TRUTH REVEALED: Do Investment Bankers Earn 50 Lakhs a Year after MBA from IIMs? | @seekho_ai5134

Summary

This video delves into the lucrative world of investment banking, outlining the career progression from analyst to managing director and the corresponding salaries. It reveals that investment bankers can earn between 40 to 45 lakhs per annum as analysts, escalating to 8 to 10 crores as managing directors, inclusive of bonuses. However, these high earnings come at a cost, with the average workweek ranging from 90 to 100 hours, sometimes extending to 115-120 hours during peak periods. The video also promotes SECO Select's finance academy for aspiring investment bankers.

Takeaways

• 💼 Investment banking offers a structured career path with defined levels such as Analyst, Associate, Vice President (VP), Director, and Managing Director (MD).
• 🚀 The career progression timeline typically starts as Analyst 1 and may reach MD in about 10-15 years, depending on performance and the ability to bring in clients.
• 💰 Salaries in investment banking are not fixed and include a significant variable component based on the bank's and individual's performance.
• 💲 Starting salaries for Analyst 2 post-MBA can range from 40 to 45 lakhs per annum, with potential bonuses up to 300% of the fixed salary in excellent years.
• 📈 As one advances to higher positions like VP, Director, and MD, the fixed salary increases, with VPs earning between 2 to 2.5 crores, Directors earning 3 to 4 crores, and MDs earning around 8 to 10 crores per annum.
• 🔗 The video mentions SECO Select, a finance resource with a finance academy that offers workshops and live events for finance enthusiasts, including sessions on becoming an investment banker and using Excel for investment banking.
• 📆 The investment banking industry is known for long working hours, averaging 90 to 100 hours per week, and can extend to 115-120 hours during busy periods or crucial deals.
• ⏰ Investment bankers may need to work on weekends, indicating a demanding work schedule that requires high commitment and effort.
• 💡 The video serves as a motivator for those passionate about finance, highlighting the high earning potential in investment banking, while also emphasizing the importance of work-life balance.
• 📢 The speaker invites viewers to share their thoughts and queries in the comments section, encouraging engagement and further discussion on investment banking careers.

Q & A

What is the typical salary for an investment banking analyst fresh out of a top B-school?

An investment banking analyst fresh out of a top B-school can expect a fixed salary of 40 to 45 lakhs per annum.

How does the salary structure change for an analyst after two years?

After two years, an analyst is promoted to the associate level, where they can expect a fixed salary of approximately 50 lakhs per annum.

What is the potential bonus percentage for an investment banking analyst based on the bank's performance?

The bonus for an investment banking analyst can range from 80 to 300 percent of their fixed pay, depending on the bank's performance.

What is the approximate fixed salary for an investment banking associate?

An investment banking associate can expect a fixed salary somewhere between 65 to 75 lakhs per annum.

How much can a Vice President (VP) in an investment bank earn, including bonuses?

A Vice President (VP) in an investment bank can earn somewhere between 2 to 2.5 crores, inclusive of bonuses.

What is the earning potential for a Director in an investment bank?

A Director in an investment bank can earn three to four crores, including bonuses.

What is the approximate salary range for a Managing Director (MD) in an investment bank?

A Managing Director (MD) can earn around eight to ten crores, inclusive of bonuses.

How does the bonus structure change as one moves up the hierarchy in an investment bank?

As one moves up the hierarchy, the bonus becomes more dependent on individual performance rather than the bank's overall performance.

What is the average number of working hours per week for an investment banker?

On average, investment bankers work 90 to 100 hours per week.

What is the highest number of working hours an investment banker might have to put in during a particularly busy week?

During a particularly busy week, investment bankers might have to work up to 115 to 120 hours, which includes working on weekends.

What is the role of the SECO Select Finance Academy in relation to investment banking?

The SECO Select Finance Academy offers workshops and live events conducted by finance professionals, providing a platform for learning and networking in the finance field, including investment banking.