Investment Banker

As an investment banker, you would be working with individuals, corporate and government entities while providing them financial advice about investments. Like, you will tell them where to invest money. Which share, stock or any other financial investment is more likely to give better returns. Apart from financial advice, there are several other wide ranges of services that you will provide as an Investment Banker. You will help an organization raise funds or capital; you will also study the risk involved in investments. You will endorse securities, facilitate mergers and acquisitions, maintain dealer and broker relationship, issuing stocks.

Now let’s understand what they all mean. Endorsing securities mean that when a company wants to raise money, they need to trade it for something (called as security here). Now as an investment banker, you will determine who much money this company can get for this security. Like, they might sell their shares to get funding, so Investment Bank helps them in the pricing of the share. Mergers and acquisitions are when two companies merge into one or one company buy the other, again here investment bank will help them decide that is the value of each company (in the merger) or what is the value of a company that will be acquired. Sometimes, Investment Banks buys securities for their clients; this job is known as dealer-broker job. Thus, they also maintain this role. The investment bank also helps an organization in selling its securities that they have issued for raising funds. This functionality of the Investment Bank is known as issuing stocks.

You will be primarily working on either buy side or sell side.

Sell Side: In the sell side, you will be working primarily with investment banks, commercial banks, stock brokers, market markets, etc. You will keep track of the stocks, the performance of various companies, project their future financials, create research and recommendation and give it to your clients, public, government, etc. You give an idea about what and where to invest.

Buy Side: In the buy side, you will be working primarily with asset managers, hedge funds, institutional investors, retail investor, etc. You will use ideas given by the sell side, and thus make necessary measurements to make investments in probable high rising institutions, stocks, etc.

Key roles and responsibilities

As an Investment Banker, depending upon your profile and specialization, your duties and responsibilities will vary.

In the credit side: This side of Investment Bank works on calculating the creditworthiness of a business. Creditworthiness means if they take money or loan, how likely are they to return back the loan.

• You will complete review and challenge activities in a timely manner. You will also do expected credit loss analysis. You will be required to identify themes across the whole risk portfolio. You will be assisting in making strategic decisions to your client. You will prepare all necessary documents, decks, and present to your team. You will ensure that all queries raised are solved in a timely manner.

In risk side: This side of Investment Bank works on calculating the risk of any business. It means how risky it is to invest in the business.

• You will set up, lead and develop the centralized risk model confirmations team. You will make sure that all model confirmations are carried out in line with organization policies and guidelines.  You will share the confirmation results with your internal team.

 If you are working as a sales manager (investment banking service):

• You will work to acquire more customers for wealth management & Retail products. You will generate revenue by selling Mutual Fund, Portfolio Management Services, Private Equity Products, Bonds, Structured Products, Life Insurance, General, Motor & Health Insurance, Loan Products, Real Estate & Direct Equity. You will call potential clients and customers through phone, email, etc. You will fix an appointment with them and meet them. You will produce all guidance and advises to new as well as existing customers in financial portfolio management. You will ensure that all regulatory & Company Policy is in compliance.

Portfolio side: This side of investment bank helps clients (individual or business) make an investment in a group of assets instead of any one asset.

• You will be responsible for providing all kinds of Financial Planning (FP) and Portfolio Services. You will execute transactions post FP and maintain this as a regular step. You will manage all quarries related to private wealth, PMS and AIF find.  You will provide all kinds of Managing Information System reports as and when required. You will develop all kinds of sales strategies for the wealth management business in line with organisation goals and strategies. You will create a standardized sales process to ensure quality control and efficient customer service.  You will also achieve a balance of revenue streams through the sale of wealth management which will build a steady annuity flow and through all other asset class. You will maintain strong client servicing and client engagement parameters and thus enhance market credibility. You will keep exploring and learning to be better equipped than competitors.  You will closely observe, evaluate and monitor the client positions, portfolio allocations and ensure that they fall within risk and advisory parameters as laid down by Risk, Compliance and Research Teams.

You should have the following occupational interests:

• Enterprising - You should have interests for Enterprising Occupations. Enterprising occupations involve taking initiatives, initiating actions, and planning to achieve goals, often business goals. These involve gathering resources and leading people to get things done. These require decision making, risk-taking, and action orientation.
• Conventional - You should have interests for Conventional Occupations. Conventional occupations involve repetitive and routine tasks as well as fixed processes or procedures for getting things done. These occupations involve working more with data, systems, and procedures and less with ideas or creativity.

Following personality attributes are required:

• You always or mostly prefer to stick within a routine or carry out routine and repetitive activities.
• You are always practical or in most situations.
• You are always or mostly disciplined in your action and behaviour.
• You are always or mostly a soft-hearted person.

You should have the following skills and knowledge:

• Communication skills - You should possess excellent communication skills, as you may have to work on project teams with various departments.
• Reading Comprehension - Skills in understanding written sentences and paragraphs in work related documents.
• Active Listening - Giving full attention to what other people are saying, understanding the points being made by others, asking questions, etc.
• Critical Thinking - Skills in the analysis of complex situations, using logic and reasoning to understand the situations and take appropriate actions or make interpretations and inferences.
• Judgment & Decision Making - Skills in considering the pros and cons of various decision alternatives; considering costs and benefits; taking appropriate and suitable decisions.
• Administration - Knowledge of various administrative and operational functions in managing a business or an organization such as general administration, facility management, front office management, back office management, etc.
• Accounting - Knowledge of various principles and methods for maintaining records of commercial and financial transactions and records, preparing various reports and statements, ensuring compliance with commercial and business laws and rules of a country, etc.
• Economics - Knowledge of economic principles and practices; understanding how various resources such as land, labour, and capital are used; how market demands rise and fall; how a country collects and spends money; and similar other economic issues and situations.
• Knowledge of managing a business which involves planning of what to do, Business Management -organising resources and people, leading and supervising work activities of people, and monitoring performances of people as well as the performance of the business. This includes knowledge of marketing, finance, human resources management, operations management, etc.
• Customer Service - Knowledge about how to provide customer services. This includes understanding customer needs, helping customers to use products and services, answering customer queries, handling customer complaints and grievances, and evaluating customer satisfaction.
• English Language - Knowledge about English grammar, words, spelling, sentence construction, using English to communicate with others, reading in English, etc.
• Mathematics - Knowledge of arithmetic, algebra, geometry, calculus, trigonometry, statistics, and other mathematical disciplines and their applications.

You should have the following aptitudes and abilities:

• Oral Comprehension - The ability to listen to and understand information and ideas presented through spoken words and sentences.
• Oran Expression - The ability to communicate information and ideas in speaking so others will understand.
• Written Comprehension - The ability to read and understand information and ideas presented in writing.
• Deductive Reasoning - The ability to apply general rules and common logic to specific problems to produce answers that are logical and make sense. For example, understanding the reasons behind an event or a situation using general rules and common logic.
• Inductive Reasoning - The ability to combine pieces of information from various sources, concepts, and theories to form general rules or conclusions. For example, analysing various events or situations to come out with a set of rules or conclusions.