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Wednesday, 2 September 2015

Lifestyle of Investment Banker

Unknown 17:16:00

Investment Banker Lifestyle – You must have probably heard a lot about investment banking and would have a fair idea of what an investment banker does and also wish to be one. But how well do you understand the investment banker lifestyle? Wouldn’t it be great if you have a clear picture about what your life will be as an investment banker so you are well prepared to make that as your career? That’s where this article would guide you.

An Investment banker life is considered to have long working hours, working on weekends, lot of hard work and little sleep. Let’s have a closer look at it. This write up on investment banker life will help you know the following

Why become an Investment bankers?

I would not be wrong to say that the candidates today are quite mesmerized by the image of an investment banker. The image here I am referring to is the one, where we see even young investment bankers dropping out of quite expensive cars wearing polished suits. Seldom do people realize that such investment bankers put in a lot of hard work, working under stress situations and round the clock for months.

Earn lot of money

There is no doubt about this particular reason being the biggest motivating factor for people to get into investment banking.

The salaries and bonuses one could earn are extremely luring which would get you in his career and motivates you to stay in. The fat salary and the bonuses which could go up to three to five time the salary makes up for all the hard work you put in.

There are a few career options which give opportunities to earn money as investment banking does. Having said so if we have to compare it with entrepreneurship it could be on similar lines. But again the risks involved are greater than working as an investment banker. Hence, investment banking can be a safe bet when it comes to compensation. Especially considering the amount of bonus an investment banker gets for the slogging is quite worth it.

The lifestyle

Many a times it is the lifestyle this job affords that some get attracted towards. With high salaries, you could very well have enough money to visit luxury hotels in exotic islands, gobble on some fine food and wine. Several people enjoy being able to live a rich person’s routine life such as attending art exhibitions, hang out and spend time with the fat cats.

Status symbol

Being an Investment Banker, you are attached with a tag of being a financial wizard and a symbol of financial success. This tag brings in a lot of prestige and gathers a lot of attention when anything in finance is discussed. Your opinion on investments, loans, and mortgages will become important to all your near and dear ones.

Passion for finance

There are some people who are motivated to get into the field of finance from a young age. They have a sharp sense of finance, who have analytical mind from the start and are the ones that can digest information quickly. Such usually get into investment banking as soon as they complete their financial degrees in the university.

Higher Expectations

What I am referring here is a kind of background and surrounding they come from which urge people to get into investment banking. Most of their family members and friends belong to hedge funds, investment banking and hence are motivated to follow suit.

Career foundation skills

Getting into investment banking gives you loads of opportunities hone your PowerPoint presentation, communication and Excel skills. There are other skills that you learn would teach you how to work and survive in this difficult and challenging industry. Also, you get to add quite a few impressive points in the resume. Many people become investment bankers to get the most out of this profession, learn as much as possible and leave before it’s too late. An exit from investment banking may open up new doors for you in finance careers such as private equity, venture capital, and hedge funds.

Intelligent People

Another attraction for people to get into investment banking is that you get to work with some intelligent minds who have sharp brains and are driven individuals to prove their financial abilities.

Learning is intense and you get to work with some of the brightest and most demanding people on Wall Street. You would be exposed to top business leaders and know how they think, how they create strategies and the thought processes behind their decisions.

Investment Banker Lifestyle

Truly speaking there is no “typical day” for an investment banker as your tasks will vary every day. You can be expected to prepare financial models (project how much will the company grow in the next 85 years), preparing pitch books (why you should sell your company to ABC Corp. at $20/share), working on deal memorandum and everything else that goes into a deal.

Have a look at the below infographics on Investment Banker Lifestyle

Myths and Facts of investment banking

Myth #1: Investment Banking is a very dazzling industry, and my work will be full of handing demanding transactions and deals.

Truth: Don’t expect this to be the true especially at the analyst or associate level. The tasks would be the ones that come down from the senior managers and would be basic grunt work. Although, it does pay back when you handle much more meaningful position in the company, higher up the ladder.

Myth #2: The job gets better with time and position.

Analysts spend quite a lot of time in getting control of the life in investment banking w.r.t the long hours and random work assigned by the seniors. With this, they gain experience and as time goes they are assisted by various other interns and fresh recruits who share the work responsibility.

Truth: It is not simple as it may seem. You need to spend some time to figure out who would be the best to assign a specific work. Also, you would be responsible for the work they perform and involves risk.

Myth #3: Investment Banking is not as hectic as people fuss about.

Truth: Strength of mind and character and competition are vital elements to Investment banking. And competition exists because there are losers and people in investment banking are resolute to make you one. The politics and competitive scenario is not everyone’s cup of tea and you need to very well survive, pour in your sweat and tears if you want to earn that heavy salary.

Myth #4: Advanced Mathematics skill is a must

Truth: Majority of the stuff you do in investment banking is going to be simple in terms of the mathematical skills you use. Being an analyst or even as an associate you would be spending most of the time in administrative kind of work. Even in case you fall into some technical group you would spending time on qualitative tasks rather than number crunching.

Myth #5: Investment banking is only for males

Truth: this cannot be regarded as a complete myth as Investment banking has been male dominated. The ratio is such that on an average there is around 1 in a 4 female investment banker and accepting the fact that this is substantial enough the gender discrepancy is decreasing day by day. It gives us enough positive sign that things are going to change for the better.

The Downsides of an investment banker’s life

Long working hours

If you are someone who wants to work in regular office hours and have a social life a career in investment banking is not for you. Want to know why?
At bulge bracket banks, you would find the analysts working for more than 100 hours a week. The day would start might be at 10.00 am or even earlier and end at 2.00am and weekends could not be an exception.
When working on the big deals and during the beginning stages of it, it is not at all uncommon for the analysts to be up all night and get through the work.
It could be comparatively better at the Associates level, where the average number of working hours could range from say 80-90 hours per week, from 9.00 am to 11.00 pm and working either of the day on weekends.
When it goes higher up the chain at a Vice President level the hours would improve. VP’s, if at they have to work on weekends or late nights, can do it from home.
Managing Directors have a significantly better work schedule when they do not travel they could report at 7.00 am and leave by 6.00 pm. However, MD’s have a lot of traveling to do perhaps 3 out of every 5 days on average, where they need to do a lot of marketing and pitching.
It is also possible that sometimes Analysts and Associates could go out for pitching and sometimes would be spent in office. Having said this lifestyle and the working hours vary across bulge bracket banks and could be better.
Many experienced in this industry would say that more than the number of working hours, it is because of the unpredictability of the working hours which makes it erratic. You do not have any control over your social life and will have to sacrifice lot of your personal time.

Unpredictable nature of work

The work is not constant and would vary and would be expected to work on the pitch books, prepare financial models, putting across the deal memorandum etc.
In the morning, you would find for yourself a fresh stock of work required to be done on the marketing pitch book or live deal work.
The higher ups get to office early and check on the last night’s work that you left. But you would receive the comments and review on the work much later on the evening which you would have to finalize before you leave for the day and your VP gets into the office in morning.
The work gets hectic only after lunch as you get the list of works to be done through the day. Time would be majorly spent on going through the pitch books, creating deal models, working on numerous transaction alternatives.
Through this, the work majorly is done on spreadsheet software like the Excel and presenting your models effectively in a power point presentation.

Stress

As a result of the above two downsides we discussed comes STRESS. Also, investment bankers deal with huge amount of money and there are a lot of expectations from them to convert deals into profit.
These conditions lead to pressure to perform and many a times it is observed bankers get wound up with insomnia, eating disorders, alcoholism, and other health issues.
There is always urgency to the task assigned to you, it’s not a day or two limited urgencies but more of a day-by-day urgency.
You could also receive phone calls in the middle of good night sleep in case you are handling certain foreign accounts.

No leniency for errors

As an investment banking analyst, you would be expected to learn your job quickly and perform to a very high standard. You would have to ensure the responsibilities are completed on time paying close attention to detail as there would be no room for mistakes.

Work pressure

As we already saw that as investment bankers you would be working with many strong and bright minded personalities. But with this upside comes lot of pressure to perform as you would be compared to your colleagues and will have to outperform them if you need to go up the ladder. You will find that you could make very few friends as this industry itself is deeply competitive and people are hungry for profits and higher bonuses for themselves.

Performing not so important tasks

Although it is true that analysts can be given lot of responsibilities early on in their careers they will every so often be expected to work on tasks which are not that desirable such as copy pasting, photocopying, book meeting rooms etc.

When to quit investment banking?

You may be wondering why we are discussing this topic here in Investment banker life. But believe me once you are into investment banking this question is going to pose in front of you some or the other day and for some every day.

Investment bankers do consider leaving their jobs for various reasons which you could have already learnt from the above discussions in the article. Although there is nothing wrong in quitting what matters is quitting graciously at the right time for the right reason.

So when should you quit Investment banking? It would be very wrong to decide when would be the correct time to call it a quit. It is an individualistic decision which should be taken after considering a few important points;

Quit because you are having bad day at work?

No, never quit because of this reason. You will have plenty of those in investment banking. It is very normal to have a bad day when your decisions fail or you somehow do not deliver up to the expectations. It is better to learn from such situations give it some time and see if there is an improvement. If it doesn’t then go for it!

Do you see yourself as an investment banker for the rest of your life?

Let’s consider a situation that you have spent approximately 2 years in this profession. Observing the Managing Directors at your firm (who make millions, delegate the work and leave the office at 6pm) and think that you want to be that person then this is one indication that perhaps you would want to continue as a banker.

Have you spent enough time to exit investment banking?

You need to make yourself marketable enough before you decide to quit investment banking. It is hence always recommended that you must finish at least two years before you quit. It is better to gain anywhere between 2 and 5 years’ experience as anything less than 2 would be tagged ‘lack of experience’ and more than 5 as ‘too experienced’.

Does quitting mean you are failing?

You might feel as a banker that you have urge to quit because you are unable to handle the job well. And you continue working hard day in day out but never satisfied. Don’t think that you have failed when you decide to quit. You have learnt a great deal in the times you have survived and it is more like working out what you want to do with your life rather than continuing something which you don’t believe in.

Money is no longer a motivation

We know that you would be paid really well as an investment banker. But there could be a point where you realize that money no longer motivates you to stay as an investment banker especially if you are not enjoying the kind of work you are doing. You could consider a quit if you think you can earn something less but take up a job which is not as demanding as investment banking.

It is always better to think what is important to you and what you wish to do ahead that will decide your decision to move on with something else but investment banking. Ensure you have planned what next? Once you have decided to call it quits.

Conclusion

We can say that investment banking is an industry which can provides loads of opportunities to learn, but you will have to find ways to survive with all that we have discussed. You would surely earn enough but discovering time to spend it is the hard part. The life as an investment banker is going to be hectic but those who wish to live through dedication, competition, risks and perform well then investment banking is the right choice for them.

Hope this article provided you with necessary insights of an Investment Banker’s life.

by Jesal Shethna

Sunday, 9 August 2015

invtips

How to Dress for Your Job Interview

Unknown 21:55:00

Knowing what to wear for a job interview is half the battle of the interview itself. The old adage could never be so true, “You never get a second chance to make a first impression.”

When you’re going to a job interview, your appearance is extremely important. Whether or not you look professional or sloppy could play a huge role in whether your interview feels that you are suitable for the job.

Check out the company culture:

When first deciding what to wear for a job interview, you should first take into consideration the culture of the company you are interviewing with, and dress accordingly. Are you interviewing with a company where the employees wear suits everyday or do they wear t-shirts and jeans?

A suit is not always the best choice for a job interview. If you show up wearing a suit and tie and all the employees are wearing shorts and flip-flops, you will look out of place, feel uncomfortable and may give off the wrong energy. The same is true of the opposite. If you show up wearing shorts and flip-flops to a company that wears professional attire, it could give the impression that you are not a good fit for the company.

The industry you are interviewing for should also be taken into consideration, as the dress code for an accounting firm is likely to be different to that of a construction company, for example.

Match the interviewer:

If you want to get the job, your choice of what to wear for a job interview should match or be slightly dressier than the dresscode of the company. For example, if the normal work attire of the company is business casual, it’s ok to wear a suit to impress. If the normal work attire is casual, it’s ok to wear a business casual outfit to impress as well.

After you decide whether a professional, business casual, or casual outfit is most appropriate for your interview, here are some guidelines you may want to follow when deciding what to wear for your job interview.

The key is to wear clothing that you feel comfortable and look great in, while at the same time matching the corresponding dress code of the company. That way you’ll give off great energy and let your true personality shine through.

Present yourself neatly:

Make sure your clothes are clean and neatly ironed. Nothing gives away the lack of attention to detail more than wrinkled or dirty clothing. Select clothing that fits properly, as ill-fitting clothing can appear scruffy and you wearing clothes that fit will help you to feel comfortable and relax in your interview.

Good grooming and hygiene is essential, so make sure you have clean hair, fingernails, fresh breath, deodorant, etc. Hair should be styled in a neat but manageable style, as the last thing you want to be doing during the interview is stressing about your fancy new up-do coming unpinned, however I recommend you keep it pulled back from your face. Men, if you have facial hair, be sure to give it a trim/comb through ahead of the interview, so that you look as neat and tidy as possible.

Perfume and aftershave should be used sparingly, so that it is not overpowering and the same goes for makeup, that should be kept subtle. Don’t wear flashy jewellery, as it may become distracting and you’ll want the interviewer to pay attention to you, not your bling.

Avoid loud prints:

It’s good to show a bit of personality in your outfit choice, however it is best to stick to block colours, rather than loud, busy prints. Don’t be afraid of going for a slightly brighter shade, as it can help you to stand out and appear more confident. Try to find a balance between smart and stylish.

Novelty ties and socks are best avoided. Yes, the interviewer will notice!

Accessorise smartly:

You can inject a bit of personality into your outfit with the accessories that you select, so if you’d rather play it safe with your outfit choice, why no pair it with a nice bag or pair of shoes?

Accessories should be kept smart, so if you are taking a bag with you, a smart satchel, briefcase or handbag would be the better option over a backpack.

Shoes should be clean and newish looking. Keep heels at a sensible height.

Credits - Sophie

invtips

How to Answer ‘Why Do You Want This Job?’ in an Interview

Unknown 21:51:00

When you are going for an interview or applying for a job you need to give the interview compelling reasons for giving you the job and that starts with the basic question: Why do you want it?

So how do you give them that compelling reason? By treating this question as an opportunity for your sales pitch. By thinking about what it is that the interviewer wants in a candidate and what it is that they need to hear.

Ever been turned down for a job because you did not sound very enthusiastic? Been told that they were not sure if you really wanted it? It is actually a pathetic bit of feedback to give someone. Surely the correct logic is that they offer and if you don’t want it, you turn it down. If you are the best person for the job they should offer, but, it happens, so you need to make sure that it does not apply to you. This is your chance to sound enthusiastic, if not actually passionate, but how do you do that without sounding gushing and false?

Here are 4 key steps to selling yourself into that job:

When you are asked about why you have applied for this role, why you want it etc… start with:

Step 1:

‘This is a great company /organisation because…….’ Everyone likes to be flattered, so tell them why you think they are a good company, what it is you like about the company….

Step 2:

By: Stefano Valle

Describe the challenges of the role, even if it is a job that is pretty routine. What are the issues they face in getting someone to do the role well?

Step 3:

Tell them the things that float your boat, the things you have just been doing, the challenges you really enjoy and give some brief examples.

Step 4:

Think about why they might not want to hire you and refute their logic.

So if I was going for a job in my local Co-op shop I might say:

I think the Co-op is a great organisation, I admire their ethical stance and I was very impressed when they had no issues over horse meat. That’s the sort of company I’d like to be in. I know you need staff who can work shifts, who are good with customers and who will make sure that the shelves are kept stocked and tidy. I really enjoy working with customers, helping them find things, explaining the difference between products and I hate untidy shops. It’s really important to me to be polite and friendly, when I worked in the garage I tried to get every customer to smile before they left! It has been a while since I have done shop work but I don’t think you lose the passion to please the customer and make sure they always come back – I haven’t.

Remember this is your sales pitch and this is where you can bring together your knowledge of them and your enthusiasm. It is all about why they are great to work for not why you need the job.

invtips

Top 10 Interview Tips

Unknown 14:14:00

Could there be a more difficult situation than walking into a room with one or more strangers, sitting in what feels like a criminal interrogation spotlight, knowing your every word and gesture are being evaluated, while attempting to appear to be composed, confident and professional?
As you head out the door for that next important interview, don't forget to pack one of the most powerful business tools available: ETIQUETTE. Your etiquette and people skills can make the difference between an adequate performance and one that will launch you to level 2 of the hiring process.

Your attitude and behavior toward others are as important as your resume, experience, training and technical abilities. Too many job candidates spend more time worrying about the margins on their resume than their manners, and they fail to realize that employers are selecting individuals who have not only job-related experience, but who they believe will be a good fit in their business family. They are looking for the human qualities that make the difference in business relationships: courtesy, respect, trust and reliability. Manners and respect are the underlying foundation of good relationships, and good relationships translate to business success. How do your manners measure up? Here's how to outclass your competition by avoiding some of the mistakes that have derailed job hunters from reaching their goal.

1. NO DO-OVERS IN FIRST IMPRESSIONS

You have 5 seconds to make a first impression in most situations. In a job interview you're given a bit more time to shine--approximately 30 seconds. Since there's no rewind button to undo a false start, don't blow this opportunity to cement the image you want to leave in the minds of each and every member of an interview team.

You are on stage from the moment you walk into the building where the interview will take place. Smile. Be enthusiastic. You may be riding on the elevator with the head of your interview team. Turn off your cell phone or Blackberry before you enter the building. When you arrive at the office where the interview will take place (and never more than 10 minutes early), politely introduce yourself to the receptionist, and sit at attention in the waiting area--no cell phone, BlackBerry, magazines. Stand and shake hands with the person who comes to escort you into the interview.

Enter the interview room with enthusiasm and energy, both of which can help to mask your nervousness. Smile, make eye contact, and try to maintain an open posture (line your shoulders up with the shoulders of the person you are meeting) as you shake hands with each individual in the room. If possible, walk around the side of the table or desk to shake hands; try not to have a barrier between you and the person you are meeting. Introduce yourself using your first and last name as you shake hands (at least to the first person, if there are several people on the interview team), and, say your first and last name as you shake hands.

2. AVOID WARDROBE MALFUNCTIONS

Always dress up and dress conservatively for a job interview. Even if you are applying for a job behind a steam table in a fast-food restaurant or in the relaxed environment of an IT company, this is a strategy that works. Remember how your parents told you to dress up to go to church or to visit Grandma? Their reasoning was that we show respect for an organization or an individual by dressing up. Your polish indicates that you think the interview and potential employer matter and that you respect them and the situation.

3. DON'T UNDERESTIMATE THE POWER OF A SMILE.

I was invited recently to conduct mock interviews in the business school at a leading university in Washington, D.C. One of my subjects participated in a 30-minute session without smiling once. I had reviewed his resume the day before and knew that he had begun a career in banking in his European homeland, so I was prepared to be impressed when I talked with him. But his frown became my focus, as I tried to analyze him. Was he mean, mad, nervous, psychotic, disappointed that his interviewer was a woman? This guessing game distracted me from his answers and from his credentials. In my evaluation at the end of the exercise, I discussed this with him and learned that in his culture, a business professional is trained to have a serious demeanor in order to be taken seriously. I quickly explained that this is not the case in the North American business environment. A smile shows not only confidence, but a pleasant nature. It invites others to get to know you. Remember that not only is an employer filling an opening in a workforce, but is filling an opening in a business family.

4. BODY LANGUAGE SPEAKS VOLUMES

Employers interpret your attitude and interest in the job vacancy and in their company through your body language, just as they do from your smile and your words. Sit up straight and plant your feet firmly on the floor during an interview. You may think that a relaxed pose will show your confidence, but it shows, instead, a lack of respect or interest. Don't sit with both hands in your lap beneath the table--you will look like a nervous child. Rest an arm on the arm of your chair or on the table.

Make eye contact and maintain an open posture. This means aligning your shoulders with the shoulders of the person to whom you are speaking, whenever possible. Do the best you can in a situation where a number of people are interviewing you. Do not fidget in your chair, cross your legs, or wring your hands, and try not to use too many hand gestures. Hold a pencil or a pen if that helps to control your nervousness.

5. MASTERING THE ART OF MEET AND GREET

How you greet people reveals a great deal about you--your confidence, your attitude, your polish. Learn to give a good handshake. Begin with your hand parallel to the floor with your thumb pointing to the ceiling, and go all the way into your partner's hand until the space between thumbs and index fingers touch. Wrap your thumb and fingers all the way around your partner's hand and squeeze assertively--not painfully--and shake 3-4 times. Always stand for a handshake in business, and in a North American business environment the space between partners is approx 2 feet (more when meeting Asians, less when meeting Latin Americans or people from the Middle East.) Never have your left hand in a trouser pocket when shaking hands, and don't feel obligated to return a double handshake (left hand placed over the two hands shaking) or a pat on the upper right arm. Make no comment about a handshake that does not come off perfectly.

Maintain an open posture when shaking hands, smile, make eye contact, and say your first and last name. When meeting someone for the first time, always try to say their name as you shake hands and use an honorific (Mr. Ms., Mrs., Dr., Gen.) and their last name. These rules apply to both men and women in a North American business environment. When meeting people from other countries, you need to research cultural differences in order not to offend others or embarrass yourself. In some cultures for example, a hug, kiss or air kiss may accompany that first handshake--you don-t want to be taken off guard. 6. WHAT'S IN A NAME?

People love to hear the sound of their name, so use names when you meet interviewers and when you say goodbye. It is not necessary to sprinkle their names throughout the interview: "That's an interesting question, Mr. Davis" will seem artificial and cloying if said more than once. Because you may be nervous when entering an interview room, you may not hear and remember all of the names of the people you are meeting for the first time. Instead, when you are contacted by the interview scheduler, ask for the names and titles of the individuals who will be interviewing you, and write them down in the notebook or portfolio that you will carry to the interview. Memorize this list. Then, when you enter the interview room, you can use an individual's name when you shake hands: "Good morning, Mr. Peterson. It's a pleasure to meet you." And always, always use an honorific (Mr., Ms., Mrs., Dr., Gen.) and last name when meeting someone for the first time in business. When introducing yourself, either in person or on the telephone, use your first and last name.

7. TABLE TALK

After you shake hands with all of your interviewers, stand behind a chair until you are invited to sit down, or politely ask where the interviewer would like you to sit. When you take your seat at an interview table, do not place personal items on the table--no cell phones, Blackberrys, handbags, briefcases, water bottles or coffee cups. All of these things should be placed under your chair or on a chair beside you. You may place a portfolio or notepad and pen in front of you. If a beverage is offered, decline politely. Remember to sit up straight with both feet planted on the floor. (See Body Language.)

8. FOR WHOM THE BELL TONES

If, for some unfathomable reason, your cell phone or Blackberry rings during an interview, some serious damage control will be required. Do not look at the display window and do not answer it to explain that you cannot talk at that moment. Reach down (because your cell phone is in your bag under your chair) and hit the "off" button immediately. Look at the interviewers and say sincerely. "I'm so sorry. I was so caught up in preparing for my interview that I forgot to turn it off." P.S. If it does happen, you will have to be the absolute top candidate for the position in order for the faux pas not to knock you out of the running.

9. EXIT STRATEGY

When the interview is over, reiterate your interest in the position (if sincere), and thank the group for spending time with you. You may ask about the time frame for filling the job and notifying candidates. Make eye contact, shake hands with everyone in the room and try to use the name of each individual as you shake hands. If possible, stop in the outer office to thank the individual who greeted you when you arrived or who escorted you into the interview room. This is not a strategy, just good manners. Keep a smile on your face and your cell phone turned off until you leave the building.

10. POST GAME PLAY

Write and mail (snail mail) a thank you note to each person on the interview panel within 24-48 hours of the interview. You will have collected names and titles when the HR or company representative called to set up the interview, or you may ask the receptionist for this information as you leave. You may contact the HR department or the interviewer for a status update on the hiring process once the prescribed period of time has passed. You may send interviewers a quick email thank-you message if you believe that your note will take a long time to reach them, but a hand-written note shows your good manners.

Don't underestimate the power of people skills in an interview. When interviewers like you, they begin to "pull" for you to do well, often without knowing they are doing so. Some interviewers will explain questions more fully, help you along when you are searching for a word or an example to answer a question, and they become more relaxed in how they pose questions and rate your answers. All of these things can help you to succeed in your interview. This emphasis on etiquette and people skills is not intended to diminish the importance of a strong resume and solid work experience, but to underline how people skills can give one candidate an edge over another.