Investment Banking

A Guide To The Types Of Investment Banking Analyst Jobs

At present, Investment Banking analyst jobs are one of the top-paid career options in India. In succinct, an investment banking analyst finds competent investors and facilitates raising essential capital for the business. They act as a liaison between companies looking for potential investors and capitalists looking for a lucrative venture. The imperative responsibility of an analyst is to look for the right room for investments that grow the business and augment its revenue. They also review a portfolio of the company and analyze their performance in stocks for a certain period of time for their client helping them to invest in a profitable business. 

 

They watch the stock market to present a general report on the market. They create a database of investments for the company that helps them create presentations to propose various business opportunities. They monitor the merger of companies and research about the companies. Investment banking analysts also help make financial and legal documents for the business. They are involved in making decisions on the company’s merger or acquisition process and oversee IPOs and private equity funds.

 

How to Become an Investment Banking Analyst?

Aspirants with a staple knowledge and keen interest in departments like finance, accounting, statistics, and economics can pursue their career as an Investment Banking Analyst. Graduation in finance-related subjects or Business Administration is a must-have criterion for one applying for Investment Banking Analyst Jobs. The below listed are the primary means to be an Investment Banking Analyst.

  • Like any other candidate who wishes to pursue a finance-based career investment banking analysts must also choose Commerce Group in +2.
  • Under-graduation courses like BBA Finance, BSC Finance, BCom Finance, BCom in Banking & Finance, and BBA in Finance and Accounts can be considered by the candidates completing +2.
  • Master courses in finance are 2-year degrees that provide unfathomable subject matter knowledge. A few courses like MCom Finance, MBA Finance, MCom Financial Management, MCom Finance and Controls, MCom Banking and Finance, and MCom Accounting and Finance will have incremental value in search of Investment Banking Analyst Jobs.
  • IIT JAM and UGC NET entrance examinations can also be taken to proceed doctorate further.
  • Management entrance exams for both under-graduates and post-graduates as SET, DU JAT, CUCET, and IPU CET have to be cleared to get through the Ivy League institutions.
  • Candidates with an MBA graduation in finance will help them get placed in good companies. An advantage of having an MBA helps candidates get placed in higher positions in top companies.
  • Aspirants are also opting for CFA (Chartered Financial Analyst), as this gives a broad perspective on finance and analysis.
  • Financial Modelling is a major knowledge that can be acquired by one who wants to have a sound career in Financial Banking Analysis.

 

Courses Relevant to Investment Banking Analysis

There are a plethora of courses available relevant to Investment banking analysis both online and offline. This ranges from undergraduate degrees to specialized courses hand-picked by aspirants following their post-graduation. The expertise of the candidates is determined by the primary parameters of the course that follows.

 

The objective of the course – The Curriculum of the course irrespective of under graduation, post-graduation, or even any certification course adds value to their profile and hands-on subject matter knowledge.

Scope of the Course – This decides what one can do after completion of any courses that aid in getting investment banking analyst jobs

Institutions – The institute students choose always be of immense importance as every institution has its own curriculum, mentors, and companies they associate with for placements.

 

Important Skills to Become an Investment Banking Analyst

Financial Modeling is one of the indispensable aspects of an Investment Banking Analyst. Various Universities in India and Overseas provide advanced courses in Financial Modeling as a post-graduation program.

 

Financial Modelling

It is a basic number presentation of any business’s past, present, and future. They are made with the intention of aiding in decision-making. It outlines all the existing revenues the business generated and respective expenses incurred. One will be able to answer the following questions with Financial Modeling

  1. What is the Net Present Value (NPV) of any business?
  2. What will be the profitability of any new venture?
  3. What will be the opportunities and risks of business?

 

Financial Modelling is used for below purposes

  • Valuation – It helps in estimating the company’s valuation which includes its investments, assets, or bonds.
  • ForecastingForecast of the business such as revenue, expense, and cash flow.
  • Budgeting – Financial Modeling helps in the allocation of budgets to the respective fields and projects.
  • Informed Decision-Making – It allows businesses to make better financial decisions by analyzing market changes and regulations.
  • Risk Minimization – It helps in evaluating and managing the risk in business and provides the respective solutions for the issues.

 

Types of Financial Modeling

There are various types of Financial Models and below are a few major types.

Statement Model – As the name suggests this model involves statements and documents of paper like balance sheets, revenue, and cash flow. The income statement shows the revenues and profits, the Balance sheet includes assets, liabilities, and equities and the cash flow statement of the company shows the inflow and outflow of cash.

Discounted Cash Flow – This is the process of estimating a company’s value based on the forecasting cash flow. DCF is used in determining the present value of anticipated cash flows in the future using a rate of discount. This evaluation of the current value of the company determines the future cash flow of the project and helps to make decisions on the cash flow.

M&A – This is also called the merger model, which evaluates the financial mergers and acquisitions of the business. It also helps in evaluating the financial implications of the acquisitions considering the cash flow and valuation of both the acquiring and target company.

Initial Public Offering (IPO) – It determines the fair price of the company when the shares go public. It aids investors and underwriters in deciding the offering price of the company’s shares.

Option Pricing Model – Decides the fair value of options, giving the holder the right to buy or sell an asset considering the asset’s price, volatility, depreciation, and interest rates. This helps the traders to make trading decisions.

Apart from Financial Modelling below-listed skills are required to be at par in the career of Investment Banking Analyst jobs.

Professional Skill Set – The analyst should have a hands-on understanding of numbers and be financially literate. Candidate should master financial modeling and accounting for good career options.

Analytical and Strategic Planning – This includes handling high-pressure work situations at the time of delivery and submission. Planning on new projects, deadlines, and team co-ordinations.

Leadership Skills – The art of managing and leading the community is a skill that everyone needs in the corporate world. This also includes managing the time and delivering the projects effectively. Knowing the strength of the team members and dedicating the respective work which they could perform with efficacy. Motivating the team is essential as this is a hectic and high-pressure job requiring time on delivery.

Innovation – Investment banking analyst needs an innovative solution for day-to-day issues. Finding new quick fixes for customer issues has become mandatory for an analyst. The ability to create new ideations and execute the same is the prerequisite skill in growing in Investment Banking analyst jobs.

Communication Skills – Communication is key to advancement in any segment.  Investment banking analyst jobs stipulate higher-level communication and public speaking skills which helps significantly in tapping new clients.

 

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Various Investment Banking Analyst Jobs

 

1. Financial Analysts

Their primary responsibility is to create financial and budget statements to maintain the company’s financial stability. They evaluate the financial performance of the company and the documents they prepare guide the company through mergers and acquisitions. They help in public filings and forecast market trends. They also analyze the stock fluctuations of the firm.

Average Salary – 60 lac LPA

 

2. Portfolio Analysts

They are responsible for running an analysis of the company’s portfolio of stock. This includes analyzing the stocks for various trading options like short-term and long-term investments, iter day, or intra-day trading options.

Average Salary – 60 lac LPA

 

3. Equity Analyst

They review the company’s valuation to make a report on the company’s net worth. They also run a competitor’s study on their financial statement to buy potential stocks and decide on mergers. Equity Analyst also determines the company’s current value of stock and researches current market trends.

Average Salary – 75 lac LPA

 

4. Banking Analyst

They help in the evaluation company’s financial position, market positions, and future ventures.  They guide through mergers and acquisitions and sizable financial transactions. They run a reach in the market for securities and bonds for the company’s investment options. They forecast the market and advise in determining the market value of the share.

Average Salary – 85 lac LPA

 

Investment Banking Analyst Jobs in Banking Sectors

There are 4 major types of Investment Banking Analyst jobs available in the banking sector and the lists are as follows

 

1. Bulge Bracket Investment Banks

The bulge bracket banks list covers the top-rated and most popular banks throughout the world with a multi-national presence. Goldman Sachs, Morgan Stanley, and JP Morgan are a few examples of bulge bracket banks. These firms will have approximately the same base salary fixed for analysts with various bonus components as per their experience and performance.

 

The average LPA for senior level may go up to Rs.50 lac Approximately

 

2. Elite Boutique Investment Banks

These are the banks where Investment banking analysts are greatly paid than bulge bracket banks. Lazar LLC, Moelis & Company, and Evercore Group LLC are a few examples of Elite Boutique Banks. They will also have a multinational presence.

The average LPA for senior level may go up to Rs. 95 lac Approximately

 

3. Regional Boutique Investment Banks

These banks deal with firms of smaller transactions. City Union Bank and Karur Vaysia Bank are a few examples of Regional boutique investment banks. They mainly function in serving small regional businesses in that respective region. Analysts will fall in the medium-paying sector.

 

The average for senior level may go up to Rs.20 lac Approximately

 

4. Middle Market Investment Banks

They majorly fund small emerging businesses and it is again more of a regional business bank. They lend money to mediocre-sized businesses. The analyst gets paid equally as in regional banks.

The average for senior level may go up to Rs. 20 lac Approximately

 

Top Recruiters

There are numerous openings for Investment banking Analyst jobs across the globe. Below tabulated are a few big firms with great pay scales.

CompanyDesignationSalary in IndiaOffice Location
JP MorgonInvestment Management Analyst & Asset Manager18 LPAIndia and over 25 other countries
Goldman SachsEquity Analyst12 – 21 LPAIndia and over 25 other countries
Citi BankInvestment Banking Analyst15 LPAIndia and over 25 other countries
AccentureFinancial Analyst7 – 15 LPAIndia and over 25 other countries
Credit SuisseInvestment Banking Analyst7 – 15 LPAIndia and over 25 other countries
Tata ConsultanciesInvestment Analyst5 – 12 LPAIndia and over 25 other countries
HSBCMerger & Investment AnalystNot SpecifiedIndia & UK
Bank of AmeriaInvestment Banking AnalystNot SpecifiedUS
EYInvestment Banking Analyst7 – 15 LPA (in India)India and over 25 other countries

 

Source: Glassdoor

 

Top 10 Recruiting Companies in India

As it is always known most recruiters opt for the best talents in the industry. The demand for investment banking analyst jobs is on the higher side, hence lots of candidates pursue the respective field.  The following delve are the top 10 recruiting companies in India.

 

1. Avendus Capital

Avendus Capital has been one of the biggest investment banking firms in India since 1999.  They fall under elite boutique banks serving numerous clientele. They are specialized in private equity and investment banking-related services. They are headquartered in Mumbai.

 

2. Axis Capital India

Having headquartered in Mumbai they have a strong foothold in Indian Market. They are one of the largest investment banking companies offering a lumpsum salary to bankers. Their main servicing area is equity markets. They also fall under boutique bank brackets.

 

3. Edelweiss Financial Services

Established in 1955, has grown to a top investment company in India. Their services range from Advisory Insurance and asset Management to Credit facilities etc. Their headquarters is also located in Mumbai. Their products have a clientele of all segments making them fall under all 3 tiers.

 

4. JM Financial Institutions Securities

It has been operational in India since 1998 and ranks high as an Investment banker. It offers sizable financial solutions in the Mid-level market. Their services include asset management, private equity, mortgage services, and brokerage services. Their headquarters is also based out of Mumbai.

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5. ICICI Securities Limited

ICICI was established in 1995 and has its headquarters in Mumbai like any other financial giant. They are known for their technology services as they as pioneers in technology in India. They have collaborated with various organizations to bring in world tech to India in banking. They offer services to their clients like investment banking, financial product distribution, and private and company wealth management.

 

6. IDBI Capital

It was established in the year 1993 and has its headquarters in Mumbai. It is again one of the best investment banking companies in India with a lot of loyal consumers. Their services include private and public funds management, institutional broking and product distribution, capital markets, and equity analysis. They serve all 3 tiers of consumers.

 

7. Citi Bank

Citi Bank serves a wide range of customers in various countries. They are headquartered in New York, US, and have business mainly in the US, UK, and India. They are located in Mumbai & Chennai in India. They cater to different segments of customers making them the elite bank.

 

8. Barclays Bank

One of the oldest financial institutions that is operational to date is Barclays Bank. It is based out of the UK and spread in different countries. Barclays has branches in Delhi, Pune Mumbai, and Chennai India. Apart from Investment services, Barclays also provides banking services to individuals and small businesses. They do offer services like mortgage funding, private property management, business fund management, etc.

 

9. Morgan Stanley

It is one of the largest investment companies with a presence in around 35 countries. In India, they are located in Mumbai and Bangalore. They serve the business around Bangalore and Mumbai and provide them with financial solutions and investment options. They also do wealth management and funds management.

 

10. HSBC

As the name suggests is from Hong Kong, with branches across the globe. They are located in over 65 countries with 4000+ branches all over. They offer private banking, private equity, and investment banking services to their clientele. HSBC is located in major cities in India with a sizable market share.

 

Payscale for Investment Banking Analyst Jobs

The Investment Banking Analyst career is not just a challenging job but also helps reap the highest salary all over the globe which makes it indifferent in India as well. Investment banks are of three kinds differentiated by the scale of business they do. The salary of an analyst entirely depends on the bracket they work for. Below are the salary details of different banks and locations.

 

Segment wise

SegmentAvg Salary for Entry-LevelAvg Salary for Middle-LevelAvg Salary for Experienced
Bulge Bracket3 LPA5 LPA12 LPA
Middle Market5 LPA6 LPA15 LPA
Boutique Market7 LPA12 LPA20 LPA

Source: Glassdoors

 

City wise

CityAvg Salary
Delhi8 LPA
Kolkata7.5 LPA
Mumbai8 LPA
Bangalore7.5 LPA
Chennai7 LPA

Source: Glassdoors

 

Frequently Asked Questions

 

1. Is investment banking Analyst a good career?

Investment Banking Analyst is a great career option as it is a highly sought-after profession. It has a good pay scale and involves a lot of knowledge acquiring. Candidates who have a sheer interest and perseverance can opt for a career as an Investment Banking Analyst.

 

2. What is the qualification to become an Investment banking analyst?

Any candidate with a great interest in finance and numbers can pursue a career in Investment Banking Analysis. Account and commerce stream in +2 and relevant finance-related courses in UG and PG should be studied. Advanced certified courses will help in career advancements.

 

3. Are MBA and CFA Mandatory to apply for Investment banking analyst jobs?

Candidates having a Masters will clearly have an upper hand in the career growth. CFA, which is again an MBA equivalent certification will help candidates secure higher positions in their respective companies. Freshers with a minimum undergraduate will also be recruited by companies.

 

4. What are the opportunities once the course is completed?

Candidates can apply for Investment Banking Analyst jobs where there are openings through recruitment aggregators or through LinkedIn. Having a LinkedIn profile will help one to reach potential recruiters as all companies and their senior staff mostly have a LinkedIn account.

 

5. What is the average salary for an Investment banking analyst?

 

LevelSalary
Freshers3-5 LPA
Mid-level7-12 LPA
Senior Level15-20 LPA

 

Salient Points

In a nutshell, Investment banking analyst jobs are an attractive career option with a decent pay scale in India. Candidates will have ample learning with a handful of incomes. It is a high-pressure and skill-absorbing job as well. Right from small financial institutions to larger multinational companies, candidates will be paid comparatively and will be provided with upskilling.

 

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