Money matters to those who deal with monetary matters (financial factors). For investors money is not just cash or the bank account balance that they look out for, they like to explore new zones giving them higher returns, and for that investors need advisors. In the last decade investment banking transactions have increased significantly. In this article, we will give an overview of this career option that can awaken your interest in the investment banking sector. Statistics on Investment Banking Fresher Jobs will evoke your thoughts to grab the opportunity in this lucrative field.
Investment Banking is a service industry in the finance sector, working as a financial advisor, endorsing securities transactions, and facilitating mergers and acquisitions. Such banks generally work with corporations, governments, and other institutions to help them increase investment by issuing and selling securities, such as stocks and bonds, and providing advisory services on mergers, acquisitions, and other strategic transactions.
Commercial Banking vs Investment Banking –
Commercial Banks cater to the public in general, whereas Investment Banks cater to Investors, corporations, and government. Commercial Banks deal in services like deposits, mortgages, and lending loans while Investment Banking deals with services like asset management, raising capital, brokerage services, underwriting of securities, advisory services, mergers, and acquisitions.
Commercial Banks earn profit from the difference between the lending and the deposit interest rates and Investment Banking earns from the charges they levy on the different services they offer. The risk involved in commercial banks is comparatively lower than in investment banks.
There are three types of investment banks based on their size – Bracket banks, Middle market banks, and Boutique banks.
Investment Banking Can Be Divided Mainly Into Four Areas –
- Corporate finance: It involves helping customers raise investment by underwriting and issuing securities. In this case, the investment banker purchases the securities from the issuer and sells them to the investors
- Sales and Trading: It involves buying and selling securities on customers’ behalf, and providing risk-management services. In this case, customers include corporations, institutional investors, hedge funds, and high-net-worth individuals (HNI’s)
- Equity Research: It involves the analysis of stocks to make informed investment decisions in equity. To conclude this analysis, the research includes the study of industry trends and patterns, market forecasts, etc.
- Asset Management: It includes the process of maintenance, upgradation, or disposing of, of assets in a cost-effective manner. This also includes managing the investment portfolios of the customers
- Merger & Acquisitions: It involves providing advisory services for mergers, acquisitions, or even divestments. In this case, the investment banker helps customers to evaluate probable acquirers and negotiate and structure the terms and conditions of the transaction.
Investment banks play a pivotal role in the evolvement of financial markets by providing liquidity, creating financial products, etc. They deal with securities, equities, bonds, and derivatives. They offer research and analysis on industries to help investors make informed decisions.
Organizational Structure of Investment Banks –
The organizational structure of investment banks differs depending on the size, geographical location, etc of the investment bank. The organizational structure of an investment bank is usually classified into three main categories i.e. front, middle, and back office.
- Front Office: It comprises departments like sales and trading, and research. This category is responsible for providing insights and analysis on financial markets, advisory services on mergers and acquisitions, IPO, and other commercial activities, and buying and selling securities on behalf of customers.
- Middle Office: This category supports the front office and includes departments like risk management, compliance, and technology. The role of this category is risk mitigation by identifying risks associated with day-to-day activities, ensuring operational compliance with regulatory requirements, and providing requisite technological infrastructure to support the bank’s activities.
- Back Office: This division is responsible for the operational and administrative functions of the bank and includes departments like finance, human resources, etc. This division is responsible for handling the bank’s securities inventory, financial and accounting reporting, and recruitment, training, and management of the employees.
Additionally, private wealth management or asset management divisions are also part of some investment banks that provide investment guidance and services to HNIs (high-net-worth individuals) and manage portfolios of institutional investors.
Roles and Responsibilities of Investment Bankers –
- Financial Analysis: Examination is done using financial modeling techniques to assess the possible viability and perils connected with a project or investment.
- Business Development: Investment bankers are responsible for creating new business prospects by using the network.
- Deal Execution: Investment bankers are responsible for executing deals related to mergers, acquisitions, underwriting, and fundraising. This involves working with attorneys, accountants, etc to ensure the successful completion of the deal.
- Client Relationship Management: Building and maintaining relationships with the customer is one of the key responsibilities of Investment bankers. Another responsibility is to provide constant support and assistance to the customers and ensure satisfactory services.
Simple steps to follow for a career in Investment Banking:
- Complete 10+2 or HSC with more than 50 percent aggregate from a recognized university
- Get a bachelor’s degree
- For more weightage earn a master’s degree
- Attain relevant certification
- Pursue internship
- Find a job
MBA (Finance) vs CFA vs CA for Investment Banking Fresher Jobs –
Some companies prefer MBA (Masters in Business Administration) candidates, especially for more senior positions. Internships with investment banks, asset management firms, or other financial institutions are appreciated as they provide practical experience. Professional certifications like the Chartered Financial Analyst (CFA), Financial Risk Manager (FRM), and Certified Investment Management Analyst (CIMA) designations are an added advantage.
The postgraduate program by National Stock Exchange (NSE) in investment banking is for Investment Banking Fresher Jobs, the course includes the study of capital markets, banks and financial planning, business analytics, and management accounting is good to have. It takes six to nine months to complete the course and to be eligible for further steps toward a dream job.
A Chartered Financial Analyst (CFA) professional qualification helps candidates pace up their career as an Investment Banker as the course is planned with a focus on investment and wealth management. The subjects offered for study include Economics, corporate finance, derivatives, equity investments, financial reporting, and analysis.
This is a postgraduate program, and the course duration is based on the candidate’s performance. It is a minimum of 1 year and goes up to a maximum of 4 years. Chartered Accountant (CA) is the toughest course. Its main focus is on accounting, taxation, auditing, etc.
Therefore, to become an investment banker, candidates having a degree in MBA (Finance) or CFA are preferred over CA’s.
Types of Investment Bankers –
- A Financial Planner helps individuals and corporations plan for their long-term financial goals after considering budget, risk tolerance, age, and financial and professional status. A financial planner then advises on retirement, tax, insurance planning, etc.
- The Credit Manager has to analyze and evaluate the creditworthiness of customers, to avoid bad debts.
- Certified Management Accountant is knowledgeable in the areas of financial planning, and analysis. They work for varied organizations, NGOs, academic institutions, governments, and MNCs alike.
- The accountant ensures the company’s expenses are in control.
- Financial Advisor creates a plan and helps reduce expenditure, pay off their liability, and save and invest.
- Account Manager maintains relationships with clients.
Designations of Investment Banking Fresher Jobs –
- Intern: Though the freshers work on short-term projects as interns they gain a lot of exposure to the investment banking industry through this opportunity.
- Analyst: Fresh graduate hired by investment banks. Their job is to research and analyze the companies and industries, create financial models, prepare reports, and presentations, and provide support in the working of the bank.
- Associate: Generally, laterals i.e., experienced candidates are hired in this category. They are responsible for handling projects, coordinating with associates from different departments and/or external parties. They are also responsible to oversee the work of the analysts.
The Roles and Responsibilities for Investment Banking Fresher Jobs Are –
- Review and analyze reports
- They perform daily financial calculations and estimate the performance
- Create presentations and proposals
- Issue securities, bonds
- Guide on IPO and issue of securities
- Analyse and assist in mergers and acquisitions
- Ensure compliance and adherence to the governing body
- Guide the financial portfolio
- Undertake dealings in equities, and bonds, for institutional investors
Investment Banking Fresher Jobs, Tips for Aspirants –
- Networking: Building a strong network is essential in the investment banking industry including alumni, instructors, and professionals in the industry. Aspirants should attend career fairs, and events, watch informational interviews, and meet people in the industry.
- Experience: Recruiters prefer candidates who try to gain relevant experience in accounting, finance, or business through internships.
- Degree: Candidates having a degree in finance, or economics, will be favored by the recruiters in comparison to others.
- Resume: It should highlight relevant experience, skills, and accomplishments. One can even make a tailor-made resume for the specific job position.
- Sharp Interview Skills: Aspirants appearing for an Investment Banking interview need to have excellent skills. For that, practicing behavioral and technical questions is also a part of getting ready for the interview. Preparation for the interview also includes researching the company and its products or services.
- Apply for positions: Keep a tab on entry-level open positions by Investment Banking Freshers Jobs, including analyst, associate, and junior positions. Investment banks prefer applicants with strong academics, excellent communication skills, and a flexible approach.
Skills Essential for Fresher Jobs in Investment Banking –
- Academically strong: Candidates having a degree in finance, accounting, economics, or business administration with a good percentile are preferred.
- Analytical skills: Candidates having strong mathematical skills are required for quantitative analysis and are preferred by recruiters. They should be able to study data and perform intricate estimation analyses.
- Communication skills: Strong written and verbal skills are quintessential for Investment bankers as otherwise collaborating with clients and colleagues in clear, concise, simple language that is understandable to the common man will become very difficult.
- Attention to detail: The job of investment bankers involves dealing with complex financial transactions. Candidates should have scrupulous attention to detail as even trivial errors can have a significant impact.
- Teamwork: Working in collaboration with colleagues and clients is essential as they have to successfully close complex deals together.
- Problem-solving skills: The thinking ability should support the nature of the work i.e., solving complex financial problems with critical thinking in a structured and logical manner.
- Hard work: It is a demanding industry that requires dedication and long hours of hard work
- Time management skills: Investment bankers need to be multitaskers to become successful in their careers and thus require time management skills to achieve them.
- Commercial awareness: Identifying opportunities and risks for the clients is easier when the candidate is aware of current market trends and economic conditions;
- Excel skills: Investment bankers should be well-versed in Excel to be able to analyze any financial data and build financial models.
Like any career, there are both pros and cons to pursuing a career in investment banking. Some of them are listed below:
- Professional development: The opportunities available in Investment Banking can lead to rapid professional development. The chance to work on distinguished deals leads to exposure and gain the confidence of senior executives.
- High income: Investment banking is synonymous with high salaries and bonuses. This can significantly increase as the candidate progresses in their career.
- Reusable Skills: The analytical skills attained in Investment Banking Fresher Jobs can be treasured and reprocessed in different industries.
- Dynamic and Rewarding work: Investment banking is stimulating and budding which can be exciting and rewarding.
- High stress: Workload and the pressure to achieve can lead to high levels of stress. This is applicable, particularly to over-ambitious people.
- Work-life balance: This is an evolving field and can demand working for long hours which makes it difficult to maintain a work-life balance.
- Stagnation: The services offered by Investment Bankers are limited hence having variation in the work can be difficult.
- Competition: Growth in this field can become sluggish after a point due to its highly competitive nature.
Job Description for Investment Banking Fresher Jobs –
The below job description is to give a fair idea while preparing for the interview. The candidate can also make changes to the resume, and cover letter accordingly.
- Issue debts and sell equities to raise capital
- Research on investment opportunities
- Assess valuations for customers and higher management
- Provide expertise in mergers and acquisitions
- Assist in IPOs.
- Support in investment and financial planning decisions
- Create presentations for customer portfolios
- Assist to prepare quarterly reports
- Manage client interaction, from the sales pitch to the investment bond
- Conduct research and develop industrial relationships
- Investment Banking Courses
- Investment Banking Courses in Hyderabad
- Investment Banking Course Fees in Mumbai
Investment Banker Qualifications/Skills –
- Strong communication, time management, and networking
- The capability of working in a fast-paced setting
- Knowledge of regulations
- Team oriented
Education and Experience:
- Bachelorette degree in business, finance, economics, or in a similar field
- CFA is a plus
Employment Process –
Common steps in the employment process followed for Investment Banking Fresher Jobs:
- Apply online: Candidates need to apply online. They must also attach their resume, cover letter, mark sheets, certificates, and the online application.
- Test: Investment banks can arrange for aptitude tests which include assessments based on numerical, verbal, and logical reasoning.
- Assessment: Candidates are required to attend and clear group discussions based on case studies at the designated assessment center.
- Interview: Candidates clearing the test and assessment are invited for an interview round with an HR representative.
- Final interview: Candidates are then invited to a final round of interviews with senior management.
The candidates should be prepared with information about the organization, its business goals, leadership, vision, etc, they are going for the interview. It is also important to research the existing and also probable competitors. Below listed are some interview questions that can be asked in Investment Banking Fresher Jobs and the probable answers which the candidate can elaborate further –
Why investment banking, what interests you in this field?
Answer: Finance helps in shaping the economy. Investment banking raises capital by making strategic business decisions. Opportunity to work and learn from talented professionals and contribute to the success of the firm.
Why do you think, makes you suitable for this job profile?
Answer: Strong analytical skills and a good understanding of finance and mathematics. Fair experience gained from internships and efficient communication skills.
How do you keep yourself conversant with current developments in this field?
Answer: Regular subscription to read financial news publications, such as the Wall Street Journal, The Economist, Money, or Forbes helps to stay updated on current industry developments. Attending events and conferences. Follow mentors and experts in the field on social media.
How is the financial statement analysis conducted?
Answer: Analysis of income statement, balance sheet, and cash flow statement to assess organizations’ economic health. Evaluate financial ratios, for comparative study with competitors. Make recommendations.
What do you think are the challenges faced by the investment banking sector?
Answer: Challenges in the Investment Banking sector can be described as the three C’s – Competition, Compliance, and Changes in the Economy. Competition is the biggest challenge, followed by adherence to compliance, and the impact of changes in the economy on growth. Though, these challenges can also work as a push for innovative ideas.
Why do you wish to work in the investment banking sector?
Answer: It’s a highly in-demand and ever-evolving sector.
Which important qualities make up for a successful career in investment banking?
Answer: Analytical, Time Management, Communication skills, and teamwork are a few of the important qualities required for Investment Banking Fresher Jobs.
Top Recruiters –
Goldman Sachs: It is one of the chief investment banks in the world. They recruit the topmost talent. They recruit freshers based on academics and performance in the internship.
JPMorgan Chase: It is one of the largest investment banks in the world and has a strong standing as they recruit trainees, freshers, etc.
Morgan Stanley: It is an international investment bank that is known for recruiting freshers for several roles.
Citi: This investment bank is known for its proficiency in mergers and acquisitions, equity, debt markets, and other financial services. With its strong presence across, it is known for recruiting freshers.
Bank of America Merrill Lynch: One more global investment bank providing a variety of financial services and is also known for recruiting freshers.
Credit Suisse: It is known for providing services in wealth management, investment banking, other financial services, and opportunities for freshers.
Deutsche Bank: It provides extensive financial, hedge funds, venture capital, and asset management services to clients around the world and also recruits freshers for various roles in investment banking.
UBS: Based in Switzerland and is known for services in wealth management, investment banking, other financial services, and opportunities for freshers.
Barclays: It provides a range of financial services and is also known for generating opportunities for freshers for various roles in investment banking.
HSBC: HSBC is a global bank that provides a range of financial services, including investment banking, and also recruits freshers.
FAQs: Investment Banking Fresher Jobs
Which is the best Investment Bank in the world?
Goldman Sachs is 150 years old and the most prestigious investment bank in the world.
Which country is the best for Investment Banking?
The United States of America is the best for Investment Banking and New York is the global financial hub.
What are the 3 functions of investment banks?
The roles of investment banks include endorsing IPO (Initial Public Offering) or new issues, supervising mergers and acquisitions, and acting as financial advisors.
What are the 4 divisions of investment banking?
An investment bank’s front office comprises mainly 4 divisions including Investment Banking or Corporate Finance, Sales and Trading, Equity Research, and Asset Management.
What is the salary range in investment banking?
Investment Banking Fresher Jobs Salary in India starts from ₹ 2.5 Lakhs and goes up to ₹ 30 Lakhs as per experience with an average annual salary of ₹ 5.0 Lakhs.
Do you want to help beat inflation and assist in comprehending the options available to do so, with the help of your knowledge and skills? Applying to Investment Banking Fresher Jobs and making a career in it can be rewarding and challenging then. By building skills, and networks to get into internships and gain experience, the chance of getting selected for the dream job increases manifold. Finance and business graduates, the most coveted career in Investment Banking await you!