career guide for finance aspirants

7/28/2019 Career Guide for Finance Aspirants

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HOW??? WHERE?? WHEN??? WHAT??

WILL I BE ABLE TO CRACK THE TOP

COMPANY??? WHAT WOULD BE MYPROFILE???HOW MUCH WILL I EARN??

WILL I BE ABLE TO WORK???

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CAREER GUIDE :FINANCE ASPIRANTS

Compiled by:Kavit Ashwin Shah


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Hunting a successful job in finance can be devastating,because often there is our very chance is at stake. A littlepreparation and understanding about available opportunitiescan help.

You have to be ready for anything to be successful in Career.

This guide deals with different kinds of Job Opportunities inFinance Service Sector in India. It makes you aware of variousskills required to acquire, to be successful

If we stop learning, we stop growing.Start by asking yourself better questions.Instead ofWhy me?and Why now?


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Preface

Indian economy, off late has become a hunting ground for many investors from allacross the world. Most precisely, it has grown like anything, especially in the lastdecade. Indian Economy has been out at par with other economies of Brazil, Russiaand China.Since the time, India first opened its gates to foreign investment; there has been a

complete turnaround. Now the traditional Hindu rate of growth is a thing of past andclocking 7%-9% GDP growth rate is the common norm. India along with other Asianpowerhouse China makes for the fastest growing nationsEven if we take the case of ongoing global recession, India has managed to performfar better than other nations. Right from banking system to financial regularities, thecountry has thrived on discipline and out-performance. The booming Indian economyresulted in widespread growth and arrival of new industries. The most sparklingphenomenon is in form of financial market of India.Financial services in India has taken a giant leap from the days of standing in banks

queue for several hours for opening a saving account or trying to get some fixeddeposits (FD) done. The financial services have increased manifold and now peoplehave the choice to choose the one that most suitably fits the bill.There are several services like broking firms, investment services, financial consulting,evergreen national banks, numerous private banks, car equity market and otherbanking services. Services are many and offered by blue chip names of the industry.Most of the companies in financial segment offer taxation services, consultancyservices and all the services of wide financial range.Whether its taking a or booking your favorite house, going for pension plan or getting

your child insured, numerous attractive financial services are available at affordablecosts. Personal banking services have acquired an altogether new meaning. Nowcustomers have multiple choices to choose from. One can find all the financialservices on the internet that are just a call away.There are numerous prospective careers available in Finance Sector. Only thing isthat, we should choose the right one which best suites you and you are passion about.

As financial services had become a vital part of Indian Economy and it growth, there isalways a lot going on the world. Professionals offer help & advice and lot of resourcesare available on the web.

So with so much help everywhere, why am I introducing this guide?

Main objective of this guide has been brought to you to provide a simple entry pathinto career in financial services in India as well as abroad. This guide helps you to getfamiliar with the major opportunities available, and guides you through the basicnecessities and skills required to perform.

If we stop learning, we stop growing. Start by asking yourself better questions.

Instead of Why me? and Why now? ask Why not me? and Why not now?


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Financial Services:There are large number of financial services facilities which we can count on, to makeour life simpler and faster but at the same time investment in the same can pave yourway to achieve tax benefits under the section 80 G 80 C, respectively.Banking Sector- Banking form of financial services are the oldest, and the mostreliable mode the world of finance has ever seen.From the time, Core Banking Services has been unleashed at the entire majornationalized and private banks the feasibility factor of the same has changed likenever before. Now, customers can easily transfer an amount in other citys branchesof the same bank for free and in other bank branches too at a nominal cost in a jiffy. It was the one of the many benefits of the modern financial services.Mutual Funds:One of the primary benefits of mutual funds is that an investor has access toprofessional management.

A good investment manager is certainly worth the fees you will pay. Good mutual fundmanagers with an excellent research team can do a better job of monitoring thecompanies they have chosen to invest in than you can, unless you have time to spendon researching the companies you select for your portfolio. That is because Mutualfunds hire full-time, high-level investment professionals.

A crucial element in investing is asset allocation. It plays a very big part in the successof any portfolio. However, small investors do not have enough money to properlyallocate their assets. By pooling your funds with others, you can quickly benefit fromgreater diversification. Mutual funds invest in a broad range of securities. This limitsinvestment risk by reducing the effect of a possible decline in the value of any one

security.

Stock Market:Stock market (or share market) trading is a common investment strategy, with manybenefits to traders. If youre looking to make money buying and selling company stockand shares, you have a few choices to make, and you need to evaluate the benefits ofeach. We saw above under various headings how the correct installment andapplicability of these financial services can ease our life and also give wings to ourfinancial investments. But, have you ever wondered how the people associated withthese services get so much knowledge about them. In order to provide an idea aboutthe same, a brief input about the courses available and their feasibility in theconcurrent times would be most suitable here.Personality Traits

A financial manager must possess, at his discretion, the deep knowledge of the A-Z ofthe whole financial terms. He/she should be alert at the same time have the capacityto think out of the box so that this attitude can yield positive results for his clients.He/she shall also hold exceptional communication and interpersonal skills and not toforget the analyzing power, too.

An enthusiastic follower of all the major stock exchanges is a must, so that he/shemay suggest the same to his clients and provide fringe benefits.


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.Various Career Options in Financial Services

Its an age of competition. Prove yourself or Perish seems to be the mantra. With thetremendous progress all around hundreds of career avenues are opening every day.So many career options offering you an opportunity to prove your metal and marchtowards a scintillating career.

Acknowledging the importance of these career options brought all the necessary

information about over hundred career avenues. This is where you can read about theimportance of various career options in India and future prospects of these careeropportunities.Prospective Career OptionsThere are plenty of job opportunities available for Masters in Finance graduates.Some of the job profile they can explore includes:-Accountant Internal Auditor

Note:Budget Analyst Business AnalystCorporate Analyst Tax Advisor These opportunitiesEquity Research Analyst Financial Analyst are not a LimitInvestment Banker Investments Analyst There are numerousMarket Analyst Marketing ManagerMoney Manager Operations Manager opportunities waitingPersonal Finance Consultant Revenue Agent for right candidatesRisk Analyst Securities AnalystManagement Accountant Teaching ProfessionalBank Professional Insurance Professional

Employment Areas: Banking & Financial Institutions Business & Financial Consulting Firms Core Banking and Insurance Corporate and International Finance

Corporate Treasuries Credit Rating AgenciesEconomic Consulting JobsDepository Services and Stock BrokingEquity Research Finance, Commerce & Banking SectorsImport / Export CompaniesFinancial Consultancy & Advisory ServicesIndian Economic ServicesInsurance IndustryInsurance ManagementInvestment AnalysisInvestment Banking LeasingMerchant Banking Project AppraisalMutual Funds Portfolio ManagementRisk Management Real Estate and Commodity Markets Money and Capital Markets including Stock Exchanges

Research Associates with Economic Consulting Firms Treasury Operations and Management

If one has done substantially excellent academic results, his chances of being placedin the top most institutes increases like never before.Remuneration

A candidate in Financial Services and especially MFA/MBA-Finance/MS-Finance/MFM/MSM pass outs freshers can get starting salary upto 10-25 K per month as ofnow while an experienced person in the same field is entitled to get a salary up to 30-60 K per month, respectively.


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Careers with a Finance Master's DegreeA finance master's degree is a gateway to a number of successful career options intoday's competitive economy. The increasing complexities of corporate finance,banking laws and compliance regulations demand a highly specialized workforce witha master's in finance

A Financial Professional Shall Posses academic and numerical ability, imagination,willingness to take decisions, powers of logical reasoning, an analytical mind, good

judgment, tact in dealing with clients and employers, the ability to write and speak

concisely, resourcefulness and a confident manner.Career as Financial AnalystThe traditional roles of the financial analyst have flourished in the complexenvironment of today's banking and finance options. A graduate with a Master's inFinance will be prepared to research financial status for their client or organization,evaluate their financial history, current expenditures and investments as well as weighrisk tolerance. Your finance courses will help them to judge what recommendations willbenefit the individual or corporate financial goals. Specializations include:Budget AnalysisCredit Analysis Investment Analysis Mergers and Acquisitions

Risk Analysis Career as Management and Financial ConsultantIn the consulting arena, a finance master's degree will help you provide strategies onshareholder value, economic forecasts, treasure management and pricing securities. Afinance consultant helps corporations see the bigger picture while exploring creativesolutions to financial issues. Corporate and banking industries offer a number ofopportunities for management and financial consultants.The average consultant begins with a five-figure salary in the 2-3 Lac a year rangewith growth opportunities seeing increases to a six-figure salary.Career as Corporate Finance Officer

Corporate finance is a division of most large corporations where the finance officer,agents and managers manage the money for the corporation as a whole. Thisincludes, but is not limited to planning financial futures quarter by quarter, acquisitionplanning, quarterly adjustments and helping to identify, plan and manage short andlong-term goals.Whether the job is with a small firm or a large corporation, corporate finance officersmust concentrate on meeting regulatory and compliance issues. The changes on thecorporate and financial landscape of the last decade will continue to affectcorporations for years to go.Career as Money ManagerMoney managers (Financial Planners) work in a wide variety of corporate and bankingsettings. They help investors, manage assets, and provide financial advice and tradein securities. A money manager's job is to help the individual or the corporation'smoney grow. Different areas of finance apply in money management from positions inhigh-end stock trading corporations to helping families invest wisely for future goalssuch as paying for a child's college. As a money manager or financial planner,successful individuals will need a solid background in fixed income investments,portfolio theory, financial futures, real estate planning and investments. Beyondfinance courses, financial planners and money managers need strong interpersonalskills to facilitate client relations and trust.


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Career as Insurance UnderwriterAn insurance underwriter must act not only in the capacity of finance manager, butalso as a financial planner. Underwriters help businesses and individuals understandtheir insurance needs by assigning value to risk and property. Insurance helps protectfrom overwhelming losses that can devastate a business or family. The demand forinsurance underwriters with a master's in finance is expanding with the aging baby

boomer population.There are multiple career options in the insurance industry from underwriter to assetmanagement. Finance graduates seeking a career in insurance underwriting canspecialize with certifications in the following areas:

Associate in Commercial UnderwritingAssociate in Personal InsuranceChartered Property and Casualty UnderwriterChartered Life Underwriter

Registered Health Underwriter

Career as Financial Accounting:Maintaining financial records of an organization is of utmost importance. Financialaccounting is a branch of accounting which deals maintaining the financial records. Itinvolves operating accounts, interpreting, supervising, controlling and organizingincome and expenditure, doing internal audits, dealing with wages and salaries,paying accounts and sending out invoices, and coping with taxes etc.Career as Financial Consultant:The changing scenario in the business world has opened promising and challengingcareer opportunities for the aspiring young. Consulting services is one suchopportunity which has drawn a lot of attention these days. Accounts often indulge inproviding these services in the fields related to finance and accounts. They canefficiently provide services in areas like corporate law advice, project planning andfinance, investigations relating to share valuation for takeovers, amalgamation,business advice, secretarial work etc. This is often referred as highly challenging! Career as Specialized Financial AnalystGraduates with practical experience and master's in finance are in high demand.Finance courses can help finance graduates develop their interpersonal, business andfinance skills and achieve entry to mid-level positions in high-demand positions relatedto their degree.

Title InsuranceMortgage Banking

Property Management /RealEstate Appraisal BrokerageLeasingReal Estate Development


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Career in BankingBanking has emerged as one of the most challenging sectors in the country. Openingsare available at various levels, from Bank Clerical to Probationary Officers (PO). Thereis great job security and the salary is very good, besides the perquisites of loans foremployees. It is a lucrative career. The private banks offer better salaries but then the

job security is also less.Personality TraitsA clear logical mind, alertness, ability to take initiative, Good verbal and writtencommunication skills, friendliness, assertiveness, diplomacy, capacity to motivateteam members, efficiency, sincerity, drive, tact, sound knowledge of the bankingsystem with up-to-date knowledge of recent developments, adaptability, dynamismand result-oriented outlook. A person responsible for foreign exchange transactionsneeds to have a sharp, quick and analytical mind.Entry Process: Selection procedure for RBIThe Reserve Bank of India is the topmost financial institution in India which makes allthe policies and regulations for the other banks. It conducts tests for three types of

entry level positions:

1. Clerical grade2. Grade A officers3. Grade B officers

The entry point for clerical staff is in the cash department as examiners of coins andnotes. They are promoted to the next grade when they successfully clear the relevantexaminations after 5-10 years of service.There is an All India Exam conducted for class I posts. Graduates, Post Graduates,CA's, MBA's in the 21-26 years of age group are eligible. The candidates are tested inlogical reasoning, mental ability, numerical aptitude and general English.The examination is in parts.

i. Paper I is a written test comprising of General Mental Ability (Objective type).ii. Paper II is a subjective one which has English Essays/Comprehension/Precise

writing etc. Paper III is on Economics and Social problems.Selected candidates are short listed for an interview which forms the basis for the finalselection.Selection procedure for other Nationalized BanksRecruitment for the public sector banks is done through the Banking ServiceRecruitment Boards (BSRBs). The advertisements for recruitment appear innewspapers as well as the Employment News. Recruitment is done on the basis of awritten test, which consists of:

i. Test of Reasoning

ii. Quantitative Aptitudeiii. General Awarenessiv. English Languagev. Descriptive Test

The test is qualifying in nature and the marks obtained are not added in the final meritlist. Except for the descriptive portion, all other sections contain objective-typequestions. In Reasoning, there is a verbal and non-verbal section. In English, the testis aimed at judging the overall comprehension and understanding of the language.The descriptive paper can be answered in English or Hindi. It judges the writtenexpression of the candidates. All sections must be qualified.


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Career in Teaching Profession:Teaching is a highly noble profession. Teachers are always a boon to society. Through

their intelligence, patience and wisdom, they attempt to not only hone the learner's

intellect and aptitude but also, create a well-rounded personality. Teaching has an

influence in developing ones mind and character and also gives the satisfaction of having

sparked the light of knowledge and dispelled the clouds of ignorance.Personality TraitsThis profession requires dedication, perseverance and patience. Knowledge of thesubject one is teaching as well as a rich experience in co-curriculas; keenness to takeon responsibility; tact; patience and the ability to get along with all kinds of people areessential.Main reason for opting this career could be interest in the subject, secure professionalcareer and regular annual vacationsYou need to have a blend of mind, patience, confidence, liking for and anunderstanding of children which is a must. You must have organizing capacity, friendly

and helpful nature to enter into this field. Teacher should have the ability tocommunicate well, to create a liking in young minds even in the case of most boringsubjects. She/he should have a deep passion for the subject one handles. Mustencourage in students the ability to analyze and think. A teacher must alwaysremember that apart from teaching, it is he/she who shapes a child's character.Teacher has to be a friend, philosopher and guide to his wards.Lecturers:College lecturers require a good academic record with at least 55% or an equivalentgrade at master's degree level in the relevant subject from an Indian University or aforeign University. The eligibility test for lecturers, National Eligibility Test (NET), isconducted by UGC, CSIR or similar tests accredited by the UGC. The State level testSLET is for appointments within the state. The promotion is based on performance,duration of service, and research publications.After Post graduation / M.Phil: Take the NET/ SLET Exam for College TeachingPlacements in Colleges/Universities:In universities or colleges there are lecturers and professors who specialize in aparticular field. They give lectures, guidance and help the students in their academicand research work. Those who have organizing ability have a further scope to becomea principal, vice-chancellor in the management level.


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Career in APEX Financial Institutions:The government of India has since independence has been setting up specializedinstitutions in order to develop the financial structure of the country on sound linesconsistent with the national socio-economic objectives and policies. RBI instead ofmerely remaining a bystander and controller of money, RBI has deliberately influencedthe country's economic system, social fabric, financial structure and political thinking.The most valuable contribution of RBI has been in the sphere of financialinfrastructure. Some of the major financial institutions today are the offshoots of theRBI. Examples are the IDBI (Industrial Development Bank Of India), which is theprincipal financial institution for the credit and other facilities for development ofindustry; UTI (Unit Trust Of India) mobilizes the savings of the community; NHB(National Housing Bank) is actively involved in the development of Housing Bank) isactively involved in the development of housing finance in the country. NABARD(National Bank for Agriculture and Rural Development) has been established with aview to promoting integrated rural development and securing prosperity for ruraldevelopment and securing prosperity for rural areas. Other apex financial institutionsin the country include SEBI (Securities Exchange Board of India), Exim Bank (Export-

Import Bank of India). **The apex financial institutions offer bright career prospects topeople from different disciplines in their general and specialized departments.Personality TraitsPersonnel for the management cadre of the apex financial institutions should haveabove average academic ability, self-discipline, diplomacy, a clear, logical mind, senseof responsibility, self-assurance, ability to interpret and apply economic and financialregulations, and the desire to update awareness of current trends in economic eventswith meticulous application to detail.Entry into Management CadreThe apex financial institutions have a more or less uniform pattern of selection to theirmanagement cadre. They induct officers in the general cadre from among graduatesand postgraduates in any discipline or personnel with work specialized cadre they takeMBA, CA, CFA, and postgraduates in Economics/Statistics/Computer Science &Engineering/ allied. Selection to the general as well as specialized cadres is throughall-India competitive written examinations. The written examinations are followedby interviews of successful candidates by the respective services boards.The recruitment advertisements appear in prominent national dailies as alsoin Employment News/Rozgar Samachar.

After selection, candidates are required to undergo in-house specialized training in thestaff colleges of the respective institutions. The training period ranges from 1 month to3 months followed by 7 or 8 months of on-the-job departmental training. Once a

person is posted to a specific department these institutions provide specialized(focused) training from time to time in India and abroad. Officers, thus, havetremendous scope for upgrading their professional skills and knowledge.Placements and ProspectsOfficers in the apex financial institutions may be posted anywhere in India. Highremunerations with generous perquisites and residential accommodation in prizelocalities are among the many facilities provided by these organizations. Prospects ofpromotion are bright and after five to seven years of experience these officers aremuch sought after by foreign banks and various financial companies.


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Career Options in the Field of Actuarial Science (Insurance):Insurance is understood as coverage by contract whereby one party undertakes toidentify or guarantee another against loss by a specified contingency, the amount forwhich it is insured. Insurance can therefore cover life, health, goods, equipments,travel or anything of value to the person or organization body. Till very recently,insurance was largely under the government sector. However, now many privatemultinational firms have come into India with a variety of insurance schemes The major government companies are Life Insurance Corporation of India (LIC),General Insurance Corporation (GIC) and Postal Life Insurance. LIC deals withinsurance of life while GIC deals with any other type of insurance. In recent years,many private companies including HDFC, ICICI, Kotak Mahindra and Birla sunlifehave setup office in India, hence the prospects of getting a good job in insurancecompany has increased a lot.Area of Work

A person interested in working in the field of insurance can either work in the capacityof:

An office in one of the areas of insurance (life, general and postal).

An agent.An insurance surveyor.

The work of an actuary (one who works in insurance field) involves the calculation ofinsurance risk, premiums and pension programmes. Actuarial science is built on thestatistical evaluation of the financial and economic implications of possiblecontingencies.In an insurance company person can take a job in and as:

Administration - deals with the registry of claims.Development - deals with marketing and procurement of business etc. Accounts -

deals with the management of funds and their disbursement.Investment - responsible for the investment of funds of insurance company.

EligibilityA person who wants to be an actuary has to pass an entrance exam conducted by theActuarial Society of India.However, recruitment to the Postal Life Insurance takes place according to therecruitment rules of the postal department.To be an insurance surveyor, a person needs to hold a license. Private insurance firms take in management graduates to work mainly in the areas ofmarketing and sales.RemunerationIn government sector, the pay scale of the officers in the insurance sector as given bythe government of India is in the range of Rs 3000-Rs 8000 for development officersand go upto Rs 14,000-16,000 for zonal managers. Along the basic pay given above,allowances amount is about more than 200 percent of the basic pay. In private sector,starting salaries are in the range of Rs 6000 to Rs 9000 per month, wheremanagement graduates can start with Rs 15,000 to Rs 25,000 per month.


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Career Options in the Field of Stock Broking:Stock exchanges are like market places where stockbrokers buy and sell securities for individuals or

institutions. As the opportunities are many with a wide choice of organizations and jobs to choose from,

professionals in this sector can hope for a good future. Indian stock exchanges, today, are dealing with big

numbers and big buyers. The capital markets are undergoing transformation. Today's progressive brokers

deal in billions rather than in millions. Brokers now have all their operations computerized and employ

qualified industry specialists to advice on buying and selling of stocks.Personality TraitsBrokers or stock market professionals are now either playing host to foreign investment bankers, whoare looking for opportunities on the Indian stock market, or visiting fund managers abroad seekinginvestment here.Stock market houses are redefining themselves and the business of stock broking is highly visibletoday.Stock broking business requires the services of specialists (in varied fields) - Economists

Accountants, Finance Managers, Financial Analysts, Capital Market Specialists, and Investments andFinancial Planners.Placements in Stock Broking:

1. Securities brokers work on behalf of firms with private clients to understand the investmentplans and objectives of the client i.e. expectation for returns and interest in risk taking. Theyare representatives of brokerage firms and execute orders to buy and sell securities. They areequipped with both knowledge and experience to give advice on the sale and purchase ofscrips and management of financial investments.

2. The financial services in firms concerns pre-sales, sales and after sales services. These firms

have departments to manage the sales and trading for the owners

of securities, investment banking for firms and the government for the issue of securities, andcapital markets which form an essential arm for trading activities.

3.As Securities Analysts: Brokers may be required to advise on floatations of shares inconjunction with the merchant banks. They are expected to have knowledge of the market to

be able to anticipate certain trends and make predictions.

4. As Investment analysts: The Investment Analysts provide accurate information to investors andfund managers. There are two major roles:

Prospects:Prospects for the stock broking business are bright and for those who are qualified to handle thisbusiness and have the necessary personality traits to cope with it, the openings are many. Foreignfirms are waiting in the wings to secure government clearance for participating in the stockexchanges. Indian brokers will, therefore, have to come to terms with real competition and ensureinternational standards of services to the investor. Choosing Stock Broking and related profession:It is often advised to do Certificate Courses, offered by BSE (Bombay Stock Exchange), NSE(National Stock Exchange), NISM (National Institute of Securities Markets) & AMFI (Association ofMutual Funds in India) which are approved by SEBI (Securities and Exchange Board of India) & IRDA(Insurance Regulatory and Development Authority), will gives edge to your success.


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career guide for finance aspirants

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