Top 5 Investment Banking Operations Courses

If you are someone, who is looking for a career with immense earning potential, then you must go with the Investment banking operations courses. Nowadays many people aspire to become Investment Bankers, but if you don’t know how and where to start, this article is for you. Read the rest of this article to understand better the concept of Investment banking, the Courses, the Career, the best institute, the salary, the top recruiters, and the skills required if Investment banking is your career choice.

What Is Investment Banking?

Before we explore more about the Investment banking operations courses, we first need to know what Investment Banking is. To put it in layman’s terms, Investment banking is a type of banking that assists large and complex financial transactions such as mergers, helping Initial Public offerings(IPO), Underwriting, brokering new trade, and so on.

These banks help entities such as Corporate, municipalities, corporations, and other institutions raise capital through underwriting or issuing securities or a combination of both. Investment Banks act as an intermediary between two parties and help the new firm to go public.

They either buy all the shares from the company and resell them at the estimated price fixed by the bank or sell them on behalf of the company and take the commission for each share. 

Example of Investment Banking:

For example, Cents & Pent Co., a fashion brand wants to go public. So the owner of Cents & Pent Siddhu contacted Dina, an investment banker of a familiar Investment banking firm. Siddhu and Dina made a deal for 10,000 shares of Cents & Pent company at the price of ₹24 per share, which the bank has arrived at after research. 

The investment bank pays ₹2,40,000 to the owner of Cents & Pent for 10,000 shares. After getting the paperwork done, banks sell the Stocks for ₹26 per share. However the bank is not allowed to sell more than 20% of the Stocks at this price, they have to reduce the price forcefully to sell the remaining Stocks.

So the price fixed for the remaining Stock is ₹23. Finally, at this IPO deal, the bank has made [(26*2000)+(23*8000)]= [ ₹52000+ ₹1,84,000]=  ₹2,36,000. In this deal, the bank paid Siddhus’ firm ₹2,40,000 but they made only ₹2,36,000 after selling all the stocks. So Investment bank has lost ₹4,000 because of the wrong estimation value of Cents & Pent shares.

Commonly, Investment Banks will strive to secure their IPO projects from their competitors, Which makes them increase the price to steal the deal from the competitor banks. Because of the intense competition banks may sometimes end up in loss to secure their projects.

What Is an Initial Public Offering (IPO)?

Initial public offering refers to the process where private companies plan to sell their stake to the public, to raise their equity from the investors. This process helps the private company to become public to the people. This also helps smart investors to earn a good attractive return on their investments. Not all the IPO will end up in a great deal. Both benefits and risks will sail in the same boat. It is important to know about the basics and types of IPO.

Types Of IPO:

There are commonly two types of IPO. They are

1. Fixed Price Issue:

Under Fixed-Price IPO, the company decides the initial sale value of their shares with the help of the Underwriter. They evaluate the companies’ assets, liabilities, and every financial aspect. After working on these figures, the company fixes a price for their initial offering. Usually during an IPO, the company fixes a low price for their offerings so that investors are very interested in buying it which ultimately gives value to the company.

2. Book Building Issue:

It is worth noting that the idea of book-building is fairly new in India. Instead of a set cost offer, a book-building issue has an expense band or scope. The last and most noteworthy costs are referred to as ‘floor price’ and ‘top cost’ separately. You can offer the offers at whatever cost you need to pay.

Afterward, the stock cost is settled after evaluating the offers. The interest for a share is known consistently as the book is fabricated. An IPO can be either a fixed-price issue, a book issue, or both combined.

Comparison Between Fixed Price and Book Building Issues:

1. Price:

The price of a stock is decided when it is put up for sale in the case of a fixed-cost offering, and this information can be found in the order form. For an issue that uses book building, only an approximate cost range is initially determined; the exact expense per share isn’t finalized until after all bids have been collected and evaluated.

2. Demand: 

In comparison to a fixed price issue, with a book-building issue, the demand for shares can be gauged daily, whereas the demand for shares in a fixed price issue cannot be determined until after the issue has been finalized.

3. Payment: 

For a fixed price issue, you must pay the complete amount for the stock when putting in your offer, while with book-building issues, payment can be made once the shares have been distributed.

About Becoming an Investment Banker:

1. Clear class 12 board exams:

You need basic education as a foundation before you can start the Investment Banking Operations Courses. Candidates who are passionate about the Courses should complete their higher secondary (10+2) education with a minimum aggregate of 50%.

Candidates can choose their stream of arts, science, or commerce. Therefore, those who are looking to pursue a career in finance should consider taking up these subjects to gain a comprehensive understanding of the financial world.

2. Bachelor’s and Master’s degrees in a suitable subject:

An undergraduate degree is required to gain access to a career with an investment bank. Studying for a Bachelor of Commerce (B.Com), Bachelor of Arts (B.A.) in Finance, B.A. Economics; or a BBA Finance degree are great choices if someone wants to become an investment banker.

A 2-year Master of Business Administration (MBA) in Financial Management is a required Master’s degree. Furthermore, a Master of Science (MS) in Finance can also be pursued by candidates seeking to become an Investment Banker. The National Stock Exchange (NSE) Academy also provides some post-graduate programs in investment banking and capital markets, banking and financial planning, business analysis, and management accounting.

3. Achieve your certification: 

Those looking to enhance their career prospects as an Investment Banker can benefit from obtaining the Chartered Financial Analyst (CFA) professional certification. This program offers comprehensive and pragmatic investment and financial instruction.

Possibilities for study include economics, corporate finance, derivatives, equity investments, alternative investments, financial reporting and analysis, and quantitative approaches. After finishing their bachelor’s degree, those interested can apply fo Investment Banking Operations Courses which usually take between one to four years to complete.

4. Seek out investment banking internships: 

Internships in investment banking Operations Courses are available through job boards like Indeed, bank websites, university recruitment programs, networking contacts, and recruitment firms.

These internships can last anywhere from two months to two years. During this time, interns can build their communication and presentation skills while also obtaining financial training. If they do well during the internship period, then they may be offered a full-time role as an investment banker.

5. Get a Job: 

You may secure employment after your internship either through a campus job interview or by submitting applications to investment banks and financial advisory firms. To do well in the interview, make sure you are familiar with the basic principles of finance, financial modeling, and private equity.

6. Grow professionally: 

By taking part in training and certification programs supported by your employer, you can maintain a high level of knowledge about investment banking. You will be able to acquire new abilities, keep up with industry trends, build relationships with influential people in the field, and gain more experience with corporate finance and investments. All of this will help you move forward into higher-level managerial positions.

Also Read:

• Investment Banking Skills
• Investment Banking Freshers Jobs
• Investment Banking Career

Investment Banking Operation Courses:

There are some commonly offered Investment Banking Operations courses for students to become Investment Bankers. 

1. Bachelor of Commerce (B.Com): 

This is a 3-year undergraduate program in the field of commerce which includes Taxation, Accounting, Economics, Investment, Finacial management, and so on. 

2. BBA Finance: 

This is also a 3-year Undergraduate program intended to impart practical and theoretical knowledge to students of various financial components such as investment, insurance, etc. This course, braces graduates for successful entry-level in finance and business. It covers subjects such as Basic Accounting, Business Law, Direct and Indirect Taxes, and Business Statistics.

3. MBA Financial Management:

MBA Financial Management is a 2-year post-graduate course aimed at producing qualified professionals for management and related roles in the investment and finance industry. In this course, students learn how to analyze business relationships, anticipate economic drift, take measures to maximize the value of equities, choose investment portfolios, and balance risk and profitability. 

4. CFA(Chartered Financial Analyst):

The CFA Program is a three-level exam that is intended to offer the fundamentals of investment tools, valuing assets, portfolio management, and security analysis. This program is important and accepted as a high-level qualification in nearly 165 countries. 

The CFA course is a global standard for anyone with a financial background. Upon completion of this course will show your mastery in the financial sectors. There are some important sets of skills required for CFA.

1. Financial Modeling and analysis
2. Decision Making
3. Problem-Solving
4. Time Management
5. Communication

5. Chartered Accountant(CA):

Chartered accountancy is one of the most popular career decisions in India. Getting into this profession can be challenging, but those who manage to do so will find it offers a rewarding career path with competitive salaries and high levels of respect.

The main reason why chartered accountants are very popular among people is not only for the pay but because it is more difficult to crack it. The main reason why a Chartered accountant is a good career choice is, it is a well-paid and secured profession.

The Business runs on money also they need someone to audit their finance and helps in filing taxes. Therefore having a chartered accountant for their Business is the primary solution. The opportunity for the chartered accountant to work is unending.

The areas where a Chartered accountant has the scope of work are

1. Chartered Accountant Firms
2. Corporate Finance
3. Financial Institutions
4. Forensic Audit
5. Independent Practice

There are some Certified Investment Banking Operations Courses that you can pursue after your graduation in Commerce, Finance, or Business Management. Here is the top list of institutions where you can undertake the course.

Rank #1. Investment Banking Operations Courses

1. Imarticus– Certified Investment Banking Operations Course

You can earn a certificate from Imarticus, endorsed by the London Stock Exchange Academy. This one of the Investment Banking Operations Courses is best for those who want to begin their career in Investment  Banking with none or less than three of experience.

They give an assured placement interview after the successful completion of the course. They offer both Offline and Online classes for this course. You will get high-quality and Industry-specific education through this course. 

Rank #2. Investment Banking Operations Courses

2. Data Trained– Post Graduate Certificate Program in Investment Banking

Their Investment Banking Operations courses are given by Data Trained in collaboration with London Governance and Compliance Academy(LGCA). This is one of the current trending programs on Investment Banking designed as per the industry needs.

This is a six-month certification course that will have both live and recorded sessions also weekend classes available for working professionals. They give 100% placement assistance also they will make you ready to mark a name for yourself in the industry. 

Rank #3. Investment Banking Operations Courses

3. The WallStreet School:

The WallStreet School is a specialized training establishment in the field of Investment Banking, Financial Modeling, Microsoft Excel, equity research, and Capital market. Investment bankers and industry experts have designed these Investment Banking Operations Courses to bridge the gap between theoretical concepts learned during academic degrees/diplomas and their practical application in the workplace. They provide 100% placement assistance to candidates who have completed their training program.

Rank #4. Investment Banking Operations Courses

4. EduBridge– Advanced Certification Program in Investment Banking Operations Course

Their Investment Banking Operations Courses are designed for those seeking expertise in investment banking roles and responsibilities, this course covers security valuation and asset management of equity, debt, and other derivative instruments. It equips students with the necessary skills to meet specified investment goals for the advantage of corporations and investors. 

They provide a 110% job placement guarantee, you can be assured that you’ll land your dream job and move forward with your career.

Rank #5. Investment Banking Operations Courses

5. NSE– PGCM (Post Graduate Certificate in Management) in Investment Banking

SDM Institute for Management Development (SDMIMD) offers a Post Graduate Certificate in Management (PGCM), an approved program of the All India Council for Technical Education (AICTE) under the Government of India. The one-year program is designed for individuals seeking career advancement or establishing their businesses.

All specializations have Core Courses which are the same in both Term 1 and 2. The PGCM program has been structured into 4 terms that are each expected to last for about 3 months. Students who complete the course will be awarded the esteemed NSE certification in Investment Banking and PGCM from SDMIMD.

Also, Check:

• Investment Banking Courses in India
• Investment Banking Courses in Delhi
• Investment Banking Courses in Mumbai
• Investment Banking Courses in Hyderabad

Skills Required for Investment Banker:

However, getting into this career is wholly based on competence and you need some set of skills to become an investment banker.

• Analytical Skills – The skills of data analysis, research, critical thinking, and problem-solving.
• Calculative Skills – To be successful in investment banking, you need to be able to quickly calculate and analyze data, as well as have an understanding of complex financial regulations.
• Leadership Quality – Leadership quality is the ability of an individual to influence and guide a group of people in an organization.
• IT Skills – When it comes to IT Skills IB should know Excel, SQL, Powerpoint, and ERP.
• Finance Knowledge – Financial Knowledge such as creating P&L statements, balance sheets, and other financial skills.
• Good Communication Skills – In addition to hard skills, IB also needs some soft skills such as communication and interpersonal skills. 
• Good in Team Work – Listening to others and helping the other mates when they need extra support.

Investment Banking Career in India:

An investment banker’s career is one of predictable evolution. There is some hierarchy of job roles followed in Investment Banking,

Analyst: 

Candidates who have just completed their graduation can become an Analyst. They are on the first level of the hierarchy and do the basic jobs such as preparing presentations, analyzing things, reporting, and administration.

Investment Banker Associate: 

They develop marketing materials and present financial data while performing valuation assessments, supervising the formation and implementation of client deals, and initiating strategic financial operations to maximize profits for their business.

Ensure that customers are satisfied with the service. Follow up with customers to ensure they are happy with the service they have received. Act immediately to address any customer concerns.

Vice President:

They are expected to make independent decisions, be proactive, and take initiative. VP has to manage the work given between the Analyst and Associate. They have to speak up with the clients, potential buyers, sellers, and investors. The most important role of the VP is to develop a strong lasting relationship with the clients and the other bankers. 

Senior Vice President:

The senior vice president is sometimes called Executive Director or Principal. They have to set Business goals and solve the internal issue when needed by the associate and analyst. They have to monitor employee activities and performance to ensure that they are following proper procedures and regulations. 

Managing Director: 

Becoming an MD is not very easy it takes lots of time and a bit of luck too. The Managing Director must know what happens in and out of the organization. Only in the most important cases, Managing director will take active participation. In some cases, he has the power to appoint an eligible VP and Senior VP.                          

Rolewise Salary of an Investment Banker: 

Top Recruiters of Investment Banking in India:

• Axis Capital Limited:

Axis Capital Ltd, established in 2005, is a leading Indian provider of equity capital markets and boutique services. Headquartered in Mumbai, the holding company of Axis Bank offers a wide array of services. This is one of India’s largest investment banks which provides a huge salary package.

• ICICI Securities Limited:

ICICI Bank was Constituted in 1995, Since then ICICI has been India’s leading private investment bank with its headquarters located in Mumbai. It provides world-class services in Investment Banking, Wealth management, and financial distribution to its customers.

• Goldman Sachs:

Goldman Sachs is the world’s most renowned and well-respected investment bank located in New York City, USA, and is renowned for its commitment to providing their clients with the best possible service. With over 30,000 employees and a continued drive to hire more staff, they are dedicated to delivering excellence in everything they do.

• JP Morgan Chase:

JP Morgan is also the most renowned investment banking in the world with its headquarters in New York City, USA also its Indian office is located in Mumbai. In the beginning, they used to provide service to commercial banking, later on, they expanded their services to become the top Investment banking in India and worldwide.

• Morgan Stanley:

It is one of the largest financial institutions in the world, providing a wide range of services, including asset management, underwriting, mergers and acquisitions, and wealth management. It has over 60,000 employees and serves more than 3 million clients. Morgan is located in both Mumbai and Banglore in India.

Frequently Asked Questions (FAQ): 

1. Is Investment banking in demand?

Ans: Yes, they are so high in demand because their advice has the potential to affect the global economy, which makes them invaluable. 

2. Is Investment banking a high-paying job?

Ans: It’s a big yes. Investment banking job is one of the highest-paying occupations in the world. According to recent research,  an investment banker in India is earning an average of ₹12, 21,707 per year.

3. What will be the major responsibility of the investment banker?

Ans: The major responsibility is to raise the capital of the business or individuals by selling their equity also they have to ensure the safety of the investor’s funds. They have to conduct research and assist in preparing documents related to the transactions.

4. Is there any scholarship program for students studying overseas to become Investment bankers?

Ans: Many countries offer scholarships to deserving students, providing financial assistance that can cover everything from living expenses to supplementary stipends. To be eligible for these scholarships, applicants must meet the necessary conditions and criteria.

The Bottom Line

To make yourself a more attractive candidate, obtaining either a CFA or MBA will provide the in-depth knowledge and experience necessary to enter the field of Investment Banking. You can also go for Certification courses on financial modeling, Capital market, research analysis, and so on. Wishing you all the best for those who want to pursue Investment Banking. 

Happy Learning!!

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