Minting money in finance sector

The world runs on money. Financial transactions are what rule the businesses in today’s age. Consequently, the finance industry is currently the hotspot for many graduates.

With enticing job packages and good career scope, this sector has caught the attention of many. Although the industry is lucrative, it requires strong skill sets and is exacting. You need to be constantly on your toes and have the ability to make quick decisions.

The financial sector offers multiple niche opportunities thanks to its wide
outreach. For a finance graduate at the nascent stage of his career, zeroing in on the right branch is a great matter of interest and an area of strength. Given the level of competition, arming oneself with specialised degrees, courses, and sought-after skill sets is a key step to getting ahead.

Some of the career paths that students often opt for are:

Corporate finance: This field is related to understanding the financials of a
company, preparing investor reports, deciding on whether new projects need to be undertaken or not, mergers and acquisitions and proactively grabbing investment opportunities. For example, the Sun Pharmaceutical acquisition of Ranbaxy falls under corporate finance.

Investment banking: One of the most desirable job profiles among students is investment banking. It offers lucrative packages, incentives, and promising career paths. But it is also demanding and invariably mandates long and strenuous working hours. The job profile primarily relates to the issuance of corporate securities, evaluating merger and acquisition deals and advising corporates on the schemes.

Private equity: Private equity sector entails the provision of capital to startups and established companies for expansion and diversification. Private equity professionals identify niche opportunities in a sector and invest in companies requiring funds to grow. In India, e-commerce players like Snapdeal and Flipkart are largely funded by private equity firms. Some of the well-known private equity firms are KKR, Cerebrus, TPG, Blackstone, and Bain Capital.

Financial planning and wealth management: This sector involves management of an individual’s wealth and assets to ensure current and future financial
stability. Investment in mutual funds, equity securities, and bonds are among the more prevalent means of ensuring regular earnings for an individual. The key here is to maintain the right balance between risks and returns.

KPOs and BPOs: Private equity firms, investment banks, hedge funds, corporates and other financial institutions often require cost-effective services that don’t compromise on experts’ knowledge and provide deep insight into the financial services industry. KPOs and BPOs are outsourcing models that provide these cost-effective services.

The professionals here are experts in areas such as investment banking, investment research, equity research, and general business research and analytics. Key areas of specialisation include financial modelling and due diligence. Among the prominent KPOs and BPOs operating in India are Cians Analytics, Crisil, Copal Amba, Evalueserve, and eClerx.

Getting into any of these fields requires specialised degrees such as MBAs, BCom, MS in finance, economics and so on. For an added advantage, there are professional courses like CFA, FRM, CWA, CA, and CIMA that stand out on any resume. Some of the most valued training certifications among employers include financial modelling and investment banking. Financial modelling, in particular, is a black box for many people looking to enter the field or those who are already working in areas like private equity, investment banking, and equity research.

There are many firms who are looking to provide courses that bridge the skill gap here. Firms like these offer financial research and modelling courses aimed at equipping students with practical and real-world experience to better their skills and knowledge. Such courses can be a key differentiator depending on the field, especially because training by some of these firms inculcates real-world scenarios and the best practices of veterans in the field.

Cians Academy and Copal Institute are examples of such setups.One needs to make a carefully informed decision about the financial services field he wants to enter and the skills and courses that will help him get there. Key considerations should include the demand-supply gap, current requirement of skills,  personal interests, and long-term strategies and objectives.

For example, an individual with strong interpersonal skills could choose financial planning, while someone interested in number crunching with a sound financial modelling background, could be well-suited for investment banking or private equity.So, choose wisely and have a great career in finance.