For those who hope to advance to higher managerial roles or launch their own business in the future, obtaining an MBA degree is very advantageous in the current competitive economy. Candidates who pursue an MBA or PGDM degree have plenty of opportunity to network and hone their managerial skills.
After an MBA in Finance, what?
The focus of the finance domain is on investments and the risk dynamics of assets over time and under different levels of uncertainty. You learn how to use capital budgeting while making decisions during the MBA in Finance course. You also assess the relative merits of asset valuation methodologies including payback period, internal rate of return, discounted cash flow models, and others.
The best business schools provide curricula that demand active participation from their students during study sessions. The main topics covered in corporate finance courses are how to establish and carry out financial policies as well as analyze complex investments. The topics covered include financial analysis tools, policy options such as dividends or debt or equity financing, market volatility, mergers, acquisitions, leveraged buyouts, hostile takeovers, and initial public offerings (IPOs).
Top 10 Finance Job Profiles after an MBA or PGDM
- Corporate Finance
Modeling and valuation in finance
Analysis of the financial statements of various companies, creation of financial models, evaluation of performances through ratio analysis, evaluation of the suitability of the model created in accordance with industry standards, selection of an appropriate valuation model, creation of the valuation assumptions, and creation of the valuation report are all components of valuation in corporate finance. You must comprehend accounting rules and policies if you want to be a financial analyst.
- Portfolio and Wealth Management
Wealthy professionals with high net worth in their accounting records occasionally lack knowledge of risk management and financial planning. Investment portfolios, retirement planning funds, tax preparation, financial planning, and other activities make up wealth management. Wealth managers need to be aware of their clients’ financial goals and short- and long-term strategies. They must to be able to offer suggestions for managing investment portfolios. Portfolio management, on the other hand, essentially involves matching investment goals to financial objectives. Professionals should do in-depth study before managing portfolios and allocating assets.
- A high level of data interpretation efficiency and a preference for study and analysis.
- Individuals must also have a thorough understanding of economics, financial markets, and portfolio theory.
- Financial Investment
Investment banking is a branch of banking that assists firms in raising capital. Investment bankers should be able to manage assets, leverage capital, monitor the market, and provide guidance on whether to release FPO or IPO. It is a well-paying job that requires a lot of travel, extra work, stressful hours, and a fiercely competitive industry.
- Strong analytical and numerical skills.
- Excellent leadership and teamwork abilities.
- Self-assurance and the capacity to make challenging judgments.
- The capacity to perform successfully under duress and handle difficult circumstances.
- Effort, commitment, and dedication.
- Time and project management.
- Interactional and communication.
- Research Analyst in Finance: This position is one of the most crucial in the finance sector. They might work in a variety of areas inside a corporation and hold a variety of different titles. Equity research, fundamental and technical analysis, valuations, risk management, and statistics are all skills that research analysts should be proficient in.
Typical job profiles for research analysts include:
- Analyst for economic research
- Financial Expert
- Analyst of equity research, market research, and operations research
- Examining historical data and carrying out a variance analysis.
- Observing patterns and offering suggestions for improvement.
- Providing trend analysis, forecasting, and action recommendations for optimization.
- Making use of Excel’s organizational and analytical tools.
- Making presentations, graphs, and charts for leadership teams.
- Creating suggestions to enhance future business operations.
- Financial Advisory
Consulting aids in enhancing corporate performance by analyzing current issues.
The work that consultants do:
In their work for consultancies, consultants thoroughly investigate problems and then analyze them to offer solutions. They are responsible for tasks like technology installation, training skill development, strategy formulation, and change management. The large corporations like Deloitte, KPMG, EY, PwC, BCG, McKinsey, and BNY employ qualified individuals for financial consulting, IPOs, mergers and acquisitions, accounting standards, and taxation.
– Review the financials of the company.
– Invest analysis
– Find and assess finance and credit opportunities for capital expansion
– Advice on purchasing and selling bonds and stocks
– Forecasting expenses and revenues, and disparities should be reported
– Analyze market trends to find opportunities and hazards.
– Control both current and future tax.
– Keep an eye on financial operations and make sure the law is being followed.
– Set objectives and offer methods to boost profitability.
– Examine regular transactions to find room for improvement.
- Business Banking
Giving financial guidance to large corporations is what merchant banking—a blend of consulting and banking services—entails. Professionals offer a variety of services including fee-based advise services for mergers and acquisitions, granting letters of credit, trade consulting, and syndicate financing for projects.
Responsibilities of merchant banking:
Portfolio management includes advising financial institutions, managing client investment portfolios, and trading assets on the client’s behalf.
In order to start new initiatives, it is necessary to raise money for clients by selling shares and other assets on domestic and international markets.
Advertising Activities: The promotion of a company enterprise throughout its earliest stage, starting with the idea, is one of the most crucial actions of merchant banking.
Promotional Operations: Promoting a company enterprise during its early stages, from the conception of the idea to securing government approval, is one of the most crucial activities of merchant banking.
- Risk Control
Assessing and evaluating business risks like liquidity, operational or credit risk, capital risk, and then taking action to control or decrease them are all part of risk management.
Risk managers’ role
– Identifying the risks to a company or organization’s finances, safety, and security and then – Devising solutions to lower those risks.
– Both a risk assessment for present business operations and a risk appraisal of the company’s historical risk.
– Professionals must be able to communicate their findings to clients in a way that the business administration can easily comprehend and use.
- Asset Administration
Asset management is the process of controlling assets and securities to achieve investors’ financial objectives.
Possibilities & Skills:
– Powerful analytical abilities.
– Fairly proficient in math and finance.
– Superior communication abilities.
– Very structured and focused on the details.
– Capable in managing projects and negotiating.
– Superior critical thinking abilities.
9. Initiative Finance
Industrial projects, public services, and long-term projects are all included in project finance. Assets, rights, and interests are taken into consideration as collateral and repayment is dependent on the project’s cash flow. The private sector is where project financing is most frequently used.
Skills and Responsibilities
- Preparing estimated cash flows for construction proposal submissions to banks is one of your duties.
- For new loans, franking and execution of paperwork are required.
- The documentation needed to set (new) BG/LC limits and periodically refresh them
- Obtaining NOCs from lenders for the selling of apartments they have provided financing for arranging insurance for the new project’s assets and renewing insurance for already-existing projects.
- Ensuring the timely payment of interest and principal.
- Ensure that seniors complete the Term Sheet and other necessary financial.
- Documentation for fundraising.
- Creating consolidated debt position statements (MIS).
- The process of creating and evaluating a project cost and sales report.
- Ensuring the timely payment of interest and principal.
- Venture capital and private equity
Venture capitalists are organizations that offer entrepreneurs seed money for start-up companies and small enterprises with long-term growth potential. High risks are there, yet the returns are frequently above average. Expertise in management and technology is required for venture capital. Wealthy people, significant financial institutions, and banks engage in it. The company’s decision-making process is open to venture capitalists.
Skills and Responsibilities
- Private equity analysts do research, interpretations, and ratio analyses of private corporations while working with private equity firms.
- Examining investment benefits using financial modeling methodologies and appraisal methods.
- Managing portfolios made up of corporate equity interests.
- Raising funds from private businesses, banks, and wealthy individuals in order to increase returns above those provided by the public.
The Top Five Financial Competencies Include:
1. Cash Versus Accrual Accounting
Cash basis accounting and accrual basis accounting are the two types of accounting.
Large and medium-sized businesses use accrual accounting.
Professionals should be aware of the distinctions between these two approaches.
They ought to understand how to control cash flow, get credit for sales, produce accounting transactions, bind vendors, and so forth.
2. The Fundamental Financial Statements
The fundamental financial statements created for external consumers should be understood by managers.
They should be familiar with the financial statements and the fundamental terminologies required to interact with the accounting and finance staff.
3. Creating a Budget
Managers need to be able to create departmental budgets, resource quantifications, and action plans for the upcoming fiscal year.
- Analysis of Variance
Managers ought to be able to evaluate deviations (significant, favorable, unfavorable). They ought to be able to distinguish between one-time and ongoing volatility. They should seek assistance from the finance department if they are unable to comprehend the budget deviations.
- Financial Analysis of Capital Investments and Strategic Initiatives
Managers need to evaluate the investments and plans created to boost financial success. They ought to be knowledgeable about the ROI idea, how to evaluate the results, and NPV and IRR.
A career in finance presents a wealth of rewarding prospects. Corporate finance, wealth and portfolio management, investment banking, research analyst, financial consulting, merchant banking, risk management, private/retail banking, asset management, project finance, private equity, and other professions are some of the career options after earning an MBA in finance. Students should choose careers based on their passions and interests.