Last updated on September 23rd, 2024 at 10:08 am
A Chartered Accountant (CA) is responsible for auditing accounts, giving advice, financial reporting, taxation, etc., whereas an Investment Banker is responsible for raising capital for their clients.
An Investment banker assists their clients in debts, equity selling, Mergers & Acquisitions (M&As). They both are professions in the finance field but differ a lot. This article lets us see who earns more and which job type (CA vs Investment banker) has a good working environment.
CA vs Investment Banker Salary Comparisons
The average salary of a CA in the United States is 90,400 USD per year. The salaries range from 48,800 USD to 136,000 USD. The average salary of an Investment banker in the US is 96,000 USD per year, with the highest salary going up to 140,000 USD per year.
According to LinkedIn, the average base salary of a CA in India is 6 lakhs per annum, with the total average compensation going up to 6.25 lakhs per annum, whereas the average salary of an Investment banker in India has an average base salary of 11.9 lakhs per annum. The total average compensation of an Investment banker in India can go up to 12.2 lakhs per year.
As one can see from the aforementioned stats on CA vs investment banker salary, an investment banker earns a little more when compared to CA’s. However, personal performances also matter, and it is likely that you may encounter a hard-working CA earning a lot. There is a lot to earn in life besides money, like having a social life. Let us compare the working cultures of both these professionals.
Work Environment of CA vs Investment Banker
We have to compare the equivalent job types in both fields, like analyst vs accountant, Multinational Corporation (MNC) vs domestic, etc. A CA has to study a lot and has to pass exams before stepping into the field. He is later paid well if he qualifies for the recruiting parameters.
An Investment banker could be anybody, an individual with an MBA degree can be a good Investment banker. However, there are certification programs and online Investment banking courses after 12th available, which can boost the skills of an Investment banker.
A CA has to audit the bank statements, and it is a tedious job, whereas an Investment banker is concerned with raising capital and assisting their clients, and they can deal with their clients with a phone call, too. A CA can have crazy work hours, but one can wrap up the work remotely if he/she is an Investment banker.
However, success in every field depends on the personal performance of any individual. If you can adapt to changes quickly and keep gaining experience, you will grow in any field.
CA vs Investment Banker - Which field is good to choose?
Both fields have their own unique pros and cons. One should instead focus on his/her own skills and qualifications to choose between a CA vs Investment banker role. If you are good at numbers and analytics and are ready to work and study hard, you can start your CA course.
If any individiual has completed his/her bachelor’s degree, is interested in deal structuring and management, has strong networking skills, he/she can opt for an Investment banking course. One must try to find a job role according to his/her skills to grow faster in that particular field. One must also try to analyze the working culture and environment of any job before doing it.
Conclusion
In the context of earnings, there is not much of a difference between CA vs Investment banker but depending on the complexity of the job and the pay according to that, an Investment banking role may be preferred. This article was all about the comparison of a CA and an Investment banker on various parameters.
FAQ's
- What is the average salary for a CA in India?
The average salary for a CA in India varies greatly by experience, location, and type of company. However, they typically fall between INR 8 and 13 LPA (AmbitionBox).
- How much is the average salary for an investment banker in India?
Investment bankers are generally well paid as compared to CAs. Their average annual salary falls between INR 8 and 25 LPA and above (WallStreeSchoolIndia).
- What decides the salary of a CA or investment banker?
Experience, qualification, company size, industry, and location of both CAs and investment bankers decide their salary.
- Are investment bankers always paid more than CAs?
Although investment bankers earn high salaries as compared to a CA, it may not always be so. Here again, it largely depends upon individual performance, the size of the company, and the type of role of an investment banker.
- What are the chances of career development for CAs and investment bankers?
Both CA and investment banking offer scope for career advancement, though the paths might be different. While CAs can specialize in fields such as auditing, taxation, or finance, investment bankers can advance to become managing director or partner.
- Which profession has a better work-life balance?
Both careers are demanding, though investment banking appears to have longer hours than the rest, mostly during peak seasons. Balancing work and life can be more flexible for CAs, especially when compared with most non-audit roles, although tax season peak times mean a lot of overtime hours.
- Do Investment Bankers earn more over the long run?
Investment bankers do tend to earn much better in the long run because of performance-based bonuses, equity stakes, and a more humongous salary scale at senior levels such as Managing Director or Partner in investment firms.
- What are the reasons that bring in higher income for a CA?
For a CA, income can be multiplied by a few factors - specialization in some field, say taxation, auditing, or forensic accounting, experience acquired through the years, working in high-demand sectors, like consultancy or corporate finance and extra certification, like CFA or CPA.
- Can a CA transition to Investment Banking, and would it pay better?
Yes, some CAs do make this transition to Investment Banking, especially in mergers and acquisitions or corporate finance. Sometimes, it can improve your earning potential, especially after gaining relevant experience or further qualifications like an MBA or a CFA.
