8/2/2019 Career Choices for an MBA Finance Grad

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Career choices for an MBA Finance Grad

A master in business administration with a specialisation in finance is one of the most sought after

academic background to enter the job market. An MBA in finance is very different from accounting

course as it covers economic analysis, statistics, cost and management accounting, investment

analysis, financial management, capital budgeting, valuation methods, risk management etc.

The career opportunities in finance can be broadly classified into jobs with companies whose core

operation is a finance function and those companies whose core operation is a non-finance activity.

That is called corporate finance.

Some of the burgeoning fields and kind of profile you can expect as an MBA in finance are:

1. Investment Banking: Investment bankers act as middlemen between issuers and buyers ofnewly issued stocks, typically referred to as underwriting. Managing HNI client portfolio and

advising them about various financing strategies, developing new financial instruments are

few of the several functions an Investment banker performs. Until the recent financial crisis,

a job on a Wall Street investment banking firm was the most celebrated job for an MBA in

finance.

2. Commercial Banking: With financial inclusion as a mandate from RBI, commercial banks arenow into insurance, mutual funds and other multitude of services apart from the normal

banking activites. That is the reason why they are hiring like never before. A career in banks

offers opportunities as loan officer, credit analyst, trust officer etc. Treasury operations in

PSU banks have huge requirements because they are now managing funds more actively.

3. Corporate Finance: A corporate finance job promises plurality of experiences right fromhelping companies to find money to develop its business. It includes managing assets,making capital budgeting decisions for the firm. Corporate finance professionals are fore-

runners during any acquisition/merger decisions and other strategic moves. Work varies

depending upon the size of the organisation and fund availability.

4. Asset Management: Asset Management companies help institutional clients manage theirportfolios. The Asset Managers have to be well versed in budgeting, securities, insurance,

real estate, taxes and retirement matters.

5. Equity Research: Most investment banks have their in-house equity research division. Theequity research analysts study stocks, bonds for either a fund or for public, which makes

them a buy side or a sell side analyst. Analysts are specialists with respect to a particular

firm or industry and get a decent pay and good career growth.

6. Insurance: Insurance companies are now coming up big time in India. With FDI limit in thesector going up to 49%, and given the low insurance penetration in India, the demand for

sound insurance professionals will only increase. One sought after career option in the

sector is of an Actuary. Actuaries use mathematical and statistical analysis to decide on

various terms and conditions of an insurance product.

7. Management Consultancy: Several Management consultancies help their clients oncorporate restructuring, mergers and acquisitions aspect. These consultants act as proxy to

corporate finance role for firms which require this function to be outsourced.