Finance is a critical part of business functions that enable growth of an organization as well as support economy. For those who pursue finance degree, there are multiple career options today. We will discuss a few top career options that finance graduates can pursue.
Investment banking
Investment banking is a top career choice among finance graduates for many reasons. First, high salary. Second, reputation. And third, steep career growth. An average investment banking analyst earns $100,000. Investment banking pays salary that other roles in finance or other domains are hard to match. Investment banking is also a gateway for private equity aspirants. As investment banking gives a lot of exposure in investment in companies, private equity firms tend to hire experienced investment banking analysts with 2- 3 years of experience for private equity associates role.
Investment banks are open to hire finance graduates and others as long as they have strong mathematical aptitude. Investment banking certifications like CIBP (Chartered Investment Banking Professional) helps candidates to accelerate their career investment banking.
Public accountant
Accounting is an essential part of business management, as it is important to keep track of the money that is coming in and going out. Accountants keep a watch on the revenue, investments, taxation, compliance, and more. Further, public accountants give suggestions to cut down expanses, increase revenue, and improve financial health of the company.
For a successful career in public accounting, bachelor’s degree in finance, commerce, and business administration is recommended. Further, master’s degree in commerce (M com), Business administration (MBA) accelerates a career in public accounting. Globally –recognized certifications like CPA (Chartered Public Accountant) pave way for high-profile roles as well global opportunities in accounting.
Corporate finance
Corporate finance is a subdivision of the finance department that looks after funding for various business activities. It also participates in investment activities, capital restructuring, and other high-level capital and strategy –related activities. Corporate finance is also a gateway to investment banking. The responsibilities of a corporate finance professional includes –
Balancing risk and profitability
- Analyzing and forecasting economic trends
- Review financial statements and recommend improvement measures
- Take measures to improve value of stock
- Perform tasks related to financial risk management
Corporate finance offers both junior and senior roles. To effectively work in corporate finance, you should have a knack for numbers, money management, maximize return on investment, budgeting, etc. Top corporate finance advisory firms hire business and finance graduates to oversee mergers and acquisitions of businesses. MBA finance graduates are preferred choices for corporate finance roles for mid –senior level positions and above.
Portfolio management
Working in portfolio management requires knowledge of commerce, finance, and analytics. In portfolio management, professionals look at overall investment activity of a client, which could be a high –net worth individual or an institution.
As a portfolio manager, you will guide organizational policies on investment and decisions related to asset allocation. A successful portfolio manager maximizes profits for clients at a negotiated risk. This requires them to be well-versed in analytical techniques like SWOT analysis, cash flow analysis, trend analysis, and more.
You will need a background in economics, business administration, accounting or a similar analytical discipline to make a career in portfolio management. Strong knowledge of statistics and mathematics aids in portfolio management. Portfolio management is next-level career goal for banking professionals.
Prior experience in financial asset management and working in investment institutions is helpful to break into a career in portfolio management. Strong communication and interpersonal skills are required for a successful career in portfolio management to build and maintain relationship with clients.
Risk management
Risk management professionals are adept at identification of market risks and recognizing poor investment results. The objective of a risk investment professional is to maximize returns while minimizing risk. This requires them to have strong mathematical prowess and analytical reasoning skills. Risk management is also a valuable skill for investment banking and private equity professionals.
Top financial services firm like Bajaj Allianz, Policy Bazaar recruit risk managers actively. MBA and PG Diploma in Risk Management is mandatory to work as a risk manager. Additionally, certification courses offered by the Risk Management Association of India (RMAI) and similar institutions is helpful.