If you are the person who is keen to have a job in the finance department then you should concentrate on the following details. Career options in finance are not just about money, but they are multifaceted. Banking is much sought after job-related to the finance field. Today there is a long list of unique careers to choose from, however, Finance remains one of the most chosen career options.
Various Career Options in Finance
1. Investment Banking
For starters, jobs in investment banking are very glamorous. This type of banking is responsible for collecting the capital required to do operations. Making it available for investors to purchase.
Besides, they also have the job of tracking the market to be able to offer advice to a company about the ideal time to release IPO or FPO.
This field has the potential for high earnings, which is why many students choose to make a career in this field. In other words, a career in this field is competitive and time-intensive. For instance, one needs to travel a lot, work round the clock on a more or less, regular basis.
It is no doubt most desired out of all career options in finance. However, the field of finance isn’t a cakewalk. It involves cut-throat competition.
Moving towards consulting, it generally has the work of finding answers to some of the problems.
Consultancies provide organizational change management and the development of coaching skills. Also, they also assist in 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
Talking about Merchant Banking, it takes place when any firm invests its money in clients’ firms and provides free advice to that firm. In other words, 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
Coming to Risk Management, it 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. Since 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
Private banking is one of the better career options in finance. 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. Above all, Private banking approaches personally.
The Services offered are
a. Saving & Investment Planning(Future prospective work is done)
b. Liability Planning (Liability planning is a very essential part. If it is not managed properly, a business may go down).
c. Insurance Planning
d. Retirement Planning
e. Estate Planning
f. Tax Planning
The employees in private banking are very hard working. Sometimes the private banking clients are owners /promoters of business, which eventually leads to private banking. Cross Referrals between private banking and corporate banking business are very important.
Also, Private Banks depend on Bank’s Treasury and asset management companies that provide them with innovative products which gives them a 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
If we talk about Asset Management, it 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). This is also one of the better career options in finance.
7. Project Finance
It should be noted here that 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
In recent times this has become one the most desired career options in finance. Here, seed capital is provided to the firms that are startups.
This type of method typically entails a high risk for the investor. Despite that, it also has the potential for above-average returns.
Venture capital is also an important capital in finance as it includes 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.
It should be noted that 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.
However, 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 its own set of advantages and drawbacks.
Lastly, the insurance industry involves helping business and individuals to anticipate potential risks and protect themselves from possible losses. Therefore, you could work in this sector as a sales representative selling insurance policies, customer service working with existing clients.
Finally, I hope this list of viable career options in finance helps you in choosing the right career.