Benjamin Franklin once said, “An investment in knowledge pays the best interest”
Money, money, money! It’s true: banking, finance, and accountancy careers are all about money. The world revolves around money. We talk about it, we spend it, we earn it, we lose it and we touch it every day. The world would not be able to function without money.
Finance is a huge gamut that covers business, money, accountancy, investment management, credit and risk management, stocks, futures among other options. If you invest in a career in Finance, you’ll know how to manage your interest rates.
Finance, one of the most important departments of any corporation has changed considerably in the last decade. A few years back, a career in finance usually implied three labels: Accounting Finance, Taxation Finance or Banking and Finance. Since then the corporate landscape in India has become rich and diverse, there has been a lot of global integration with the presence of more MNCs.
WHO IS A FINANCE PROFESSIONAL?
Finance professionals develop analytical skills to read financial statement or data points to appraise both the qualitative and quantitative aspect of companies and other entities in terms of their financial health.
Finance is the backbone of every corporate. Hence, an academic background in finance and accounting has application in a broad range of careers in every industry.
Below are some common career paths in the financial services industry, considering personality traits like affinity for numbers, interest in number crunching or planning is very crucial to opt for the career in finance:
• FINANCIAL ANALYST – Financial analyst oversees financial, accounting, and regularity function for the firm. Preparing a balance sheet and profit-loss statement also come under their purview. Alongside maximizing the efficiency of financial capital resources, preparing analytics based on financial numbers for strategic decision-making, and regulatory purpose is also demanded in this role.
• INVESTOR RELATIONS MANAGER – A person with formal finance knowledge combined with strong organizational and communications skill can fit in this role. Investor relation desk highlights and present information from financial statements. All public listed companies will have such a job profile.
• EQUITY RESEARCH ANALYST – An equity research analyst studies and analyses balance sheet and profit and loss statement for annual and quarterly updates. He typically uses technical analysis to review the stocks, bonds and other financial instruments and reports which securities or stocks expect to be profitable and which are not. At broking house level, they generate investment ideas for their booking clients and at fund house level for fund managers to help clients take optimal decisions about their investments.
• TECHNICAL ANALYST – A technical analyst studies the traded price and volume of the stock listed on exchanges and predicts the future price movement. The prediction can be over during various time frames like intraday, one week, one month, one quarter, one year or even higher time frame. A technical analyst is also an expert in charting by using technical analysis software.
• CORPORATE FINANCE ANALYST – The role of a corporate finance demands the allocation of financial resources of a company, arrangements of funds for various projects and business activity with the lowest possible cost of fund. It can be for business expansion and managing cash efficiently. He is expected to deal with the bank and other leading financial institutions. Corporate finance personnel can be at a strategic or managerial role.
• CREDIT ANALYST – Role of Credit analyst involves evaluating the financial standing of a prospect loan application. Risk involving the financial offering both at an individual level and corporate level is also assessed by the credit analyst. The scrutiny and legitimacy of financial information submitted by the clients also come under his purview.
• COMMERCIAL BANKER – Commercial banks both in private and public sectors are involved in the business of providing banking services to individuals, small and medium enterprise and larger corporate organizations.
• INVESTMENT BANKER – An individual who works for an investment bank (E.g., Goldman Sachs, Morgan Stanley, JPMorgan Chase etc.) to raise capital for individuals, companies, and government is called an investment banker. Investment bankers may also be involved in mergers and acquisitions, serve as a facilitator between a company and its investors, assist with unique investment opportunities such as derivatives and pricing financial instruments. Investment bankers are the highest-paid professionals in the finance industry with an average salary of INR 782988 per year.
• VENTURE CAPITAL ANALYST – As a venture capital analyst, your responsibility will be to network, be observant about the latest industry trends, and meet potential target companies. They work for venture capital firms who provide capital to start-ups and small companies with a plan of business expansion but with no access to the stock market. An analyst employed at venture capital firms take home a salary of INR 5 lakhs per annum, depending on the experience and expertise.
• CHIEF FINANCIAL OFFICER – A Chief Financial Officer (CFO) is responsible for managing the financial actions of a company and reports to the Chief Executive Officer (CEO). He tracks cash flow, analyses a company’s financial strengths and weakness, and proposes corrective actions. The CFO plays a key role in a company’s overall success by influencing company strategy. The average salary of a Chief Financial Officer is INR 3, 335, 902 per year.
• PORTFOLIO MANAGER – Portfolio Managers usually work at money management firms and hedge funds. They are responsible for overseeing client portfolios. They help their clients attain their financial goals. They are professionals with project management skills and several years of experience. Since it is a senior position, a Portfolio Manager may take home a yearly package of INR 1220838.
• RISK ANALYST – Curbing losses and managing unpredictability is the responsibility of a Risk Analyst. They identify and analyze the areas of potential risk threatening the assets of a company, predict change and future trends, and also forecast cost to an organization. The average pay package of a Risk Analyst is INR 501424 per year.