Students who complete their MBA with specialization in Finance have many options to choose from depending on the speciality they have chosen. Careers options and salary will differ based on the line of work one opts for.
So how does the journey of a student with an MBA in finance look like? Let’s find out.
Let’s begin by understanding what falls under finance and financial management.
What do you mean by Finance?
Finance is a broad subject and deals with the study of monetary aspects such as banking, credit, investments, assets and liabilities. In simple terms it is money management.
There are three distinct categories in finance:
- Public Finance: The role of Government in disbursing an amount towards the benefit and betterment of the economy of the country. E.g. Public transportation, public libraries, schools, and health care
- Corporate finance: This pertains to an organization or company who uses their finance to fund and capitalize on the investments made in the business and in return allocate the resources for the benefit of growth of the shareholders/ investors.
- Personal finance: This is a study of financial management of income received by an individual by saving, investing and planning for the benefit of self or family for future.
Knowledge of finance is critical to the running of any business. Because of this, students coming from a finance background can look for employment opportunities in several areas pertaining to finance. The range of career options is huge and so is the range of potential salaries. Students can opt from a variety of roles depending on their interest. Roles range from analytical to executive positions. So kind of roles can you expect and in which areas?
Career Opportunities in Finance:
There are ample opportunities for a fresher in MBA Finance. It’s just a matter of picking the right option suitable to him /her. Given below are some of the options from among the many available to a fresher.
- Corporate Finance: This is related to organizational financial management. The corporate finance department is responsible for short term and long term financial planning, maximising shareholder values and implementation of financial strategies. Everything from decision about capital investment to investment banking is managed by this group. You can start out as Corporate Finance Analyst, Corporate Finance Executive or even as Manager, Corporate Finance.
- Financial Planner: A financial planner helps individuals and organizations in planning their finances. He or she is responsible for educating their clients about market realities, helping them identify their financial goals, managing their investment, retirement and tax planning etc. An MBA finance pass out can begin their career in this field as either generalist or specialist. Also, in addition to an MBA in finance, being a Certified Financial Planner adds (CFPCM Certification) can add 20-25 % to their income.
- Stock Broker: Do you follow the markets with a hawk’s eye? Do you understand how Sensex and Nifty work? If you are passionate about stock markets, you can opt for this industry as a career option. While this role is open for graduates as well, candidates with an MBA in Financial Markets degree are preferred as you would have specialised knowledge of the field.
- Bond Broker: A bond broker acts like an intermediary between the investors and the companies ensuring anonymity.
- Investment Banker: Investment banking is a specific part of banking which deals with creation of capital for other organizations, entities or the government. An investment banker often works as part of a large financial organization and his or her primary responsibilities include raising capital for corporates, government or other entities.
- Financial Analysis & Planning analyst: This involves strategizing and analyzing the financial plan of an organization for the long term.
- Underwriter: This is a crucial role where an organization or an individual undertakes a risk related to a business venture, premium on a loan or even an investment.
- Venture capitalism & Private Equity: Venture capitalism involves where in investments are provided for start-ups. While private equity are investors who have 100% ownership of the company in which they invest.
- Portfolio Manager: This role involves managing an individual’s portfolio related to their investments, shares, bonds or mutual funds.
- Insurance: This involves assuring and offering various policies for protecting against any financial or individual loss.
- General accounting: An important role of preparing the financial recording in the form of ledgers and statements for the benefit of the organization.
Recruiters for MBA Finance
Some of the companies that recruit MBA Finance graduates include
- Goldman Sachs
- Morgan Stanley
- Merrill Lynch
- Bain & Co
- Boston Consulting Group
- Lehman Brothers
- JP Morgan
- Deutsche Bank
- Ernst & Young
Salary Package estimates
Finance is one of the highly paid industries in India. Salary is no bar for the right and qualified candidate. Starting salary’s can range from ₹ 3 – 4 lakhs per annum. The salaries differ based on when the candidate has acquired his/her MBA from. The higher the reputation of the institute, the better is the pay package. Work experience and geographical location also play an important role in how much you are paid.
It is advisable to choose the right career based on the understanding of the subject and the market scenario. Each of these requires different skills and knowledge.
Analytical and managerial skills are of key importance. Ensure sufficient research has been done keeping in mind that you are looking at a long term goal and career. Update yourself with current economic and financial trends in the market by reading and watching news. There are various networking events related to financial jobs. In addition to this, possess the right attitude and be confident of the subject that you want to specialise in your career.
There are multiple opportunities available to a Finance graduate and they have an amazing future ahead. The key lies in identifying your strength and passion and opting for the right role.
As Eleanor Roosevelt rightly put it “The future belongs to those who believe in the beauty of their dreams.”
Luck and all the very best!