Numbers are not everyone’s cup of tea but for some of us there is unexplained fascination for figures, interest in analysis of these figures and intrigue to understand their role and impact in larger areas of the business world. For those who are interested to dwell deep into digits and make a career out of it, having a degree of MBA in Finance is the most suitable academic option. Finance is not a subject that has been in the arena from the beginning of the times, it is a subject that arrived with the coming of age. After the first Industrial revolution in the eighteenth century, and the growth of industries and business; first came economics as a subject into forum. From economics, finance- a specialization stemmed up, in the nineteenth century.
Today, is the time of third industrial revolution. And a management degree is more than relevant today considering the new wave of flourishing businesses. The study of finance will equip the enthusiasts in study of assets, liabilities and the money management part of the business. Finance will equip them to diverse categories i.e. public finance, corporate finance and personal finance.
MBA in Finance : What does it include?
Dr. J.F. Bradlery explained Financial management as an, “…area of business management devoted to a judicious use of capital and a careful selection of sources of capital in order to enable a business firm to move in the direction of reaching its goals.”
A degree will provide the students the foundation education in not just finance but its other wings like economics, statistics, leadership, and marketing. They will know about things like-
- Stock market analysis
- Mergers & Acquisitions
- Global economy
- Market trading and volatility
- Risk management
These are important areas since with the growth of digital platform, and further the involvement of online products and services platforms like Microsoft, Amazon, Intel and so on; the need for financial experts have grown more than ever. During their course duration, students can obtain exposure in the field by making full use of internships offered by such organizations. In this age of data, financial data analysis has stood out as a field of immense potential.
Contrary to popular opinion, Finance graduates can cape a career in banking as well as non-banking sector. In terms of non-banking, Multinational companies like J.P. Morgan, Morgan Stanley and Boston Consulting Group are one of the best places to be in for the MBA in finance graduates. While for banking, top banks like Deutsche Bank, are some of the best places to be in. To sum up, some of the popular brands who love to hire MBA in finance graduates include:
- J.P Morgan
- McKinsley Consultancy
- Boston Consulting group
- Morgan Stanley
- Deutsche Bank
Job profiles like
- Investment bankers,
- Chief Financial Officer,
- Real Estate or Insurance Finance Manager,
- Financial Analysts,
- Business Analysts,
- Operation Manager,
- Research Analysts
are some of the positions that a person interested in finance can opt for since the top job of a management graduate would be to handle investment banking, asset management, private wealth management, private banking and offering advices for treasury and securities services division.
Many Finance graduates also are attracted to Stock Exchange in fact many of them are attracted to the sheer lows and highs that go around in the stock market on everyday basis. So for the high to see this everyday phenomenal, a job at national stock exchanges like NSE and BSE are the places where one can be at. As one rises high on the ladder of career, stock exchanges of international repute like NASDAQ, London Stock Exchange, Shenzhen Stock Exchange and so on.
If your ultimate goal is to serve the society and do something more result-oriented, positions in the government ministries like Ministry of Finance, or top-notch financial institutions like World Bank, World Economic Forum are the places where a Finance expert can be at, considering he/she has the skill and calling for the field.
In India, the average salary for a MBA in Finance ranges from INR 5 – 10 LPA depending upon the profile applied for. According to trends concluded by media giants and think tanks, highest starting package is offered to graduates taking up Business Analysis and finance management profiles. For these profiles, the average comes out to be INR 5 – 6 LPA.
Further, the U.S. based Bureau of Labor Statistics (BLS) has anticipated that there would be an increase in jobs in finance by approximately 7 per cent to 16 per cent between 2014-2024.
In India, MBA in Finance is offered in thousand of institutes wherein the students need to qualify entrance examinations like Common Admission Test, Management Aptitude Test, Xavier Aptitude Test etc.
Some institutions even have their own aptitude tests but more or less every institute checks the financial sense, reasoning ability, problem-solving capacity, decision making, communication skills and quantitative aptitude of the candidate.
Some of the premier institutions in the country include
- Indian Institute of Management in Ahmedabad,
- IIM Calcutta,
- IIM Indore
- IIM Bangalore,
- Xavier’s Labour Research Institute in Jamshedpur,
- S.P. Jain Institute of Management and Research in Mumbai,
- SVKM’s Narsee Monjee Institutes of Management Studies.
According to Ministry of Human Resources Development (MHRD) ranking of the top management schools in the country, IIM Bangalore ranks first followed by IIM Ahmedabad and then IIM Calcutta. The score was calculated by National Institutional Ranking Framework (NIRF).
Apart from studying finance in the country, candidates can also go to foreign lands to equip themselves to education in Finance. What that is call MBA in Finance, is called Master of Science in Finance (MSc in Finance) in the United States and Europe. While in Australia, the professional degree is called Master of Applied Finance (MAppFin). The approach to finance in international business school is more diverse where apart from quantitative approach of the subject, students are also taught non-quantitative electives such as business ethics, strategy of business, corporate governance, etc. in their coursework.
Top institutions of international repute that offer a Masters’ degree are Stanford Graduate School of Business in United States, Insead or Institut Européen d’Administration des Affaires ( which is European Institute of Business Administration) in France and Singapore, London Business School in United Kingdom, Harvard Business School and Columbia Business School both in United States. The salary of graduates from these business schools lie between $ 150,000 per annum to $214, 000 per annum.
Some famous MBAs in Finance
Some of the important people who earned a degree in management:
Indra Nooyi, the Chief Executive Officer (CEO) of Pepsico is popularly considered one of the most powerful women in the world. She pursued her Masters in Management from IIM Calcutta before going to the United States to take another management degree. She studied Public and Private Management from Yale School of Management. T
Dr. Raghuram Rajan, whose one of the biggest achievement include serving the country as the RBI Governor, earned his Post Graduate Diploma in Management from IIM Ahmedabad. Important positions that Rajan has held in his career include Chief Economist and Director of Research at the International Monetary Fund. He has also won the Fischer Black Prize, which is given to young financial economists under the age of 40 by American Finance Association.
Abigail Johnson, CEO of Fidelity Investment who also chairs the functioning of the investment firm has also earned a degree in management from Harvard University. Apart from earning the title of most powerful women from Forbes in 2016, Johnson is also the first and only woman who serves in the board of Financial Services Forum, United States.
The field of management is an important field for future since finance stands as a backbone to every business. Many successful businesspersons, including the ones mentioned above, has sometime in his career handled finance either as analysts or as CFOs. Thus the field holds a special relevance for the ones who want to prove their prowess in business, economy and finance.
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