Career Path In Investment Banking

Investment Banking in India, is were popularly known as the golden collar work field. By golden collar, it means that the professionals working in this field are usually recipients of larger salaries and lead a high end, refined lifestyle. They are usually seen as those confident suit clad individuals who close multi-billion dollar deals, are regulars at five star hotels, travel to foreign countries at least twice a month or are usually known to own at least a yacht or two. This is why many finance aspirants usually tend to be attracted to this field of glorious opportunities.

While many finance aspirants feel that this field is absolutely the place to be, quite a few of these inquisitive souls actually tend to do an in-depth analysis of this career. So for all those curious about the career path that is required to be taken by a candidate in this field, read on. Essentially the career path of an investment banker supposedly progresses through a standardised path. This professional starts of on the rungs of a corporation through going through the various positions like Analyst, Associate, VP, Director, and Managing Director all on the basis of promotions.

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The Investment Banking Analyst is a professional who is basically a freshly graduated individual who usually is hired by the bank for a two-year program. This is treated almost like an internship throughout which the analyst is taught everything there is to learn about the actual functioning of the Investment Banks. At the end of two years, excellent performance is rewarded by the candidates being offered a chance to stay for the third year as well. Many Analysts are usually supposed to deal with PowerPoint Presentations which are popularly known as pitch books.

The Investment Banking Associate is a professional who is hired once they have completed their MBA programs or they are those analysts who have received the promotion at the end of their two-year period. The position of an associate level professional is supposed to be for the duration of about three years. They function as liaisons between the junior level and senior level bankers and they even get to work directly with clients. The senior bankers are usually supposed to source all the deals which maintain client and bank relationships. These professionals can come from a number of backgrounds which could range from the field of investment banking to management of the corporate executives.

These professionals are usually supposed to scan the entire landscape of the industry and then they can be able to anticipate deals that usually take place in the business of investment banking. The various other processes that make up this field are mergers and acquisitions, portfolio management, asset management, private equity handlings and so on. As the individual begins to perform better and more efficiently he/she happens to be rewarded promotions with a corresponding speed. This is why many professionals usually take up training courses in order to get into the field of Investment Banking through institutes like Imarticus Learning.

Asset Management – Introduction

Asset Management includes the adjusting of costs, openings and dangers against the coveted execution of benefits, to accomplish the hierarchical goals. This adjusting may should be considered over different time periods.

Asset Management additionally empowers an organization to analyse the requirement for, and execution of, advantages and resource frameworks at various levels. Moreover, it empowers the use of explanatory methodologies towards dealing with an advantage over the diverse phases of its life cycle (which can begin with the origination of the requirement for the benefit, through to its transfer, and incorporates the overseeing of any potential post transfer liabilities). It is the workmanship and exploration of settling on the correct choices and upgrading the conveyance of significant worth. A typical target is to limit the entire life cost of benefits yet there might be other basic components, for example, hazard or business congruity to be considered equitably in this basic leadership.

In the principal occasion, a counsellor or monetary administrations organization gives resource administration by planning and managing a customer’s money related portfolio – e.g., ventures, spending plans, records, protection and duties. In finance, asset management is the way toward guaranteeing that an organization’s unmistakable and elusive resources are kept up, represented, and put to their most noteworthy and best utilize.

Asset Managers direct research, interviews, and measurable investigations of organizations, markets, and patterns keeping in mind the end goal to figure out what speculations to make or maintain a strategic distance from in the interest of their customers. Resource supervisors don’t for the most part require “resource director” licenses, however the organizations that contract these chiefs regularly require enlistment with at least one trades and additionally the National Association of Securities Dealers (NASD).

In corporate finance, asset management requires discovering approaches to boost an organization’s an incentive by overseeing settled and impalpable advantages for be more solid, proficient, or less expensive – including assessing resource financing alternatives, resource bookkeeping strategies, creations operation administration, and upkeep train.

This field is the bearing of a customer’s money and securities by a budgetary administrations organization, ordinarily a venture bank. The foundation offers venture benefits alongside an extensive variety of conventional and option item offerings that won’t not be accessible to the normal speculator. The record is held by a monetary organization and incorporates checking composing benefits, charge cards, platinum cards, edge advances, the programmed range of money adjusts into a currency showcase reserve and financier administrations

The Importance of Investment Banking

Investment banks and commercial banks are the foundation of our economy. Business would grind to a halt without the administrations being given by these establishments. Everything from working capital credits to fund stock to a great deal more mind boggling financing of acquisitions that streamline enterprises and take out waste are given by banks.

Venture managing an account is a specific saving money framework that enables clients to contribute their cash specifically or in a roundabout way and furthermore helps organizations, government and individual raise subsidize by methods for security offering, security deals, mergers and acquisitions and issuing of IPO. Venture managing an account gives both the educated and the learner in the speculation business the chance to augment better profit of their business or property by method for mergers and acquisitions.

Lately numerous venture banks have started searching for software engineering or building majors who have involvement with coding. Yet, don’t give that a chance to demoralize you, certain venture banks like Goldman Sachs welcome candidates of all majors, regardless of whether they’re examining financial aspects or verse, however these open doors are rarer.

Everybody knows to expect long, difficult work weeks regardless of what fund zone they work in, however is an occupation in speculation managing an account truly that much more regrettable? Yes. As indicated by information announced by Transparent Career clients, the normal weeks’ worth of work for Investment Banking is around 77 hours, which levels out to around 11 hours every day.

Odds are you’ve heard that counselling employments require an extra, specific sort of meeting. Regularly so do venture managing an account firms. The quant talk with, short for quantitative, tests your insight into specialized themes, for example, bookkeeping or valuation. You might be made a request to take a gander at and examine a money related proclamation or made a request to characterize certain terms like “working capital” or “goodwill.” Some questioners may even toss in a couple of hard mind secrets to perceive how you handle taking care of issues under anxiety.

This is why lately, many HR managers hiring for top notch Investment Banks are looking out for candidates, who not only know all the basic concepts of this field, but also know how to properly present it out in front of the public and clients. Apart from this, those candidates who have a set of non-verbal, industry endorsed skills are highly preferred. The reason for this being that Investment Banking is not just a field that deals with multimillion dollar deals, it is also about how awe-inspiring and smart a professional is and he looks in order to get the proper kind of work happening. Investment Banking professionals or better known as Investment Bankers play as important a role as the banks themselves do in the economy. Thus if they are unable to bring their A-game, it reflects badly even on the Investment Banks.

This is why many institutes like Imarticus Learning happen to contribute in this field by offering a number of professional training courses for Investment Bankers.

Why Do Professionals Prefer Trading Over Investment?

Stock trading is the consistent offering and purchasing of stock, cash and wares with the point of bringing forth benefits. While a stock trader might be fulfilled by yearly returns in the scope of 10-15% a stock broker is sharp winning a specific rate on a month to month premise. A trader purchases stock when the costs go down and offers them instantly the costs go up, ordinarily inside brief time frames. In falling markets, dealers offer at higher costs and to cover they purchase at low costs.

Traders make their misfortunes or benefits in brief lengths when contrasted with financial specialists who take a long stretch before they offload their stock. Traders may now and again deal their stock at foreordained costs keeping in mind the end goal to abstain from making further misfortunes; this is done as a preventive instrument. Stock merchants make high likelihood exchanging strides that are come to through stochastic oscillators and moving midpoints. As trading and investment banking happen to be branch out under the field of corporate finance, many professionals here have investment banking certifications as a part of their resume.

Stock brokers are different professionals in light of the length between when they buy and deal their exchanging instruments. The following are classes of stock merchants:

  • Position traders who are supposed to hold exchanging instruments from a couple of months to quite a long while.
  • Swing traders who are supposed hold their instruments in time periods that range between a day and half a month.
  • Day traders are supposed to hold instruments similarly as the name recommends amid the day and will auction before the night.
  • Scalp traders don’t hold overnight positions and just have stock for a few moments or minutes and arrange them off.

Financial specialists or Investment Bankers despite what might be expected reliable gather benefits over drawn out stretches of time by obtaining the securities, shared assets, stock portfolios, stock crate or a few different instruments. Stock financial specialists pick up benefits through reinvesting beforehand earned profits and benefits by adding more stock to their stock share or exacerbating.

A stock Investment Banker may hold a stock for quite a long while with some notwithstanding for 10 years or all the more; amid this time the speculator keeps an eye out for rewards, for example, stock parts, profits and interests. Stock speculators are propelled by the way that regardless of the market variances they will have the capacity to recuperate from their misfortunes when the costs bounce back and they are constantly on edge advertise basics particularly cost.

Toward the day’s end the trader and Investment Bankers,  both win benefits; brokers exploit the fluctuating stock costs to purchase and offer along these lines procuring little however normal benefits, then again speculators purchase yet hold stock for longer periods with the point of making extensive overall revenues. While many professionals opt for the field of trading mainly because they feel that the pressrure there is better. As a trader, things will always be interesting and there will be consistent adrenaline rush. But, on the contrary, it is Investment Banking that you must go ahead and choose. This is because when you pursue investment banking courses, you usually get a wider scope of the field and thus more exposure as wall. Taking up more industry endorsed investment banking courses like those offered by Imarticus Learning is the best decision you would make.

Operations in Commercial Banks

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What’s the Lifestyle of an Investment Banker like?

So many movies, books, T.V shows and the entirety of pop-culture, have time and again glorified the field of Investment Banking, as the most exciting, enthralling of all, full of adrenaline rushes and exciting closures of multimillion dollar deals. Most of us are well acquainted with this field, especially all of the finance aspirants, but have we stopped and wondered, what kind of a lifestyle would an Investment Banker be leading in today’s day and age? Investment Banker is usually considered to be a highly qualified professional, who has to responsibility of taking care of all the financial tasks of all their clients and attend to their financial needs.

There are quite a number of reasons, why anyone would want to pursue Investment Banking as their career. It surely is no secret, that many Investment Bankers, the more experienced they get, the bigger deals they become a part of. This basically caters to those amazing convertible cars, straight cut suits, smart watches and the latest technological gadgets, for these professionals. This upscale, polished lifestyle, tends to an undeniable psychological attraction, for all those finance aspirants, who would want to one day close a multimillion-dollar investment deal, for one of the big gun companies in the finance industry. Very rarely do we tend to see beyond the glittering surface, where these very Investment Bankers, sweat it out on their professional turd by putting in long hours and working almost round the clock, in order to accomplish such great deals.

An ideal day of any Investment Banker would begin with a detailed discussion about the upcoming IPOs, or Initial Public Offerings, meeting up with the Director of the company, going on to review the Mergers and Acquisitions Pitch, revising all valuation materials, while collaborating on it with the clients, dealing with the reviewing of the M&A valuation material and finally completing a draft on the same. This process takes up close to or more than 12 hours daily, which is why that amazing upscale lifestyle, is almost like a compensation for this hard work.

For many aspirants, the biggest motivating factor here is the kind of money, you earn as an Investment Banker, as well as the lifestyle you get to experience and live as a result of that. But just being motivated by the addons and the benefits of this career, would not help you get there. It is only those professionals, who have had a passion for finance since forever and who can keep up with the ever changing financial trends, are able to make it big in this rewarding field. The popular opinion here is that you just need to have a graduation degree, in any field related to finance to be an Investment Banker, but it is not enough. Recently with a number of employers looking for candidates, with industry relevant skills, have resulted into the popularity of professional training courses. These courses are comprehensive training programs in various branches of the field of Finance, like for instance Imarticus Learning, which offers numerous industry endorsed courses in the field of Investment Banking, Portfolio Management, Asset Management and so on. These courses, give the candidates an edge over their contemporaries, when it comes to working for top investment banks.

The Difference between Investment Banking and Equity Research

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The field of Finance has always been considered as a very attractive career option, because of the adrenaline rush that one gets, due to working for high profile companies, the exciting hours of the stock exchange and being able to close, deals worth multi-million dollars. Investment Banking and Equity Research are two of the most famous professions in the field of Finance. Although both the professions enjoy a lot of demand from aspirants, but only one of these offers limelight and importance, while the other enjoys being the game changer, behind the curtains. If you are a finance aspirant, looking to make it big and get entry among the big leagues, then either one of these careers can be your sure shot chance. If you are someone, who is very goal oriented and does not need any acknowledgment, equity research would be the best option for you. While on the other hand, if you happen to be someone, who thinks of acknowledgment and appreciation as the biggest motivators, then investment banking is the way to go.

While these differences don’t make much of a difference for someone, who is absolutely fascinated by numbers and logic, there are quite a few nuances in both of these fields, which make them very different from each other. In the earlier days, there were quite a lot of assumptions and reservations regarding both the fields. Equity Research for instance, was thought as the dark horse of the lot and was considered as a dull, unglamorous field to work in. The recent times have brought about a lot of changes, including the much deserved recognition that the field of equity research requires. On the other hand, the field of Investment Banking was always looked up to as an amazing, awe-inspiring career option.

Roles Of An Investment Banker

 The professionals in this field, are said to be the major decision makers of the industry. Their job is basically to conduct an extensive research on various financial deals, go ahead and be an intermediary between the deal makers and close the deals. They are said to add tremendous value to their firm, probably which is why they earn handsomely.

Roles Of An Equity Researcher

Equity Research Analysts, are hailed as the real financial heroes, because it is these people, who create valuation models, research reports, which later on assume the status of major decision makers. These professionals are experts in financial modeling, financial statement analysis, valuation of companies and have a clear idea about, how the economy as well as the currency works.

While both the roles are diverse, they are equally important for any financial corporation, in the market. A huge number of aspirants vie to be working in either of these fields. It is well known that, having just a mere graduation degree, will not really get you there. Which is why a lot of candidates opt for, specialization training programs in both investment banking, equity research as well as, financial modeling, corporate finance and so on. There are a number of esteemed institutes like Imarticus Learning that offer  excellent, industry endorsed courses for the same.