Investment banking is a lucrative industry, and we all know that. But, this is only what people think of investment bankers. The see the luxurious lifestyle and handsome earnings, but not the amount of hard work that goes into acquiring all of that. Let us remind you that investment bankers are among the hardest workers in the corporate world who work late nights, extend their workday by several hours on a day-to-day basis, and may need to work on weekends many times in a month.
Talking about the primary skills, an investment banker needs to acquire to become successful at what he does, comes soft skills, knowledge of financial markets, and the most vital, tech skills. Also, the investment banking industry is highly volatile. It doesn’t matter how hard you work, there is yet no guarantee that you will taste the fruits of success. And hence, perseverance is the key to success as a banker. Having a good grasp of industry knowledge will not suffice, you will need to study about your competitors and clients too.
A Plethora of Banking Opportunities to Emerge Post Pandemic
However, investment banking across the globe has been hit by the pandemic blues, it’s not that it’s suffering as badly as the other major business sectors such as aviation, hospitality, and travel. The moment the financial markets revive post the pandemic, an array of opportunities will emerge for banking aspirants.
What’s important for the potential investment bankers at the moment is to prepare well for the opportunities waiting, post the phase of economic downturn. They can consider enrolling into highly valuable, and industry-relevant, investment banking certifications. These will offer them a distinct competitive advantage once the global job markets revive. In fact, recruiters at the top investment banks across the world, prefer certified individuals for entry-level job roles.
Skill Prerequisites in Managerial Positions
Banking professionals in managerial roles are needed to socialize and network a lot, while at work, in their day-to-day activities. Mostly, they converse with high-net-worth individuals and institutional investors, that happen to be their primary clients. The job demands exceptional communication skills, apart from possessing emotional intelligence.
The other vital skill to acquire as banking personnel in a managerial role is being an efficient salesperson. At some point, or the other, you will be required to bring new clients, and as a byproduct, increased revenues, for the firm.
6 Investment Rules a Banker Must Follow
Setting a Goal
Being a banking professional, you would need to handle large amounts of money that belongs to your wealthy client. When you head forward to investing these large sums of money, you are required to set off the financial goals, and the duration you will keep the amount invested for. It will help make things clearer, and the investment strategy, robust.
High Returns Lead to Higher Risk-Taking
High ROI often demands higher risk-taking, and therefore, as a competent investment banker, you must understand the risk-taking appetite of your client, and make investments in the financial markets, accordingly.
Don’t Put All Your Eggs in the Same Basket
Investment diversification is among the most crucial factors to be considered by investment bankers. It helps mitigate the risks associated. Spreading the investment across a wide array of assets and geographical regions is considered smart, and is often advised by veterans of the said industry domain.
Farsightedness While Making Investments
While investing in your client’s money, you should think of the returns in the long-run, and not in the immediate future. In the short run, the returns would not maximize because of the volatile nature of financial markets across the world. Besides, predicting returns in the short-run is comparatively difficult. The most balanced returns are made when you invest capital for a longer period, as much more stability can be expected in longer runs.
Reviewing Portfolio from Time-to-Time
Among the most crucial rules of investment, comes reviewing portfolio from time-to-time that you have formulated. The reason behind this is that the value of investments changes over time and may differ from what you initially set out for, in terms of investment goals. It needs to be managed well in advance before the things go out of your hand, by making iterations to your investment portfolio in accordance with the changing market conditions.
Avoid Timing the Financial Markets
When the markets are going strong, and you are well aware of the situations and circumstances prevailing in the concerned industry, you can purchase the securities when they are undervalued, and can later sell them when they go overvalued. But, as a matter of fact, it’s painstakingly hard to time your investments, provided the heavy fluctuations and volatility in the stock market. The best, and the ideal option, would be purchasing and holding securities in the medium run. It will help you keep afloat in the investing game.
