You would be dreaming to build a career in finance after qualifying CA, especially in avenues like Investment Banking. But do you know that for the dream to become a reality, you will have to start planning early? Let me tell you how to pick your articleship firm to realize your dreams. Read on...
What is Investment Banking (IB)?
Investment banks are financial intermediaries which help in the process of capital creation for various entities. They facilitate fund raise, issue sale of securities, mergers and acquisitions, reorganizations, restructuring exercises, etc. Without doubt, it is one of the best paying jobs in the finance field, a dream job for any CA/Finance student.
Isn't IB just for MBAs?
At the very outset, let me clear one thing - please do not believe anyone if he/she says that IB is only for MBA graduates, not for CAs. Believe me, there are many CAs in the IB field. But yes, getting an entry is difficult because IB demands certain skill sets, which I will talk about in a separate post. Our aim should be to prepare ourselves for the challenges of the IB world, and start planning from the articleship days itself.
How to plan your Articleship?
If you are planning to join IB, it makes perfect sense to start planning from the CA articleship stage itself. Remember that the weight of your CV is very crucial in getting into IB. So let us see how to plan it out:
Be mentally prepared: First things first, before you actually take the first foot forward, be more than 100% sure that you are mentally ready to go through the grind for the next 3 years in building your CV for that dream IB job. There should not be a situation where you look at your friends, their chill life and merriment, and then start questioning your own decision to get into IB. Getting into IB will demand some tough sacrifices and full commitment.
Exposure over comfort: Entry into the world of IB depends a lot on the exposure you have during your articleship period. Some people are more eager to gain experience in just one field, say, statutory audit; while some want to mix it up - audit, DT, IDT, Company Law, etc. What will click for IB is exposure, and good command over anything you do in your articleship days, including the sector in which you work.
Brand matters: Yes, this is a reality - the brand of your articleship firm matters. Most IB firms look at this aspect before shortlisting you. So, it is advisable that you try and get into one of the Big 7 accounting firms in India.
Area of work: This is the most crucial aspect looked at closely by IBs during shortlisting. It is highly advisable if your articleship is in areas like corporate finance, financial services statutory audit, M&A advisory, financial due diligence, valuation, etc.
Balance your studies: Needless to say, all the areas talked about in the previous point require you to really slog for long hours in office. This will make your studies suffer. The key here would be to balance your studies in a way that you have sufficient time to attend classes, grasp concepts, study on your own and revise. Most of this will be possible only on weekends (if available!), holidays and your study leave.
Importance of a Rank: To make your CV stand out, in addition to completing CA in the first attempt, getting a rank in your CA exams is a great brownie point to have. I know it sounds a bit weird, but that distinction in academics always stands out. Only an exceptional articleship work experience can overshadow the importance of a rank when applying for an IB job.
What happens if you don't manage to tick the Articleship boxes?
There may a case where either you are not able to make it to the Big 7 accounting firms for your articleship, or don't get your choice of area to work in.
Is this a matter of concern? Yes.
Should you be worried? Yes.
Is your dream of making it to IB over? NO !!
Now is the time to bring out your trump card - Industrial Training. If the draft Chartered Accountants Amendment Regulations, 2020 are notified the way they currently are, you could enroll for Industrial Training after having completed 18 months of proper articleship in a CA firm. The period of Industrial Training ranges between 9 months to 18 months. This is a great opportunity to get some exposure in the area of your choice. Most of the big IBs now admit Industrial Trainees, and you would not want to miss this opportunity, right? Even if you don't land up at any IB just yet, you can still look out for the M&A division or Corporate Finance division in some corporate or MNC.
What if I don't get any Ranks in my CA exams?
It is perfectly fine if you don't make it to the List of Top-50 Rankers. You have another lifeline here, albeit a little time-consuming and expensive. The name of this lifeline is CFA. If you are not very sure of your capabilities in pulling of a rank in the CA exams, CFA is your saviour. It would be ideal to enrol yourself for CFA L1 while in the second year of graduation, and by the first year of articleship, you are able to clear it. I have met people who have even completed CFA L2 before appearing for their first attempt at CA Final. So this is perfectly doable. The only constraint would be T-I-M-E. You will need to split your day into 3 parts - CA studies, CFA studies and your gruelling office routine. If you are able to manage your time effectively, it will all come out really well.
Conclusion
Getting into an IB after qualifying as a CA is a challenging task. But will you value something which you get very easily? No, right? Such is the charm of getting into an IB firm. And I am sure, if IB is your dream job, and you are determined, no one can stop you from being an Investment Banker.
Hope this small piece of advice helps. Please feel free to get in touch in case of any feedback, suggestions, queries or clarifications.
Thanks for reading :)