Career Options In Finance
If you are the person who is keen to have a job in the finance department, you should concentrate on the following details. A career in finance is not just about money, it is multifaceted. Banking is much sought after job-related to the finance field Jobs. We have discussed some career options for finance professionals.
1) Investment Banking
Jobs in investment banking is most glamorous. This type of banking is responsible for collecting the capital required to do operations. Making it available for investors to purchase.
They also have the job of tracking the market in order to be able to offer advice to a company about the ideal time to release IPO or FPO.
Because of its potential for high earnings, many students choose to make a carrier in this field. A career in this field is competitive and time intensive. One needs to travel a lot, work round the clock on a more or less, regular basis. But the field of finance is not too easy. It involves cut-throat competition.
Consulting generally has the work of finding answers to some of the problems.
Consultancies provide organizational change management, development of coaching skills, technology implementation, strategy development, operational improvement services, etc. Consultants use their own experience and methods to work on various issues. This provides more effective and efficient ways of performing work tasks with control and coordination.
3) Merchant Banking
This type of banking takes place when any firm invests its money in clients’ firm and provides free advice to that firm. Also, they work as financial institutions with its prominent role being that of a stock underwriting. Merchant Banking includes the sharing of both trade and services.
4) Risk Management
Risk Management constitutes of Minimum Capital Adequacy Ratio, SLR, CRR, etc. for banks and provisioning for bad investments or Non Performing Assets for other businesses. Here, the minimum capital required is calculated. Risk Management is a very important part of finance. An MBA in Finance should be capable of doing risk management for a firm.
5) Private banking
Protecting and growing assets in the present, providing specialized financing solutions, planning retirement and passing wealth on to future generations are some of the works that are included in the private banking apart from the risk and capital management. Private banking approaches personally.
The Services offered are:
- Saving & Investment Planning(Future prospective work is done)
- Liability Planning ( Liability planning is a very essential part. If it is not managed properly, the business may go down.)
- Retirement Planning
- Estate Planning
- Tax Planning
The employees in private banking are very hard working. Sometimes the private banking clients are owners /promoters of business, thus, the private banking. Cross Referrals between private banking and corporate banking business are very important. Along with this, Private Banks depend on Bank’s Treasury and asset management companies that provide them with innovative products and thus, competitive advantage.
Demands from clients are accepted and the right delivery mechanism in terms of an evolving array of products is followed. However, there are not enough advisers to service this demand. And thus, creating a large number of opportunities for employment in this field.
6) Asset management
Asset Management includes the management of present inventory/ investors. Investors may be institutions (insurance companies, pension funds, corporations, charities, educational establishments, etc.) or private investors (both directly via investment contracts and more commonly via collective investment schemes. e.g. Mutual Funds or Exchange Traded funds.)
7) Project Finance
Project finance focuses on long-term finance. It is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse. Here, it is the policy that the first preference is given to paying debts.
In other words, project financing is a loan structure that relies primarily on the project’s cash flow for repayment, with the project’s assets, rights, and interests held as secondary security or collateral.
It is very attractive to the private sector because they can fund major projects off the balance sheet.
8). Private Equity/Venture Capital
Here, basically, providing of seed capital to the firms that are startups. This type of method typically entails high risk for the investor, but it also has the potential for above-average returns. As the firms are new, so it helps them. It helps for both expansion and current operations.
Venture capital is also an important capital in finance. It can also include both managerial and technical expertise. Most venture capitals come from a group of wealthy investors, investment banks and other financial institutions that pool such investments or partnerships. This form of raising capital is popular among new companies or ventures with a limited operating history and which cannot raise funds by issuing debt. The drawback of the venture capital is that sometimes, the person who has Venture Capital gets to stay i.e their capital is on hold. Hence, we can say that this type of capital has got advantages and drawbacks too.
9) Insurance: Insurance industry involves helping business and individuals to anticipate potential risks and protect themselves from possible losses. You could work in this sector as a sales representative selling insurance policies, customer service working with existing clients.