How to Become an Investment Banker Who Makes a Lot of Money
In the aftermath of the stock market boom and many films glamorizing the role of the investment banker, the popular notion is that the investment banker is one of the cushiest jobs in the world of stocks and live trading. But you must be keen on knowing how to become an investment banker?
Importantly what exactly is the job profile of an investment banker?
Do they only play an advisory role or do they actually buy and sell stocks?
Well, the job of an investment banker is a lot more than being a mere advisor. In very short and simple terms, they are more of intermediaries who help their clients invest their money wisely.
Additionally, an investment banker also buys/sells securities on behalf of their client. In short, they are the go-to person if you have a lot of money and completely at a loss about how to manage it appropriately.
They are the ones who help increase your wealth, nurture it, grow it manifold and distribute it among the various savings instruments to truly bring out their worth. But the question is how to become an investment banker?
Investment Banker Job Description
If you are interested in how to become an investment banker, the first question is what are the unique personality traits that help an investment banker stand out.
Key Personality Traits of Investment Bankers
Just by training in an academic institution and knowing some of the best investment techniques do not suffice the training you need to be a great investment banker. More often than not we see that it is some key personality traits that help an individual stand out as a successful investment banker as against many of their other colleagues. Here is a quick lowdown of all the qualities that help an investment banker stand out:
1) Cultivate deep insight into the dynamic financial demography
2) Closely follow investment trends and patterns and develop the capability to advise a wide range of consumers from millionaires who inherited their wealth to millionaires who emerged from the hardworking middle-class milieu.
3) Perfect grasp of the various investment risk and different securities analysis
4) Cautiously optimistic approach as against aggressive risk taking
5) Insight into quantitative analysis, statistics and information model
It is needless to mention that all candidates have to be finance or an MBA specialist. This is what would ensure that they get plum posting and enhance their career even more. So armed with these you are now ready for the training session on how to become an investment banker.
Training Is Crucial
Most employers will conduct detailed training sessions for investment banking enthusiasts. Not only would they go on to train how to become an investment banker, but also an astute professional who makes tons of money. Analysts learn the basic skills of
- Constructive negotiation
- Detailed communication
- Precise presentation skills
Many times employers also conduct continuing training sessions for their employees on completion of the basic training session. This is aimed at furthering an individual’s prowess and enhancing the overall skill set. This is what sets an average investment banker away from an investment banker geared to take up challenges and come out shining.
Though you are technically ready soon after an MBA degree, it will take you at least about two years to gain complete mastery and understand the associated risks better. Not only would it allow you to make investment decisions with more clarity but also create a lot more lasting and long term solutions. You could even look to complete voluntary certifications like CFA or Chartered Financial Analyst.
Long-term Career Goals
In your journey towards how to become an investment banker, experience and exposure form the key to future growth. As you gain more and more experience in dealing with clients and different situations, you also develop confidence in taking up bigger deals and more commanding roles.
You gradually create your own personal business network that helps you in substantiating your personal expertise as well as add power to the investment decisions that you take on behalf of your clients. It also amplifies your scope for landing up with bigger roles.
Investment Banker Salary
Not only does the salary increases for investment bankers as they move up, the bonus component of their salaries too sees a significant jump. As a result, their net salary also gets higher. In fact, according to the US Labour Department statistics, the median salary of investment bankers was above $70,000 a year in 2012 with the potential to cross well over $100,000 in years to come.
So if you are keen to become an investment banker, a handsome salary is something that can well motivate you to go ahead and earn all the related certifications. These help you become more poised and confident in the overall dealings.
If you thought that this was sufficient to arm you in your quest to understand how to become an investment banker, then there is more to come. Landing up with the right job is just the beginning, you must concentrate on the following three aspects t develop your investment prowess and make a name for yourself.
1) Industry specific research to gain mileage and make sharp decisions
2) You need to make strong financial valuation models and track financial trends. These enable you to further isolate business cycles and understand revenue models
3) This becomes particularly important in terms of gauging performance on the global perspective and bringing about a more competitive edge to you investment decision as an investment banker.
4) You also need to communicate effectively to both the retail and commercial investors and present written materials as well.
Therefore, if you are looking at how to become an investment banker, it is not just sufficient to gain training but also develop hands-on skills.
Your efficiency as an astute investment banker is directly proportional to your ability to grasp the trend and adapt it to the changing scenario. This is how you can make your clients make money and then make a lot of money yourself in return.
Lastly, if you like to know whether it is possible to become an investment banker without a degree, you can read this: How to Become an Investment Banker without a Degree