A future in Finance Management – Scope and Opportunities

According to research, the oldest records of finance can be traced back to the Babylonian period i.e. around 3000 B.C. Ever since mankind started transacting the roots of finance can be traced back.

Finance and economics go hand-in-hand and at times used synonymously. However, the two concepts are distinct and crucial. Talking about finance can be broken down into two aspects – public, corporate & personal.

Public finance refers to Government taxes, budgets, Govt. expenditures, national investment schemes, fiscal policies, etc.

While corporate finance is related to managing the finances of a business and personal finance is to do with the investments, expenses and incomes of an individual.

Finance is an integral part of every household, company or country around the world. 

In simple terms, finance involves the act of earning, spending, lending, borrowing, investing and saving money. It may be by a company or an individual.

All the activities in any company revolve around monetary goals and hence have a dedicated finance team or finance department. This finance department is responsible for managing, maintaining and monitoring the financial records & transactions of the company. 

Financial planning or financial management includes making pricing, budgeting, investment, and cash flow decisions for the company. 

Finance is the backbone of any organization and requires the manager to possess relevant skills and updated knowledge. 

Data analytics and risk management are important aspects of financial management. Hence, a person equipped with these skills is a suitable candidate for the company.

Due to the high risks, volatility and finance being the crux of the company a career in finance is both rewarding and challenging.

Here is a list of potential career options in finance – 

  1. Investment Banking – An investment banker manages larger projects, assesses the risks involved and guides the companies in planning their investments. An investment banker helps in raising capital and with mergers & acquisitions, mutual funds, hedge funds, corporate restructuring, and debt & equity.
  2. Wealth Management – A wealth manager is an advisor to HNIs (High Networth Individuals). HNIs may be companies or individuals with a surplus over Rs. 5 crores. The person guides the clients on various investment decisions and assists them in creating a financial plan & portfolio.
  3. Risk Management – A Financial Risk Manager (FRM) uses analytical skills to identify and assess the threats to the company’s assets or earnings and growth. The person is also responsible for advising the firms on the risks associated with taking or giving credit, or loans to be raised.  The person analyses the data to forecast any potential threats or risks in the company’s revenue projections.
  4. Equity Research – This role is specifically associated with the equity markets. The person analyses the equity stock market to advise & recommend to the client whether to buy, hold or sell an investment.
  5. Financial Analyst –  A financial analyst monitors the performance of a company, forecasts the trends and performance variations, and reports the fiscal health of the organization. The person also suggests changes in the capital structure of the organization if necessary.

Currently, the Indian financial market is valued at 37.37 trillion (US$ 477.55 billion). And is expected to grow in the coming few years. This translates into extensive opportunities in the financial services sector. Due to the economic growth of the country, skills required and the client-to-professional ratio, the salary of a finance professional tentatively ranges from Rs. 3.5 LPA – Rs. 15 LPA

However, the field demands analytical skills, interpersonal skills, risk assessment & management, data visualization, accounting skills, record keeping & data representation skills.

Acquiring these skill sets becomes crucial if one wishes to become a holistic & most sought-after professional. For this purpose, MIT School of Distance Education (MITSDE), brings to you a holistic approach to imparting necessary skills through – Post Graduate Diploma in Finance Management (PGDM Finance Management) or Post Graduate Executive Diploma in Banking & Financial Management. The finance course covers the basics of finance, financial modelling, financial markets, mergers and acquisitions and international finance and hands-on training in the latest tools and techniques.