Please forgive my ignorance but I have a lot to ask about finance,I will be thankful if you could throw some light.
First, where does the retail/commercial banking fits into the picture? Also how easy it is to jump profiles in this domain? Say someone joins as a Mgr in a PSU bank, and then wants to move to Equity Research/Portfolio Management/Credit risk or any other core finance profiles later? Is it possible without getting MBA?
Abhimukh sir, you talked about PSU banks offering AVP profiles at some colleges. Can you reveal the names of those colleges? (Possibly in PM, if not in open?)
My other question is that almost everywhere I look, I find CAs in core finance profiles, with or without an MBA degree. So looking at this fact and that everyone in finance is compulsorily doing CFA, can you tell me which among them holds greater weightage? Also what is the value of a CS qualification in core finance?
My third question is about the Financial Engineering that people keep talking about. I believe it gets you in a "quant" job i.e. an Analyst position with some IB/PE firm. Almost everyone who teaches you FE is based out of US and hence it is inaccessible to lesser mortals like me. So what is the easy way out? Are there any certifications available in this regard? Related talk that keeps emerging is about "Algorithmic trading". What are the entry routes in India?
And my last question, what are the exit routes? Does having finance in your resume damages it beyond repair (like/unlike the IT experience)?. Say at present someone might be sold out on the glamor of IB/Portfolio management profiles, but considering the amount of input it requires/monotonous work, some people might want to exit it in future to do something which comes naturally to them ?
PS: I am sorry for so many questions, I am plain confused about finance.
PPS: I asked this question elsewhere too, but it went unanswered. I'd like to know the names of the texts that are used in a typical (indian) finance program, say I want to take a look at them before I land up somewhere which requires me to do so. Some link will do, or else please post if you can.
i am sure, u wud have read the previous posts on the various career options in the world of finance....now the most glamorous of these is the investment banking industry where one of the functions is to help companies/institutions raise finance for various purposes - be it expansion, mergers & acquisitions or any other activity they have planned......the role of an investment banker is to help the company prepare its business plan, its project report/investment proposal and raise finance for the same. the other end of this chain are the people who lend/invest money to/in these institutions for this purpose. If these people invest money they are either investing thru the PE or allied routes or thru the IPO route. If it is lending that you want to talk abt then u come to commercial banking.....simply put commercial banking deals with those aspects of a bank which help a company to manage its funds/cash - either in the form of deposits or thru loans (long term or short term). retail banking does the same thing but the customer here is an individual insted of a company or an institution.
now, coming to the question of how easy or difficult it is to switch jobs.....it normally is as difficult to switch jobs from one sub-domain to another...almost as difficult as switching from finance to marketing....it is relatively easier in the first 1-2 years but once you have established urself it becomes very difficult....even in the fund raising domain, if u have worked primarily on debt side (that is helping companies raise loans, refinance loans, etc.) after a point it becomes difficult to move to private equity 😃 To answer ur specific query, no it is not possible to move from manager in PSU bank to a portfolio management role (not directly at least)...although it wud be possible to move into a credit risk role.
CFA is not essential for u to work in the world of finance. A lot of people do it for the same reason that people started to do MBA in droves. It sets them apart. Also in a world where there is no established standard for measuring how good a finance professional is, CFA provides one of the few benchmarks to help set oneself apart from the herd.
If by CS u mean Company Secretary ka course then a CS will add little or no value to core finance knowledge (at least nothing you wont learn in a B.Com. course). Where a CS would be valued is in the understanding he/she brings to the table keeping in mind the laws of the country. A CS would be able to advise clients much better and add value to the team as clients often look towards bankers for guidance beyond the world of finance.
i dont have much knowledge on the financial engineering roles, so wont be able to help u out here.....coming to ur last question, if what a person wants to really do is marketing,HR or any other management related field, then he/she will find it really difficult to change or they may have to even start from scratch all over again...however if it is something unrelated (like in my case, i got into education) then the only trouble you will face is from angry relatives who dont want u to quit a glamorous job to become a teacher 😛 😛
I have a few queries regarding building my profile in finance
I have done a lot of research about CFA and FRM certifications , but problem is that they are currently out of my budget , so are there any indian certifications in finance or less expensive certifications of good quality , which i could try for , in order to build my profile
I have a few queries regarding building my profile in finance
I have done a lot of research about CFA and FRM certifications , but problem is that they are currently out of my budget , so are there any indian certifications in finance or less expensive certifications of good quality , which i could try for , in order to build my profile
also u can try out the evergreen & popular NCFM & AMFI certifications also these days BSE conducts short term programs which are quite beneficial in terms of content check their website.
Various Roles offered after MBA in Finance Most prospective jobs for finance MBAs fall within investment banks, corporations, and securities firms. Many finance MBA graduates also follow careers in the consulting industry .
Financial Managers or Financial Analysts
Financial analysts and managers use historical (accounting) data in their decision making, however the number one role of the financial manager is to oversee the production of financial analysis and reports to help the company with decision making, business development, strategic planning, and alliance management. Through the use of these reports, the financial analyst helps to shape the company's investment and business growth. Cash management strategies developed and implemented by the financial analyst help the company to grow efficiently and allow for maximum profitability in its investments.
Financial analysts and mangers play an important part in mergers and global financing and expansion. Highly specialized knowledge in these areas is an important asset to the financial manager and his or her employer to maximize potential profit and reduce risk. Many companies utilize globally active consulting firms exclusively for these purposes.
Accounting Managers
Accounting managers working in a corporate setting perform responsibilities relating to tax reporting and management, and creating income statements inside of controller and audit groups. This career path may bring one to the positions of corporate treasurer, corporate controller, or CFO (chief finance officer). Professional accountants working for a public accounting company will perform functions similar to those performed by independent audit or tax consultants. An educational history or background based in accounting, either as a Masters degree or as a finance MBA, will give you some of the coursework you need to have in order to take the CPA (Certified Public Accountant) exam.
Corporate Controllers
A controller is someone who is in charge of preparing a company's financial reports to forecast and sum-up the company's financial situation. The statements a controller would get together consist of balance sheets, income statements, earnings analyses, and expense analyses. Regulatory agencies may also require special reports from companies. Controllers prepare these reports. In addition, a controller will frequently be over the budget, auditing, and accounting departments of a company.
Chief Financial Officers
The top financial executive of an organization is the CFO. The CFO supervises all accounting and financial operations, as well as administering the company's general financial policies and strategies. While the CFO in a small company will often be responsible for all of the financial management duties, a CFO in a large company may delegate some or all of the responsibilities to other managers or vice presidents within the company.
Treasurers and Finance Officers
Finance officers other than the CFO and treasurers oversee and guide a company's financial objectives and budgets. The financial officer may formulate and implement strategies to raise capital, oversee cash management, or manage the company's capital investment activity. Financial officers also play a significant role in a company's merger and/or acquisition activities. The treasurer, while he or she may share some of the financial officer's duties, will usually have some banking experience.
Cash Managers
The Cash Manager is responsible for overseeing and controlling cash flow, both accounts receivable and accounts payable. He or she is also responsible for ensuring that the cash position of the company is sufficient to meet current and forecasted needs, or whether adjustments in investment quantity and type are necessary.
Risk and Insurance Managers
Business operation and transactions involve a certain amount of risk. Risk managers and insurance managers work to minimize the amount of loss a company incurs and the amount of risk it is exposed to.
Management Consultants
Management consultants work to help companies with a wide variety of problems and issues. Everything from profitability improvement to corporate restructuring to financial strategy. The MBA going into this field should have either an expert understanding of a wide base of knowledge, or be highly skilled in two or more sub groups. The management consultant will also help companies with cash management and emerging market analysis.
Investment Bankers
An investment banker will work together with corporations needing capital to grow and institutions or investors who have money available to invest. An MBA is an enormous asset in this field as the investment banker will be giving investment advice to his or her clients regarding raising capital. Most investment banks have a corporate finance division that assists clients in structuring financial instruments such as stocks or bonds to raise capital.
Investment Banking Associates
People graduating with an MBA in finance often begin their career as an associate with an investment bank firm or investment firm. This is usually at least one level above the entry-level position as an analyst typically obtained by persons with only an undergraduate degree. Most analysts end up pursuing an MBA degree after a couple of years in the industry in order to obtain promotions. Many people in the corporate finance side of investment banking will obtain a CFA (Chartered Financial Analyst) designation as a supplement to their MBA. The Association for Investment Management Research (AIMR) is the governing body for the CFA exam and designation.
The mergers and acquisitions departments of investment banks provide consulting services to companies in the process of merging or acquiring other companies or organizations. Organizations wishing to acquire, dispose of, or invest in real estate will deal with the real estate division of an investment bank. Equities research and consulting for private clients are also frequently chosen as career paths for MBAs with focus in investment banking.
Investment Sales Associates and Traders
While MBA skills and knowledge are not explicitly required in this field, they do come in as very valuable in enabling a person to understand the economic principles that drive the financial markets. Investment traders and sales associates assist corporate or institutional investors in the purchase and sale of securities such as stocks and bonds. The sales associate makes recommendations and helps with the analysis, while the trader actually executes the orders for the client.
Credit Managers nd Specialists
The Credit manager is in charge of managing the credit a company may issue to its clients or others. Credit managers formulate criteria for rating risk and credit, determine the maximum amount of credit to offer, and supervise past-due account collections.
now, coming to the question of how easy or difficult it is to switch jobs.....it normally is as difficult to switch jobs from one sub-domain to another...almost as difficult as switching from finance to marketing....it is relatively easier in the first 1-2 years but once you have established urself it becomes very difficult....even in the fund raising domain, if u have worked primarily on debt side (that is helping companies raise loans, refinance loans, etc.) after a point it becomes difficult to move to private equity 😃 To answer ur specific query, no it is not possible to move from manager in PSU bank to a portfolio management role (not directly at least)...although it wud be possible to move into a credit risk role.
Thank you for clearing this up. 😁 Hopefully there will be a (good)MBA degree between the two ends which will bridge the gap.
And congrats on choosing what you really wanted to do, almost everyone else out there doesn't have that much courage or freedom. 😃
okay,i wanna ask one thing that hows the job profile of a credit risk analyst in banks like stan chart,hsbc,citi etc etc.....whats the salary generally offered to them....
@Dav-is an mba(fin) required to bag such roles or without mba also can a person get the above mentioned role of a credit risk analyst.....
The minimum educational requirement for the position of credit analyst is bachelor's degree in finance, accounting or another related field. A bachelor's degree in finance or accounting exposes you to subjects like basic accounting and finance, statistics, ratio analysis, calculus, economics, industry assessment and financial statement analysis. These subjects are necessary to function as a credit analyst because they aid in risk assessment. Educational subjects like industry and ratio analysis are necessary because part of assessing the risk for a company includes assessing its environment.
Thats is the reason there is huge demand of B.Com in SRCC these days.
While having a bachelor's degree in a finance-related field comes in very handy, some companies do not require it. Some banks and companies provide on-the-job training to credit analyst employees who do not have finance-related degrees. On most occasions, these companies require some work experience in an accounting/finance-related field or a graduate degree in a business-related field. Depending on the level of the job, a company might require a credit analyst to have a Chartered Financial Analyst (CFA) designation
But due to increasing level of education and cheaper manforce available in India, these days companies are looking for people with a MBA (fin) Degree. Also, its the MBA Fin people who are offered senior roles and fatty packages and people with only Bachelors degree are employed for data maintenance and report preparation work. Hope, this clears your doubt.
i want to ask one thing that do risk management and credit risk analyst involve the same thing !!
Credit Risk Analysis is part of Risk Management process.
Risk management is a broader term where all the different types of risks Credit Risk Market Risk Operation Risk Liquidity Risk Volatility Risk Settlement Risk etc
In a continuation to the why series , we wanted to start this immensely important why finance thread :), i think we already have threads for discussing financial concepts but we needed a more holistic thread to discuss both the academic and professional domains of finance
Well the objectives will be simple :) 1. Discussion on different domains within finance and their career prospects 2. Guiding Aspirants regarding the pros and cons doing an MBA in finance 3. Helping 1st year students understand the pros and cons of specializing in this field and whether it maps to their skill set , and their goals 4. Helping people choose the right electives and understanding how these electives map to the professional world 5. Lastly, B-school students can learn a lot more about the field from each other ; in understanding how things are approached in different b-schools; also to learn from each other's internship experiences :)
I would be regular in this thread. I invite other interested B-schoolers to participate and contribute. Hope we have a great time learning together :)
PS: I am also a finance enthusiast and a 2nd year student , so i am also here to learn from our seniors and friends from the finance world, lets help each other explore this wonderful field of finance
Hi Seniors
Firstly I would like to thank abhi sir to take the initiative. This was something I was looking for. I'll be regular on the thread.
I am a mechanical engineer and have three years of experience in 2 automobile giants. In my first company I spend two years with the price panel of company working on product cost, budgeting and spend some time on working with team to figure out risk areas for business. But I was a part of purchase team (not core finance or planning team) who was coordinating with the corporate planning department. But from last one year in my new job I am no more in touch with financial numbers as I was in my last job. This made me realize I am more biased towards numbers and enjoy working on the same. I am trying to move in finance but lacking with core/subjective knowledge of finance.
I'm planning to go for MBA in finance soon so that I can make my career in core finance.
My question here is that what entreprenueral options/field does finance aspirants have. I was thinking of gaining some experience on the field (say for 10-15 years) and then will come up with own consultancy (or as indiviual consultant), as this is the only field where there is minimum/no investment of the one who wish to start his business. Do the investors and the consultancy firm accept/seek consultancy from such individual consultants or beginer consultancies.
hi frnds ..im shivan i have done my mba (finance) and btech computers pls suggest me which job profile suits me the best to my career growth ........im a fresher .......pls help me out ...........thank u...
hi frnds ..im shivan i have done my mba (finance) and btech computers pls suggest me which job profile suits me the best to my career growth ........im a fresher .......pls help me out ...........thank u...
Hi
A lot has been discussed on career prospects in last few pages , kindly go through them 😃
I am a mechanical engineer and have three years of experience in 2 automobile giants. In my first company I spend two years with the price panel of company working on product cost, budgeting and spend some time on working with team to figure out risk areas for business. But I was a part of purchase team (not core finance or planning team) who was coordinating with the corporate planning department. But from last one year in my new job I am no more in touch with financial numbers as I was in my last job. This made me realize I am more biased towards numbers and enjoy working on the same. I am trying to move in finance but lacking with core/subjective knowledge of finance.
I'm planning to go for MBA in finance soon so that I can make my career in core finance.
My question here is that what entreprenueral options/field does finance aspirants have. I was thinking of gaining some experience on the field (say for 10-15 years) and then will come up with own consultancy (or as indiviual consultant), as this is the only field where there is minimum/no investment of the one who wish to start his business. Do the investors and the consultancy firm accept/seek consultancy from such individual consultants or beginer consultancies.
How feasible is this?
Well after reading abt u i feel it is appropriate for me to discuss something here since the thread is about WHY FINANCE???...
1. Why do u feel u are "more biased towards numbers and enjoy working on the same"???? just because its a seems a lot easier & does not involve fieldwork in comparison to a Mechanical engineer's job & pls dont tell me that a mechnical engineer's job does not involve numbers...
2. Whatever education u've had is related to engineering...whatever experience u've had is related to engineering....& suddenly u realise that hey this is shit & i dont want to be in it....those finance guys sitting in those cabins have an easy life i too want that so i'll also do something in finance & get that life.....
3. But hey i cant stick to a job forever...see i m gud at giving gyaan so i'll open up a consultancy & as they say "Take my advice i anyways dont use it"....how cool is that!!!!!!
Well this is how most of the people i have seen think....whether or not they accept it!!!!!!
Money & easy life is a big temptation agreed but tell me something if that was the case why cud u not think abt it early enough u dint realise it during ur engg days coz u were busy enjoying college life....u dint realise it when u got ur first job coz it ws the first job...& u got it ahead of some xyz no of ppl.....u realised it when the realities of life started pinching u when u realised that life is not a party forever.
My idea here is not to say that engineers shud not take finance....my idea is to tell u that now that u have decided u shud not take another hasty step towards getting into finance...dont waste whatever u have learnt in ur academics & ur corporate life.....thankfully finance is such a field which has enough in it for everybody to come & use their core skill sets along with the ones reqd for finance....
In ur case i feel a course like ICWA or CIMA is more that enough to get u what u want in life u already have an experience in automobile line & that too in a core area named purchases & mind u it is a very important area...trust me on that!!! an ICWA or a CIMA would really add to ur profile a lot & will help u to grow career wise.
Its just a fad among people that an MBA is equivalent to a holy grail or a key to the lock which holds behind it some sort of hidden treasure but they just forget that every field & every degree is just that....thats why it has progressed so far bcoz somebody made big out of that knowledge & dint fall for the lure of something else.
, we wanted to start this immensely important why finance thread :), i think we already have threads for discussing financial concepts but we needed a more holistic thread to discuss both the academic and professional domains of finance