One of the most coveted post-graduate degrees to pursue is the Master of Business Administration or the MBA. Here I will discuss the scope of an MBA in financial management. Before I discuss MBA in finance let me put some light on the MBA program. The MBA is typically a two-year-long course offering either a generalized management study or a specialization in one of the core management disciplines. It teaches the theory and practice of business management. General MBA programs cover several relevant areas of business administration like human resources, applied statistics, business ethics, business communication, strategy, finance, entrepreneurship, managerial economics, marketing, and operations management.
One of the core components of management studies in finance. The efficient management of financial resources can be make-it or break-it for a business to succeed. Hence, it comes as no surprise that an MBA in financial management is one of the most sought after specializations in India and the rest of the world. Apart from being a popular specialization, the growth prospects after completing an MBA Finance course are immense, whether you wish to look at the pay scale rewards or the challenges you face on the job. Moreover, your scopes after doing an MBA in Financial Management will continue to soar, as most businesses are particular about how their finances are being used judiciously to optimize growth. Thus, an MBA Finance course is a course with dual benefits- The significant value you add to your own skill base and career as well as the asset you will be for any organization you work for after you complete the MBA in Financial Management.
An MBA in Financial Management focuses on preparing students for advanced roles in finance leadership and management in the industry. It is suited for students who have an interest and aptitude in finance and related topics which include financial analysis, investment strategy, portfolio management, financial modeling and valuation, management accounting, Indian capital and money markets, banking, and international finance. There are a few prerequisite skills to excel in an MBA Finance course. The most obvious one is well-developed numerical abilities alongside financial acumen. Strategic and analytical thinking abilities are also important to make the most of your MBA in Financial Management. Alongside the pre-requisites, good leadership skills and exemplary communication will benefit your learning growth while you pursue your MBA. This specialization has a high difficulty level because of its focus on technical skills, particularly if you study in one of the top management institutes of the country. It requires dedication and a genuine knack for finance. If your vision is to hold a lead finance position in your dream company or shape the future by crunching numbers and deriving conclusions, then an MBA Finance course is the right path of action for you.
The MBA Finance course in some of the premier management institutes of the country is paired with other disciplines like Accounting to become a multidisciplinary course. The courses offered in the MBA Finance program in various institutes of India differ vastly from institute to institute. The program has a few compulsory core courses and electives, depending on your interests and goals. We have listed below some of the courses (core as well as elective) which are likely to be offered by most of the MBA in Financial Management programs in the country:
● Financial Reporting and Analysis
● Financial Markets
● Corporate Finance
● Managerial Economics
● Financial Management
● Management Accounting
● Business Law
● Business Research Methods
● Managerial Ethics
● Marketing Management
● Statistics for Management
● Strategic Management
● Production and Operations Management
● Behavioural Finance
● Business Analysis and Valuation
● Commercial Banking
● Financial Analysis and Planning
● Financial Risk Management
● Mergers and Acquisitions
● International Financial Management
● Risk Management
● Social Finance
● Money and Banking
● Corporate Restructuring
● Infrastructure Finance
● Commodity Finance
● Trading Strategies
● Fixed Income Markets
● Options, Futures, and Derivatives
An MBA in Finance Management is a lucrative career option with fat pay packages, especially if you have prior work experience. Apart from that, if you are enrolled in one of the premier management institutes in the country like the IIMs, XLRI, ISB, SP Jain, etc. you stand the chance to be recruited for challenging and lucrative leadership positions in some of the top companies in the world. An MBA in Finance Management nearly guarantees a stable career after completing the program. Career opportunities after the program are in various sectors and fields such as investment banking, management consulting, the insurance industry, wealth and asset management, hedge fund management, corporate finance, and many others. The job titles after an MBA in Finance Management are Credit Analyst, Financial Manager, Treasurer, Financial Advisor, Risk Manager, Chief Financial Officer (CFO), Vice President of Finance, and Director of Finance.
The salaries after a Finance MBA are hefty and rewarding. If you are from one of the IIMs, your package can be between 10-15 lakhs per annum, as a fresher, which is quite high compared to industry standards. Senior-level pay packages range from 20-40 lakhs per annum.
Top recruiters hiring students who have done their MBA in Finance Management include Goldman Sachs, Morgan Stanley, Merrill Lynch, McKinsey and Co, Bain and Co, BCG, JP Morgan, Deutsche Bank, and more.
To develop and enhance your financial acumen further, there are several short-term courses in Finance that you can enroll in before deciding to pursue a full-time MBA in Financial Management. These have multiple benefits like understanding the subject matter and gauging your interest before making a long-time commitment and investment. Moreover, these courses build your base in finance making you a stronger candidate to excel in an MBA Finance course.
The Certified Financial Planner is a certification given by the Financial Planning Standards Board, India in affiliation with FPSB USA. The CFP certification is accepted internationally. It prepares the candidate to be a professional with expertise in managing their client’s finances and plan finances to suit the client’s personal goals. The average duration of the course is 6-12 months, you can complete it in your own time. You need to meet the education, experience, ethics, and exam requirements set by the board before you receive your certification. The total cost of the certification will be roughly 30,000 rupees for the regular pathway. You can prepare either through self-study or sign up for an instructor from the FPSB. This is a certification that considerably increases your credibility as a finance professional and is a great course to do as a headstart to your career.
The Chartered Alternative Investment Analyst qualification is given by the Chartered Alternative Investment Analyst Association. In India, the CAIA offices are in Delhi and Mumbai. This is a globally recognized professional qualification that gives you expertise in alternative investments like real estate, private equity, intellectual property, hedge funds, etc. You must be a graduate to be able to give the exams. This qualification has 2 exam levels, which you can take twice a year. Once you qualify both levels and fulfill the required work experience criteria, you receive the certification from the CAIA Association. This short term course will complement your financial knowledge and help you gain excellent skills in a field that is upcoming and relevant in today’s global scenario.
This short term finance course to be a Financial Modeling and Valuation Analyst is offered by the Corporate Finance Institute (CFI). It teaches financial modeling and valuation analysis. The average time taken to complete the course is 6 months. You can enroll in the course by paying the fees and get access to all course materials, which include 9 core courses, 3 electives. Once you complete all the courses and their respective exams, you have to sit for the FMVA final exam and score a minimum of 70% in it. After clearing all exams, you will receive your certification from the CFI. This short-term course is highly coveted and the median salary for FMVA qualified candidates is $121000 per year. The work-readiness and skill-development in this program make it worth the time, money, and effort invested and it certainly gives a huge push to your career.
A Certified Fund Specialist is a professional who is a specialist in mutual funds and the mutual funds industry. It is given by the Institute of Business and Finance. To apply one has to have a bachelor’s degree or 2000 hours of financial services work experience. If you fulfill the pre-requisites, you need to finish the self-study program offered by the IBF which consists of 6 modules to sit for the exam. There are three exams and a case study to complete before you receive your certification. The subject matter contains extensive knowledge of mutual funds, asset allocation and portfolio construction, and balancement as well as advanced fund selection and its analysis. Overall, this is a great short-term course to enhance your existing financial skill-base and develop expertise.
The CIIA Diploma is offered by ASCII. It is a professional qualification for professionals working in the finance and investment domains. It gives you professional knowledge of domestic and international investment markets. There are two exams per year for each level. The prerequisites are that you must be working as a financial analyst or portfolio manager. You have to pass the Common Knowledge Exams and the National Regional Exams and submit your relevant work experience of three years to get the certificate. After a CIIA certification, your employability will increase, as you have acquired more in-depth industry knowledge. Thus, this is a good short-term course to invest in.
The Chartered Wealth Manager is a professional qualification issued by the Global Academy of Finance and Management (GAFM), USA. It is designed to test and certify professionals who work in the wealth management domain. For the CWM program, you need to meet the required work experience of three years in wealth management. The areas covered by the program include financial planning, risk, economics, estate management, etc. The study requirements are a Master’s degree in finance, law, economics, math, or a related field. As a professional, you can apply to be granted an exemption based on your qualifications. This is a worthy short term course, as it requires no exam for qualification, except 15 hours of continuing education per year once you get the certification.
The National Institute of Securities Markets offers multiple courses on interesting subjects and topics that you can enroll in to develop your financial acumen and gain professional qualifications with short-term commitments. The NISM certifications cover a broad range of subjects in the security and derivative markets. Each certification is valid for 3 years and the courses are affordably priced from 1000-3000 rupees each. There are 26 examinations in total, with some of them non-mandatory. The NISM certification program is a great choice for a short-term course to enhance your expertise in financial markets.
The National Stock Exchange Academy has multiple courses that you can enroll in and complete at your convenience, to develop your financial knowledge and expertise. The courses are divided into Beginner, Intermediate and Advanced levels. You can choose any course that you are interested in. The courses are affordable ranging around 2000 rupees- 12000 rupees per course depending upon the difficulty levels. If you complete the whole course you can apply for the NCMP certification ie. the NSE Academy Certified Market Professional. This is a good short term course for you as a finance aspirant.
If you still think none of these options are where your interests lie, you can always turn to education as a career option. The world will never be in shortage of good teachers who are willing to educate the next generation.
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It is a prudent course of action to enroll in a couple of short-term courses in finance to increase your financial prowess and carve the path for you to excel at an MBA in Financial Management in India. You will be sure that finance is what you want to gain expertise in and make the dream career for yourself, before making the long term commitment to an MBA, including preparation time and the two-year full-time course. We hope this article could throw some light on what your options are, being a prospective Finance MBA candidate.