CAREER IN INVESTMENT BANKING

PRESENTED BY:-

NAME-TAPAS KUMAR DAS

ROLL NO-54

MBA 1st SEMISTER

CONTENTS

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What is Investment Banking?Structure of Investment BanksPotential Jobs in the Investments IndustryWhat are the skills gained as an Investment Banker?How to Prepare for a Career in Investment BankingRequirements for investment bankerWhy to prefer Investment Banking?List of colleges offering Investment BankingList of Courses offered in Investment BankingCONCLUSION

What is Investment Banking ?

A specific division of banking related to the creation of capital for other companies. Investment banks underwrite new debt and equity securities for all types of corporations. Investment banks also provide guidance to issuers regarding the issue and placement of stock.

These are the major trading house of a huge variety of financial instruments.

In addition to the services listed above, investment banks also aid in the sale of securities in some instances. They also help to facilitate mergers and acquisitions, reorganizations and broker trades for both institutions and private investors. They can also trade securities for their own accounts.

Structure of Investment Banks

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Investment Bank Investment Bank

I-Banking Division (IBD)

I-Banking Division (IBD) ResearchResearchSales &

TradingSales &Trading

Asset Management

Asset Management

•Private Client Services• Work with HighNet Worth Individuals

Industry GroupsCorporate FinanceProduct GroupsDebt Capital MarketsEquity Capital Markets

•Buy and Sell Financial Securities and Derivatives

•Analyze allPublic information in order to give advice to investors and sales and trading group

• Security Analysts• Foreign Exchange trader• Bank Manager• Financial Analysts• Financial Advisor• Research Analysts• Investment Banking Analysts• Sales Manager Debt market analyst• Equity market analyst• Mergers and Acquisitions Industry Analyst• Consumer products, telecommunications, real estate, finance, etc.

Potential Jobs in Investment Banking &Career options in India

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• What are the different types of analyst positions?– Analysts position vary depending on who they are doing

research for, i.e., sell-side versus buy-side research• What are sell-side analysts?

– Analysts whose work is used for selling securities to investors, i.e. Research, Sales and Trading, etc. Analysts prepare the research for potential investors in the hope that investors will buy and sell companies through the I-bank

• What are buy-side analysts?– Analysts whose work is used in the process of buying

securities for specific portfolios, i.e. Asset Management, Private Wealth Management, etc. Analysts prepare the research and then act on that research to buy companies. 6

CONTINUE…..CONTINUE…..

Financial modeling and strong quantitative work

Solid Understanding of Corporate Capital Structure &

Capital Markets

Solid understanding of companies and industry

composition and structure

Professional presentation analysis

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What are the skills gained as an

INVESTMENT BANKER?

How to Prepare for a Career in Investment Banking

Understand the industry, the positions, and the lifestyle◦ This is a wonderful but crazy industry.◦ Are you suited for the lifestyle—very long hours.

Start building your contacts◦ Meet with as many of the visiting speakers as possible.

Do well in your classes ◦ A strong concept is important.◦ Have a good financial analysis project to leave with

potential employers as an example of your best work.◦ Look to beginning your CFA program◦ It is looked on highly in the industry

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Requirements for investment banker

Skills Intelligence Ability to learn quickly Analytical ability Precision and accuracy in work Strong interpersonal skills Creativity

Personality Energetic, hardworking Outgoing, personable Self-motivated, tenacious Reliable Mature, committed

ChallengesBenefits

• “Everyday is different”

• Exposure to senior management

• Steep learning curve

• Work with talented and

motivated people

• Gain a strong background in

financial analysis

• Help execute exciting, landmark

transactions

• Networking

Why to prefer Investment Banking?

• Long and unpredictable hours

• Traveling

• Demanding senior bankers

• High stress/pressure

environment

• Job security/Economic

environment

List of colleges offering Investment Banking

• Institute of Chartered Financial Analysts of India University (ICFAI) (Tripura)

• Indian Institute of Banking & Finance (IIBF)• IIPM, New Delhi• The School of Investment Banking (SIB)

– Xavier Institute of Management - Bhubaneswar– S.P.Jain Institute of Management & Reaserch - Mumbai– Veer Narmad South Gujarat University– Mount Caramel Business School - New Delhi– Planman Centre for Higher Education (CHE), Delhi

• Chennai Business School, Chennai

List of Courses offered in Investment Banking:

Diploma in Investment Banking and Equity Research.

MBA in Investment Banking.

PG Programme in Security Analysis, Portfolio Management &

Investment Banking.

UG Programme in Security Analysis, Portfolio Management &

Investment Banking.

BA in Finance & Investment Banking.

PG Diploma in Banking & Finance.

Post Graduate Diploma in Investment & Business Research.

Post Graduate Diploma in Global Investment.

Major recruiters of investment bank

The ten largest investment banks as of December 31, 2013, are as follows (by total fees from all advisory). The list is just a ranking of the advisory arm of each bank and does not include the generally much larger portion of revenues from sales and trading and asset management.

RANK COMPANY NAME FEES IN ($M)

1 J.P. Morgan & co. 6,271.74

2 Bank of America Merrill Lynch

5,685.59

3 Goldman sachs 5,053.21

4 Morgan stanley 4,452.88

5 Citi group 3,952.09

6 Duetsche bank 3,616.12

7 Credit suisse 3,545.45

8 Barclays 3,454.73

9 Wells fargo 2,277.88

10 RBC capital markets 2,041.80

Top 10 banks

Career prospects

• Having a career in investment banking is really awesome. The best part of this field is that it offers best pay package and benefits. It offers a platform for young professionals to progress in the banking industry.

• One area of investment banking, namely corporate finance is an emerging area that attracts a lot of people both fresh graduates and those who are already there in the banking sectors This area of banking is very competitive and the most experienced professionals are likely to get higher paid jobs.

Remuneration earned by an investment banker

• The freshers or less experienced professionals will be able to earn anywhere between Rs 20,000 to Rs 30,000 per month. Young MBAs from reputed colleges and institutes can expect to earn around Rs 9 lakhs per annum. A professional with an experience of about say 5-6 years, can earn Rs 12 lakh-1 crore per annum depending on the firm one works for.

• As an investment banker moves forward throughout his career and becomes involved in many projects, he or she becomes able to quickly apply industry norms, forecasts, typical performance benchmarks and trends.

CONCLUSION

• Many of these jobs require individuals to work extremely long hours but the compensation can be tremendous. Because of the potentially large paydays, competition for these jobs is fierce and it can be difficult for many individuals to break into the profession. However, even though many investment bankers come to their career from a prestigious university and eventually get an MBA as well, that does not mean that there are not exceptions. If you are committed to working as an investment banker and believe that you have the prerequisite skills, you should explore these careers in greater depth regardless of your background.

CONCLUSION• Investment banking as a career is very challenging,

exciting and promising. There are many institutes in India which offer Investment banking programmes in India. The field is a very challenging. These institutes offer programmes in investment banking at undergraduate and postgraduate level. Investment banking is very vast field and offers various services like providing advisory services, trading securities, selling and underwriting securities for companies, individual and governments. There are many colleges and institutes which offer diploma, certificate course also.

THANK U ALL THANK U ALL FOR YOUR FOR YOUR

ATTENTION!!!ATTENTION!!!