Wednesday, October 3, 2012

Career in Finance and Banking

To have a successful career in this sector, you ought to be educated of the varied roles that money corporations, the classic job duties, talent sets needed and the career prospects that wait for you in this occupation.  Being one of the most lucrative careers, the financial industry offers various career probabilities.  Study of finance today offers perhaps one of the most Lucrative career options for the dynamic student. This decade has seen the study of finance attaining almost a scientific temper
Financial planning and decision making is crucial to every business enterprise private or public. The financial executives involve themselves in the management and control of finance in an organization.
Financial management in corporations has two primary goals, reduce expenses and increase profits. A financial manager focuses a company's activities to create shareholder value for investors, who often look to the financial analysis of a company to make wise investment decisions.
A career in finance - essentially perceived as a back office record keeping job, has become much more challenging and interesting these days with the liberalization of the Indian economy. Today, it is seen as a career that provides a greater role in decision making, planning and controlling operations in any organization.

Traditionally banks have looked after, and paid interest on money which is deposited with them by individuals and companies or have lent money to people who needed it for business or personal purposes. Banks also offer a wide range of other services such as exchanging foreign currency; advising on investments and insurance and acting as executors and trustees.
There is a growing need for bank facilities due to nationwide growth, international trade and industrial liberalization which have all contributed to change in the banking environment. These changes have resulted in a general upswing in banking jobs, calling for more people with technical and financial backgrounds.
From the regular banking operation, termed as 'housekeeping', balancing of books and reconciliations of inter branch and intra branch entries of simple money transactions, commercial banks are diversifying their priorities. New financial institutions like merchant banks, leasing companies, mutual funds and venture capital companies have come into existence.
Investment Banks
Investment banks usually specialize in giving strategic advice to corporations, providing financing to companies, governments, and other large institutions, and in buying and selling stocks, bonds, and other securities.
Investment Banking
While many investment bankers may begin their career as generalists, they often go on to develop expertise in a particular industry or sector, after which their career might become more specialized.
Types of Investment Banking Jobs
  • Mergers and Acquisitions (M&A)
  • Underwriting
  • Private Equity
  • Venture Capital

Commercial Banks
Commercial banks usually specialize in taking deposits from individuals and making loans to corporations, individuals, and governments. Many large commercial banks also engage in traditional investment banking endeavors such as capital raising and trading.
Money Management Firms
Money management firms usually specialize in managing investments for individuals or institutions. Very large firms might manage a wide variety of asset classes while smaller boutique firms might focus on a particular market niche, such as small-cap stocks or high-yield bonds.
Hedge Funds
Hedge funds are similar to money management firms in that they also manage money for institutions and wealthy individuals. However, they are often known for taking more risk than some "traditional" money management firms and are generally more focused upon providing very high returns. Hedge funds sometimes have a broader mandate than traditional money management firms and have fewer restrictions on how they can invest
Private Equity Firm’s
Private equity firms usually manage money for institutions and wealthy individuals. While hedge funds and money management firms usually buy and sell public securities, private equity firms usually purchase entire corporations. When a private equity firm purchases a public company, it "takes it private," which gives the industry its name. Private equity firms usually attempt to profit either by improving the operations of the companies they purchase or by using financial engineering to increase the return on owners’ equity. Eventually the private equity firm seeks to either resell the companies they own or take them public again in order to make a profit for themselves and their investors.
Real Estate Firms
Real estate firms attempt to either develop new real estate projects or purchase existing projects in an effort to better manage them and increase the returns. Common finance jobs at a real estate firm include financing specialist, analyst or deal manager..
"Real Money"
Real money institutional investors invest money for an entity such as a pension fund, sovereign wealth fund, or insurance company in an effort to generate returns over time that will allow the organization to meet its financial goals.
Trading jobs generally involve buying and selling stocks, bonds, currencies, commodities, or some other financial instrument either to facilitate customer needs or to take a proprietary position in order to benefit from expected market movements.
Types of Trading Jobs
  • Sell-Side trading jobs
  • Buy-Side Trading Jobs
  • Hedge Fund Jobs
Financial Advisor
These jobs are perhaps the most familiar to the general public and are primarily focused upon providing financial services to the retail investor.
Types of Financial Advisor Jobs
  • Stockbroker/Financial Consultant Jobs
  • Certified Financial Planner Jobs
  • Private Banker Jobs
An Analytical
These roles, which include positions as an economist, strategist, and "quant," can be found in a variety of institutions including investment banks, money managers, the public sector and academia.
How to Get an Analytical Job
A college degree is an absolute necessity, while most participants also have either an MBA or PhD. In order to advance to the higher levels of this field, successfully writing and publishing in one's area of expertise is also generally required.
Types of Analytical Jobs
  • Economist Jobs
  • Strategist Jobs
  • Quant Jobs
How to Get a Financial Media Job
Instead of banks or money management firms, typical employers for financial media jobs include news services such as Reuters or Bloomberg, television stations such as CNBC, and newspaper or magazine groups such as The Financial Times or Forbes.
Types of Financial Media Jobs
  • Investment Writing
  • On-Air Commentator

How to Get an Analyst Job
As with almost all finance jobs, becoming an analyst usually requires a college degree. At an investment bank, an analyst role is often the first job someone holds out of college; later on, a research analyst position can be an advanced role at banks and money management firms.
Types of Analyst Jobs
  • Entry-Level Analyst Jobs
  • Investment Analyst Jobs
  • Financial Analyst Jobs.)

Portfolio Manager
Portfolio managers oversee client portfolios and usually have ultimate responsibility for all aspects of portfolio construction and the client relationship. At some firms, a manager might be responsible for "separate accounts" in which each client has their own account style and holdings. At other firms, the portfolio manager might be responsible for "pooled accounts," such as a mutual fund or hedge fund were the assets of many clients are aggregated and managed as a whole. Another distinction might be the amount of client contact the portfolio manager has.
Corporate Finance
In corporate finance, you'll deal with the financial decisions made by the company you work for, with the goal of maximizing the value of the corporation while minimizing risk.
Corporate finance and accounting professionals are responsible for managing a business's money-forecasting where it will come from, knowing where it is, and helping its managers decide how to spend it in ways that will ensure the greatest return. They pore over spreadsheets that detail cash flow, profitability, and expenses.
Financial Planning
Financial Planning is one of the fastest-growing professions across the world and with a huge demand- supply gap in India the youngsters planning a career in Financial Planning have a bright future and can take advantage of many opportunities coming across in the Financial Services Industry.
Managing money is a tricky business, managing other people’s money is not just tricky; it’s a lot challenging and difficult. Considering most people need guidance on where to invest, how to save taxes, the best insurance scheme, which fund to invest in, which stock to hold, which one to sell, how to plan junior’s college and their own retirement. And for all those self-styled experts; planners come into helping them make better use of their money and achieve financial goals.
Financial Planning is one of the fastest-growing professions across the world and Financial Planners are most sought with a fast growing working population that earns well, and needs expert handling of their finances. And opportunities are plenty, also for those looking at not starting their own practice; banks, Financial Planning outfits, wealth managers, life insurers, accounting firms, stocks brokers are lapping on to people with such expertise. Financial Planners offer expert opinions on issues like retirement planning, estate planning, financial management of small businesses, trusts, tax, stock broking and investments and debt and risk management. Needless to say a career as a Financial Planner can prove both challenging and rewarding.

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