MBA in finance can be your ticket to a lucrative career, writes Anvay Bhargava
Source :http://www.tribuneindia.com/2010/20100623/jobs.htm#1
Globalisation has created an environment of fierce competition in which companies are trying hard to reduce their overhead costs in order to maximise their profits. This, in turn, has led to search for professionals who can manage finances properly to maintain the financial viability and soundness of the companies.
The financial managers with a specialised MBA (Finance) degree can achieve this Herculean task. The roles of a financial manager are to supervise the preparation of financial reports, guide investment activities, and execute cash-management strategies.
The Path
Finance Management is taught as part of the MBA curriculum at all B-Schools across India. MBA is a two-year course after graduation or equivalent degree. Admission into the MBA course is generally held on the basis of a written test, group discussion and personal interview. Separate tests are conducted by different institutes like CAT by IIMs, MAT by All India Management Association, XAT by Xavier Institutes, MAT conducted by different states, etc. Besides, there are executive MBA (Finance) programmes offered by some institutions which require a minimum two years of corporate experience.
Job Scope
MBA (Finance) graduates can be employed as a finance controller, treasurer and finance officer, credit manager, cash manager, risk and insurance manager. There is a wide range of job opportunities for these professionals in banks, financial institutions, insurance companies, mutual funds and investment companies. Financial institutions such as commercial banks, savings and loan associations, credit unions, mortgage and finance companies also employ financial managers. To reduce risks and maximise profits, firms rely more and more on the guidance of experienced and knowledgeable financial managers in mergers and consolidations, and in international expansion and related financing. Firms increasingly hire financial managers as temporary consultants to advise senior managers on these types of business operations. In fact, some small firms hire contracting companies to handle all of their accounting and financial needs.
Nine roads to success
The wide range of financial careers can be simplified in nine broad categories like Commercial Banking, Investment Banking, Corporate Finance, Hedge Funds, Insurance, Financial planners, Private Equity and Real Estate.
Commercial banks are in the business of providing banking services to individuals, small businesses and large organisa tions. The opportunities may start as a teller to a wide vari ety of other services such as leasing, credit card banking, international finance and trade credit.
Source :http://www.tribuneindia.com/2010/20100623/jobs.htm#1
Globalisation has created an environment of fierce competition in which companies are trying hard to reduce their overhead costs in order to maximise their profits. This, in turn, has led to search for professionals who can manage finances properly to maintain the financial viability and soundness of the companies.
The financial managers with a specialised MBA (Finance) degree can achieve this Herculean task. The roles of a financial manager are to supervise the preparation of financial reports, guide investment activities, and execute cash-management strategies.
The Path
Finance Management is taught as part of the MBA curriculum at all B-Schools across India. MBA is a two-year course after graduation or equivalent degree. Admission into the MBA course is generally held on the basis of a written test, group discussion and personal interview. Separate tests are conducted by different institutes like CAT by IIMs, MAT by All India Management Association, XAT by Xavier Institutes, MAT conducted by different states, etc. Besides, there are executive MBA (Finance) programmes offered by some institutions which require a minimum two years of corporate experience.
Job Scope
MBA (Finance) graduates can be employed as a finance controller, treasurer and finance officer, credit manager, cash manager, risk and insurance manager. There is a wide range of job opportunities for these professionals in banks, financial institutions, insurance companies, mutual funds and investment companies. Financial institutions such as commercial banks, savings and loan associations, credit unions, mortgage and finance companies also employ financial managers. To reduce risks and maximise profits, firms rely more and more on the guidance of experienced and knowledgeable financial managers in mergers and consolidations, and in international expansion and related financing. Firms increasingly hire financial managers as temporary consultants to advise senior managers on these types of business operations. In fact, some small firms hire contracting companies to handle all of their accounting and financial needs.
Nine roads to success
The wide range of financial careers can be simplified in nine broad categories like Commercial Banking, Investment Banking, Corporate Finance, Hedge Funds, Insurance, Financial planners, Private Equity and Real Estate.
Commercial banks are in the business of providing banking services to individuals, small businesses and large organisa tions. The opportunities may start as a teller to a wide vari ety of other services such as leasing, credit card banking, international finance and trade credit.
Investment Bankers help companies and governments issue securities, help investors purchase securities, manage finan cial assets, trade securities and provide financial advice; be ori ented toward an industry vertical, bond-trading, M&A advi sory, technical analysis or programme trading.
The key to being successful is to have discipline, be broad- minded and be willing to admit defeat if an investment goes awry. Many money managers buy and hold fixed income secu rities including mortgaged-backs, corporate bonds, munis, agency securities and asset-backed securities. Others focus on equities, including small stocks, large caps and emerging market stocks.
A Corporate finance professional would help a company to find money to run the business, grow the business, make acquisitions, plan for its financial future and manage any cash on hand. The work includes designing, implementing and monitoring financial policies, planning and executing the financing program, managing cash resources, and interfac ing with the financial community and investors.
Unlike traditional money managers of mutual funds and closed ended funds, hedge fund managers routinely engage in short selling — that is betting that a security will decline in value. There are many flavours of hedge funds but the most common variety is a long/short equity fund. At present, we are in a period of unusual turbulence in the hedge fund world. Due to the financial crisis many hedge funds have shut down and undoubtedly more closures are to come. Depending on the size and structure of the hedge fund, there may be many positions like working at a hedge fund as a junior trader; strategist; analyst; quant; software developer; risk manager; and in various administrative roles.
As the population ages and wealth grows, the demand for insurance professionals will increase dramatically. Jobs in insurance involve helping individuals and business manage risk to protect themselves from cat astrophic losses and to anticipate potential problems. Work in this area is not only per sonally rewarding, but can be financially rewarding as well. You will help clients understand their insurance needs, explain their options to them and hopefully help them purchase appropriate insurance poli cies. You could work in a variety of areas in insurance, including as an underwriter, a sales representative, an asset manager, a cus tomer service rep or an actuary. Major areas of opportunity include auto insurance, life insurance, P&C (property & casualty) insurance, and health insurance.
Financial planners and wealth managers help individuals plan their financial futures. They help in planning for future needs like marriages, education for children, retirement needs, etc. This work requires excellent interpersonal skills. A good financial planner understands investments, taxes, estate planning issues and knows how to listen.
The role of private equity is to raise funds from large investors and invest the money directly into businesses. The usual manner is to raise money from overseas investors and then find businesses in the growth stage. Most private equity funds ‘exit’ the investment after a period of time by selling their holding in the business to some other investors or doing an initial public offering of the shares.
The entry level job in private equity is as an analyst (undergrad) or associate (fresh MBA pass outs or masters degree). You would typically be involved in a combination of one or more activities like spreadsheet analysis of the economics of a potential leveraged buyout, sourcing of new deals through industry research and screening of potential buyout candidates, preparation of materials for a senior partner on a potential investment target or company already subject to investment or coordination of the many diligence and research items required to carry out a transaction.
Over a third of the world’s wealth is tied up in real estate. Real estate is collateral for mortgages and a large amount of financial assets. Jobs in real estate fields such as title insurance, construction, mortgage banking, property management, real estate appraisals, brokerage and leasing, and real estate development are good avenues for those with an MBA in Finance. In addition, many opportunities are there in corporate real estate and in real estate lending in commercial banks, savings and loans, and insurance companies. Of course, at present, the markets are weak in housing and real estate but this field is not going away.
There is a huge scope in this area as the economies are firming up.
Source : http://www.tribuneindia.com/2010/20100623/jobs.htm#1
a nice insight into the possible options available to us at the end of two years. Need to do some more RnD into the job profiles mentioned in the article above to have a better understanding..
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