Know all about How to Get into Investment Banking

If you have tried applying for a job in an investment bank, you’ll know that getting in isn’t easy. Front office investment bankers still earn considerably more than almost anyone else, except footballers and ‘celebrities,’ and banks are accordingly inundated with applications.

If you want to accomplish a career in financial services – particularly in M&A or sales and trading, you’ll need to be good. However you’ll also need to know the processes that will get you in the door. Banks are bureaucracies. There are tried as well as tested routes into their jobs. Some involve graduate programs, but graduate programs are not all there is. Before you give up on your chances of working in banking, have a look at the following list to know how to get into investment banking:

1. Apply during your bachelor’s degree

Banks hire students with bachelors’ degrees onto their analyst programs. These programs are extremely competitive: only the preeminent of the preeminent get in.  However, 80% (or more) of the people who get hired as full time analysts will previously have worked for that bank as summer interns – meaning that the real moment for getting into an investment bank is during the summer internship in the penultimate year of a university course.

2. Apply before or during your Masters in Finance

These days, banks also like to hire juniors with Masters in Finance qualifications – especially for positions in risk or sales and trading.

If you have a Masters in Finance, you’ll still join a bank as an analyst. Therefore, you’ll still need to complete a summer internship. With most Masters in Finance courses only lasting for one year, it’s advisable to complete this internship during the summer before the Masters even begins. In other words, you’ll need to apply for internships during the final year of a bachelor’s degree.

3. Intern, intern, and intern again

It used to be the case that students completed a single summer internship during which they received an offer to join a bank full time, or they didn’t.

Not anymore.

Nowadays, some of the preeminent students applying for jobs in investment banks have completed multiple internships (spring weeks included). More importantly, some have continued to work as interns even after they’ve graduated.  Moreover, some have received offers to join full-time at the end of these internships.

4. Apply during a top MBA

If you really can’t get onto banks’ analyst programs, you could always apply for the next notch up.

Banks mostly promote existing analysts to become associates. However, they also hire associates from outside. Precisely, they hire them exclusively from the world’s top business schools. If you want to get an associate job in an investment bank, you’ll need to have completed a top MBA.

5. Apply after some time on consulting

Banks hire in outsiders to help them work on strategy. If you’re a strategy consultant who specializes in the financial sector, you may be able to get an internal strategy job in an investment bank. But, you’ll need to have a top name strategy firm on your resume.

6. Apply through your ‘network’

Okay, networking and nepotism aren’t as big as they used to be in investment banking – particularly since the Chinese ‘princelings’ scandal. But having a family, or friends, or alumni, to vouch for you still helps.

As now, you have a firm knowledge of investment banking and how to get into the career; you can easily plan your career easily. Achieve your ambition with the right career option. 

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Learn about the Financial Modelling Training

If we go with the words “Financial Modelling Training” the topic itself lacks the interest to read.

The Financial Modelling Training is nothing but training to create a Financial Model which should be Input Efficient, User-Friendly and Output Objective.

Now, what is Financial Model?

A Financial Model is like structure that takes some Financial Information, performs the calculations and other steps provided in the structure and gives output along with recommendations based on the information so provided. Few of the examples of it can be a Capital Budgeting Model, Discounting Cash Flow Model etcetera.

Now how to teach someone to make a well designed Financial Model is a procedural task. The first thing which is most important is the knowledge of Software in which the Model is to be drafted that is in almost all cases areMicrosoft Excel. This is regarded as the base of the Model.

Before we move on to the guideline part of the training, we must understand what the word “A well designed Financial Model” represents?

A Financial Model should have the following Characteristics to be regarded as “Well designed”:-

·         It should be supported with the properly documented underlying assumptions. A poor documented assumption’s set can make the best to the worst model.

·         Each and every function used in the model should be clearly defined so as eliminate the ambiguity.

·         It should be supplied along with a user-friendly instructions book if the model itself is not self-explanatory.

·         The coding used in the model should be easy to eye and understand.

·         The scalability feature of the model cannot be ignored as it represents flexibility in using the model.

·         The model should flow in logical directions like left to right and top to bottom.

·         It should be robust, reliable and relevant for the information required.

·         Proper referencing and codes linking should be used to make it flexible enough to modulate.

The guideline part (Instructions) starts from here-

·         Conceptual Design:-Before jump to thecoding of a model, a conceptual design should be prepared based the availability of input and requirement of the output or information.

·         Assumptions Base: - The designer shall identify the assumptions which shall define the range of functioning of the model.

·         Selection of Inputs: - The input variables should be selected on the basis of thequality of information required and complexity of format/code.

·         Initial Coding & Compilation: - In this phase, the Conceptual Design is shaped into physical codes, and the model shall be run to find out the errors in the coding.

·         Testing: - The model shall be tested for the accuracyof information which can be done through using the test data of any company or any rough information.

·         Alternative Coding: - After successful testing of the model, the designer, for the simplicity of the end user, shall be taught to find out alternative codes which require lesser input and provide the same results.

Presently this training is being provided by several institutions globally. It’s being a complex, and theintellectual process requires at least 2 to 3 weeks training period.

If you want to learn financial modelling courses then you may contact Financewalk.com

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Financial Modeling Courses Make a Person Ready For a Lovely Financial Career

When it comes to the finance industry then a person seeking job in this field should have some hands on experience in this field. This is why financial modeling courses are designed in such a way that they impart both knowledge and hands-on experience to a person who is taking it and make him ready for blooming financial career ahead. This is one of the most advanced systems of education now that is available in the markets and thousands of young people have benefitted from it.  So what is this course all about and why is it necessary to take financial modeling courses before you finally go for an interview.

What are the financial modeling courses all about?

The financial modeling courses are designed to prepare financial career aspirant in this field before he or she enters into it. When a person goes for an interview for the post of finance assistant in a company then the first thing they ask them is do they have any experience in the field and the second thing is what do they know about the present procedures being practiced in the finance industry now. So these financial modeling courses are designed in such a way that the students are taught all the important things needed for a person to know in order to match up with the industry standards. The things taught in this course are

•          Using MS-Excel at a pro level and preparing reports through it

•          DCF valuation methods and systematic financial modeling

•          The methods to bring out the valuation of the company and Merger models

•          Budgeting (which is the most important part of financing and also the heart of this course as well)

•          IPO,PE and M&Ass

•          Feasibility

Each and every course here is a different one and is very helpful in the finance industry for a person to grow. The financial modeling courses at the Financewalk is a full time classroom based course that s conducted for a total period of 6 weeks. The students get to learn from the experienced people in the business and also have practical classes in the labs where they are taught everything in detail about the finance industry.

Why is this course important?

This course is not just important but it’s mandatory for people seeking a career in the finance industry. The first reason behind this is that you are taught in detail about each and every aspect of the finance industry and also given a chance to meet the best in the business now. So you get knowledge and some hands on experience as well as at the end of every week you will be given assessments and projects to test your knowledge. The second good thing about the financial modeling courses is that you also get a certificate from the organization that you do it from that shows that you actually know these procedures and can start a career as finance professional.

Your future after taking financial modeling courses

When it comes to your future after this course then it is pretty sure that you will surely get a good job with a good pay as you will be abreast with all the ethics and techniques being followed in the finance industry. Thereafter you need to prove your worth in the industry and grow. Wish you loads of success!!! 

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Benefits of Banking and Finance courses to Entrance into Financial Industries

If you are thinking about joining banking and finance courses abroad but could not make up your mind. The benefits and job prospects of these courses will definitely lure you towards these courses. Opting for banking and finance degree abroad will allow you to develop your managerial, mathematical and logical skills. The course will also prepare you to work with numbers in future whether in finance or banking services.

The undergraduate programs in banking and finance will equip you with a variety of economic, business and problem-solving skills. These courses can also guide you for financial institutions, economic models and finance industry globally. Later modules allow you to concentrate on the specific field of financial practice such as bankruptcy or risk management. Undergraduate courses basically develop your competency and skills to work in the banking and financial industries. Therefore, you must be aware of the type of skills you are gaining from your course. You can gain various skills by studying banking courses and finance course which includes numerical skills, analytical skills, competency to work on deadlines, attention to accuracy and detail, unique ability to work with figures and numbers

Benefits of banking and finance courses

While applying for banking and finance degree abroad, universities expect you to demonstrate your keen interest and knowledge in finance and accounting. Most universities also sought for qualification in statistics or mathematics before applying. If you can play with figures and numbers and aiming for a handsome salary, banking career is good for you. An undergraduate course in banking and finance will help you realise your goal.

Opportunities

Banking and finance sector employs of top-class employers at various positions from large commercial and investment banks to independent financial advisers and insurance companies. There are undergraduates who go for higher studies after completing their degree, but some even start their lower level and work hard for higher positions.  You have various options to start your career after banking courses and financial course. Some of sought after jobs in this field include banker, actuary, investment banker, Chartered accountant, astockbroker.

Whatever you do, it will depend upon your willpower and astrong determination. You have to set your goals and time to achieve those goals. The course will depend on whether you are eager for diploma course, graduate or post graduate course. According to your area of domicile, you can choose the university which is best for you.

Checklist for postgraduate study

·         Facilities and reputation of the institution

·         Its research and teaching ratings

·         The structure and course contents

·         Work experience, industry links and networking opportunities

·         Job scenario and salary structure of previous students

Postgraduate course at your disposal

·         PhD

·         Masters in Business and Administration (MBA)

·         Masters of Science(MSc)

Worth of Postgraduate program in your banking job application

·         Higher studies showcase the employers your intellectual capacity

·         Consistent effort of working on thesis set exemplary example of organisation, self-discipline, project management and independent researchespecially when you cope up with part-time job, extra-curricular activities and work experience

Use your mental checklist to ensure that you have done your research, and then talk to your course director and prospective employer, if possible before accepting an offer

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Opportunities to learn financial Modelling for the working Professional

If you are working in a finance industry whether as a working professional or avid investor, financial modelling is most sought after skills.  The financial modelling course covers finance, accounting and Excel skills to interpret investment analysis and financial statements. Financial modelling helps business houses to operate optimally by considering and analyzing various parameters. The financial modelling courses will teach you to build model depicting business models and financial statements for decision-making purpose. 

You can learn the basics of Excel in the financial modelling course which will help you to create profitable financial models. After completing the course, you can independently build models who are strong and offer dynamic projections. These projects are used by the companies while opting for operation, financing, investment, and valuation purpose.

Opportunities in financial modelling

Investment banking

Financial modelling is used by investment banking firms to prepare valuation report of a company by forecasting the revenue figures. Valuation report helps the buyer or the seller on proposed investment of funds or acquisition of new funds.

Equity Research

In Equity research, financial modelling is used to examine financial projections other dynamics such as competitor’s projections of an organisation. The analyst employs financial models to assess the risk factor of investment.

Credit Rating

Credit analyst employs financial modelling to gather historical data and information, outstanding debts and predicting future growth in excel. Financial modelling helps the credit analyst in determining the risk factor to provide a rating.

Project finance

While preparing project finance report, financial modelling helps in assessing the financial viability and risk factor. The model also helps in make a funding plan through a proper combination of debts and equity components.

Mergers & Acquisitions

In merger & acquisitions, the company needs to assess the value of the company which they want to acquire. Financial modelling helps the company to forecast the revenue, portraying debt schedule by analysis the competitor.

Financial Analysis

Financial models equip companies to assess their own capital structure and build financial models on various projects. To plan capital structure best suited to a company by employing debt and anequity component, the financial model, is the best tool.

Study models for financial modelling course

Globally around 85 institutes offer 162 courses on financial modelling. Among them, top institutions are

·         Oxford University, UK, is ranked first in terms of providing two-year full-time course naming Mathematics Finance MSc.

·         Princeton University, USA offers two courses on financial modelling. One is B.S.E in Operations Research and Financial Engineering and Masters of Science in Operations Research and Financial Engineering

·         Imperial College, London offers one course on financial modelling and is ranked 8^th among the top colleges in the world

·         University of Chicago, USA offers one 15 months course at postgraduate level on financial modelling as MS in Financial Mathematics

·         Australia National University offers ten courses at graduate and post graduate level on financial modelling training.

·         London School of Economics and Political Science, University of London offers two courses such as Financial Mathematics and Statistics BSc (Hons) and Financial Mathematics MSc 

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Learn Financial Modelling for Starting a career in Finance

If you want to start a career in Investment Banking or looking for profiles like Fundamental Analyst or any related profile in other financial institutions like hedge fund, investment advisory firms,etc., financial modelling will give you a kick start to take off your career. In this blog we’ll try to answer some related questions like what is financial modelling, why do we learn it and where it is applicable?

What is Financial Modelling?

The main purpose of creating a financial model is to basically forecast the future performance of a firm by estimating its financial numbers based on its historical performance. It is nothing but constructing a financial representation of a firm either partially or completely, through a mathematical model generally prepared on spreadsheets with the help of various Excel formulae.

Financial modelling is one of the common tools which analysts used to check the financial health of the company or a firm and also how it is going to perform in future by forecasting some of the key line items from its financial statements likeRevenue, EBITDA, EBIT, etc.

Why do we need to learn Financial Modelling?

The financial model helps the analyst to answer various questions which are critical to any business. Working in any of the domains of finance like Equity Research, Investment Banks, Credit Research, building a model gives a clear picture of the company’s performance, which areas it should monitor more closely to remain in the competition. It also enables the analyst to understand, how a business will react to different financial situations or market conditions. Which are the important areas where thecompany should make investments for better returns?

It could be a simple or complex financial model, but it will be considered as a good model only if it can be easily understood by its users, another important aspect of a good model is that it should clearly convey assumptions and conclusions. As most of the financial models work on garbage in garbage out method, hence the objective behind creating it should be very clear from the scratch.

Where are Financial Modelsapplicable?

The main objective of financial modelling is to create a model which will help the companies and investors to take better financial decisions keeping its future growth and investment returns in mind. Some of the factors which affect the financial decisions are Sales or Revenue, cash flow projections or debt structure. Areas where financial models generally used are:

·         In projecting the company’s or its stock’s future performance

·         In project finance

·         In investment banking

·         In equity or industry research

·         In company’s past performance analysis

·         In capital budgeting which includes allocation of resources for major expenditure and investments etc.

·         In deciding the cost of capital, means that financial models tell the company about the right mix of equity and debt structure to increase the investment returns.

There are various financial models available like: Discounted Cash Flow Model, Comparative Analysis Model, SOTP Model, LBO Model, M&A Model, Industry Specific Model to name a few and as a financial analyst one should know which type of financial model is applicable to industry, company or the financial instrument which he or she is covering.

So, basically financial modelling is a skill which anyone who is interested in analysing a particular sector or a company for the purpose of personal investment or providing investment recommendations to clients or helping the company in better decision making, can develop by learning the concepts of financial modelling and MS Excel which is a very common tool used in building financial models.
If you are interested to start careers in Banking, you may contact Financewalk

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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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