Have you ever heard of companies acquiring other firms or merging with other organizations? Who suggests these large corporate giants invest in such firms? Here, investment banking comes to the rescue to ensure such investments are properly handled. Investment banking has emerged as an appealing industry among many corporate individuals due to its challenging opportunities, high risks, and high potential and reputation. As of late, graduates and newcomers have shown immense interest in this field. However, with the rising interest in the area, finding investment banking fresher jobs can also be tedious.
So, how can one become an investment banker and get investment banking fresher jobs? This article curates details about investment banking, such as how to get a job as a fresher, eligibility, and responsibilities. Read on to learn how to get investment banking fresher jobs.
Table of Content
What is investment banking in simple terms?
How do investment banks work?
Type of Investment Banking
What’s the role of an investment banker?
Eligibility criteria for investment banking course
5 ways to get Investment banking fresher jobs in India
How to apply for investment baking fresher jobs?
Reputed companies to target to get investment banking fresher jobs
Interview process for investment banking fresher jobs
What are the challenges and opportunities in investment baking fresher jobs?
How to prepare your resume for investment banking fresher jobs?
What is Investment Banking in Simple Terms?
Before you plan to search for investment banking fresher jobs and think of taking a course, let’s understand what investment banking is. The position of an investment bank is to act as an intermediary to a large group of organizations – private and public – in facilitating funds, mergers, and acquisitions for them.
Along with large companies and organizations, investment banking also enables individual contributors with higher net worth and government organizations to raise capital in the market. For example, company A wants to start a new project, which requires considerable investment, and is interested in putting its securities in the market.
On the other hand, many individuals are looking to double their money by investing in a company with a good reputation in the market. So, how will the needs of these two entities be met? Here, an investment bank comes into the picture, which helps companies meet their prospective buyers who are interested in investing in securities.
Therefore, an investment bank bridges the gap between individuals and companies. This means an investment bank underwrites new securities for various organizations, assists in financial planning, and arranges mergers and acquisitions. On the other hand, investment banking also helps companies take over new acquisitions, making large transactions and important financial decisions.
How Do Investment Banks Work?
The world is growing, and so is the scope of banking. The world of banking has always lured finance experts or followers from ages. As we grow, our thirst to earn money never fades away, leading to the new Investment Banking. Investment banking services help an organization table viable investment plans, including pricing stocks and shares.
Some famous investment banks nationwide are JP Morgan Chase, Goldman Sachs, and Morgan Stanley. While eminent investment banks in India include IDBI Capitals, JM Financial Institutions Securities, MAPE Capital Advisors, etc. An investment bank purchases shares on behalf of the company when it announces its IPO.
These shares are then offered to buyers by an investment bank on behalf of the company, which means the investment bank is now a proxy. The bank maximizes the company’s profit by following certain guidelines. As and when the price of a share rises, the investment bank also earns profit by keeping a margin on the basic price of the share when selling it to investors.
However, there can be an occurrence when the share price is overvalued as compared to the market price, in such cases, the investment bank will have to sell shares at a lesser price and this leads to the risk of losing money. Therefore, that is where the job of an investment banker takes place.
Type of Investment Banks
Now that we have learned about investment banking and what role an investment banker plays. It is time to move on to its collaterals and understand their role in finance.
1) Bulge Bracket Bank- As the name suggests, Bulge Bracket Investment Bank deals with large clients, typically – government institutions, corporations, and institutional investors. The bulge originated from the order received from a large bank transaction.
2) Boutique Bank– Boutique Bank can be categorized as Elite Bank and Regional Bank. Elite Bank is similar to Bulge Bracket Bank as it also deals with the highest ticket size clients and earns great profits.
3) Regional Boutiques Bank – Unlike Elite Bank, Regional Bank deals with small-sized companies. Such banks are usually small in size and have limited clients to deal with and employees, too.
4) Middle market Bank – Middle Market Bank targets medium-sized clients that neither fall into Bulge Bracket Bank nor Regional Banking. This type of bank works with clients that begin their journeys from the regional level and are yet to fall into the category of the Bulge bracket.
What’s the Role of an Investment Banker?
The role of an investment banker is to do thorough market research, understand the risks involved, and consider factors before putting in a firm’s money. An investment banker is also a financial advisor to private or government organizations. This individual is responsible for raising money for the client by issuing stock, floating bonds, and providing the right suggestions for acquisitions.
To do it, an investment banker may assist firms in announcing their IPOs (Initial Public Offerings), through which they sell the company’s shares in the market on the company’s behalf. The profit that they earn through these transactions is considered as their earnings.
Eligibility Criteria for Investment Banking Course
Once you have understood the basics of investment banking – and decided to pursue a career- it is the right time to know how to be an investment banker and the basic eligibility to start the course. Like any other course, you will be required to follow a certain group of criteria. The eligibility is entirely reliant on which institute you choose to study in. Different colleges or universities have different eligibility criteria. However, the common eligibility to start a course in investment banking is defined below:
- The applicant should have completed basic education – 10+2
- Having a bachelor’s degree either from B.Com, BBA, or any field specific to commerce
- The main important criteria is that the candidate should have a basic knowledge of finance and its other domain
Once, these criteria match the respective college or university, then you can begin your journey of being an investment banker.
India is a rapidly developing country and is becoming home to various upcoming businesses and industries. With great potential for further investments, the country’s metro cities will explode with immense opportunities in the investment banking sector.
Also Read: Investment Banking Skills
5 Ways to Get Investment Banking Fresher Jobs in India
Finding investment banking fresher jobs is daunting, given the nation has a growing economy. However, it is relatively easy to get investment banking fresher jobs. Post-completion of the investment banking course, a lot of candidates feel stuck in the process of getting a job as a fresher.
Therefore, it is important to pursue this course with the institutes or colleges that provide placement or recruitment facilities after the completion. By having a placement backup, it becomes easy for candidates to grab a job and give a start to their career.
Nevertheless, here are five ways to get investment banking job as a fresher:
- Networking – Networking plays a very important role in today’s life. A candidate applying through someone’s reference in comparison to the one applying online gets more privileges. Therefore, it is crucial to expand your network horizon and stay updated on the recent job vacancies.
- Understanding the interview process- The right way to crack the job code is to understand the interview process of the company that you are targeting. Stay in touch with current employees through social media platforms and research online whether the interview is more about theory or practical.
- Know how to answer questions- Once you have got the questions and interview criteria, you have to start practicing the ways to answer the questions. The majority of the answers lie in the textual books and the remaining come from the practical outlook.
- Improve technical skills- Sitting idle is never a good idea, therefore, keep on improving your skills by picking up small projects or starting with your own project. This will help you show your talent and skills to the recruiter which will help you gain confidence. Keep on working on your skills, take up online tests, and implement them in your personal project.
- Check the career websites- One of the easy ways of finding an investment banking job as a fresher is to keep track of the career websites of leading investment banks. They often have dedicated sections for entry-level positions.
How to Apply for Investment Baking Fresher Jobs?
Whenever you are applying for investment banking fresher jobs, the first and foremost thing you need to understand is that your resume or job portfolio will play a major role in front of employers. Therefore, you have to pay attention to your resume and make sure that everything is mentioned in crisp and layman’s language.
Research well on resumes uploaded online to copy the latest keywords that are relevant to your field. A good cover letter and job application always attract a recruiter’s attention.
Reputed Companies to Target to Get Investment Banking Fresher Jobs
Popular investment banks to get investment baking fresher jobs in India are:
- JP Morgan Chase
- Goldman Sachs
- Morgan Stanley
- Barclays
- Axis Bank
- Edelweiss Group
- ICICI Securities
- Bank of America
- Spark Capital
- Centrum Capital
Interview Process for Investment Banking Jobs
The first and foremost step towards getting investment banking jobs is always to research the questions asked during interviews online. Explore some frequently asked questions and ways to answer them. Further, considering investment banking as a field, you would also be required to answer technical questions.
Therefore, check the ongoing technical questions on topics such as financial modeling and valuation. You can also connect with the employee of the company, which you are targeting, through LinkedIn to understand the basic criteria of the interview and what all questions can be asked. This will help you prepare best and stand out among the other candidates.
What Are the Challenges and Opportunities in Investment Baking Fresher Jobs?
Every field has its pros and cons, therefore investment banking is no different. Below are some of the challenges and opportunities pointed out by employees who work in the same domain:
Challenges:
Extended working hours: Investment baking fresher jobs demand more working hours and effort. It’s very common for investment bankers to work post shifts, and even, during weekends to meet the deadlines and client demands.
Work-Life Balance: Due to demanding working hours, investment bankers often find it difficult to maintain their work-life balance. Due to this, personal life and free time often get affected.
Highly dynamic competition: Getting investment banking jobs is not the end of the competition, the real competition starts when you are in the business. From providing highly efficient strategies to compete with the competitor to getting HNI clients, a certain amount of competition is always there in this job.
Compliance: An important aspect of getting investment banking jobs is to adhere to financial regulations. It is crucial for an employee to stay compliant with the policies, any non-compliance can lead to legal troubles.
Opportunities:
Good compensation: Investment banking jobs usually provide pretty decent compensation to the eligible candidates. It is one of the highest-earning potential jobs in the industry. Therefore, bonuses and salary packages can be extremely good.
Career growth: Starting your career in investment banking as a fresher is a good step as it provides various opportunities to grow further. For example, an employee starting his career as an analyst can broaden his horizon up to more senior positions. Therefore, the career path for investment banking jobs is way too good.
Networking: Investment banking needs frequent client visits. Therefore, it offers a good chance to expand your network and meet wealthy and influential people, which eventually will open more opportunities.
Opportunities: Since investment baking is a global industry, there are good chances for you to work with clients not only in your country but across the globe. Furthermore, meeting with different clients of different cultures provides exposure.
Gaining knowledge: Investment banking leaves a great impact on an employee’s mind and personality as you will end up having a lot of information and knowledge about the finance industry. By having vast financial knowledge, it becomes easy for you to ascertain your personal finances and investments.
Check here the best investment banking courses:
How to Prepare Your Resume for Investment Banking Fresher Jobs?
Slating down a strong and impressive resume for investment banking jobs is a crucial task before applying for a job. So, here are a few tips that a fresher should take advantage of in the resume to get an investment banking job as a fresher.
- Formatting: Try to keep your resume well-presented and organized. Refrain from using any slang or language that is not professional. At times, using such language gives a very bad impression to the employer. Additionally, a consistent Font size is highly recommended.
- Personal details: Always include your personal details in the resume, such as full name, phone number, email address, and LinkedIn profile at the top of your resume, along with references to your previous projects or personal projects that you took up.
- Objective: An ideal resume consists of a brief objective or summary that describes your competencies and skills that are relevant to the job that you are applying for.
- Academics: Chalk down your educational qualifications in reverse chronological order. Also, include your college’s name, degree, extra certifications (if any), school name, and any other degree, diploma course, or skill-related course that you pursued.
- Past Projects: Highlighting any project related to finance or any workshop or course that helps represent your key expertise is an ideal way to leave your impression on an employer. Any finance-related projects or coursework – financial modeling, valuation, or investment analysis – would help gain the confidence of the employer. One of the greatest ways to gather attention is to always use bullet points to highlight or mention your projects.
- Internships and Work Experience: Write in your previous internships, part-time jobs, or volunteer experiences you’ve worked on, in case if they were related to the finance field, then you must mention it.
- Linguistic abilities: If you are proficient in languages other than English, especially when it is relevant to the firm’s client requirement, then mentioning it can get you some brownie points.
- Quantify Achievements: Whenever possible, use quantifiable to demonstrate your talent and achievements in the past. For example, “A skilled investment banker increases over 10% profit margin by using hidden tactics.
- References: In case you have a reference in the company where you are applying, it is ideal to always take the reference and mention it on the cover letter. It builds credibility among the employers.
- Short resumes are good to read: Always keep your resume up to one page as no one has much time to spend on a resume. The crisper it is, the more desirable it looks. Be concise and selective in your content.
Your resume is your strength, so never take it for granted, and always try to make it more concise and quirky. The world of finance is growing, and you should not leave a single mark to make your presence. As a fresher, you may only have a part-time experience to write in your resume; therefore, adding every project you took up in the past is essential.
Also, any internship or added competencies are highly recommended to be added to your resume. Apart from these, if you have taken up any course related to any other field or in finance, don’t forget to add the same to your resume. By adding these, it can help you kick-start your career in investment banking.
FAQs
Q1. What are the 4 key areas in investment banking?
There are four domains in investment banking – capital markets, advisory, trading brokerage, and asset management. The candidates will have to ascertain their niche before deciding which area to start their career.
Q2. How much salary can you expect in investment banking?
The annual package or salary as an investment banker varies. A lot of factors come into consideration, such as experience, degree, and current city location of a company, among others. For example, the average annual salary in an investment banking firm based in Bangalore hovers at around Rs.15,00,000 PA. However, this can be different for companies based in Delhi NCR or any other city. The cost of living in a stipulated city also plays an important role in deciding the salary.
Q3. How can you become an investment banker?
To get a job in investment banking as a fresher, it is ideal to have a regular bachelor’s degree in any stream related to commerce or finance, such as B. Com, BBA, and B.A in Economics or finance.
Conclusion
Investment banking has emerged as a highly sought-after career option in the finance industry, attracting passionate individuals to explore the complex world of investment. This article has all about investment banking, its type, and how the entire industry works. Further, freshers should check their eligibility before applying for investment banking jobs. The article has been slated to provide a direction to those looking to pursue their career in investment banking.
With detailed and extensively covered topics related to investment banking, this article will certainly ensure that you take the right path to your career journey. Nevertheless, essential educational qualification is mandatory, and a candidate must present for an interview round to get investment banking fresher jobs.