Finance is a dream career path for many MBA graduates who view it as a stable and lucrative option. Hence, jobs in the financial sector are always in demand. However, if we go into the details, finance is not just about how money is managed but a lot more than that. It requires not only a deep understanding of the principles of accounting but also an acumen for raising and investing capital. Let’s get into the details to understand more about finance as a career path.
Why should You choose a Career in Finance?
A career in the financial sector offers good career growth and a high salary. The jobs in this sector are growing at a fast pace across the world offering varied opportunities to job seekers. Hence, for graduates pursuing MBA courses, finance is one of the most preferred career paths and jobs can be easily secured by studying finance interview questions. Domains such as mergers and acquisitions, institutional trading, venture capital, and corporate lending are highly sought by finance professionals.
Generally speaking, finance can be broken down into the following categories:
- Public Finance
- Corporate Finance
- Personal Finance
Although each category requires a different skill-set, familiarity with accounting is a must. Also, before considering stepping into the finance sector one must be clearly aware of the pros and cons of this career path.
- Good salary
- Incredible professional exposure leading to enhancement of skills
- Good networking
- Get experience in dealing with influential clients
- Long work hours
- Extreme competition
- Massive workload
- Cyclical nature of recruitment and there may be a slight lack of job security.
Some major employers in this field are:
- Investment Banks: Citi, Morgan Stanley, Deutsche Bank, JP Morgan, Goldman Sachs
- Full-Service Banks: Wells Fargo, RBC, HSBC, Mizuho, Nomura, CITIC, BMO
- Elite Boutique Investment Banks: Evercore, Weinberg, PJT Partners, Qatalyst
Based on the skill set, one can choose from any of the following types of careers in finance.
1. Investment Banker
It is considered one of the most intense yet lucrative careers. Investment bankers are involved with raising money through stocks, bonds, venture capitalism, mergers and acquisitions (M&A), etc. for corporations and governments. Each division has different responsibilities and objectives.
For example, M&A bankers typically provide strategic advice to entities seeking to buy smaller companies or merge with larger ones. They use financial modeling to evaluate and analyze large-scale deals. On the other hand, bankers involved with venture capital offer advice and services to upcoming firms seeking to get funding.
The work of the actuaries involves analyzing the monetary consequences of risks. They gather and analyze data to estimate probable costs of sickness, property loss, injury, or other such eventualities to help manage future risks. Their objective is to help companies manage their risks and assets thus maximizing returns.
3. Financial Planner
The work of a financial planner is to create plans to ensure the financial stability of an entity. They thus review the financial objectives and accordingly develop strategies that focus on tax planning, wealth preservation, and investment growth.
4. Portfolio Manager
Portfolio management is considered one of the prestigious roles in the finance industry. Also known as money managers, bankers involved in this area offer investment strategies to clients that are in line with their future objectives. Based on the sector, the clients of portfolio managers may include retail investors, governments, large corporations, and even high-net-worth individuals.
5. Quantitative Analyst
This field requires a strong understanding of quantitative areas like statistics, math, economics, and finance with a strong computer skill set. The work of a quantitative analyst includes creating mathematical models to help companies make suitable financial decisions. They are in high demand in the trading sector where they help to create algorithms to determine profitable trading opportunities for businesses.
6. Financial Analyst
A financial analyst is responsible for researching potential investments and offering suitable advice to traders and portfolio managers. Hence, they require strong analytical, mathematical, and communication skills. Apart from the finance industry, they even work at non-banking entities and help to formulate budgetary plans and analyze the financial position of the company.
7. Economic Analyst
The work involves observation of broad areas of the economy to analyze the major trends. This area is best suited for finance professionals and individuals who are skilled at tracking trends, making analyses, and thus forming opinions based on those trends. This helps to predict the future of financial markets. Since this work is multi-dimensional, apart from keen analytical skills, an economic analyst must also be good at writing, working with Excel, and public speaking.
There is no dearth of opportunities for skilled finance professionals in the industry. If one can show keen interest and acumen in finance while handling a fast paced and competitive work environment, this career would be a sure shot of success.
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