Isn’t it true that finance is all about flipping tables? When one understands the art of finance, what is uncertain for many becomes predictable. A career in finance is all about the figures, charts, patterns, and theories that have the power to build or break the world’s economy.
So, are you up for the challenge? First, let’s clarify the air on what finance is all about. In its broadest sense, finance is the study of money management and how to obtain and multiply it. It is in charge of the money, credit, investments, banking, obligations, assets deployment, and management.
Finance is a broad subject, both conceptually and practically, and it takes a lot of knowledge to be well-versed in it.
A plethora of promising career opportunities are offered in the vast field of finance.
Some of these are mentioned in the requirements of the role:
Investment Banker:
An investment banker is responsible for raising capital for businesses and individuals by issuing debt and selling equity. They must have a thorough understanding of the investment climate and familiarity with standard investment instruments. Investment bankers are frequently significant contributors to the process of a company’s initial public offering (IPO). The investment banker’s goal is to maximize investment returns; thus, they will try to make the IPO price as high as feasible.
Critical Requirements for the role:
- Strong communication skills
- Impeccable research, quantitative and analytical skills
- Strong financial modeling skills
Equity Research Analyst:
The primary responsibility of an equities research analyst is to offer extensive stock market research reports. Their extensive market expertise aids investors in making significant decisions such as selling, purchasing, and owning a particular investment.
Critical Requirements for the role:
- Strong proficiency in MS-Office
- Ability to work under pressure
- Knowledge of fundamentals and technicals of the market
Venture Capital Analyst:
The Analyst’s primary responsibilities will include sourcing and evaluating new agreements, assisting with due diligence, collaborating with our existing portfolio firms, and analyzing emerging technologies. Someone with outstanding critical thinking, financial, and analytical skills familiar with digital media/consumer internet/software and the startup environment is the perfect candidate.
Critical Requirements for the role:
- Passionate about technology
- Motivated self-starter with the ability to work well in an unstructured environment
Hedge Fund Analyst:
A hedge fund analyst does quantitative analysis to discover assets to trade with the firm’s money while adhering to the trading strategy and mandate. Individual stocks, market sectors, macroeconomic trends, or all of the above may be studied by analysts. The research will then pass on to the trading team or portfolio manager, who will execute the deals as they see suitable.
Critical Requirements for the role:
- People management skills
- Certifications like CFA, FRM, etc
- Risk Management skills
Portfolio Manager:
Portfolio managers regularly work with analysts, as they are eventually responsible for final investment decision-making across various asset classes for an individual client, asset management organization, or a fund. This is the ultimate job desired in the financial sector; there are several steps on the ladder to climb up to reach this position over the years. But, first, they make the ultimate buying, selling, or holding decisions for securities. Therefore, portfolio managers need to maintain constant touch with investors through various means to explain the strategy, research, and decision-making rationale.
Critical Requirements for the role:
- The high degree of efficiency in data interpretation
- Penchant for research and analysis
- Desire and ability to communicate with clients
Apart from these fields, many other areas are similar to these roles or/are related to these roles in some way or the other.
Some of these roles are as follows:
- Budget Analyst
- Investment Banking Analyst
- Credit Analyst
- Risk Analyst
Coming to the essential part of the blog, how to begin with studying finance or how to explore these options:-
For Engineering background students, start by studying different corporate finance books and try to do projects related to finance, which will help in better understanding the subject. Apart from these, students can take various exams like CFA, FRM, and other certifications, which look good on the resume.
Another better way for learning more about finance is by doing internships, either corporate or research which helps in honing various necessary skills.
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