The dream of acquiring an investment banking job is seen by every finance enthusiast, as a matter of fact, by many others who are not necessarily huge fans of dealing with financial affairs, but, are highly inclined towards the fancy professional and personal lives that investment bankers get to lead as a result of their fancy job.
In this article, there is going to be a discussion on what investment banking is all about, the eagerness of people for owning an investment banking career and what it actually takes to make a career in investment banking.
The Investment Banking World
The investment banking division belonging to an investment bank assists corporations, institutions as well as governments in raising capital along with completing mergers and acquisitions (M&A). It is one of the most demanding jobs in the realm of finance where analysts are usually seen working for not less than 80-90 hours a week. Also, the competition is fierce which is an obvious add on to the stress levels, however, the exorbitant salary packages make up for it. It is a well-known fact that an investment banking job is high-profile, but, to achieve that, one has to slog day and night for handling intense, challenging work.
The Personality Traits of an Investment Banking Professional
There are certain personality traits that one must possess in order to justify the position of an associate or analyst in the Investment Banking Division.
• Incredibly ambitious
• Fine behavior and polished
• Detail oriented
The Route to Entering Investment Banking
The two essential positions earned by beginners are analyst and associate.
The Analyst role is considered as an entry-level job that is mostly filled by people who pursue undergraduate programs from top schools and universities. As per the customs in the Investment Banking domain, analysts hold their positions for approximately two to three years before they are given the opportunity to obtain a higher-ranking post.
The Associate designation is one notch above analyst, so to earn it, one has to on a master’s degree from a reputed B-school. It is possible for an analyst to acquire the associate position, however, it shall require him/her to burn the midnight oil and exhibit their worth by tackling with grunt work relating to financial modeling alongside making presentations.
Remunerations in Investment Banking
Below, you will find a list of the salaries that are being paid in the Investment Banking dominion. One thing you have to keep in mind is that the compensations structures range on the basis of the standard and location of the Investment Bank.
• Analysts earn somewhere around $100,000-$150,000
• Associates can fetch as much as $150,000-$300,000
• VPs and Directors receive salaries that come up to $300,000-$1,000,000+
The Path to Building an Investment Banking Career
Pursuing Certifications programs in Investment Banking is a suitable way to go about for earning a prosperous career in Investment Banking
The basic prerequisites to a job in Investment Banking would be a thorough understanding of accounting and financial modeling. Further, a crash course in excel should also be helpful in clearing your fundamentals on functions, shortcuts, and formulas.