Finance!! in the modern world, the new jungle rules make the dominant survive. The new jungle rules are the ones of finance. Finance is one of the most practical subjects that one can learn about. To survive in today’s world, you need to be smart with your money. Whatever you earn, in any figures, if you can manage it efficiently then you can even earn whilst you save. So, it is quite important to learn about the concept of finance. 

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Finance can help you prepare for some of the most desperate situations of life. It can help you deal with all that is happening around you. If you have a tight hand in your finances, that can make you a bit stronger than everyone else. Nowadays, people have thousands of ways to earn and invest but they get confused as to what they should take on. With so many options, it can get crazy out in the market. The thirst to make it big and to be safe and sound can sometimes take longer. The analysis to weigh in these options takes time and usually is through the most experienced hands.

But, any person can be a finance expert, it might take a long to get used to that part where you analyze the stuff but it will surely be beneficial in the long run. So, it is quite important to know and learn about finance in this ever-changing world of technology.

But, first, you have to know about the meaning of some basic pillars of finance. What finance is basically and how people take its help to make money and save money for themselves and their families.

What is Finance?

Finance in simple terms is the handling of money and other monetary means of transactions. This term is quite broad beyond just taking care of the money, it is also about the investments, the borrowings, making of the budgets, and how much people lend, with saving. Finance is not just about keeping records of the past but also to forecast future requirements and future profits.

With finance being this much of a diverse concept, it is divided into these different branches –

  • Corporate
  • Public or Government
  • Personal
  • Behavioral
  • Social
  • Micro
  • Trade

There can be many parts of finance that one person can not handle by themselves. So, that’s why it needs people to curate the needs of analyzing and planning for the handling of money and its relative terms.

The person who associates with the finance field, associates with all of these following fields –

  • Investors, the people who invest their money or take interest in managing other’s investments
  • The financier borrows money from the investors through the issuance of bonds and shares on the behalf of the public company.
  • Banks need a finance resource force to estimate the interest and how much money they can lend to the public.
  • Companies need a finance team to estimate and make spreadsheets and data to make future budgets and models to forecast future expenses and profits.
  • A financier would use their personal money in a smart investment and might hold their money in a high-interest savings account.
  • The finance people who are in the government would develop a forecast for the spending, and estimate the revenue and tax collections from different sources.
  • Financial advisors would help people in investing their money into the bonds, stocks, and certificates with the other monetary instruments of investment.

History of Finance

Finance began from the start of civilization. Humans began to smartly use their that-time financial resources for their future use. Ancient Humans started using finance around 3000 BC. The first banking institution began in the Babylonian Empire, they kept the temples and many irreplaceable ornaments as a safe space place for storage. They started with just grain and then they diverted their focus to more valuable items. Babylonian people had a fixed interest rate of 20 percent per annum.

The Jews had a rule of not taking the interest from their fellow jews. Though, they were allowed to charge interest from gentiles. As Gentiles also took interest from Jews, it was fair that Jews should take interest in them as said by the Torah. The Hebrew culture, interest was named Neshek. Ancient China began to use Cowrie shells for money by 1200 BC. Lydians on the other hand had started using the coin money by 640 BC. And, permanent retail shops were introduced in Lydia at around 678 BC.

Around the years of 600 to 570 BCE, the use of coins was getting on its highest peaks. Greek Cities like Aegina, Corinth, and Athens made their coins by this time. The Roman people were getting ahead by using the interest which Lex Genucia reforms based. The reign of Julius Ceasar brought the interest rates to 12% and these rates were fixed for everyone. But, after his death, the interest rates were lowered to 4 to 8%.

Types of Finance

Now, we know that finance came from different origins and how it affects our lives now and how it did in the past. With these man cultures following the finance and money-making concept, they got some of the basic terms and conditions in common and from those terms and conditions, we got these branches of finance. Branches of finance help in understanding how the person can separate their money from the money of the corporate or the government.

The person can understand the concepts of how the modern firms do their finances through corporate finance, they can get the relevant experience on how the government uses their finance through the public or government finance. So, that is how a person gets to know about their finances and how they can calculate where their money is going.

With finance being this much of a diverse concept, it is divided into these different branches –

  • Corporate
  • Public or Government
  • Personal
  • Behavioral
  • Social

Personal Finance

Personal finance is all about planning and analyzing an individual’s financial position and helping them to reach their goals of saving and investments. As the name suggests, personal finance concerns itself only by an individual’s interest and their situations with their activities. So, the financial plans and models taken under consideration are from the perspective of one person’s life saving, their desires, and where they want to reach in the terms of investments.

If we think from an individual’s perspective that they need to save for their retirement and they need to make such investments that they can be fully sure that they will get lifetime benefits from it. The long-term plans need to be defined for people who want to be fully safe and secure for the rest of their lives. This whole managing thing is under the watch of the Personal Finance branch of financing. Personal finance also includes the investments such as education, life insurance, and other assets like cars and some safe investments such as real estate, with gold and silver deposits.

The main activity that personal finance includes are

Another thing that personal finance includes is that the instruments through a person or an individual transact for their monetary needs. The instruments can be Debit Cards, Credit Cards, Mortgages, Loans on various instruments, and many other types of investments.

The Banks and the activity of banking also somewhat relates to personal finance, as they give out loans and accounts like checking and savings to individuals. With these services, now banks have updated their system with online banking.

  • managing the personal accounts of an individual or a family.
  • saving themselves from uncertain events or situations that can arise in the person’s life or family.
  • The management of tax and the calculation through tax policies.
  • consideration for the long-term investments or expenses.
  • saving up for the retirement
  • investing and the wealth goals of a person
  • With, payments for the long terms debts and loans.

So, these were the terms that the branch of personal finance looks after. The needs and requirements of an individual can easily be met after they are capable of managing their accounts and debts. This all can happen if they have a good knowledge of personal finance.

Corporate Finance

Corporate finance is another branch of finance. It concerns itself with the financial activities of a firm or an organization. The firm appoints a whole department to look over the finances of their organization. Some might say that it may not be necessary to get a whole department dedicated to the finances, it is quite a waste of resources. But, on the contrary, many activities of the corporation need to be certified by a finance person and every organization requires some people to look over the budgets and expenses.

An example of corporate finance can be that a company with quite a large wealth, decides to raise some additional funds from a stock offering or if they are introducing a brand new concept they can straight go for the IPO(Initial Public Offering). The investment banks advise the corporations in these IPOs and issuance of shares for their maximum benefit.

The startups which usually start on low investments can get their ideal amount of investment from the angel investors (Those investors who typically invest in the business that is about to launch). Another source for the startups to get investment is the venture capitalists, who demand some part of ownership as their fee for giving capital to them.

The main activities that corporate finance includes are

Some cases may include that the company could rely on itself and make on its own by fixating on a budget made by their finance person. They can decide where to put in their money for the initial years and after some fluid savings and investments, they can invest in as many projects as they want to.

So, all decisions about where to invest and when to invest with many questions attached, are asked in corporate finance. Corporate finance in simple terms is about creating new sources of funds and investing the current sources of funds in those investments that will bring profits in the future for the corporation. This branch of financing makes a balance of risk and return with increasing the overall value of the organization.

  • Consideration of valuation techniques for smooth running of businesses.
  • Capital budgeting and preparation of financial models
  • Searching and making use of the unappropriated profits for the next generation investments, with the decisions of whether to divide the profits to the shareholders or to retain for unforeseen future circumstances.
  • Searching new sources of funding, whether it can be shareholder’s fun, debts, shares, bonds, or loans.
  • locating the appropriate opportunities to save and invest in the various forms of instruments.
  • acquisition of stocks and many other assets.
  • The tax calculations and risk management
  • Issuance of stock and many other listings in the stock exchange relating to the firm.

So, these were the ways through which a person can understand the concepts of corporate finance. Corporate finance is easy to know about and to learn too. But, all a person needs is practical experience and knowledge of the things that happen in corporate finance.

Public Finance

Public finance is all about the finance that relates to the government and the day-to-day operations of a government body. The work in the public finance branch can be of a big responsibility task. The activities in the routine operations include budgeting, taxing, policymaking, spending, and many more.

The resource persons in the government bodies help in stopping the market failure by giving ample time and resources for the activities like allocation, stability of the economy, and distributing the income. The funding comes from the taxation of the public. The taxes are of two types either direct or indirect. Government charges these taxes based on income and other items that the public purchases. The government regulates the flow of money through the borrowings from banks, the big industries, the insurance companies, and other friendly nations that can aid one nation in the matters of funds.

The main activities that corporate finance includes are

The work of these finance people does not ends for the money operations but also the body which performs this needs to also work on the fiscal and social responsibilities of that body. The government has the responsibility of organizing the social programs for the taxpaying citizens and also to help the needy. This is to maintain the economy’s stability so that people can keep themselves safe and keep their money is safe.

This finance relates to the different states, provinces, and districts which need their day-to-day finances to keep them running and producing. The many sources of financing depend on the type of government.

  • Public finance helps in the identification of the expenditure that they require for the day-to-day operations.
  • managing the taxes and tax policies.
  • Defining the different sources of revenue from the public
  • making the project’s budget and the overall budgets
  • issuance of debt for the project.

So, these were the activities that finance personnel does in the public finance and manages that government body’s finances.

Behavioral Finance

Behavioral finance is about human decisions. The decisions are based on judgments either they can be social or physical, they can seriously affect the investments. The factors that influence the decisions are logic, biases, fear, errors, and greed. These factors and many more gamble on the psychology of the behavior of the analysts.

The effects on the markets also affect the psychology of financial analysts. The theory of behavioral finance

It depends upon the human’s decisions, whether it may be social or psychical but when this judgment affects the investments. The impact individuals have on investment decision-making includes biases, logic, and errors in cognition, fear, and greed.

Social Finance

Social Finance is a branch of finance that concerns the social benefit and impact, it causes from its investments. it focuses on the topic of social welfare to encourage more and more people to join through. This branch of finance is one of the noblest to join into. Not only, this branch thinks of the social benefits but also about the economic benefits of a particular nation with the concern of environmental needs too.

Social finance came into the limelight after the incidents of the 2008 global financial crisis, they felt that it could have been easily avoided if any checking authority was there to ensure the social value and ethics. If any authority would have been present at that moment then this could have been avoided long ago.

Microfinance

Microfinance is about individuals who do not have the access to financial services, and it is also known as microcredit. The people who are currently unemployed and who belong to the lower-income group can opt for this branch of finance. The creation of microfinance took place to make sure that the people from the lower-income group can also thrive and become self-reliant.

The bank can also provide some additional services to the people from microfinance, like the insurance but micro one, with savings accounts and pieces of training. The ones giving loans also get their security from a group of individuals. The loans given are of less amount which is why the repayment’s chances become higher than the normal loans.

The main activities that corporate finance includes are –

  • The bank provides savings and checking accounts for the people from the economically weak section.
  • The personnel from microfinance would train the skills like bookkeeping, accounting. And, other important aspects of maintaining records like cash flow statements with profit and loss statements to the people.
  • Like the training, there would different programs about investment education.
  • People will learn about the basics of finance that would include the concepts like money management, cash flow, debt and budget with profit and loss, and many more.

Trade Finance

This branch of finance is all about financial services and related instruments, these tools help in facilitating trade internationally. This branch is ideal for the ones in export business, as trade finance helps in easily carrying out international transactions. Trade finance helps in reducing the global trade risk by reconciling the needs of the importer and exporter.

Traditional finance is a one-sided party view holder. Trade finance keeps care of both parties from many types of risks and frauds. The extra care and caution do not mean that the parties do not have any funds to make use of. They simply are just cautious of the various types of frauds in the world.

Many types of risk involve the non-payment of any party, currency fluctuations, the socio-political situation of the country with the creditworthiness of the parties, and many more.

This type of finance includes another party for making a transaction. Which in turn lessens the risk of payment and supply. Trade finance looks over the payment as well as the agreement made by the importer through which they can get a credit facility for completion of the trade order. Other than the risks involved for the risks and the non-payments, trade finance also enhances the rate of revenue.

Scope of Finance in India

Finance is one of the most important parts of the business. As the importance and responsibility are higher, so do the people working under this department should be as skillful. The better finance management is offered, the better the company thrives. Whenever someone opens up a company, they would not be able to survive if they do not have a finance person leading them to a budget-friendly project. The projects might get over some over-budgeted but with time, if the company’s potential thrives then also the people associated with them, survives.

  • Financial management is of much significance when startups initiate their business activities. They need people who can access the financial needs of a business or more specifically a project. The smart handling of the firms is quite necessary for the ones working on these projects or otherwise, the owners would lose the funds quickly.
  • The old organizations that work on a large scale for day-to-day operations need to maintain financial personnel. They need the financial personnel for the regular processes. The old companies survive for a longer period, so they need people to maintain the records and also keep up with the debts and the expenses of the company. Companies that are the old players would need to maintain the growth rate and also making more and more profits.
  • Financial management is important in the non-profit aspect of the Non-Government organizations, they are not working for the profits but they are working for society’s betterment. The NGO needs financial management for preventing the misuse of public funds.

Other than the companies and the individuals, Finance is required in the person’s life for these following reasons –

  1. The Money Management
  1. Financial Planning
  1. Insurance

Money Management

Money Management is a part of finance which deal with the monetary instruments and how an individual or a company uses their liquid funds on the day-to-day operations. The Money management specializes in stocks and short-term funds. The most common job profiles for money management experts can be mutual fund analysts, portfolio managers, and hedge fund traders.

Insurance

Insurance is a vital part of finance, which can either help the person in being connected with the corporate sector or they can directly enter into the insurance sector. When the insurance sector was privatized, they boomed in employment opportunities.

Financial Planning

Financial Planning is another important aspect for the finance sector, financial planning is a must need for the people now as they now need to make sure that their resources are properly utilized and the resources last longer than they usually do.

Eligibility criteria for Finance in India

There are many courses that a person can opt for if they want to work in the field of finance. The eligibility criteria differ from one to another course. Some of the courses require that the student should have studied math in their 10+2. But, some courses do not require that.

Some of the courses are –

  • Chartered Accountant
  • financial analyst
  • Certified Financial Planner
  • MBA in Finance
  • Financial modeling and investment programs
  • finance risk management
  • cost and management accountant
  • investment banker
  • chartered financial analyst
  • chartered certified accountant

So, these were some of the lines that the person who shows interest in finance can go for. The eligibility criteria for these courses are different, some require a graduate degree and some do not, they simply require that the student passes from the 10+2.

Streams for the finance field

Chartered Accountancy

For Chartered accountancy which is offered by the institute of chartered accountants of India (ICAI), this course is one of the most important courses that a person can do after their 12th. The requirement is simple, a clear understanding of the basics of the accountancy and days dedicated to the study of the whole taxes and accounts in whole. The Chartered accountancy may take some of your time but in the end, it is fruitful. The eligibility for the chartered accountancy is that the person should clear out their 12th subject. The main domains that a CA is to focus on are – Applied finance, financial accountancy, taxation, and reporting management accounting.

This course is a full diving course in the field of finance and accounting. That means, it opens up the doors to various options in the future in the domain of finance. CA’s are quite important for the people working in the finance domain and the companies need CA’s to sort the accounting work which includes financing, taxation, legal counsel, and auditing with many more things. The CA’s are in regular demand by the company for many roles like the financial analysts’ role. Many banks and financial services firms search for CAs for these demanding roles.

MBA in Finance

The MBA in Finance is a career field designed for managers. The managers are quite analytical and can deal with the internal financial affairs of the company. The ones who want to pursue the MBA in Finance, need to have a proper understanding and knowledge of economics, financial theory, and mathematics. The person who wants to pursue the MBA in finance needs to complete their graduation in their respective field with at least 50% of marks. With this, they need to clear out the entrance exams that are conducted specially for the MBA all over India. These exams are MAT, CAT, XAT, SNAP, CMAT.

The person who wants to pursue the MBA in finance needs to complete their graduation in their respective field with at least 50% of marks. With this, they need to clear out the entrance exams that are conducted specially for the MBA all over India.

Finance Entrance exams

The field of finance is as diverse as any other field. So, you need to think quite clearly that what are you willing to go through for your whole life. You would need to dedicate yourself to the studies for the better. The better you prepare yourself for the entrance exams, it would help you in the first semester or the first year to understand things clearly. The different entrance exams for the field of finance are –

CFA Entrance Exam

The CFA program is a course for professionals that is offered by the US-based CFA Institute. This program is all about the CFA charter and the investment with financial professionals. The CFA graduate program is a bachelor’s program that is divided into 3 levels of 1,2 and 3. The board conducts the exam in a computer-based mode. The entrance exam is taken from 10 cities of India. And, the one which is held in December, that is taken in 6 cities. The exam is all about the analysis and the tools of analyzing the data on various platforms.

The entrance exams test out the student’s core or basic knowledge of the program, they are about to enter. The exams cover a range of questions about the finance field, like the stocks, bonds, derivatives and other important fields of finance are present in the entrance exams.

The level of the exam’s difficulty raises with the level a student reaches to. Like exam 1 would be easier than exam 2. The results for the level 1 and 2 exams are released for the students after 60 days or within them. The results for the level 3 tests are given within 90 days. The students who wish to hold the degree for CFA need to pass all 3 exams. The CFA exams are conducted in English only. The degree of CFA Charter holder is given to the student who successfully passes the exams of every level.

Certified financial planner

a certified financial planner needs to know about the taxes and the taxation policies. They need to have a grasp of the various types of plannings like tax plannings, estate planning, insurance plannings, and many more. The eligibility criteria for the certified financial planner is to pass out the bachelors or any sort of a higher degree in the recognized university.

Chartered wealth manager

The chartered wealth manager is a certification course that concerns all the sections of wealth management. Wealth management includes life cycle management, investment strategies, relationship management, intergenerational wealth transfer, alternative products, behavioral finance, global taxation, and real estate valuation with many other important concepts. The chartered wealth manager needs to have a graduate degree. They can also pursue the CWM course after the relevant experience of 3 years.

Financial Modelling

Financial modeling and investment programs are the courses that teach to work on the data that is already given, historical data which is already provided to make assumptions or models for future performances. It is quite necessary to master the advanced excel skills for making accurate judgments of the coming market trends. The skill is important for any firm that works for future needs and the demands of the market. The ones who know about the financial modeling beforehand pursuing the course are welcome. The ones who have the degree of CA, MBA, or CFA will be preferred

Top Finance courses in India

Finance comes up with a lot of responsibilities that a single person can not handle themselves. That is why this field requires people who focus well on the tasks at hand. Many diverse people come together to support a common goal and doing this, they share strategies through their experiences.

The most basic way through which any person can understand finance is to learn it through real-life examples. The real-life examples of businessmen, the common man, and people who are famously known for how they handle their finances. These people are the role models for the normal folks who want to learn about finance. So, these are some of the courses that a person can choose for their interests.

Some of the courses are –

  1. Chartered Accountant
  1. financial analyst
  1. Certified Financial Planner
  1. MBA in Finance
  1. Financial modeling and investment programs
  1. finance risk management
  1. cost and management accountant
  1. investment banker
  1. The chartered financial analyst
  1. chartered certified accountant

Chartered Accountancy

The Chartered accountancy is under the care of the institute of chartered accountants of India (ICAI). The CA is quite a professional and well-qualified profession seen by the people in India. It is a course that challenges the student to think like an accountant and find out what they can in the most desperate of situations. These situations arise from many of the factors like the human errors of omission and many more.

This course is a full diving course in the field of finance and accounting. That means, it opens up the doors to various options in the future in the domain of finance. CA’s are quite important for the people working in the finance domain and the companies need CA’s to sort the accounting work which includes financing, taxation, legal counsel, and auditing with many more things. The CA’s are in regular demand by the company for many roles like the financial analysts’ role. Many banks and financial services firms search for CAs for these demanding roles.

CA’s can do their practice once they clear out their studies and pass their exams. But, students who pass out the exams for CA are just 4 – 5 % out of the whole group of people. Moreover, if you study as much as you can and pass out your exams, you will get the sweet rewards of a package of at least 3 to 12 LPA. And, you just need to show that you have passed the 10+2 in commerce background and sit in the exams of Chartered Accountancy.

Chartered Financial Analyst

The MBA finance gives the specialization on business and the domain of Finance. But there are some of the areas that it overlooks. Today’s era is more about the people who dive deep into their choice of specialization. They are perfect in one thing they do whether they love it or not. The focus is on the one thing whether it is of any department. The course CFA is one of the best-focused courses for people who want to enter the domain of finance.

The course takes in important topics like security analysis, investment analysis, and financial management. The entrance exams test out the student’s core or basic knowledge of the program, they are about to enter. The exams cover a range of questions about the finance field, like the stocks, bonds, derivatives and other important fields of finance are present in the entrance exams. The level of the exam’s difficulty raises with the level a student reaches to

This certification course is quite well known in the world of finance. The certification is held by the CFA Institute of USA. The curriculum and the study make the candidates ready for the roles and challenges of the financial industry. The person looking forward to the course of chartered financial analyst can expect a salary of at least 2 to 10 LPA.

MBA in Finance

The MBA in finance is the second option for people who want to join the prestigious field of finance after the Chartered Accountancy. The career of MBA in Finance requires the skills of understanding economics, financial theory, and mathematics. These all would get better when you join the specialization of Finance in MBA. The life of an MBA pursuer would not be boring, they will be working on various aspects of the financial world. By studying, they will get the real experience of working in an MNC through internships and case studies-based subjects. MBA finance is a must degree for someone who wants to join an MNC in the field of Finance. The salary of an MBA in Finance can start from 3 to 6 LPA, depending on the colleges they get their degree from.

CIMA

The CIMA is the institute for management accountants. It is based in the UK and is a professional certified body of management accountants. They collaborate with the American institute of certified public accountants, to conduct a program which is known as the CIMA professional qualification. This course challenges the mind of the candidate to not only think about finance but also the aspects of finance in the matters of decision making and strategy implementation. So, this course is better for the people wanting to get into corporate life rather than just doing their practice of accountancy. The exam is of 12 levels and is only on 3 levels of difficulty. With this course being this rigorous, the candidate might get a basic salary of at least 9 LPA.

Financial Modelling

Financial modelling and investment programs are the course that teaches to work on the data that is already given, historial data which is already provided to make assumptions or models for the future performances. It is quite necessary to master the advanced excel skills for making accurate judgments of the coming market trends. The skill is important for any firm that works for the future needs and the demands for the market.

The ones who know about the financial modelling beforehand pursuing the course are welcome. The ones who have the degree of CA, MBA or CFA will be preferred. It is quite necessary to master the advanced excel skills for making accurate judgments of the coming market trends. The skill is important for any firm that works for the future needs and the demands for the market. The ones who know about the financial modelling beforehand pursuing the course are welcome.

Certified Public Accountant

The Certified Public Accountant is like the highest qualification in the US. This course is like the CA qualification that takes place in India. The person interested in the CPA program can apply by taking the exam by the AICPA American Institute of Certified Public Accountants. Other than the US, CPA is accepted globally, which includes India too. If the candidate is willing to go for CPA, then the candidate becomes eligible for the roles of the accounting policies of the rest of the countries. The person going for this job can expect the package of 7 LPA minimum.

ACCA

Those who want to pursue their career in financial accounting and related fields like auditing, taxation, pricing, and the corporate’s internal auditing can consider doing the course of Chartered Certified Accountant. This qualification is worth doing if the student wants to pursue the above-mentioned fields. The body is UK-based offering global certification in the field of accountancy. Not only the UK but ACCA is also known for its work in more than 78 markets. It has many of the 80 international accountancy stream partnerships. The professional standards are high, which demands the student to make up to the expectations of the ACCA. The student can stand up to the expectations by clearing out the tough exam of ACCA.

Due to the difficulty level of the ACCA exam, the passing percentage of students is mostly around 50% of the total students. Though, it is quite higher than the Indian CA rates of the passing of just 4 to 5 %.

The salary can base up to the company the student works for or either the profile the company offers to them. The freshers are given the same salary as CA’s. The salary ranges from 7 to 9 LPA.

Institute of Cost Accountants (ICAI)

The course of CMA (Cost Management Accounting) which the ICAI offers. ICAI is the only institution of Indian that gives Cost accountancy in the whole country. The finance sector in today’s times demands all the people who can treat the costing as well as the management accounts. The course is of 3 stages, which are

  1. The CMA Foundation
  1. CMA intermediate
  1. CMA Final

FRM

The people who wish to focus on the career of risk management can pursue the course of the FRM. Financial risk management is a respectable degree for the ones who want to opt for a career in the sector of risk management. FRM is a field that specializes in the field of trading, modeling, and the structuring of financial statements. The roles that are the FRM offers are the head of the operational risk, chief risk officer, senior risk analyst, and investment risk manager. The certification course focuses on the trends that are latest in the management and finance field. That is why it is said to be quite difficult.

The national average salary around is Rs. 15 LPA.

Top Finance Courses for Bachelors in India

With this much diversity in the world of finance, there tends to be a need for people from diverse qualification streams. These people need to be masters of their crafts. They need to be masters as their skills would be quite useful for the companies or wherever they choose to work. So, the first step to the world of finance is to get admission in the bachelor’s course. Some of the courses that colleges offer for the finance field students –

  • B.Sc or BA in Economics/ Statistics
  • BBF – Bachelors of Basic Finance
  • Bachelor’s of Business Administration (BBA)
  • BFM
  • B.Comm in Finance
  • BMS
  • Chartered Accountancy

So if you are looking to enter the domain of finance from the start, then you can enter through these courses. These courses will help in understanding the basics of the world of finance. The stream of finance may be a bit hard at the start but it makes development in the intermediate stages of life. The person would get the benefits as they will progress with jobs and gain experience.

List of top colleges offering bachelors in Finance are

  • St. Zaviers
  • KJ Somnia College of Science and Commerce
  • Shri Krishna arts and science college
  • Loyola College
  • Mithi bai college
  • Hindu college
  • Hansraj college
  • Stephens college

Average Fees for Bachelors in Finance: 50 K- 1LPA

Admission Criteria for Bachelors in Finance: The student needs to pass their subjects of the 10+2 and also some of the courses would demand an entrance exam for the admission criteria. It is better to prepare for the entrance exam for the people who wish to enter a bachelor like BBA.

Types of Jobs after Bachelors in Finance: Analyst, Accountant, External Audit, Trader or Stockbroker, Consultant, Actuary, Finance associate and many more lines like these.

Average Placements after Bachelors in Finance: 2-3.4 LPA

Top Finance Courses for Masters in India

The world of finance is quite large but mostly the courses that offer whole courses cover up their specializations. The courses like the ones mentioned below are some of the few that do not needs a master’s degree. One or two of the courses is MBA/M.Sc, that can be done in the area of Masters. There are not many master’s courses that the field of finance offers. As the beginner level courses are so much of high level that the person gets all the knowledge from there only. The courses like –

  • Chartered Accountancy
  • CPA
  • CFA
  • CIMA
  • ACCA
  • ICAI

These courses are already the ones which can be done wholly and the person is certified to practice their workings in any part of the country and some cases, they can continue this internationally too.

List of top colleges offering Masters in Finance is

  1. Amity University
  1. DIT University
  1. Parul University
  1. Jamia Millia Islamia Univeristy
  1. Mumbai University
  1. Maharaja Sayajirao University of Baroda

So, these were the colleges that offer the Masters in Finance and MBA in finance. And, here are the rest of the details.

Average Fees for Masters in Finance: 70 K- 1LPA

Admission Criteria for Masters in Finance: The student needs to pass the subjects of the graduation degree and need to score at least 50% or above. It is better to prepare for the entrance exam for the people who wish to enter a bachelor like BBA. Some colleges may conduct interviews.

Types of Jobs after Masters in Finance: Financial services sales agent, Financial manager, Finacial analyst, Investment banker, Financial Consultant, insurance manager, and many more.

Average Placements after Masters in Finance: 7- 8 LPA

Frequently Asked Questions About Finance in India

Question 1 From where does Finance originate?

Answer. Finance began from the start of civilization. Humans began to smartly use their that-time financial resources for their future use. Ancient Humans started using finance around 3000 BC. The first banking institution began in the Babylonian Empire, they kept the temples and many irreplaceable ornaments as a safe space place for storage. They started with just grain and then they diverted their focus to more valuable items. Babylonian people had a fixed interest rate of 20 percent per annum.

Some of the categories are relatively new, Behavioral and Social finance. Finance is one of the core activities that our human ancestors did. The exchange of coins began as early as 1000 BC, and with that banks and interest-taking loans started at 1000 BC. Finance existed for quite a while so many people had their ways with it. Experiments and analysis of the subject with other fields made it quite flexible. As a result, modern-day finance co-exists with other fields like economics, statistics, mathematics, and many other fields that link it to art.

Question 2 What are the different branches of Finance?

Answer. With finance being this much of a diverse concept, it is divided into these different branches –

  • Corporate
  • Public or Government
  • Personal
  • Behavioral
  • Social
  • Micro
  • Trade

There can be many parts of finance that one person can not handle by themselves. So, that’s why it needs people to curate the needs of analyzing and planning for the handling of money and its relative terms.

Personal Finance

Personal finance is all about planning and analyzing an individual’s financial position and helping them to reach their goals of saving and investments. As the name suggests, personal finance concerns itself only by an individual’s interest and their situations with their activities. So, the financial plans and models taken under consideration are from the perspective of one person’s life saving, their desires, and where they want to reach in the terms of investments.

If we think from an individual’s perspective that they need to save for their retirement and they need to make such investments that they can be fully sure that they will get lifetime benefits from it. The long-term plans need to be defined for people who want to be fully safe and secure for the rest of their lives. This whole managing thing is under the watch of the Personal Finance branch of financing. Personal finance also includes the investments such as education, life insurance, and other assets like cars and some safe investments such as real estate, with gold and silver deposits.

Corporate Finance

Corporate finance is another branch of finance. It concerns itself with the financial activities of a firm or an organization. The firm appoints a whole department to look over the finances of their organization. Some might say that it may not be necessary to get a whole department dedicated to the finances, it is quite a waste of resources. But, on the contrary, many activities of the corporation need to be certified by a finance person and every organization requires some people to look over the budgets and expenses.

An example of corporate finance can be that a company with quite a large wealth, decides to raise some additional funds from a stock offering or if they are introducing a brand new concept they can straight go for the IPO(Initial Public Offering). The investment banks advise the corporations in these IPOs and issuance of shares for their maximum benefit.

Public Finance

Public finance is all about the finance that relates to the government and the day-to-day operations of a government body. The work in the public finance branch can be of a big responsibility task. The activities in the routine operations include budgeting, taxing, policymaking, spending, and many more.

The resource persons in the government bodies help in stopping the market failure by giving ample time and resources for the activities like allocation, stability of the economy, and distributing the income. The funding comes from the taxation of the public.

Behavioral Finance

Behavioral finance is about human decisions. The decisions are based on judgments either they can be social or physical, they can seriously affect the investments. The factors that influence the decisions are logic, biases, fear, errors, and greed. These factors and many more gamble on the psychology of the behavior of the analysts. The effects on the markets also affect the psychology of financial analysts. The theory of behavioral finance

It depends upon the human’s decisions, whether it may be social or psychical but when this judgment affects the investments. The impact individuals have on investment decision-making includes biases, logic, and errors in cognition, fear, and greed.

Social Finance

Social Finance is a branch of finance that concerns the social benefit and impact, it causes from its investments. It focuses on the topic of social welfare to encourage more and more people to join through. This branch of finance is one of the noblest to join into. Not only, this branch thinks of the social benefits but also about the economic benefits of a particular nation with the concern of environmental needs too.

Social finance came into the limelight after the incidents of the 2008 global financial crisis, they felt that it could have been easily avoided if any checking authority was there to ensure the social value and ethics. If any authority would have been present at that moment then this could have been avoided long ago.

Micro finance

Micro finance is about individuals who do not have the access to financial services, and it is also known as microcredit. The people who are currently unemployed and who belong to the lower-income group can opt for this branch of finance. The creation of microfinance took place to make sure that the people from the lower-income group can also thrive and become self-reliant.

The bank can also provide some additional services to the people from microfinance, like the insurance but micro one, with savings accounts and pieces of training. The ones giving loans also get their security from a group of individuals. The loans given are of less amount which is why the repayment’s chances become higher than the normal loans.

Trade Finance

This branch of finance is all about financial services and related instruments, these tools help in facilitating trade internationally. This branch is ideal for the ones in export business, as trade finance helps in easily carrying out international transactions. Trade finance helps in reducing the global trade risk by reconciling the needs of the importer and exporter.

Traditional finance is a one-sided party view holder. Trade finance keeps care of both parties from many types of risks and frauds. The extra care and caution do not mean that the parties do not have any funds to make use of. They simply are just cautious of the various types of frauds in the world.

Question 3 Is there a course in finance?

With this much diversity in the world of finance, there tends to be a need for people from diverse qualification streams. These people need to be masters of their crafts. They need to be masters as their skills would be quite useful for the companies or wherever they choose to work. So, the first step to the world of finance is to get admission in the bachelor’s course. Some of the courses that colleges offer for the finance field students –

  • B.Sc or BA in Economics/ Statistics
  • BBF – Bachelors of Basic Finance
  • Bachelor’s of Business Administration (BBA)
  • BFM
  • B.Comm in Finance
  • BMS
  • Chartered Accountancy

So if you are looking to enter the domain of finance from the start, then you can enter through these courses. These courses will help in understanding the basics of the world of finance. The stream of finance may be a bit hard at the start but it makes development in the intermediate stages of life. The person would get the benefits as they will progress with jobs and gain experience.

Question 4 What kind of education do you need to be in Finance?

There are many courses that a person can opt for if they want to work in the field of finance. The eligibility criteria differ from one to another course. Some of the courses require that the student should have studied math in their 10+2. But, some courses do not require that.

So, these were some of the lines that the person who shows interest in finance can go for. The eligibility criteria for these courses are different, some require a graduate degree and some do not, they simply require that the student passes from the 10+2.

Question 5 What is the average salary of a person in the field of Finance?

Answer. The ones who are pursuing the finance field or thinking about pursuing work in the field of finance should know about the pay roles and what kind of package they can expect from those roles.

Highest Packages in the respectable jobs

  • If you go in the field of analysts then you can get a package of Rs. 4 to 6 LPA easily.
  • If you want to pursue your career as a compliance officer, then you can expect a package of Rs. 5.3 to 7 LPA
  • A career as a financial advisor would be thrilling and so will be the pay. A financial officer gets the package of at least Rs 6 LPA.
  • The senior accountant is a post of high dignity but with many responsibilities. The senior accountant in their field would get an average salary of Rs 4 LPA.
  • The loan officer is the one who approves everyone’s loans and also makes official deals about the loans and interviewing the ones who want the loans. The annual average package of the Loan officer is 4.6 LPA.
  • Information Technology Auditors are the ones who work in the government departments to make sure that the needs of the technology infrastructure are met. The annual package of the information technology auditor is around 10 LPA.
  • Financial Software developers are the ones who make the software that the financial people work on. The developer makes sure that the software is easy to use and the people know how to use it. The annual salary of a Financial software developer is Rs. 7 LPA.
  • Investment bankers are the ones responsible for managing the investing money into the investment that gives yields for sure. The investment bankers deal with stock and bonds and also know about debt financing. These bankers also know about the most gainful deals in the market. The annual salary of the investment banker is Rs. 8 LPA.

Question 6 What kind of Jobs can I get with a finance degree?

Answer. Finance is quite vivid and takes up a lot of time and resources. But, if a person clears the paper of the finance stream then their life can be said to be easier than a regular person struggling to get a stable job.

Finance comes up with a lot of responsibilities that a single person can not handle themselves. That is why this field requires people who focus well on the tasks at hand. Many diverse people come together to support a common goal and doing this, they share strategies through their experiences.

The most basic way through which any person can understand finance is to learn it through real-life examples. The real-life examples of businessmen, the common man, and people who are famously known for how they handle their finances. These people are the role models for the normal folks who want to learn about finance. So, these are some of the courses that a person can choose for their interests.

Some of the courses are –

  1. Chartered Accountant
  1. financial analyst
  1. Certified Financial Planner
  1. MBA in Finance
  1. Financial modeling and investment programs
  1. finance risk management
  1. cost and management accountant
  1. investment banker
  1. The chartered financial analyst
  1. chartered certified accountant

Question 7 how long does it takes to become a professional in the finance stream?

Answer. The answer to this question is quite difficult as there are a variety of courses in the vast stream of finance. The stream offers that many courses that it can take time to name. The person can become a professional in the finance stream after giving in the best they have got. As they would need to prepare their mindset more than anything. The mindset would need to stick to one idea and give out results accordingly.

The Timings can differ from person to person. Some people may take at least 4 to 5 years for the case of Chartered Accountancy. But, the ones who are committed to the idea of passing and starting their practice as soon as possible may take up less time to pass all the exams in the course of Chartered Accountancy. Like that, it will depend on the person, that whether they can cope up with the pressure of working and studying simultaneously.

Question 8 How are the career prospects after a finance course?

Answer. The career after a finance course depends on which career you choose to opt for your future if you go for these careers then, –

Chartered Accountancy

The Chartered accountancy is under the care of the institute of chartered accountants of India (ICAI). The CA is quite a professional and well-qualified profession seen by the people in India. It is a course that challenges the student to think like an accountant and find out what they can in the most desperate of situations. These situations arise from many of the factors like the human errors of omission and many more. Life after this course will be challenging in the terms of taking care of the accounts. Other than that, it is a smooth run for the time you continue your practice.

Chartered Financial Analyst

The MBA finance gives the specialization on business and the domain of Finance. But there are some of the areas that it overlooks. Today’s era is more about the people who dive deep into their choice of specialization. They are perfect in one thing they do whether they love it or not. The focus is on the one thing whether it is of any department. The course CFA is one of the best-focused courses for people who want to enter the domain of finance. The course takes in important topics like security analysis, investment analysis, and financial management. Life after the chartered financial analysis course can be easy if you are ready to devote yourself to the world of finance.

MBA in Finance

The MBA in finance is the second option for people who want to join the prestigious field of finance after the Chartered Accountancy. The career of MBA in Finance requires the skills of understanding economics, financial theory, and mathematics. These all would get better when you join the specialization of Finance in MBA. The life of an MBA pursuer would not be boring, they will be working on various aspects of the financial world. By studying, they will get the real experience of working in an MNC through internships and case studies-based subjects. Life after MBA in finance is quite easy if you are the one who can manage people while working on budgeting and financial analysis. It may not be everyone’s cup of tea. But, if you are the one who enjoys managing as well as the finance then surely go for it.

CIMA

The CIMA is the institute for management accountants. It is based in the UK and is a professional certified body of management accountants. They collaborate with the American institute of certified public accountants, to conduct programs that are known as the CIMA professional qualification. This course challenges the mind of the candidate to not only think about finance but also the aspects of finance in the matters of decision making and strategy implementation. Life after doing this course can be easy for the people who are ready to commit to the decision-making and strategy-making procedures and situations.

Certified Public Accountant

The Certified Public Accountant is like the highest qualification in the US. This course is like the CA qualification that takes place in India. The person interested in the CPA program can apply by taking the exam by the AICPA American Institute of Certified Public Accountants. Other than the US, CPA is accepted globally, which includes India too. If the candidate is willing to go for CPA, then the candidate becomes eligible for the roles of the accounting policies of the rest of the countries. The person going for this job can expect the package of 7 LPA minimum. Life after pursuing this course is easy for the person who wants to take a world tour. Those who are willing to re-locate are the ones who are best for this job.

  • ACCA

Those who want to pursue their career in financial accounting and related fields like auditing, taxation, pricing, and the corporate’s internal auditing can consider doing the course of Chartered Certified Accountant. This qualification is worth doing if the student wants to pursue the above-mentioned fields. The body is UK-based offering global certification in the field of accountancy. Not only the UK but ACCA is also known for its work in more than 78 markets. Life after taking this course will be easy if the candidate likes to dive deep into the field of taxation, auditing, and pricing.

Institute of Cost Accountants (ICAI)

The course of CMA (Cost Management Accounting) which the ICAI offers. ICAI is the only institution of Indian that gives Cost accountancy in the whole country. The finance sector in today’s times demands all the people who can treat the costing as well as the management accounts. The course is of 3 stages, which are

  1. The CMA Foundation
  1. CMA intermediate
  1. CMA Final

Life after taking this course would be easy if the person is willing to give in their years and hard work to become a professional in cost management accounting. The one who wants to work in the field of cost, as well as management accounting, can go for this course.

FRM

The people who wish to focus on the career of risk management can pursue the course of the FRM. Financial risk management is a respectable degree for the ones who want to opt for a career in the sector of risk management. FRM is a field that specializes in the field of trading, modeling, and the structuring of financial statements. Life after taking the course of FRM can be easy for the ones who want to take up the risk management arena in the future.

Chartered Wealth Manager

Chartered wealth manager is a certification course that concers with all the sections of the wealth management. Wealth management includes life cycle management, investment strategies, relationship management, intergrenerational wealth transfer, alternative products, behavioral finance, global taxation and real estate valuation with many other important concepts. The chartered wealth manager need to have a graduate degree. They can also pursue the CWM course after the relavent experience of 3 years.

Chartered Financial Planner

The certified financial planner needs to have the knowledge of the taxes and the taxation policies. They need to have a grasp of the various types of plannings like tax plannings, estate planning, insurance plannings and many more. The eligibility criteria for the certified financial planner is to pass out the bachelors or any sorts of higher degree in the recognized university.

Question 9. Can I do the part-time course in Finance?

Answer. Yes, you can do a part-time course in finance. The course does not need to be lengthy too. But, it is your responsibility to learn from the course as much as you can. The part-time courses you can opt for finance are –

  • Finance Data Analysis
  • Corporate Sustainability Management
  • Oxford Entrepreneurship
  • Entrepreneurship
  • Leading with Finance Course
  • Executive Master in anti-money laundering and CFT Diploma
  • Short courses in financial and economic sciences
  • Financial transformation program
  • finance Specialization
  • financial and marketing management
  • Expert course in Ethical finance for an alternative economy
  • Cryptocurrencies courses
  • online beginner’s training course

So, these were the courses you can pursue if you are looking for some part-time courses in the field of finance. These courses will give you a brief of what that particular topic is in the vast stream of finance.

Question 10 What is the scope of Finance in India?

Answer. Finance is one of the most important parts of the business. As the importance and responsibility are higher, so do the people working under this department should be as skillful. The better finance management is offered, the better the company thrives. Whenever someone opens up a company, they would not be able to survive if they do not have a finance person leading them to a budget-friendly project. The projects might get over some over-budgeted but with time, if the company’s potential thrives then also the people associated with them, survives.

  • Financial management is of much significance when startups initiate their business activities. They need people who can access the financial needs of a business or more specifically a project. The smart handling of the firms is quite necessary for the ones working on these projects or otherwise, the owners would lose the funds quickly.
  • The old organizations that work on a large scale for day-to-day operations need to maintain financial personnel. They need the financial personnel for the regular processes. The old companies survive for a longer period, so they need people to maintain the records and also keep up with the debts and the expenses of the company. Companies that are the old players would need to maintain the growth rate and also making more and more profits.
  • Financial management is important in the non-profit aspect of the Non-Government organizations, they are not working for the profits but they are working for society’s betterment. The NGO needs financial management for preventing the misuse of public funds.

Other than the companies and the individuals, Finance is required in the person’s life for these following reasons –

  1. The Money Management
  1. Financial Planning
  1. Insurance

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List of Universities offering Finance
List of Universities