the priority list, the job titles in the field of investment banking elucidate their system very well. Like every other company, work ethics are something that the aspirants must take care of, therefore an individual must work as an intern first in the company.
Following are the positions that this field offers-
- Analyst / Junior Analyst: This role is mostly for graduates and their responsibilities include creating presentations & analyzing basic functional data. It requires experience of 1-2 years.
- Associate / Senior Analyst: Candidates may be promoted to this role based on their work and are responsible for giving ideas in finding investors & getting clients on board. It requires experience of 3-4 years. An MBA degree would be a great add-on if you wish to work as an Associate.
- Leadership Roles: It includes the leading roles like Vice Presidents & Managing Directors. A good pay scale is expected in these roles and demands deep knowledge & experience.
Average Salary
Investment Banker Course: The role of an investment banker demands a lot of multitasking and great attention to all the minute details. The construction of financial models that in return can generate productive outputs and raising capital through debt or equity is a big responsibility.
Based on their role & experience the following figures represent the approximated salary of various job profiles in this skilled industry of Investment Bankers.
- Analyst – First Year: $70,000 – $150,000
- Analyst – Third Year: $120,000 – $350,000
- Associate – First Year: $150,000 – $350,000
- Associate – Third Year: $250,000 – $500,000
- Vice President: $350,000 – $1,500,000
- Managing Director/Partner: $500,000 – $20,000,000+
Investment Banker Course: Frequently Asked Questions (FAQs)
- How do you value a company?
You can answer this question by explaining intrinsic value (discounted cash flow evaluation) and relative valuation in detail.
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- In an unleveled DCF analysis, what is the approximate discount rate?
You can clarify the concepts here and conclude that the weighted average cost of capital is the discount rate to all providers of capital.
- What is expected to be higher- the cost of debt or the cost of equity?
Give reasons why the cost of equity is higher than the cost of debt.