Investment Finance Paradigm

Investment Finance Paradigm
Objectives
Provide an overview of Investment Industry
Industry structure
Classification of Investment industry
Provide an overview of the profiles available in the industry
Provide awareness regarding common interview and aptitude test questions

Investment Industry: Structure and roles
Finance
Investments- Surplus Business- Management

Regulation- Tax/ Legal
Management Accounting
Organizational Types
Asset Owners Asset Managers Intermediaries

Investment Banking Is Not Just:
• Trading
• Research
• Sales
It is a combination of all
• Support
• Management
• Legal
• Lending
Risk and
Investment
Return
Strategy
Opportunities
Portfolio
Key Decision-Making Construction Allocate
Capital
Facilitate
Transactions Trading
Investment Industry: Core Investment management Roles
Investment
Banking
Portfolio or Fund Wealth

Broking and KPO’s Lending & Credit
Managers Management
Fund Manager-Decision Equity Analyst– Top Job Wealth Manager- Family Project Finance
Maker- Top Job ( Exp ( Exp 10-15 Years in Office- Top Job ( Exp Head( Top Job) Exp(10-
10-15 Years) Research) 10-15 years in Sales) 15 Years)
Buy Side- Sell Side-
Junior Analyst- Entry Financial advisor- Top Financial analyst-
Analyst- Conduct research for ( Entry for Freshers and
for Freshers Job (4-5 years exp in
investing –Top Job( Exp 4-5 Years) Experienced)
distribution)
Dealer- Executing Trades Lending SME Credit-
Junior Financial
Fund Accounting Manager- Entry For Freshers Entry For freshers
Advisor- ( Entry for
Reporting work- Entry For Freshers freshers)
Back Office Support- Trade
reconciliation, Settlement,
Customer service
Entry For Freshers
The Dilemma of Office
• Direct link with the

client
Front office • Wealth management,
sales trading
Office roles
• Supports front office
Investment Banking Middle office • Technology, compliance,
risk management
• administrative and
Back office technology support
• Settlements, clearances,
record maintenance
Investment Bankers
Investment Bankers mainly do two types of things:

• Advise companies on mergers and acquisitions: Bankers help their clients to:
• Identify potential targets
• Provide valuations for the assets and help buy them at the best possible price
• Or in the case of selling, help find a suitable buyer at a great price
• Advise companies on raising large amounts of capital:

• Raise money by issuing and selling the company’s shares.(for example: IPOs: Initial Public
Offerings)
• Raise money by issuing debt in the form of bonds or other similar interest bearing
products.
They also provide support services such as:
• Corporate broking services
• Hedge risk
Financial Analyst
The role of an analyst is to help the senior bankers with presentations, financial analysis
including modeling and valuation and other administrative items.
Key Skills required:
• Strong research and presentation skills
• Financial Modeling Skills
• Ability to build and maintain databases
• Strong Communication and interpersonal skills

Some Common Profiles given to students
Company Profile Available Profile Description
CRISIL Financial Analyst The role of an analyst is to help the senior bankers with
presentations, financial analysis including modeling and
valuation and other administrative items.
Transparent Value Junior Equity Research Analyst Team of experts closely following and analyzing listed
companies on an ongoing basis.
Deeply study fundamentals of companies they cover
(industry sector and general economics ).
Monal Capital Investment Banking Associate An investment banking associate is a client-facing role in
the financial industry. These associates work with clients
to identify their financial needs and develop ways to
meet their short and long-term goals.
Questions Commonly asked in Interviews
• Enterprise Value
• Financial Statements
• Enterprise Value, EBITDA, Price to Earnings ratio
• income statement
• pitchbook
• Equity research- sell side, buy side
• DCF
• WACC
• beta
• FCFF
• commonly used leverage ratios and debt ratios
• optimal debt ratio
• trading comparable and transaction comparable
• industry research
Common Aptitude Test Questions
Finance:
• Debt Equity ratio
• financial leverage
• return on assets and return on equity
• EPS, EBIT
• Beta
• Private equity
Logical Reasoning
• paragraph based questions
• Arrangements
Quantitative Ability
• Basic Algebra (most commonly asked)
Tips : Getting Ready For Your Job
• Right Attitude
1. Ready to travel
2. Ready to shift
3. Ready to learn from failed interviews
4. Ready to grow
• Wrong Attitude
1. Job near your house
2. Stuck on a selective profile
3. Stuck on salary than experience
4. Not preparing for interview
5. Not turning up for interview
Success Check list
• Projects -Perspective– This will give you points to talk

• Aptitude tests – Enough practice
• FSA & Equity- Highly Important
• Interview Skills- Highly Important
• Practice right attitude
Thank You

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Investment Finance Paradigm

Provide an overview of Investment Industry

Classification of Investment industry

Provide an overview of the profiles available in the industry

Provide awareness regarding common interview and aptitude test questions

Investments- Surplus Business- Management

Asset Owners Asset Managers Intermediaries

Portfolio or Fund Wealth

• Direct link with the

Investment Bankers mainly do two types of things:

• Advise companies on raising large amounts of capital:

Key Skills required:

• Strong research and presentation skills

• Financial Modeling Skills

• Ability to build and maintain databases

• Strong Communication and interpersonal skills

• Projects -Perspective– This will give you points to talk

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