Investment Banking is the most lucrative
career options and the best industry to work in India. There is an increasing
craze among people to join this industry. No doubt there is job stability
besides high salary packages that investment bankers earn. The glamour and
lavishness the industry offers is another major reason for driving people from
diverse backgrounds to investment banking.
What
is the role of investment banks?
Investment banks help public and private
businesses to meet the capital needs by collecting fund in both debt and equity
capital markets. These banks assist companies across domains to increase profit
and revenue by suggesting corporate financial strategies such as merging with
competitors or smaller firms.
Investment bankers also specialize in
investing in new companies or startups that have high prospects. They are
highly skilled in determining the market situation and liaising with the
clients to figure out the capital needs or work on a deal. Investment bankers
provide public investors with brokerage services.
Two types of investment banking companies
that you should know -
Basic
invest bank
Basic investment banks allow clients to buy
bonds and stocks for a certain amount of money and then uses that sum of money
for further investment (by collaborating with diverse financial organizations
for lending money or property development) and profit-making. The customers too
make a profit out of purchased stocks and bonds.
So the sum initially invested by the
clients help both the parties to gain profit and amplify the amount. This kind
of banks also guide companies on mergers and acquisitions as they are familiar
with various trade methods.
In short, investment banking is an
intermediary between the client (issuer of securities) and the investing
public, by helping them in raising funds. These investment banks deal with
large companies.
Merchant
Investment banks
Banks dealing in commercial loans,
investment and trade financing are known as merchant investment banks, which
also participate in international activities. These banks are concerned with the
issuance of securities. They provide services like fundraising, brokerages and
financial advice to the business (mostly small companies).
Unlike investment banks, the merchant banks
do not grant loans. They only strive to meet the capital requirements of the
companies in the form of share ownership. In case you want trade financing, you
will like to get in touch with a merchant bank rather than an investment bank.
Merchant banks offer better monetary
solutions and options to the customers and can assist them to gather money via
low-cost resources. These banks are able to revive the economic health of sick
firms.
What
are the different types of investment banking jobs in India?
Merger
and acquisition
You can be a banker specialized in mergers
and acquisitions, where your role will be to offer strategic advice to
companies based on financial modeling. As you tend to work on deals you will
get higher salary with experience.
Privacy
equity
Private equity jobs are another hot demand
in the investment banking industry. Senior professionals in these jobs draw
high salary packages besides other financial rewards. Professionals who enter
these fields are mainly from top tier universities with an excellent academic
record.
Underwriting
Bankers in this
department specialize either in debt or equity and assist corporations and
governments to raise capitals. They also work closely with traders and security
sales personnel. People in this job role must be highly skilled in determining the market situation and the price that any security may
command in the market.
Venture capital
Venture capitalists play a vital role in
finding firms with huge growth opportunities for investments. Although there
are long work hours in this type of jobs the compensation is fierce. Ability to
make the right decision at the right time for investments in new or startup
companies is crucial.
All of these jobs are prestigious positions and are considered as the hottest jobs in the finance industry. If you master the investment banking skills, you can easily excel in the investment banking sector.
If you are genuinely ambitious and
passionate to be an investment banking professional, then start learning investment banking courses. These
courses will help you learn in-demand skills like financial modeling, company
valuation, rigorous financial analysis, Excel and so on.
There are many popular training institutes
like White Knight Ventures (WKV) EDU in India offering classroom and online
investment-banking courses with certification and placement assistance. WKV EDU
also offers corporate training to a range of companies and is one of the
leading institutions offering impeccable finance courses.
