How to become an Investment Banker

Overview, Courses, Exam, Colleges, Pathways, Salary

Finance and Accounts


Who is Investment Banker ?

Investment banking is a subset of financial services provided by financial institutions and banks that assist state and federal governments, companies, and commercial and non-commercial banks with various transactions. It is primarily a financial advising sector that advises clients on different investments. Additionally, it focuses on managing and growing customers' financial assets. Investment bankers advise their customers on investment strategies and assist in executing such strategies.

This implies that investment bankers effectively operate as counsellors and brokers, analysing their customers' requirements and then recommending the appropriate solutions. Once the customer has chosen a course of action, it is up to the bankers to negotiate acquisitions and mergers, always keeping the client's best interests in mind.

Here are some steps to becoming an Investment Banker

  1. Educational Foundation: Obtain a bachelor's degree in a relevant field such as Finance, Economics, Business Administration, or Accounting. A strong academic background is crucial for entry into the competitive world of investment banking.
  2. Gain Internship Experience: Seek internships or entry-level positions at investment banks, financial institutions, or related firms during your undergraduate studies. Internships provide valuable hands-on experience and networking opportunities.
  3. Pursue Advanced Education (Optional): Consider pursuing a master's degree in Finance, Business Administration (MBA), or a related field to enhance your credentials and specialization in investment banking. While not mandatory, advanced degrees can boost your career prospects.
  4. Develop Technical Skills: Acquire proficiency in financial modeling, valuation, and data analysis using tools like Excel and financial software. These skills are essential for analyzing and structuring complex financial transactions.
  5. Networking and Building Relationships: Attend industry events, join finance-related clubs or organizations, and network with professionals in the field. Building a strong professional network can open doors to potential job opportunities.
  6. Obtain Certifications (Optional): Consider pursuing certifications such as Chartered Financial Analyst (CFA) or Financial Modeling certifications to demonstrate expertise and commitment to the field.
  7. Apply for Investment Banking Analyst Positions: Upon completing your education or relevant work experience, apply for entry-level Investment Banking Analyst positions at reputable banks or financial firms. These roles are often the starting point for a career in investment banking.
  8. Work Diligently and Learn: As an Investment Banking Analyst, be prepared to work long hours and handle challenging tasks. Focus on learning from senior colleagues, understanding deal structures, and gaining exposure to different industry sectors.
  9. Advance to Associate Level: After a few years as an Analyst, aim to become an Associate. At this level, you'll take on more responsibilities in deal execution and client interactions.
  10. Continuous Learning and Progression: To advance further, consistently seek opportunities to grow and demonstrate leadership qualities. Promotion to higher roles, such as Vice President or Managing Director, often comes with demonstrated success and industry expertise.
  11. Consider Specialization: As you gain experience, consider specializing in a specific industry or transaction type, such as Mergers and Acquisitions (M&A), Capital Markets, or Corporate Finance.

Typical day at work

What does Investment Banker do?

Investment bankers essentially serve as counsellors and brokers, assessing their customers' requirements and then assisting them in identifying and capitalising on excellent possibilities to satisfy those needs. Once the customer has determined their preferred course of action, it is up to the bankers to negotiate acquisitions and mergers while keeping the client's best interests in mind. In addition, investment bankers assist businesses in investing their assets to raise the portfolio value of their holdings.

  • Collaborate and communicate with client firms, product groupings, and industry associations.
  • Assist clients in managing their transactions and assist with capital structure, valuation, and risk management.
  • Construct transactions and negotiate favourable conditions
  • Assemble loans
  • Interaction with corporate finance departments and capital markets specialists, among others.
  • Maintain an eye on market circumstances (debt or equity capital markets)
  • Connect with other financial strategy, derivatives, currency trading, convertibles, and equity derivatives experts.
  • Work in mergers, acquisitions to set up deals, equity and fixed income research
  • Take on equities, bonds, currencies, options or futures transactions for large institutional investors
  • Facilitating the development of vehicle financing to channel cash flows to investors
  • Deliver information about particular securities to institutional investors
  • Maintain interface with portfolio managers, firm’s analysts, and traders
  • Develop financial models to value debt and equity for mergers, acquisitions, and capital raising transactions
  • Conduct various valuation methods: comparable companies, precedents, and DCF
  • Provide recommendations for product offerings, private equity transactions, mergers and acquisitions, and valuations.
  • Prepare and review financing materials such as investment memoranda, management presentations and pitchbooks, for clients
  • Grow relationships with new and existing clients
  • Execute due diligence, research, analysis, and documentation of live transactions
  • Create presentations for client portfolios
  • Raise capital through issuing debt or equity securities
  • Valuation of transactions and financial activities, such as the performance of bonds and stocks
  • Guide organizations in raising public or private funds over equity or debt offerings
  • Perform business valuation analyses by using transaction comps, discounted cash flow, and leveraged buyout methods
  • Research on company and industry for prospective clients and new business
  • Participate in and manage all stages of a transaction, from the opening pitch to the closing investment contract.

Abilities and Aptitude needed

What are the skills, abilities & aptitude needed to become Investment Banker?

  • Financial literacy, comfort with numbers, immaculate research, mathematical and analytical abilities are necessary for success in this job. Additionally, one should be proficient in Microsoft Office, particularly Microsoft Excel and VBA. As a result, those with excellent professional communication and presentation abilities will also profit.
  • A person considering a career in this profession must possess a high level of resilience and the capacity to deal with the repercussions when times get tough. The job is ideal for self-assured people with boundless passion, high achievers who are ambitious and competitive, with an exceptional work ethic and the capacity to operate under extreme pressure. Investment bankers must manage their time and tasks well, which involves focus, commitment, and a high level of energy.
  • Along with strong leadership and teamwork abilities, one must be able to operate in a fast-paced setting with long work hours and little supervision. In addition, individuals must have an eye for detail and the ability to plan and monitor overlapping work to excel in this field.
  • The excellent interpersonal, negotiating, and persuading abilities will benefit the investment banker's career. In addition, knowledge of transaction structure and closing principles will be advantageous. Investment bankers will also need sound judgement and decision-making abilities to make sound judgments.


Salary for Investment Banker?

The average salary of an Investment Banker in India can vary significantly depending on factors such as experience, qualifications, the size of the firm, and the specific role within the investment banking field. Generally, entry-level Investment Bankers with limited experience might earn around INR 6 to 10 lakhs per annum. However, experienced Investment Bankers, especially those in senior positions, can earn substantially higher salaries, ranging from INR 15 to 30 lakhs per annum or even more.

Ready to become an Investment Banker ?

Take the world’s best assessment test !

Take a Test


How to become an Investment Banker?

Entrance Exam

Entrance Exam for Investment Banker ?


Which course I can pursue?


Which Industries are open for Investment Banker?

  1. Financial Services: Investment banks and other financial institutions hire Investment Bankers to manage mergers, acquisitions, and capital-raising activities.
  2. Technology: Investment Bankers work with technology companies for IPOs, mergers, and financing transactions in the rapidly evolving tech sector.
  3. Healthcare: Investment Bankers play a role in healthcare mergers and acquisitions and in raising funds for pharmaceutical companies and healthcare facilities.
  4. Energy and Utilities: Investment Bankers work with energy companies to finance projects, mergers, and acquisitions within the energy sector.
  5. Consumer and Retail: Investment Bankers assist companies with mergers, acquisitions, and raising capital to support business growth.
  6. Real Estate: Investment Bankers are involved in real estate financing, property acquisitions, and real estate investment trusts (REITs).
  7. Media and Entertainment: Investment Bankers work with media companies for acquisitions, financing, and strategic partnerships.
  8. Telecommunications: Investment Bankers assist telecom companies with mergers, acquisitions, and capital raising for infrastructure expansion.
  9. Automotive: Investment Bankers work with automotive companies for mergers, acquisitions, and financing for research and development.
  10. Infrastructure: Investment Bankers are involved in infrastructure projects financings, such as public-private partnerships and large-scale developments.
  11. Aerospace and Defense: Investment Bankers work with companies in the aerospace and defense sector for financing and acquisitions.
  12. Manufacturing and Industrials: Investment Bankers assist manufacturing companies with mergers, acquisitions, and capital raising for business expansion.
  13. Pharmaceuticals: Investment Bankers work with pharmaceutical companies for mergers, acquisitions, and capital raising for research and development.
  14. Banking and Financial Institutions: Investment Bankers work within the banking industry, advising on mergers, acquisitions, and capital raising.
  15. Hospitality and Tourism: Investment Bankers assist companies in the hospitality and tourism sector with financing and strategic partnerships.
  16. Education: Investment Bankers work with education institutions for financing and strategic transactions.


Are there internships available for Investment Banker?

  1. Investment Banking Summer Analyst Internship: This internship offers exposure to various financial transactions, including mergers and acquisitions, IPOs, and capital-raising activities. Interns assist with financial modeling, research, and client presentations, gaining valuable insights into investment banking operations.
  2. Equity Research Internship: In this internship, students work with equity research teams to analyze stocks, sectors, and industries. They assist in preparing research reports and investment recommendations for clients, honing their analytical and valuation skills.
  3. Corporate Finance Internship: This internship involves supporting corporate finance teams in financial analysis, budgeting, and optimization of capital structure. Interns gain hands-on experience in corporate financial decision-making and strategy.
  4. Debt Capital Markets Internship: Interns in debt capital markets work on bond issuances and other debt-related transactions. They assist in analyzing credit risk, preparing offering documents, and collaborating with clients and credit rating agencies.
  5. Mergers and Acquisitions (M&A) Internship: This internship supports M&A deals by conducting industry research, financial modeling, and due diligence. Interns get exposure to the entire deal process, from target identification to deal closure.
  6. Asset Management Internship: In asset management internships, students work with portfolio managers and analysts to research investment opportunities, monitor portfolios, and develop investment strategies.
  7. Private Equity Internship: Private equity internships involve assisting investment professionals in evaluating potential investments, conducting due diligence, and supporting portfolio companies' growth strategies.
  8. Venture Capital Internship: Interns in venture capital firms participate in startup evaluations, market research, and investment decision-making. They learn about early-stage investing and the dynamics of the startup ecosystem.
  9. Risk Management Internship: In this internship, students work on risk assessment, stress testing, and financial modeling to assist risk management teams in identifying and mitigating financial risks.
  10. Compliance and Regulatory Internship: Interns in compliance and regulatory roles support ensuring financial regulation and policy adherence. They assist with compliance audits and monitoring processes.
  11. Quantitative Research Internship: Quantitative research internships involve data analysis, developing quantitative models, and researching to support trading and investment strategies.
  12. Wealth Management Internship: Interns in wealth management assist financial advisors in client relationship management, financial planning, and investment portfolio analysis.

Career outlook

What does the future look like for Investment Banker?

The future growth prospects for investment banking professionals are excellent. Corporate finance, mergers and acquisitions, capital markets, and sales and trading are common employment domains. It often starts as an Analyst, a desk profession that entails researching the firm for which money is being sought, developing earning models, calculating returns ratios and comparing them to industry rivals.

With experience, the function transitions to Senior Analysts/Associates and Portfolio Managers, who pitch to customers and investors via presentations and conversations. Mergers and acquisitions, private equity, and debt syndication, among others, are specialities in which one might develop knowledge and abilities and advance to senior leadership positions. However, the work is very demanding and requires long hours.

Frequently Asked Questions:

1. How can I get into investment banking?

Answer: To enter investment banking, consider the following steps: a. Obtain a relevant bachelor's degree in Finance, Economics, Business, or a related field. b. Gain relevant experience through internships or entry-level positions in finance or related areas. c. Build a strong network within the finance industry and attend networking events. d. Consider pursuing a master's degree or certification in finance or investment-related disciplines. e. Prepare a well-crafted resume and cover letter for investment banking job applications. f. Ace interviews and demonstrate your passion for finance and commitment to the field.

2. Is an MBA necessary for investment banking?

Answer: While an MBA is not strictly necessary for entry into investment banking, it can be advantageous for career progression and higher-level positions. Many investment bankers pursue MBAs to gain advanced business knowledge, develop leadership skills, and expand their professional network.

3. Which exam is for an investment banker?

Answer: There is no specific exam exclusively for becoming an investment banker. However, investment banking roles often require candidates to have a strong understanding of finance and relevant skills. Some professionals pursue certifications like Chartered Financial Analyst (CFA) or Financial Risk Manager (FRM) to enhance their qualifications in the finance industry.

4. How can I study investment banking after 12th?

Answer: To study investment banking after the 12th, consider the following steps: a. Enroll in a bachelor's degree program in Finance, Economics, Business, or a related field. b. Participate in extracurricular activities and finance-related clubs to build practical knowledge. c. Seek internships in finance or banking during your undergraduate studies to gain industry experience. d. Consider pursuing a master's degree or certifications in finance or investment-related disciplines after completing your bachelor's degree.

5. Is it hard to get into investment banking?

Answer: Getting into investment banking can be challenging due to its competitive nature and high demand. Investment banks often seek candidates with strong academic backgrounds, relevant experience, and exceptional analytical and communication skills. Building a strong network, gaining relevant experience, and demonstrating a genuine passion for finance can increase your chances of success in this competitive industry. Persistence and dedication are key to breaking into investment banking.