Are you Looking for a Career in Finance?

If you are a finance student or a working professional seeking a career in the financial sector, this article is going to be a helping hand for you. Along with the key financial sectors, I will also be discussing the professional courses which are required to bag these dream financial jobs.

The governments give special attention to this sector and every year they come up with very lucrative packages, which help in generating the bunch of career opportunities in this industry being considered as a backbone of the economy.

Which area should I focus on within the sector?

Although finance as a sector is vast and there are many job profiles available. However, in this article,we’ll be covering some key finance profiles, which are very famous in the financial world.

PORTFOLIO MANAGEMENT:

This is one of the most sought after a profile in finance. The role of portfolio managers is to manage both institutional and HNI clients’ portfolios. Usually, the person at the top acts as a head, and the team known as analysts under him performs various tasks required in managing the portfolio on a daily basis. The role of the portfolio manager is basically to review the performance of the portfolio and make the necessary changes, essential in delivering the committed returns.

It is hard to start out in this role directly. Typically, the CFA designation and 5 to 6 years of work experience as an analyst is the minimum requirement to become a portfolio manager. Jobs of portfolio managers are found at Investment banks, hedge funds, insurance companies, etc.

CORPORATE FINANCE:

Corporate finance is one of the core finance jobs, which includes taking strategic investment decisions to maximize the shareholder’s value through long term and short term investments.In this area, you have to tackle with lots of complex business problems and your problem-solving skills will make you successful here. Generally, the CFA designation is a must to start a career in corporate finance and salary packages also comparatively good.

INVESTMENT BANKING:

Although there are various domains under investment banks, Equity Research is one of the prominent areas. Equity research analyst is required to follow a particular company or sector and provide buy or sell recommendations based on their analysis for mid to long term investment point of view. Likea regular job, they have to prepare detailed research reports, which they send to clients periodically. Analysts have to visit and meet key management personnel of the companies they are following, they also need to attend analyst meets which companies conduct time to time. In-depth knowledge about the company or sector and accuracy of their recommendation help in getting the regular promotions in this domain. Equity research and financial modelling course from any reputed institute or CFA designation are required to get this profile.

TRADING:

Trading is one of the most exciting jobs in the financial world. Trading jobs are getting very popular and widespread these days as firstly, there’s no particular requirement of any designation like CFA or any specific degree to start with, and secondly, there’s no age restriction in starting a careers in finance and as well as in trading. Traders or commonly known as technical traders grow rapidly in their career based on their experience and charting skills.

Trading jobs are generally found at broking firms, hedge funds, investment banks, insurance companies, money management firms and proprietary trading firms. Although CMT designation gives some value to traders resume many institutions, hire traders based on their trading skills and experience. Salary increases with experience and accuracy.

What should you make a note of?

It is quite understood that many people are attracted towards finance jobs because of higher salary packages but people who are ultimately successful in the financial world, are very passionate about their roles and most importantly they keep on updating their skills and knowledge. So, test yourself in any of the above areas, only if you have genuine love for finance. 

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Learn Financial Modelling before Stepping Into the Finance World

Before moving on to the ways and the techniques of learning financial modeling it would be good to get a clear idea about the term. To put it simply, financial modeling is the process of generating reports about a certain company and are aimed at a selected class of investors. These reports enable the investors to understand the financial health of the company and find out if they are worth the investment that the investors are planning to make. Be it an investment bank, private equity/venture capital (PE/VC) firms, research firms or corporate , financial modelling is used everywhere in the financial sphere.

Working around a financial model requires you to juggle with equations, formulas, multiple variables and mathematical functions. Therefore it becomes easier to step into the financial modeling job if you posses a well-crafted number crunching skill, a sound knowledge of statistics together with a proficiency in tools like Microsoft Excel, SPSS, SPA, computer languages like C++ and Oracle and an eye for detail . But to excel in this field you have to learn it well. The basic ways are:

·         By watching tutorial videos.

·         By attending classroom training sessions which may be payable or absolutely free.

·         By practising and using case studies.

·         Through distant learning courses.

In today’s world of technology and automation where the hard bound documented financial model has given way to dashboards, MS Excel is a great favourite of the financial researchers. The only reason is that Excel offers a complicated yet simple platform for performing the various activities like data mining, creating graphic representation and studying data through various formulas. So it is quite needless to say that the sooner you learn the Excel tools the better. Observing the following steps should help you immensely in the creation of your model using Excel and VBA.

Take a pen and a paper-Draw a rough structure of the model you want to build on a paper.

Concentrate on the problem-Keep on asking yourself the problem that your model aims to explain. Take the opinions of as many stake holders of the model as possible.

Structuring the logic and syntax with VBA-Be very careful while using VBA as even a slight mistake on your part can strike a serious note of discord in your model.

Dealing with the trickiest part of financial modelling-While putting in the variables always keep in mind that the value of the independent variable never changes until it  is manually done. Whereas the dependant variable changes on the basis of the independent  one.

Formatting the output cells appropriately-If the output cells are not properly formatted, there is every chance of getting erroneous results.

Documenting the model works wonders-After the pilot run is over, record the logic, syntax, functions and formulas in a word document or a notepad. It has two advantages-

1) When you start working on some other model or if someone else has to work on your model and get stuck you can always go back to your model and refer to the common formulas and functions (if there happens to be any)

2) Or if you feel the need to make some edits to your model, you can directly go to the required documented record without wasting any time.

Be on the constant lookout for bugs and errors-Remember that your model can become a superb one only through constant monitoring and updating. Go back to it and try to work out the errors and redundancies from time to time.

Always keep in mind that:

·         Getting familiar with the short cut keys and the inbuilt Excel Help option can save you a lot of time.

·         Decking up your dashboard with colours, fonts, sizes and shapes and naming the columns and rows appropriately and clearly make your model more welcoming for future users.

Financial modelling is a lucrative career and every year crowds of student aspire to enter this field. But the saddest part of the story is that there is an alarming shortage of skill which creates a gap between the aspirants and the employers. To fill up this gap you have to acquire practical knowledge in financial modelling together with learning it well. Some of the most effective training courses that can provide you the required hands-on experience are:

FINANCIAL MODELING TRAINING IN DELHI INDIA

Designed by experienced industrial experts, our 6-week long training course teaches the students to apply their learnt concepts in the practical field. Let’s check out the modules.

Week 1-MS Excel, Financial statements, Ratios, Relative valuation.

Week 2-Financial Modelling , DCF valuation.

 Week 3-Merger Model, Valuation of a company going public (IPO).

 Week 4-Capital Budgeting (project feasibility, decision modelling) DDM modelling.

 Week 5-Company profiles, pitch books, valuation prospects-IPO, M & As, PE.

 Week6-IPO pitch book, project feasibility, case studies , revision.

 Written tests and mock interviews are integral part of the training and take place every week.

  THE FINANCIAL MODELING COURSE OFFERED BY BIWS

  Let’s us see what all you can get here.

·         100 training videos.

·         Lessons covering advanced operating models.

·         Valuation lessons based on SEC filings and equity research.

·         Advanced Merger models & LBO models.

·         A sample pitch book and Power point tips.

·         Bonus case studies.

·         Life time updates and support.

You receive instant access as soon as you sign up. Everything is delivered online and shipping charges are free.

Apart from these trainings there is also a course on THE INVESTMENT BANKING NETWORKING TOOL You would do well to sign up for it, if you feel that you need to hone your skill in the art of networking. Now that you have got a brief idea about the different types of courses, it is up to you to decide which one will suit you best.

Remember, Financial Modelling is a skill that gets better and sharper with practise and experience.   So friends, there are no shortcuts. It is only hard work and dedication that can help you realize your dream of becoming a triumphant industrial expert. 

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