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Tag: investment banking jobs

Dream Job in Investment Banking: How BCom Graduates Can Achieve It?

Posted on by Imarticus Learning
Reading Time: 5 minutes

Investment Banking Jobs: If you have a BCom degree and a desire for a high-paying and thrilling career then investment banking job is in your list to ensure the right amalgamation of growth, learning and prestige. Having large financial deals for work and helping companies to raise their respective capitals and having the opportunity of working in such fast-paced and dynamic industries-this among many are outstanding features of the investment banking.

Why Choose a Career in Investment Banking?

This is the perfect career in investment banking for all those students who love crunching numbers, solving financial puzzles, and the finer granularities of international markets. What needs to be kept in mind is that a massive 90.9% of job posts in this sector require a degree in business or finance, thereby making BCom a great base for the same. 

On top of this, skill-specific areas usually bring in an additional premium. Proper training will help make your dream come true, preparing you to deliver well in this very competitive industry. 

It offers the platform with which one can bring about a change in the business and the economy meaningfully. Whether it is advising large corporations about how they could merge or handle their portfolios, or whether one was raising funds for companies, whatever one does made a difference. It is pretty well in tune with what the principles understand through the course. 

So, investment banking, as such, would naturally entail an enormous hike in skill and networking while, at the same time, affording tremendous potential for growth till the top jobs in this domain. In addition to the professional growth, the dynamic nature of this industry ensures that no two days are the same. You’ll be constantly learning, adapting, and solving challenges, making it an exciting and fulfilling career.

How to Become an Investment Banker After BCom?

If you’re wondering how to become an investment banker, here’s a step-by-step guide to get started after BCom:

  • Strength to the knowledge: The BCom degree will give you the finance and accounting know-how; this is something that you should upgrade further. Very important courses would be those in investment banking. Here, you can learn better some of the key topics in financial modeling, securities, and risk management.
  • Practical Exposure: Any internship opportunity, be it inside the bank or in other financial institutions, will expose you to the experience and also equip you with what you learn by bringing these principles into practice in a practical way.
  • Build Professional Network: Attend industry seminars, webinars, and job fairs. Most of the opportunities for investment banking jobs are found through connections and referrals.
  • Focus on Skills Development: The employers are interested in those candidates who can present a combination of technical expertise and soft skills. investment banking skills for BCom students develop communication, problem-solving, and analytical thinking.
  • Tailor your Resume: Write about your education qualification, relevant courses, and internships in your resume. A well-crafted CV is a great first impression.

Key Skills Required for Investment Banking Jobs

Now days, an eclectic mix of skills is required to thrive in the investment banking industry. Some necessary skills that will help the BCom student to succeed in this industry are-

  1. Financial Modelling and Analysis: Create financial reports and projections that supports the client in the best possible way.
  2. Strong Analytical Ability: Review data to see trend patterns, opportunities, and risks.
  3. Problem-solving skills: Providing solutions to complicated financial problems is the top-most in-demand skill in the industry today.
  4. Communication Skills: Explain policy of policies to your customers, freely communicate financial details
  5. Time Management: Mostly investment banking involves meeting close deadlines and handling multiple projects at the same time.
  6. Attention to Detail: Small errors in financial transactions can open windows for the appearance of worse results.

Having such investment banking skills for BCom students in place much earlier down the career would put a person at an advantage, put him in his ‘dream jobs’.

The Role of Investment Banking Courses

The industry has utilized this opening by filling in the gap that was between theoretical knowledge requested and what the industry actually needed. These include special courses in investment banking. For example, there is Certified Investment Banking Operations Professional (CIBOP) by Imarticus Learning. 

Such courses endow aspiring investment bankers with appropriate tools and know-how to work out in this particular business:

  • Training in financial markets, wealth management, and securities operations
  • Practical exposure to real-world scenarios
  • Insights from industry experts to prepare you for challenges in the field
  • Flexible learning options, including weekday and weekend classes

CIBOP ensures you would get 100% job guarantee; candidates would get training for an interview and also for a career. For a person seeking some entry-level position in investment banking, this definitely would be a game-changer.

Career in Investment Banking for BCom Graduates

There are wide varieties of investment banking jobs. It includes a broad set of skill and interest ranges. The most popular career in investment banking after BCom comprises the following areas:

  1. Investment Banking Analyst: These are the perfect investment banking jobs for fresher. They involve market research, designing of financial models, and helping the transactions of senior bankers.
  2. Equities Research Analyst: The job is more or less concerned with the analysis of companies. That is to say, financial performance of companies should be evaluated and investment suggestions should be given in the companies.
  3. Corporate Finance Associate: These are the professionals who handle various mergers and acquisitions; hence, high-level corporate finance activities are handled.
  4. Risk Analyst: Identify and mitigate risks to protect the assets of the organization and clients’ investment.
  5. Portfolio Manager: A portfolio manager would manage investment portfolios to suit client goals and risk tolerance.

Each of these roles presents a different challenge and growth opportunity that makes investment banking versatile and rewarding.

Why BCom Graduates Should Consider Investment Banking?

Investment banking turns out to be the career for BCom graduates in the most natural and challenging way possible. A big portion of your graduate degree covers accounting, finance, and economics- areas that happen to be the very building blocks of an investment bank. 

Thus, before you know it, it will just be a matter of proper training or guidance to turn out to become a full-fledged professional within this area of interest. You shall be provided with an investment banking job, offering an attractive package with global exposure and high-profile. More education and certifications may make you the top candidate a firm selects for the best opportunities.

FAQs

  1. How can BCom graduates initiate their investment banking career?

The graduation in BCom can initiate beginning by registering yourself for special courses in investment banking, applying for internships, and networking in the industry.

  1. What are some of the most sought-after investment banking skills for BCom students?

Investment banking primarily demands financial modeling skills, communication skills, analytical thinking, and problem-solving.

  1. Is investment banking a good space to get immediately employed after taking BCom?

Investment banking is one of those sectors with huge entry-level job requirements that suit freshers, especially those with certifications.

  1. What is the contribution of courses related to investment banking to careers?

Investment banking courses are basically training, industry knowledge, and job guarantee while preparing to work in the role.

  1. What jobs are usually associated with BCom after investment banking?

There are some ideal jobs which BCom graduates can opt for. Those are Investment Banking Analyst, Equity Research Analyst, and Risk Analyst

  1. What is the salary in the investment banking industry for a new joiner into entry-level jobs?

The entry-level jobs would vary between ₹6 to ₹12 LPA based on the skill sets and firm’s policies of that particular individual in India.

  1. How long does it take for a person to be established in the investment banking industry for work?

Within 6-12 months one can start working with proper courses and focused work.

Conclusion

After finding investment banking jobs, the BCom graduates would find the right source of opportunity to create the right and rewarding career. This would be the result in the competitive industry achieved in form of education, skills, and determination. 

A program like CIBOP by Imarticus Learning can prepare one with proper knowledge and confidence to make a difference in the job market. Get going today and unlock the world of investment banking. 

How Investment Banking Jobs are Evolving

Posted on by Imarticus Learning
Reading Time: 2 minutes

How Investment Banking Jobs are Evolving

The investment banking industry has been through many changes in the past few years. The industry has adapted to stay afloat with the global financial crisis, followed by new regulations and technological advancements. Investment banking jobs are evolving fast. 

New technologies, new rules, and changing customer behaviour is making the world of investment banking different today than it was a few years back.

This blog post looks at how investment banking jobs are evolving and what you can expect to pursue a career in the industry.

The Top High-level Trends

Changing Customer Behaviour is Making a Difference

Investment banks deal with their clients and work on transactions that usually involve different segments of the financial world. That was how it worked in the past, but today’s bank needs to understand what its customers need better than ever before. The old ‘sell, sell and sell’ is no longer effective.

But in 2022, investment bankers will need to go beyond just satisfying the needs of their customers. They will also have to create new customer experiences and develop innovative solutions that cater to changing customer behaviour.

Technology is Revolutionising the Industry

The use of technology has always been a big part of investment banking, but its impact is only getting stronger. In the past, investment bankers would use technology mainly for back-office tasks such as data management and analysis. But now, new technologies are being used to help banks interact with their customers in more innovative ways.

In 2022, we can expect even more technological advancements to revolutionize the industry. Banks will be using artificial intelligence (AI) and machine learning to make better decisions, and they will be using blockchain technology to streamline their processes.

New Regulations are Forcing Changes

The global financial crisis of 2007-2008 led to the enactment of many new regulations aimed at preventing another meltdown. These new regulations have had a significant impact on investment banks. They continue to evolve as governments and regulators try to get ahead of unknown risks that the industry might face.

In 2022, we can expect even more regulatory changes as governments attempt to keep pace with rapidly evolving AI and blockchain technology. Banks have no choice but to adapt by hiring compliance experts who understand these regulations to stay afloat.

In 2022, you can expect investment banking careers to look very different from the way they do today. There will be more technology and new regulations. Still, there will also continue to be a role for human interaction as banks learn how to use these technologies in innovative ways that provide more excellent value and convenience for their customers. If you want a challenging and exciting career in the financial industry, investment banking is a great option.

Discover Investment Banking courses in India with Imarticus Learning

This 180-hour Certified Investment Banking Operations Professional course will comprehensively equip students for a career in investment banking operations, treasury, or clearing services. Learn about complex securities and derivatives, their transaction lifecycles, and the benefits of investment banking.

 Course Benefits for Learners:

  • Students at Imarticus Learning work in most worldwide investment banks with the CIBOP credential authorized by the London Stock Exchange!
  •  Impress employers & showcase skills with investment banking courses with placement assurance recognized by India’s prestigious academic collaborations.
  •  World-Class Academic Professors to learn from discussions and live online sessions

 Contact us through chat support, or drive to one of our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, and Gurgaon. 

Top 20 Investment Banking Interview Question and Answer!

Posted on by Imarticus Learning
Reading Time: 5 minutes

Investment banking has been one of the most lucrative career prospects for people aspiring to make a career in finance. Naturally, this invites a lot of competition and you need to stand out from the competition to be a part of any successful investment banking firm.

Investment Banking analyst

Investment banking training programs and courses can help you provide an extra edge by imparting a comprehensive understanding of the Investment banking industry. It also helps to provide a practical understanding of the field and how things work in the investment banking industry.

Here is a list of top 20 investment banking interview questions and answers to help you with your interview process for investment banking placements.

Q1. What are the three most important financial statements? Briefly explain their significance.

The three most important financial statements are the balance sheet, cash flow statement, and income statement. All these three financial statements help to understand and evaluate the financial standpoint of the organization. The income statement depicts the revenue and expenses of the firm and also shows the net income for a given period.

The balance sheet helps to compare the assets and liabilities of the business which are explained and categorized in detail in a balance sheet. The cash flow statement only tracks the cash transactions and focuses on cash flow from investing, operating, and financing activities.

Q2. What is the difference between cash-based accounting and accrual accounting methods?

The main difference between the cash-based and accrual accounting method is in the timing of the transactions recorded. Accrual basis account updates books as and when revenue or expenses occurs. In the case of the cash-based accounting method, revenue and expenses are recorded only when there is a cash inflow or outflow for a given transaction.

Q3. How do you calculate the weighted average cost of capital?

The weighted average cost of capital can be calculated using the following formula.
WACC = Cost of equity*Proportion of equity + Cost of debt*Proportion of debt (1-tax free rate)
It basically measures the percentage of the company’s capital taken up by each capital component and takes out an average weighted cost.

Q4. Let there be two companies X and Y. X have only equity capital and Y has a combination of debt and equity capital. Which of the two companies will have a higher weighted average cost of capital?

In this case, company X will have a higher weighted average cost of capital as the cost of debt capital is cheaper than the cost of equity capital.

Q5. Can you mention some of the mainstream methods that are used to value a company?
Some of the most commonly used valuation methods to compute a company’s value are the Discounted cash flow analysis method, the Precedent transaction analysis method, and the Comparable company analysis method.

Q6. Can you explain the discounted cash-flow analysis method?
The discounted cash flow analysis method takes into account the future cash flows of a business and calculated the present value based on that. The future cash flow projections are determined, a discount rate is set and the present value of the company is calculated on that basis.

Q7. Name some of the common multiples or ratios that are used in the valuation process.
Some of the commonly used multiples or ratios for the valuation process are listed below.
• Price/Equity
• Price/Book Value
• EV/EBIT
• EV/Revenue
• EV/EBITDA

Q8. Explain the concept of Leveraged Buyout?
A Leveraged Buyout occurs when an investor or a Company decides to use borrowed money to acquire another firm. The asset of the company being acquired is used as collateral for these borrowed funds.

Q9. How do you calculate the enterprise value?
The enterprise value can be easily calculated using the formula mentioned below.
Enterprise Value = Market value of equity + + minority interest + debt + preferred stock – cash amount.

Q10. What does a negative enterprise value signify?
A company can have a negative enterprise value in three of the following scenarios:
• Low market capitalization
• Large cash balance
• Both

Q11. How does revenue synergy benefit companies?
Revenue synergies can benefits companies by helping them cross-sell products to a new customer base and also to sell new products to customers. It helps companies to efficiently expand across new geographies and locations.

Q12. Explain the process of goodwill creation in an acquisition?
The goodwill of any organization is a mixture of brand name, intellectual property rights, customer relationship, etc. It signifies the additional value over the fair market value of an organization. During an acquisition, the company has access to all the intangible and tangible asset of the other organization including their goodwill generate.

Q13. What are the contents of a pitch book?
The contents of a pitch book are subjective and contingent upon the type of deal the company is pitching for; some of the common content includes the following:
• Bank credentials to prove competency in the deal
• List of the firm’s options
• Appropriate financial models and valuation methods
• Financial carts and other relevant data
• Potential acquisition target companies
• Key recommendations and summary of the pitch

Q14. What do you understand by convexity in the yield context?
Convexity measures the relationship between the yield and price variations in bonds in relation to changes in interest rate. It is used as a risk calculation strategy because it shows how a bond yield will respond to changes in the interest rate.

Q15. Why do private equity firms use leverage while buying companies?
TO finance the purchase price of a company and reduce the equity amount to process the deal, leverage or debt is used by private equity firms. It will eventually lead to an increase in the firm’s rate of return.

Q16. Explain beta in context to risk.
Beta helps to assess the degree of an asset’s non-diversifiable (systematic) risk. For example, if a company’s beta value is equal to 1 then it is considered as risky as the overall stock market and will reflect the same level of loss and gains.

Q17. How to value firms that have negative historical cash flow data?
An appropriate method to value firms with negative historical cash flow data is by using the Discounted Cash Flow Method.

Q18. What do you understand by Monetary Policy?
Monetary policy can be explained as a method used by the central bank of the nation to control the flow of money in the economy. The interest rate is used as a tool to control the supply of money and achieve desirable output for macroeconomic gains.

Q19. When is a deferred tax asset created?
A deferred tax asset situation arises when a company has paid more tax to the taxation authority than it has shown on the income statement.

Q20. What drives you to be an investment banker?
A subjective answer is required here.

We offer investment banking courses at our centers in Mumbai, Thane, Pune, Jaipur, Delhi, Gurgaon, Bangalore, Chennai, Hyderabad, Coimbatore.

What Is the Best Way to a Job at an Investment Bank?

Posted on by Imarticus Learning
Reading Time: 3 minutes

What Is An Investment Bank

Investment banking is considered to be a financial mechanism which has much complexity. A financial mediator that performs different varieties of tasks is called as ‘Investment Bank’. These banks are mostly specialized in a big and composite financial transaction. Various projects and business entities are served by these banks.

They act as a financial advisor or agent for institutional clients. Also, it can be described as the special area of banking tasks that helps companies to increase capital and provide advisory to them. JPMorgan Chase, Citigroup, Bank of America & Deutsche bank is some of the examples of investment banks. There are investments banks dedicated to only individual customers also who have retail operations.

How Does An Investment Bank Earn

Investment banks buy all the desired shares at a price computed by the experts and resell them to the public. Also, sometimes sell the shares on behalf of an issuer authority and earns a commission on each share.

Consider a company A who is buying a different company that is X. A company has does not have any idea about the company X like is it worth buying and how they can benefit in terms of generating revenues. In these kinds of situations, investment banks come into action which goes through a process to check about the values of company X, it does the documentation part and advises company A the correct time of buying company X.

An investment bank in this situation is advising the buying side but there can be vice-versa of it also. They can even help to sell a company like X in this case. The bigger the deal would be, the more the commission investment bank would earn.

How to get a job at Investment Bank?

It is tough to get into investment banks due to large applicants and very few openings. It is seen sometimes that the ratio goes to 100:1 of applicants and openings. If you want to get entry into an investment bank you can enter mainly through two job roles that are analyst and associate.

In investment banks most common job roles for junior, mid-level & senior roles are stated below:
1) Associate
2) Analysts
3) Director
4) Vice President
5) Managing Director

The quality traits that analysts or associate working in IBD of Investment bank are :
· Competitive
· Detail-oriented
· Polished & Presentable
· Highly ambitious

Investment Bank Course & Certification

To start in the areas of Investment banks one should get a good understanding of accounting principles and also excel including basics things like formulas and functions. Then you can start with financial modelling which is the primary things task in an investment bank daily. There are several online courses and certifications provided by Udemy, Coursera & Imarticus and other institutes. They offer courses free of cost and also paid online course in different domains to help people to make a career in Investment banks that is often done by CA, MBA professionals, etc.

There also PGP certifications which are done under investment banking and capital market. There is training and placements assistance also provided by the institutions. If you enrol in Imarticus certification on certified investment banking operation professionals you would be given training and also placements assistance. It is a 180-hour certification program. The average placement which is committed is of 3-8LPA.

Some of the popular courses that are present online are:

· FLIP – NCFM: Equity Research with Financial Modeling
· FLIP – NCFM: Investment Banking Operations International
· FLIP – NCFM: Issue Management
· PE, M&A, and Structured Finance
· Research Analyst with Financial Modeling
· Technical Analysis

Also Read: Different Types of Investment Banking Jobs

Best Things About Investment Banking Jobs

Posted on by Imarticus Learning
Reading Time: 2 minutes

Every now and then in time, you will hear debates on which career should you choose to enjoy a secured future, and most often investment banking as an option will rise up in conversations, as the destination which will take you to the competitive world of finance, with some clear advantages. Money is the most attractive of them all.
There is a lot that goes into becoming a successful investment banker, the initial investment is high, and clearly not for the faint hearted. Most individuals who have been on the other side of the fence, have one piece of advice for people looking forward to pursuing their career in investment banking, they say, you need to love the job, the process more than the outcome to survive in the industry, you need to have the love for investing, financing, doing business, travelling and meeting new exciting people, if you join the industry for the name tag, the parties the fame and the bling of being an investment banker, chances are you will not survive to reap the benefits of the industry.
The high pressure, long hours are not for the soft hearted. And so if you survive the initial years there are tremendous rewards waiting for you, making all the hard work worth it at the end, what are they?

Compensation

Your first salary will probably be higher when compared to any other industry, and you will be learning a lot more than new graduates. The bonuses also offered are pretty steep and with time will only increase.

Work Life Balance

Yes, it is true, only few will consider 100 hours’ week, sleepless nights and no social life amongst the positives. However, a change of perspective – once you reach the height of exhaustion, your mind and body will come up with the demands and appreciate anything short of physical breakdown as a holiday and perform in extreme environments with accuracy. Also, such a schedule will help you understand demands, in the long run, creating a sense of urgency in the way you work.

Learning

You will be working with the brightest minds in the industry, and it has its benefits. Attention to detail, multitasking, speed and accuracy in tasks, people skills, negotiating skills are but a few that you will pick up while working on the line. Investment banking has the most lateral skill sets imaginable. Working in investment banking can be explained as one of the hardest parts of your career and if you have done that in the initial phase, everything that comes later is doable and comparatively easier. Many former investment bankers have successful avenues in lateral industries due to the acquired skills from their initial years.
So if you like the fast paced, results driven world of banking, and are fine with letting go of your social life for a while, then investment banking will definitely be a great career choice. If not a lifelong career option, it will surely be a great training platform for entry into other professions. So to get your dream job in the top investment bank, join our certification course in Investment banking (CIBOP).

Top 5 Best Paying Jobs in 2016

Posted on by Imarticus Learning
Reading Time: 4 minutes

by Zenobia Sethna

High pay continues to be tied to in-demand skills, a higher education, and working in jobs that are shielded from competition or automation. In this article, we will explore the top paying jobs in the Finance field. Further, to compare apples to apples, we will look at the average salaries for entry level positions at these jobs.
Investment Banking
Some of the most glamorous careers in Finance are those in investment banking. Investment-banking jobs deal with enabling the issuance of corporate securities and making these securities available for investors to purchase, all while trading securities and giving financial advice to both corporations and wealthy individual investors.
The salary of an Investment Banker at an entry level Analyst role ranges from $70k – $150k, with the average salary being $102,000 per year as of April 2016, according to Indeed.com. An Associate typically earns in the range of $150K – $350K. As you move further up the ladder, salaries sky rocket. Vice Presidents earn between $350K – $1.5MM, while Managing Directors/Partners could pocket anywhere between  $500K – $20MM+.
Be aware, though, that these jobs are also very intense and demand a lot of hours – especially if you are starting out. From analysts to managing directors, the pay is traditionally heavily weighted toward the investment banking bonus portion of the compensation which is part of the reason for such long hours.
Hedge Funds
Hedge funds are largely unregulated private investment funds whose managers can buy or sell a wide range of financial assets and products. Basically, a hedge fund is a pooling of investments from high net worth individuals. In India, we have hedge funds like Karma Capital Management, Atyant Capital, and Atlantis India Opportunities Fund. A certain enigma does surround
this type of entity, and likewise, hedge-fund jobs are considered by many to be somewhat glamorous.
Typical hedge-fund jobs include Financial analyst, Trader, Regulatory compliance officer, Quantitative analyst, Marketing manager, and Portfolio manager.
The average entry level pay (combination of base and performance bonus) for a “Fund Accountant” in this category is $90,000 in the United States. In London, the pay for the same post would be GBP 35,000 and in India it is Rs. 600,000.
Private Equity
Private equity is an asset class consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange. Private-equity professionals help businesses find capital for both expansion and current operations. They also finance a number of corporate business transactions, such as managed buyouts and restructurings.
The average salary of a Private Equity Analyst in the US is $79,000 per year as of April 2016, according to Indeed.com. This could rise to the range of $150K – $300K for a second year Analyst /Associate or between $170 K and $ 350K for a third year Analyst/Associate. Vice Presidents at a PE firm could take home anywhere between $300K – $ 800K, while Managing Directors/Partners could pocket $ 500K – $ 10MM+.
The private equity compensation for Vice Presidents, Directors and Managing Directors is much more variable at PE firms, but the salary and bonus is much more of a function of the fund’s performance since a lot of the compensation is tied up in Carry.
Venture Capital
Venture-capital professionals (VCs) spend most of their time scouting start-ups or small, fast-growth companies. Venture-capital firms evaluate pitches by founders and small-company leaders to determine if the firm will make an investment. Venture capital is a toug
h business where the failure rates are high. On the flip side, the rewards, when they are realized, are huge!
Annual salary and bonuses differ broadly in this field depending on the size of the VC firm and specialization. In general, pre-MBA VC associates can expect an annual salary of $80,000 -$130,000. With a bonus, which is typically a percentage of salary, this can be boosted to $86,000-$250,000 with a median of $170,000.
Financial Analysis
Financial analysis involves an assessment of the viability, stability and profitability of a business, sub-business or project. The skills that increase pay for this job the most are Valuation, Risk Management / Risk Control, Financial Modeling, SAS, and SAP Financial Accounting and Controlling (SAP FICO).
The average salary of a Financial Analyst in the US is $73000 per year in April 2016, according to Indeed.com. A Financial Analyst in India earns between Rs. 187,810 and Rs. 879,047, with an average salary of Rs. 354,687 per year, according to Payscale.com.
 
Finally, if you’re not an Investment Banker or working at a VC firm though, despair not! The size of your pay check isn’t always tied to long-term satisfaction in your job. Rather, the biggest drivers of happiness are company culture, advancement opportunities, and trust in senior leadership.