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Every one of us wants our funds to be in secure hands, in addition to fetching the finest of returns through any type of investment. Not many of us have adequate time to personally go through and comprehend each and every aspect of investing. This situation calls for seeking help from a professional to make the investment decisions for us. An investment banker comes handy in such situations, with exposure to various aspects of financial investments.
Investment banker
An investment banker is a person who is either an agent or an underwriter acting as a liaison between the investor and the issuer of new securities such as municipalities and corporations that issue the securities. An investment banker along with other investment bankers forms a syndicate and buys the new securities issued totally and later sells it to either organizations or individuals.
The job of an investment banker is very interesting and with the right kind of knowledge and smartness, investment bankers can reach the road to success.
- The foremost job of an investment banker is to interact with the client and advice him on the various aspects of investing.
- They help organizations in bringing out bonds and securities and selling the same to the general public by acting as mediators in between the organization and the general public.
- They help organizations by working out strategies on takeovers and acquisitions.
- Their proficiency in financial analysis and strong economics background along with strategic skills helps them develop into the best financial guides for their clients by planning and executing prudent financial decisions for them.
- They prepare financial analysis and documents to support both clients and organizations that seek their help.
- They work with institutions that lend money to clients by reforming debt plans, refinancing debts and raising fresh debts.
- They work with clients for equity capital markets by giving them the guidance on how to raise the capital and from where and when.
Investment banker training
Two years of MBA, specializing in the stream of finance after completing college is the requirement to be an investment banker. Additional qualification in the field of accountancy and law is an added advantage. Candidates once recruited are given on-the-job training and specialized training in any particular field if they have been recruited specifically.
Holding a professional qualification, such as a specialization from the Chartered Institute of Bankers, The Institute of Chartered Secretaries and Administrators or from any Financial Services Authority can add an edge to the profession of investment banker. These institutes conduct courses and qualifying examinations in investment or securities business. There are firms that encourage their employees to take up such courses during the day by giving them some time off.
- People start their career as trainees and later get absorbed as analysts and stay in that slot for a minimum of three years.
- After gaining sufficient experience, they become fund managers at associate levels.
- They get promoted as vice presidents in another three years time, depending on their skills and contribution.
- Successful investment bankers get to travel extensively around the world for official dealings.
Skills for an investment banker
- Strong numerical and analytical skills.
- Consummate oral and written communication skills.
- Keep updated with current market trends
- Skillful negotiator
- Team player
- Maintaining effective operational relations with clients.
- Performance under pressure
Remuneration of an investment banker
Remuneration is attractive and as recruits climb the ladder of success into higher categories, they get paid better. Usually the number of hours in work is much more when compared to other fields. Recruits are encouraged by way of bonus that is paid annually i.e. remuneration based on the performance of the recruit or profit made by the firm is shared among employees.
Investment banking is a market driven field of work and thus is primarily governed by the market scenario. Few things that influence the prospects of an investment banker are
- Global economy, markets are the key to this job and when markets are suffering so does the job prospect of an investment banker.
- Enviable salaries and smart incentives have stamped a competitive edge to this area of work and thus job seekers in this field are more than the jobs themselves.
Investment Banker Prospects
Investment banking is a market driven field of work and thus is primarily governed by the market scenario. Few things that influence the prospects of an investment banker are
- Global economy, markets are the key to this job and when markets are suffering so does the job prospect of an investment banker.
- Enviable salaries and smart incentives have stamped a competitive edge to this area of work and thus job seekers in this field are more than the jobs themselves.
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