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Tag: Investment Banking Courses

What Are Some Good Questions to Ask an Investment Banker

Posted on by Imarticus Learning

Investment banking is one of the most lucrative career options. People who are eager to pursue a career in this field are often very curious about the day-to-day roles and responsibilities of an investment banker. The job has been popular ever since the capital markets started flourishing; the high pay and perks attract a lot of young people who try hard to make a successful career in this domain.

Your journey gets a little easier if you have someone to lead the way. This is true in professional aspects as well. The big question that people have in mind before opting for the investment banking industry is what is the best course of action to become an investment banker & how exactly to become an investment banker. Think about the job role & figure what are the best questions to ask an investment banker.

The best advice would come from someone who is already living your dream of becoming an investment banker. The investment industry is very dynamic and is evolving with the hour. There are a lot of grey areas that are not addressed in books and courses and require a more pragmatic approach to learning about the subject.

What questions to ask an investment banker?

What questions to ask an investment banker and what will be a good question vary greatly. It depends significantly on your motive behind starting the conversation and what you are looking to gain from it. You need to set your objective straight, whether you are looking to get a job or whether you are using the connection to build your network and make a connection.

The second important factor to keep in mind before considering questions to ask an investment banker is what stage of your career you are in. Are you a college student who wants to pursue higher education and then join the industry? Are you a working professional who is looking to switch to this industry, or do you just want to upgrade your skills and land a job as an investment banker? While asking your question, you should try to be as specific as possible and tailor it according to your requirements, any information that could be found online is probably not the best one to enquire about.

Here is a list of some interesting questions to ask an investment banker:

What type of investment banker are they?

When it comes to the important questions to ask an investment banker, this is one of the most important ones. Here is the answer-

In the investment banking industry, bankers are categorized into two groups: product group and industry. Some of the mainstream product groups include Initial Public Offerings (IPOs), Mergers and Acquisitions (M&A), Corporate restructuring, etc.

How to build and maintain long-term professional relationships with clients?

Working as an investment banker requires more than just industry knowledge and financial know-how. Your soft skills are equally important as your hard skills, and having good interpersonal skills is key to surviving within this industry.

What would you do differently to reach your present level?

If you are a beginner who is looking to learn from other’s mistakes, this question will certainly help you in your endeavors. It will help you to build the perfect road map for your dream job and will also help you avoid some common mistakes made by people in this industry.

What will be the impact of Artificial Intelligence in the Investment Banking Industry? There are talks of Robot Advisors, how will this impact growth and career prospects in the field?

AI has transformed various industries and has also helped automate many repetitive tasks that earlier required the human workforce. In the digital age, everything is run on data, and AI-powered Machine Learning techniques have already adapted human intelligence in some regards. There are driverless cars being made with the help of this technology, which might have a severe impact on the investment industry as well.

Why was your motivation behind choosing a career in this field?

This question would be fruitful if you want to know the investment banker on a more personal note and you want to listen to his inspiration and his point of view on the investment banking industry. It can help you develop a fresh perspective as to why you should join this industry.

What are some key skills that you look for in a candidate at your organization?

This question will help you understand the hard and soft skills needed to have a successful career in the industry. If you are interested in joining the particular organization, it will be very informative and insightful to crack the interview.

The above are the most important questions to ask an investment banker. Make sure that you confirm all the required details with them once you get some time with them. It’ll not only enhance your own knowledge but also prepare you for your potential future in this stream. 

A dedicated investment banking course can provide a valuable advantage for those looking to break into the field of investment banking. These courses equip you with the technical skills and financial modeling expertise that investment banks look for in candidates. They can also offer networking opportunities and help you better understand the industry culture. If you’re serious about launching your investment banking career, a course can be a strategic investment in your future.

What are money markets and how to invest in them?

Posted on by Imarticus Learning

A money market is a financial market where financial instruments with high liquidity and short maturities are traded. The most common instruments traded in the money market include Treasury bills, certificates of deposit (CDs), commercial paper, and repurchase agreements (repos). The money market functions as a platform for borrowing and lending short-term funds among banks, corporations, and other entities with surplus funds and those in need. The interest rates on money market instruments are typically lower than those on longer-term securities but higher than those on savings accounts.

Who uses money markets?

Money markets are used by a variety of entities, including:

  1. Governments and central banks – to manage their short-term funding needs.
  2. Commercial banks – to manage their short-term liquidity and to meet their reserve requirements.
  3. Corporations – to finance their short-term borrowing needs, such as inventory and payroll.
  4. Investors- to park their short-term surplus funds for safekeeping and to earn a return on their investment.
  5. Financial intermediaries – to intermediate between borrowers and lenders, facilitating the lending and borrowing of short-term funds.

How do I get a better understanding of the money markets?

Here are some steps you can follow to get a better understanding of the money markets:

  1. Read introductory articles and resources – Look for educational resources such as articles, books, or online courses that provide an overview of the money markets and the different types of instruments traded.
  2. Study the key players and their roles – Learn about the different participants in the money market, such as governments, central banks, commercial banks, and corporations, and understand their role in the market.
  3. Observe market conditions and trends – Follow news and reports to keep track of market conditions, interest rate movements, and other important factors that can impact the money markets.
  4. Understand the concepts of liquidity and credit risk – These are vital factors in the money markets, and it’s essential to understand their impact on the market and the instruments traded.
  5. Consider seeking professional guidance – If you’re interested in investing in the money markets, consider seeking the advice of a financial advisor or professional to help you make informed decisions.

Money Market Instruments to Invest?

The money market comprises various financial instruments with high liquidity and short maturities. Here are some of the most common types of money market instruments:

  1. Treasury Bills (T-Bills) – T-Bills are short-term debt securities issued by the government to finance its debt. They have maturities ranging from a few days to one year and are considered one of the safest investments in the money market.
  2. Certificates of Deposit (CDs) – CDs are issued by banks and offer a fixed interest rate for a specified term, usually ranging from a few months to a few years. CDs are considered low-risk investments and insured by the FDIC up to $250,000 per depositor.
  3. Commercial Paper (CP) – CP is a short-term unsecured debt instrument issued by corporations to finance their working capital needs. The maturities of commercial paper range from 2 to 270 days, and they are generally considered low-risk investments.
  4. Repurchase Agreements (Repos) – Repos are short-term agreements where one party agrees to sell a security to another party with the agreement to repurchase it at a higher price on a specific date. Repos are a standard tool for borrowing and lending short-term funds in the money market.
  5. Federal Funds – Federal Funds are short-term loans made between banks to meet their reserve requirements. The Federal Reserve sets a target rate for the federal funds market, and banks with surplus funds lend to banks in need of funds at this rate.

It’s important to understand that money market investments come with varying degrees of risk and reward, so it’s important to carefully consider your investment goals and risk tolerance before investing in the money markets. Additionally, consider seeking the advice of a financial advisor or professional to help you make informed investment decisions.

Learn and Grow with Imarticus Learning:

Become a Certified Investment Banking Operations Professional with this industry-approved program. The program is best for learners with under three years of experience, comes with a 100% job interview guarantee and has been created by Academy – Euronext Group. It will transform you into an investment banking operations expert by teaching you the fundamentals of financial markets, trade life cycle, risk management and regulation.

Course USPs:

  • Job interview Guarantee
  • Extensive Career
  • Internationally recognised Certification
  • Job-specific Skills
  • Live training Modules
  • Experiential Learning 

10 years of Investment Banking: A historical overview

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10 years of Investment Banking: A historical overview

The history of investment banking is numerous and dates back a long time. Investment banking has a history of interaction between financiers, businesspeople, investors, ideas, and technical solutions. Through their conduct, these individuals co-constitute investment banking when carrying out securities exchanges. If you wish to build an investment banking career, it is crucial to not only learn Investment banking skills but also the history of this domain.

Indian Association of Investment Bankers

The merchant banking sector began to take off in the 1990s, according to the Association of Investment Bankers of India (AIBI), with over 1,500 merchants registered with the Securities and Exchange Board of India (SEBI). To supervise and manage the new generation of banks that emerged, the Association of Investment Bankers of India (AIBI)  had to guarantee that members complied with banking standards and that their operations were monitored.

AIBI’s mission is to guarantee that member institutions observe its legal and ethical policies, as well as to enhance the Indian investment banking sector and its members’ economic interests.

Investment Banking’s Mediaeval Origins

online learning

As a starting point for our study, we follow the tradition of most financial historians and begin with an account of mediaeval Italian trade cities. This was the first venue where international money exchanges and currency transactions occurred in banks, as well as the first place where government debt and something approximating shares were issued and sold.

The most forward-thinking Italian bankers traded in bills of exchange had correspondents in many countries, gambled on currency rates, and invested a portion of their deposits in city-state bonds (a type of treasury bond) and equities in commercial ventures and shipping businesses. These bankers wielded considerable power in the expanding international goods trade.

Expanding International Commerce and Developing Innovative Financial Solutions

As trade volumes and trading lengths increased, so did the demand for money and the hazards that investors faced. Because of the expansion of international commerce and the creation of new organisational and legal solutions, more money could be devoted to larger and riskier trade projects. Previously, corporate enterprises were formed in some form of the Roman corporate capitalist organisation society, in which investors and businesses could take unlimited risks. If the project failed, so would the investors. However, society was progressively superseded by a new type of enterprise, the company, which became the first example of joint stock finance.

Stranger Tides

While the economic crisis is already history, its ramifications may still be taught today. Among the most noticeable implications is Wall Street’s diminished influence, which has aided the growth of other financial hubs throughout the planet, such as Hong Kong and Singapore which are capitalising on the economic expansion in Southeast Asia and China.

Careers in Investment Banking in India

The best investment banking courses with placement security are what you need first. Check out our credentials and online courses if you want to learn from the best and looking forward to making the best investment banking career.

Conclusion:

Despite the financial crisis’s terrible toll, belief throughout the investment banking business has begun to recover. Profits at investment banks too are rising, thanks to the recent M&A craze, which has pushed them back to pre-crisis levels. And, while even the most knowledgeable specialists would struggle to forecast where the business is heading if the recurrent past of investment banking would be any indication, another golden era might be on the way.

4 Unconventional Ways To Learn Investment Banking Courses The Right Way

Posted on by Imarticus Learning

4 Unconventional Ways To Learn Investment Banking Courses The Right Way

Are you looking for a more unconventional way to learn investment banking courses? If so, you’re in luck! This blog post will share four ways to learn investment banking courses correctly. So, whether you’re a beginner or an experienced investor, you’re sure to find something useful here.

What do Investment Banking Courses entail?

Investment banking courses include managing and expanding financial assets and how experts may assist businesses, organizations, and clients. Graduates of investment banking programs assist businesses in making wise choices when investing their assets to raise the value of their holdings. Relationship Associate, Investment Associate, and equity analyst positions are the top positions for investment bankers. 

Here are four unconventional ways to get the education you need.

  1. Enroll in the best education institute

One of the best ways to learn investment banking courses is to attend the best education institute. Many of these institutes offer specialized courses in investment banking and financial modeling. Additionally, you’ll get access to world-class professors and networking opportunities with industry professionals.

Attending the best institute can be expensive, but it’s a significant investment in your future. Not only will you learn about investment banking, but you’ll also gain essential skills in business, finance, and leadership.

  1. 2. Join an Investment Banking Forum

Investment banking forums are a great way to learn about the industry and connect with experts. It is an online discussion where young people and even experienced experts discuss their queries and receive solutions to their issues from other creative people.  The best thing is that it is simple and completely free.

  1. Watch YouTube Videos

YouTube is an excellent resource for learning about investment banking and financial modeling. There are dozens of videos on these topics, most of which are easy to understand.

You can watch videos on investment banking courses, financial modeling, and other topics related to the industry. This is a great way to learn about the industry and improve your skills.

  1. Read Books

There are several books on investment banking and financial modeling. These books offer in-depth information on these topics and can help you improve your skills. Reading these books can help you learn about the industry and improve your skills.

Learn investment banking courses with Imarticus Learning

The Certified Investment Banking Operations Professional program will give students a good start on their investment banking careers. Students will be well-prepared for success in banking operations, treasury, and clearing services at all production levels thanks to this 180-hour program.

 Course Benefits for Learners:

  • Students will learn how to manage complex securities and derivative products, their trade-life cycles, and the roles involved in investment banking operations.
  • With over 8,000 placements completed and a pay increase rate of 60%, students may get the support they need to start their investment banking careers.
  • After finishing the investment banking certification courses and related assignments, students will get an industry-recognized certificate.

How they got there: Transitioning to Investment Banking Operations

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How they got there: Transitioning to Investment Banking Operations

What is Investment Banking?

Investment banking is a section of banking that exclusively deals with capital creation for governments, companies, and any other entity in the position to influence the capital market. Its activities comprise equity securities and underwriting new debt for corporations. It also facilitates mergers and acquisitions, reorganizations, and the sale of securities. The investment broker in this case trades for both private investors and institutions. Professional and skilled investment bankers assist governments and corporations to manage and plan the financial angles of big-budget.

If you are interested in bagging investment banking jobs in the future a few more dimensions of this profession.

Investment banks largely help government bodies and big firms to manage and plan large projects, assist in complex monetary transactions and help pre-empt possible risks associated with the projects thereby saving the time, effort, and money of their clients.  

Role of Investment Banker

Now that you have obtained a brief idea about investment banking, you are probably wondering what the part of an investment banker is after completing an investment banking course?

As mentioned above investment bankers are those crucial individuals who act as the bridge between the investor and the big projects. They are financial experts who need to be in step with current trends in the financial world. Businesses, firms, and governments will turn to an investment banker for solid advice and they will be required to modify their recommendations and game plan to suit the current climate of economic affairs in the macroeconomic world.

The Link Between Rothschild Family and Investment Banking

Rothschild and Co. is an investment bank and financial services provider of a multinational stature. The flagship Rothschild group is under the reins of the British and French branches of the Rothschild family. The banking and financial services firm is over two centuries old and is known to serve the financial needs of the British Royal family.

The Rothschilds come from an influential banking legacy that traces its origins back to Frankfurt. The empire was put together way back in the 18th century by Mayer Amschel Rothschild with his five sons, James, Nathan, Saloman, Carl, and Amschel. The Rothschilds are considered stalwarts when it comes to international finance development with branches in Vienna, London, Naples, and Paris.

They started as a small business family with investments in foreign exchange and trading goods and slowly over the decades grew in stature. They have by now also been an intrinsic part of big projects such as the building of notable tunnels, bridges, and the very famous Suez Canal. Currently, Rothschild’s wealth and influence are distributed among their heirs living in different parts of Europe and their holdings span a plethora of industries ranging from real estate, financial services, energy, mining, and charitable work.

Aside from Rothschild & Co, here is a list of the top investment banking firms worldwide

  • Goldman Sachs

A 150-year-old company with more than $2.5 trillion in assets

  • JP Morgan Chase & Co.

One of the largest financial institutions is made up of two divisions; the Chase side which handles commercial banking and business and the JPMorgan side which is completely involved in investment banking.

  • Barclays

It is a huge investment banking firm in the UK and the US with $1.4 trillion in assets

Credit Suisse

Starting in 1856, it is one of the biggest Swiss banks known for its privacy policies and professionalism with USD 1.75trillion in assets.

  • Deutsche Bank

It is one of the top 10 investment banking institutions in Europe with 1.3 trillion assets in Euros.

Skills Required to Become an Investment Banker

To become a certified investment banking operations professional, you will need the following skills:

  1. A strong intellect for grasping the aspects of mathematics, analytics, economics, and finances
  2. Diligence and self-discipline to stick it out in a highly demanding work environment
  3. Creativity to approach your task in an innovative way
  4. Open-mindedness with proficiency to communicate in more than one language will make you a desirable candidate in the world of investment banking
  5. Academic inclination towards anthropology, sociology, and linguistics are characteristics that are highly sought after
  6. The ability to strike up conversations, foster new connections, and build life-long relationships are key skills that are looked for in an aspiring investment banker

About Certified Investment Banking Operations Professional (CIBOP)

If you have set your mind to become a full-time investment banker then a certified investment banking operations professional course is tailor-made for you. This course offered by Imarticus amongst many other institutions aims to equip you with all the skills required to become an expert in 180 hours. When you enroll in this investment banking course, you will have the following perks:

  • Pick up on job-specific skills
  • Get an opportunity to explore investment banking jobs in one of the biggest placement drives
  • Be awarded a Euronext Group endorsed CIBOP certificate
  • Get to experience 360-degree learning with trading simulations in live sessions

Conclusion

With a certificate in certified investment banking operations professional from a reputed institution, you will be one step closer to your dream of working as an investment banker in some of the biggest firms in the world.

5 ways an executive program in investment management can train you for leadership roles

Posted on by Imarticus Learning

Investment management refers to strategically handling financial assets and other investments. The strategies can be long-term as well as short-term and can include budgeting, buying, and selling investment trusts or shares or bonds, tax, etc. Executive programs in investment management provide financial advice on a range of corporate and investment matters. 

Investment management programs are extensively planned and executed in a way that the individual is prepared for various leadership and managerial roles. Thus, attending an executive program in investment management prepares you for the following leadership roles:

Communication skills – For leaders, it is crucial to convey information and instructions about tasks, missions, values, instructions, etc. It is also important for the leader to be able to keep the team motivated and engrossed.

Time management skills – Time management is a pivotal skill to be able to succeed in any sphere of work. For a team to complete an assignment, it is important for the leader to be able to drive the team to complete the project on time.

 Team working skills – A leader drives the team forward and binds the team. For this purpose, it is necessary that a leader has team working skills.

Analytical and problem-solving skills – For any problem or issue that the team faces, the leader needs to analyze and resolve the issue without the conflict affecting the team productivity.

Trustworthiness – A leader needs to be trusted by the team members for them to obey his/her instructions. For this, the leader’s words and actions should create a sense of reliability amongst the members. 

5 ways an executive investment management program helps in leadership roles – 

Fields such as investment management are not very traditional and have come into the limelight only very recently. Executive programs in such a field prepare the individuals to take up initiative in the field. Taking initiative is an important and foremost leadership skill.

To make good investments, one’s analytical skills need to be upskilled. Along with that comes the ability to be able to calculate and decide where to invest and where not to, which requires good decision-making capability.

The investment manager needs to provide guidance to various private as well as corporate clients on various financial and investment matters. Thus, such executive programs focus on upgrading the communication skills of the individual.

Traditionally people lacked awareness about financial knowledge and investing. Such programs are designed to bring general awareness to people and also make them capable of finding reliable places to invest in. This opens up curiosity for learning a new skill and increases the horizons of one’s thinking capability.

In this era, investment has become more of an online affair and thus, technical knowledge is an integral skill for investment management now. Upgrading technical skills is a basic leadership quality that any leader should possess. Various institutes offer courses like the IIM Calcutta Capital Market certification course that provide training to cultivate similar skills required by a smart investment manager.

Why will an Investment manager possess good leadership skills?

A wide number of common skills are possessed by an investment manager and a good leader. Programs that provide training in managerial roles such as investment management workshops, IIM Calcutta investment banking, and capital market certification, etc. also prepare the candidate for various leadership roles. This is because it takes to be a good leader to be a good manager.

Conclusion

In this era of globalization, the scope for career opportunities in fields such as investment management is huge. With increasing market opportunities and awareness amongst people, demand for good Investment managers is growing over time. Imarticus Learning is providing various investment management online courses to help young professionals to enter this prospering field. 

What Do You Do As an Investment Banker?

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What is Investment Banking?

Investment banking can be defined as a specific decision of the banking industry that engages in advisory-based financial transactions on behalf of their clients that ranges from individuals to corporations and governments. The investment banking division is responsible for raising capital for their clients from public or private investors. Investment banks leverage their large network and expertise to connect investors with excess funds and clients with profitable business opportunities looking for investors.

In the broad sense of things, the investment banks help to channel funds in the economy efficiently using their expertise in the domain. The Investment banker course also provides services related to the underwriting of debt and equity securities for various corporations. They also help with the mergers and acquisition deals, facilitate the sale of securities, broker trades for corporations and investors, and provide financial guidance to their clients on profitable investment avenues.

Role of an Investment Banker

Now that we have understood what investment banking is and what the investment banks do, let’s understand the role played by investment bankers and how they add value in this industry. We will look at the role of investment bankers in context to the functions of an investment bank in the economy.

  • Role of Investment Banker in IPOs and Underwriting: One of the major functions of investment banks is facilitating the underwriting services to private corporations and other entities. You must have heard of Initial Public Offerings (IPO), during IPOs the private company is seeking funds from the public by selling the company’s shares at a predetermined price.A lot goes into selling the share of a company to the public; a major role is played by investment bankers in facilitating the IPOs.First and foremost, before offering the shares to the public, the valuation of the company is done to determine the optimum prices for shares. Investment bankers play a huge role in researching and conducting financial analysis to analyze the financial well-being of the firm.

    After conducting a complex analysis the price of the security is determined. Selecting an optimum price is important to avoid any subscriptions or oversubscription scenarios. Investment banks act as a mediator in the IPOs and also acts as underwriter for shares issued.

  • Investment Bankers in Mergers & Acquisition: Another important role of investment bankers is highlighted in the mergers and acquisition deals. Mergers and acquisition deals are carried out by companies who are looking to benefit from coexistence and mutual synergy.It helps companies to avoid competition and collectively profit from improved synergy. In the case of acquisitions, a company acquires another in the process and takes over its operations and customer base. Mergers and acquisitions might look simple but it involves a lot of work on the part of investment bankers.
    They are responsible for finding the best competitor for the deal so that their client s could benefit from the M&A deal.Investment bankers have to leverage their network and expertise to identify the perfect fit. It also involves doing the valuation for companies so that a fair price is established for the sale or purchase of another entity. Investment bankers help to determine if the price offered by another company is fair or not (in case the company is being acquired) and determine the fair value of the other entity (in case the company is acquiring).
  • Investment bankers as financial advisors: In addition to M&A deals and underwriting services, investment banks also provide advisory services to their clients. Generally, the advisory services provided by investment banks are limited for corporations, government entities, and high net worth individuals.Various new financial instruments are complex and need expert guidance during investment, for example, alternative investments. The investment banker also guides their clients on these investment avenues after factoring in their risk appetite and return expectations.

What is Reference Data in Investment Banking?

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What is Reference Data?

A counterparty is a collection of entities in the financial sector to which some risk is associated while security is a financial asset/product/instrument that can be traded. When counterparty and security are traded, then some identifiers are used to describe them, these identifiers are called reference data. The reference data is a fixed standard governed by regulatory authorities and doesn’t change much over time.

Some of the identifiers associated with different equity assets are SEDOL, CUSIP, ISIN, CINs, etc. Besides including the description of equity assets, reference data at its most complex stage can define the name of the buyer, seller name, costs involved, etc. Market identifier code (ISO 10383 MIC) which defines the stock market associated with any trade also comes under reference data. Let us see the information provided by reference data and its management.

Information provided by Reference Data

Reference data helps us in knowing different aspects of a trade. The key information provided by the reference data are:

  • Reference data helps us in identifying the type of financial product/asset. It also tells us about the maturity date of the financial asset.
  • Reference data gives us information regarding the parties, financial institutions, counterparties, etc. involved in any particular trade.
  • The pricing of any particular financial asset/product can also be identified by the reference data.

Reference Data in Investment Banking

Reference data sets a standard for trading & other financial activities. Investment banker Courses need reference data that can provide them insights about their holdings on any financial instrument/asset. Reference data provides better visibility and insights about different aspects of a trade/investment. The benefits of using reference data in investment banking are:

  • With better information about the trade and parties involved, you can identify risks associated with the trade/investment and can manage it.
  • It helps in cost optimization as you can categorize similar types of deals/trades with similar reference data and can standardize associated trade processes.
  • Capital resources can be allocated accordingly if investment bankers have access to reference data.
  • Data analytics can be improved as reference data will set a standard to find relationships among the data sets.
  • You can identify the trade processes involved with any particular type of asset and with the information about its reference data one can automate key trade processes.
  • Investment bankers can assist their clients easily if they have access to reference data i.e. complete information about the trade.

Why reference data should be managed?

Reference data is heavily involved in different business processes like analysis, compliance, control, etc. and its mismanagement can hamper your business processes. Investment bankers have to manage reference data to maintain quality in their investment processes and to optimize costs successfully. Reference data helps generate results to financial queries of clients quickly.

Investment bankers know the trading process of many financial assets and when each asset is defined by a set of identifiers, they can quickly identify an investment opportunity or trade. Managing reference data can also help in better data analytics and you can automate business processes. Customer requests can be quickly responded to if reference data is properly managed. The investment banking sector is hiring individuals with good knowledge about reference data and its management to improve their business.

Conclusion

Reference data gives you information about the trade structure and type. One can learn more about reference data in investment banking by taking up an online investment banking course from a reliable source like Imarticus Learning. The understanding of reference data is very necessary if you are aspiring to become an investment banker. Start your investment banking course now!

India’s Top Boutique Investment Banks And What They Are Looking For In New Hires.

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Boutique investment banks are an evolution of investment banking based on the demand for a bouquet of services mainly by smaller enterprises and startups. Since the investment ceiling in this group is not tiny and extends to Rs 200Cr, many investment firms and banks find it an excellent opportunity to customize their services to cater to such clients. Firms like JP Morgan, JM Financial, Morgan Stanley and Goldman Sachs were quick to jump on to the bandwagon. In India, currently, a large number of opportunities have been thrown open by European firms like Merrill Lynch, Citigroup, BNP Paribas, Credit Suisse and Lehman Brothers outsourcing their requirements of investment banking.

What are Boutique Investment Banks?
The top-heavy banks with the highly paid large payouts and boards look at markets above the 100Cr Rs mark and charge a commission that could vary from 0.5 percent to about 2 percent of the deal values neglecting the markets below 100Cr as their demands seem exorbitant here.
A boutique services investment firm concentrates on the 10 to 100Cr segment offering them services like bank debt, fund-raising, private equity, advising on acquisitions, dealing with mergers, managing IPOs and customizing on services in between, while offering them the personalization of the large banks with better services thrown in.
Among the Indian firms who are worth watching and joining for a lucrative top-notch career are Veda Corp, Ripple Wave, MAPE, Cogence Advisors, Equirius Capital, and P2P who are giving the big banks a run for their money in the boutique banking sector. These firms are typically staffed by less than a hundred employees and offer great opportunities in the IB sector both in terms of payouts and career progression.
The job role:
To understand what these companies look for in the new hires, let us try to look at what exactly happens in an average investment banker’s workday. The task-list of an investment banker includes advising and pitching financial instruments to clients, helping with investment and funding decisions, and providing financial data to clear customer decisions.
The fun part lies in creating financial reports, reporting trends, making client presentations, garnering foresight, researching case studies and more. Client facing tasks like issuances and debt-portfolio management is challenging and exciting.
The career progression:
Doing an IB course reiterates that investment banking is about setting and selling the right expectations. You will probably progress up the ladder quickly, enjoy high bonuses and payouts linked to the deal values, and would need every bit of the best financial training and skills to handle the stress and heat that will last through work hours like 100 to 180 hours a week being considered part of the job.
The usual hierarchy of job roles is as given below –

  • Undergraduates spend up to 2 to 3 years as an FA learning on the job.
  • The graduates joining as IB Associates depending on their specialization or those with actual work experience and classroom.
    training spend about 3-4 years learning and practicing their role.
  • VP- Investment Banking based on performances and value-adds to the organization being the next progressive step.
  • Director-IB, which is a management and decision-making high strategy role.
  • CFO, MD and such who anchor and are at the helm of the management team.

The essential traits required:
Investment banking calls for requisite skills in analytical, quantitative and commercial awareness coupled with the banker using his/her persona, discipline, and financial integrity while remaining calm and stress-free through a punishing day. Many of the finance, law and economics graduates who do a skill-building investment banking course at Imarticus Learning benefit from a comprehensive curriculum and excellent soft-skills training by being placed as Associates directly under their assured placement programs.
Remember that according to Payscale chart below, the investment banker’s payouts are among the best.
Any employer would also want people with these attributes.

  • Certifications are worth their weight in terms of measurable skills.
  • Proficiency in Excel techniques, PowerPoint presentations, an excellent foundation in accounting and finance and the MS Office and Word suites.
  • Counting as an effective team member.
  • Being an effective organizer.
  • Being always in the learning mode.
  • Excellent skills in financial modeling.

Concluding notes:

The total payouts in investment banking are proportional to your skills, hard work, and basic training. Your performance and bonuses will depend on your work. Join the investment banking course at Imarticus Learning to hone your financial suite of skills and take advantage of their soft skills modules. A measurable global certification which endorses your practical skills is highly sought after as real-life experience and preferred by many employers.
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How Much Do Investment Bankers Earn in India?

Posted on by Imarticus Learning

Do you know the average salary of an Investment Banker in India is from 12 lakhs to 13 lakhs, according to Glassdoor? The investment banking sector is growing at a 1.2% CAGR for 2018 to 2023. It is expected to reach a value of $78,008.7 million by 2023.

According to the Bureau of Labor Statistics, the demand for financial services sales reps is estimated to rise by 4% by 2029. This data is combined with attractive salary packages and a secure career. This positions investment banking as one of the most profitable and in-demand career choices.

In this article, we have revealed the salary of an Investment Banker in India. We have also covered the factors that influence it and the Investment banker’s salary in the US.

Investment Banker

What does an investment banker do?

Investment bankers act as a bridge or intermediary between investors looking for investment opportunities and organisations looking for funding. The duties of investment bankers are divided into two categories: assessing a company’s financial situation and assisting it in meeting its financial goals. Investment bankers are responsible for analysing a company’s financial situation and capital requirements to offer a viable plan for meeting its financial goals.

Investment banker’s salary in India

The pay ranges from 3 lakhs to 1 crore depending on the skills, roles, designation, experience, job location, company, etc. But, the starting salary of an investment banker is better than many other professions, with initial pay of Rs.7-8 LPA. That’s why experienced investment bankers or  Investment Banking Analysts can rise to higher positions fast. This is because their salaries rise quicker, and they earn higher paychecks.

Designation-wise salaries of an investment banker in India

Salary of an Investment Banking Analyst

This is the role assigned to people who’ve just graduated from business schools. Their tasks mainly include research and analysis of investment banking methods. A fresher with this designation would earn around Rs. 5 LPA on average. Also, an experienced candidate can earn Rs.6-7 lakhs.

Package of an Investment Banking Associate

This role is an upgrade from the role of a Banking Analyst. The duties involve the analysis of business strategies. They act as an intermediate between junior analysts and senior officials. The average salary for this role lies between Rs. 7 lakhs to Rs.10 lakhs.

Pay of a Business Analyst

This role is similar to the role of an Investment Banking Analyst. However, the difference here is that the focus shifts to business strategies such as profit optimisation and asset management. For this profile, a candidate would earn between Rs.6 lakhs and Rs.7 lakhs.

Remuneration of a Financial Manager

Being a high-profile role, financial managers mainly oversee a company’s financial health. They audit financial reports, analyse investment activities, and work out long-term financial goals for the company. Also, they use tools to analyse the data. A financial manager in India would earn around Rs. 10 lakhs on average.

Compensation of a Financial Director

The role of the Financial Director is a senior one, as they are leaders of senior executive teams. And their primary responsibility is to frame financial policies. They also make the proper process to meet a company’s business requirements. In addition, they oversee operational and strategic ongoing at the company. So, a Finance Director can have a starting salary of around Rs. 20 lakhs. With an experience of 4-5 years, one can earn anywhere between Rs.45 lakhs and Rs. 50lakhs.

Factors affecting Investment banker salary in India

In India, the average investment banker’s salary is significantly higher. But, to determine the exact pay, you must understand the factors that influence the salary of an investment banker.

The below-mentioned factors affect the salary of an investment banker.

Skills

An investment banker’s most essential skills are financial analysis and modelling expertise. Along with this, the knowledge of mergers and acquisitions plays a critical role too. The ability to work independently is also an essential skill to succeed in the investment banking field.

An understanding of deal structuring and closing principles is essential. Having excellent communication and networking abilities play a vital role. In addition, the ability to conduct research, be quantitative and analytical and explain market events.

Location

Few cities have a higher demand for investment bankers, causing average pay to vary significantly. But, depending on the cost of living, some cities pay comparatively less. Surprisingly, Mumbai (84% higher than average), Pune, and New Delhi pay 4% higher than average. So, these cities are the best locations to work as investment bankers. But, some places offer lower salaries to investment bankers, like Bangalore, Hyderabad, and Chennai.

Work Experience

More experience results in more gain in the field of investment banking. The average salary of one to four years of an experienced investment banker is Rs. 9 lakhs annually. However, bankers with five to nine years of experience earn around Rs. 20 lakh per annum. With an experience of around ten years, professionals can earn approximately Rs 30 lakh per year.

Companies

Some banks and companies are paymasters, while others pay less. So, investment bankers prefer firms such as Morgan Stanley and Goldman Sachs. Other liked banks are Barclays and J.P. Morgan. Investment bankers are generally paid well by most firms. However, you should not focus only on the package. The profile and work are deciding factors in rejecting or selecting a company.

Investment banker salary in the US

The United States pays well to investment bankers. It consistently ranks first in terms of compensation for its investment professionals. Furthermore, cities such as New York reward their professionals besides the salary. It offers valuable and lucrative benefits.

How to start your journey as an Investment Banker?

Before entering any sector, gathering knowledge about the industry, scope, career growth, and job opportunities are always good multitool. The second step is to equip yourself with the knowledge and skill set to become an investment banker. For this, you should get enroled in an institute and learn investment banking concepts.

An institute that offers excellent knowledge, expert faculty and an industry-oriented curriculum will be lucrative. But, if they provide career assistance and interview preparation, that will be the cherry on the cake So, try to find an institute that offers all these and then invest your money. 

Apart from this, having a good network also plays a significant role in getting you to start your career as an Investment Banker. For that, you can do an internship with top companies and work hard. Moreover, during the internship, you can learn industry concepts and how to behave professionally.

Conclusion

In conclusion, careers in investment banking training usually offer good salaries. However, they are exclusively bagged by candidates with the best academic backgrounds.

Hence, candidates must work hard. They should try to graduate from a top educational institute. Also, they must know how to reap the benefits of their effort. And, plan a financial career properly to take up the role of an analyst.