MBA in Finance: A Lucrative Career Path
All organisations rely on finance for their survival. The Master of Business Administration (MBA) in Finance seeks to provide expertise on the acquisition and allotment of a company's financial resources, as well as its control and management. MBA in Finance provides candidates with a wide range of opportunities, whether they are new to the financial world or even when they have prior experience as well.
MBA in Finance helps aspirants learn how to analyse company reports, foresee financial trends, enhance business wealth, balance profit with risk and so much more. MBA in Finance appears to offer MBA in India as an optional second specialisation from across all top b-schools. Master's degree in business administration is a two-year degree, which is split into four semesters.
A degree in MBA finance can help you pursue a career in any field of employment no matter which type of industry it is. It was earlier a largely male-dominated sector but now in the current state we are witnessing 44% of people engaged in the financial sector are women. Financial industry is now booming without any second thoughts and this means that students who want to pursue MBA in finance can look forward to making careers in various financial related fields.
Why should one pursue an MBA in finance?
There are several reasons to know why one should pursue this degree. Apart from the fact that MBA in finance would lead us to a variety of jobs in banking and financial sectors in India as well as globally, let us know why MBA in finance is a good career option.
1. Finance is all-pervasive- Finance degree assists you in every field of work, it doesn't matter which type of industry it is. Financing is the heart of every sector. As we have already mentioned above, it used to be a male dominated sector but now approximately 44% of financial sector employees are women.
2. Working in an ever-growing industry- the financial industry has moved beyond the traditional large containers with the advancement of technology. The number of branches of the financial sector has increased 1107% from 1969 to 2012. The trend in the financial sector is expected to continue to offer various new opportunities.
3. Exploring various financial sectors- The financial sector booms without any second thoughts with huge careers in brokering, commercial and investment banking companies, corporate management, international financial management, financial planning services, etc.
4. Various job opportunities- MBA in finance can provide several lucrative jobs such as financial analyst, financial manager, financial advisor, cash manager, budget analyst, etc. Around 19-20% of the total workforce are employed in banking and Finance. MBA finance jobs will also see a rise in more opportunities in coming years.
Finance as a great career option-
Finance stands as a great career option in various different fields. Let's dive into the world of Finance Career options and fields-
1. Public Accounting- Accounting comprises a variety of financial services and is an extensive field of study and practice. In general, it involves the recording and preservation of money flows for public bodies and private companies.
2. Corporate Finance- It is a financial subdivision providing funds for businesses. It addresses sources of financing, investment decisions and restructuring of capital.
3. Investment Banking- It is one of the leading career options in finance. The investment bankers work with data, numbers and decisions to improve various operations of businesses.
4. Portfolio Management- It is a merger between business and science because it requires business, math and analysis knowledge as well. You do not focus on individual investment, but look at your client's overall investment mix who can be institutions or individuals.
5. Risk Management- In identifying various market risks, the professionals in risk management are competent to recognise poor investment results. The main task is to strategically maximize returns and reduce risks.
6. Financial planning- All the services of financial planners are required by individuals and various companies to ensure their current financial stability. A career in financial planning deals with reviewing accounts and cash flows and coming up with ways to save money and invest to meet the needs of the clients.
7. Commercial Banking- A number of roles exist in this field, each role requires different skills in the banking sector. Some of them include, account manager, banker, trustee, manager of the branch, etc. They need to provide effective and customer-friendly services.
Important MBA Finance subjects are as follows:
MBA finance syllabus is a typical one with lots of challenges. Candidates with an MBA in Finance specialization are beholden to a wide array of financial subjects. Some of the important finance courses are as follows-
- Quantitative Methods- This subject covers the time value of money concepts as well as quantitative techniques applied in the decision making process in corporate finance along with valuation of various financial instruments such as stock, bonds, etc.
- Financial Accounting- the subject deals with money which is seen as a measuring instrument. You get to learn about how to calculateWeighted Average cost of capital, Basics of Financial Statements, and so on. Under Basics of Financial statements you learn preparing Cash Flow Statement and balance sheet mainly under this accounting and finance course.
- Financial Management- The subject covers important topics of Finance commerce, economics and accounting. These topics also include practices and concepts in order to handle all financial matters of businesses. You learn Valuation Fundamentals which covers entire accounting terms as well.
- Management Accounting- In management accounting, you get to learn how managers use accounting information with decision-making to assist in the management and performance of their controls.
- Commercial Banking- This banking and finance course mainly deals with an examination with theoretical concepts of the fundamentals of risk, regulation and operation management, and performance of a commercial bank.
- Business Analysis and Valuation- The course Business analysis and valuation introduces a tool for assessing financial statements and financial plans with a particular focus on their efficiency in maintaining and financing companies. Under this, they also focus on teaching Pre-money vs Post-money Valuation along with a widely used valuation methodology that is, Negotiation-based Valuation approach.
- Corporate Taxation- The course is all about learning how different business structures and private limited companies are taxed on income as well as distribution of profits, and many more things related to tax.
- Financial Risk Management- This course helps you gain skills as What finance analysts do in making important investment decisions in the financial market in short-term as well as-long term perspectives. By the end of the course you will be able to know where to invest and what risk to take. You must also know about Credit Analyst careers as well.
- Financial Markets- The course teaches you about the amount of skills required for good financial marketers to do certain tasks. The course also teaches you some criterias for selecting good companies for investment and for calculating returns you also learn to Calculate Total Shareholder Returns.
- Fixed Income Securities- This course teaches you about income markets, bonds and loans, pricing of fixed incomes, and many more other important topics.
- International Financial Management- the course deals with proper understanding of various fields such as Introduction to Foreign Exchange Markets, risk factors of International financing, valuation of international cash flows, IMF and World Bank, and so on.
- Financial Modeling- Under the financial modelling course, you will be able to learn various business decision making at a company making investments in a public or a private company, undergoing a corporate transaction such as acquisition, merger, or a capital raise. What is Financial modelling? Financial modelling is basically a skill that is highly valued in financial analysis.
- Quantitative Methods and Statistics- There are various quantitative techniques for management such as importance and scope of managerial decision making, presentation of data. All these methods and techniques are taught under this course in the form of statistics as well.
The MBA finance subjects included in this list are the most important ones. There are more finance related courses that you may come across while you're studying. You may refer to various online finance courses to increase your knowledge about the subject.
Possible jobs one can land with MBA finance-
You might already have the idea of how the finance sector looks even if you have not worked on it ever. But financing is not only about buying or selling, there are many careers in finance from both inside and outside of the investing world. Many people want to enter into the financial industry in order to get big competitive investment jobs. You should think about what's best for you and your values before you just choose the type of finance job you think is the most profitable and classy.
Lets see some of the financial related job profiles where we can see that MBA in finance stands as a great career option:
1. Accountant: examines, interprets, analyses, organises and maintains some financial records in order to prepare financial statements for tax statements. They need to have I for every detail and strong problem solving and analytical skills.
2. Credit Analyst- credit analyst's main work analyses the credit and financial data as well as a history of individuals and companies in order to determine the risk involved in lending them money e or while extending them the credit. You need to have skills such as critical thinking, decision making communication, etc.
3. Brokers and traders: Their main work is to buy and sell securities like bonds, stocks and other funds and do some in-depth research ahead of these trades. They are responsible for growing their own client list and also they need to have an entrepreneurial thinking to bring in new business and have interpersonal skills to start and maintain good and long-term relationships.
4. Financial Analyst: financial analysts are more likely to work for large financial institutions. To be a good financial analyst you must have good communication skills, strong math and you must be willing to work for long hours.
5. Budget analyst- budget analysts are helping in developing, reviewing and monitoring the spending towards budgets for organisations programs departments as well as projects.
6. Investment banker: they deal primarily with raising money for various companies and governments through bonds, public offerings, venture capitalism, stocks and through other methods. To become an investment banking analyst you need to have finance and economics along with other quantitative or business focus degrees. MBA in finance along with the internship is a must and some companies only recruit from top schools.
There are several other fields as well such as quantitative analyst, financial examiners, risk specialist, financial advisors, and planners, etc where we can see MBA in finance is a bucket of hard-working and interesting opportunities.
Scope of finance careers in future-
In all sectors, graduates try to find employment in the companies required to preserve the financial balance. There is a huge demand for people from financial backgrounds. Every company or an organisation needs financial intelligence along with steadiness within the company in order to grow big.
There are also various global opportunities in this field both in India as well as abroad. The gateway to many more financial opportunities will continue to grow, because the scope of this course will be very high in the coming years. Finance is a field that is required by all of us. The professionals in this field are required to direct us towards better financial investments.
The scope of demand for finance can never be reduced, since we need finance in all aspects of our lives, whether it is in individuals, corporate or in public institutions. The MBA finance jobs for freshers also provide various exposure with good managing skills.
The digital transformation is also making everyone adapt to the changes in the field of finance. This field also includes digital transactions where people can easily make cash transactions using various smartphone apps. Some of the upcoming trends in finance also include- Invisible payments, Blockchain and Big Data, Regulations, Communication and Consumer Education, One platform-Many Services, etc. Thus, it is ready to have new opportunities for financial managers too.
Finance students receive various different opportunities in this field and the knowledge in this field never stops. In the coming year, we will get to see new roles and opportunities for financial professionals. Finance is something which is required by almost everyone, and our financial investments must also be managed by professionals in this field only.
MBA finance provides a strong experience with the important fundamentals of finance. The entire course of MBA in finance is designed in such a way that students develop an interest among the students regarding various fields of finance.
If you want to pursue MBA finance with good MBA finance jobs, then start working on your skills such as, financial reporting, interpersonal skills, analytical ability, working under pressure, and so on.
It is a good course that needs to be studied with concentration as it is mainly focused on the management of money.
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