MBA in Finance

Why should one go for MBA in Finance specialization: 

 

 

 

 

Finance is one of the most sought after specialization of MBA. Yes!!! It will not be an
exaggeration that Finance is one of the most popular specializations within Master of Business
Administration programs. MBA in Finance is often treated as the sure shot way of securing a
stable, high-paying and lucrative career that offers excellent employment opportunities and
preferential lift to climb the corporate ladder. For those seeking a career that deals with money,
an MBA specialization in finance can prove to be invaluable.
Finance is a field that deals with the study of investments, the dynamics of assets and
liabilities over time under conditions of different degrees of uncertainty and risk.
Finance can also be defined as the science of money management. A key point in finance is the time
value of money, which states that purchasing power of one unit of currency can vary over time.
Finance aims to price assets based on their risk level and their expected rate of return.

Finance sub-categories:

Public finance
Corporate finance
Personal finance

Scope of MBA in Finance:

Finance as a subject involves the management, control and review of the collection, investment and
resources of money as a capital required for an industrial building, plant and working.
MBA in finance programmes provide knowledge about fundamental financial concepts like corporate
finance, budgeting, costing, international finance, investment & securities and working capital
management. Apart from this, MBA in Finance students are also trained in the skill of analytical
thinking, concepts of making managerial financial decisions, striking a balance between risk and
profitability and evolving financial consolidation process for different business models.

 

Roles offered to a person with MBA in Finance:

Job Profiles

 
Financial Manager Many companies want financial managers with an MBA, as these candidates tend to have the analytical abilities and software knowledge required to do the job. Financial managers oversee a company’s financial condition, preparing or reviewing financial reports, analysing trends and advising the top management personnel on finances and profits.
Financial Advisor -- Financial advisors provide investment, retirement, tax and insurance guidance
for clients, including financial goals or investment strategies. This option is especially
tempting for those who want to be their own boss, as one fourth of them are self-employed.
Investment Banker -- The main role of a corporate investment banker is to advise companies,
institutions and governments on how to achieve their financial goals and implement long and
short-term financial plans. Investment bankers help their clients raise money in capital markets
by issuing debt or selling equity in the companies.
Corporate investment bankers provide a range of financial services to companies, institutions and

governments. They manage corporate, strategic and financial opportunities, including:

• mergers
• acquisitions
• bonds and shares
• lending
• privatisations
• initial public offerings (IPOs)

Corporate investment bankers also advise and lead management buyouts, raise capital, provide
strategic advice to clients, and identify and secure new deals.


Risk Manager Risk managers work with companies to assess and identify the potential risks that
may hinder the reputation, safety, security and financial prosperity of their organisation. Risk
managers or analysts specialize in identifying potential causes of accidents or loss, recommending
and implementing preventive measures, and devising plans to minimize costs and damage should a
loss occur, including the purchase of insurance. Risk managers advise organisations on any
potential risks to the profitability or existence of the company. They identify and assess
threats, put plans in place for if things go wrong and decide how to avoid, reduce or transfer
risks.
Risk managers are responsible for managing the risk to the organisation, its employees, customers,
reputation, assets and interests of stakeholders. They may work in a variety of sectors and may

specialise in a number of areas including:

• enterprise risk
• corporate governance
• regulatory and operational risk
• business continuity
• information and security risk
• technology risk
• market and credit risk

A risk manager’s job is inspired by the mantra, “prevention is better than cure”.

Wealth Manager Most often employed by banks and various types of investment firms, wealth
managers provide financial planning services and investment advice to high net worth individuals.
The essential goal of any wealth manager is to sustain and increase the long-term wealth of their
clients. Since wealth management primarily involves capital custodianship, successful
professionals must possess excellent financial instincts, advanced calculation skills and the
ability to plan for future market advances, disruptions and downturns.


Asset Manager The primary function of the Asset Manager is to assist in all aspects of the
administrative, financial, capital and operations of the assigned portfolio.

 

 

Definition of Finance:

Finance is the science that describes the management, creation and study of money, banking, credit, investments, assets and liabilities. Finance consists of financial systems, which include the public, private and government spaces, and the study of finance and financial instruments, which can relate to countless assets and liabilities. Some prefer to divide finance into three distinct categories: public finance, corporate finance and personal finance.

Finance vs Accounting

Accounting:

Accounting is the practice of preparing accounting records, including measuring, preparation, analyzing, and the interpretation of financial statements. These records are used to develop and provide data measuring the performance of the firm, assessing its financial position, and paying taxes.

Accounting is the methodical or precise recording, reporting, and assessment of financial deals and transactions of a business. Accounting also involves the preparation of statements or declarations concerning assets, liabilities, and outcomes of operations of a business.

Finance:

Finance is the study of money and capital markets which deals with many of the topics covered in macroeconomics. It is the management and control of assets and investments, which focuses on the decisions of individual, financial and other institutions as they choose securities for their investments portfolios. Also, managerial finance involves the actual management of the firm, as well as profiling and managing project risks.

Finance is the efficient and productive management of assets and liabilities based on existing information.

	Accounting	Finance
Typical course content	Auditing	Advanced derivatives
	Budget analysis	Asset markets
	Business strategy	Behavioural finance
	Financial accounting	Corporate finance
	Financial reporting	Economics/econometrics
	Forensic accounting	Financial mathematics
	Information systems	Financial management
	International accounting	Financial markets
	Macro/microeconomics	Financial planning
	Management accounting	Financial engineering
	Professional standards and ethics	Financial accounting
	Quantitative analysis	Financial reporting
	Risk management	International finance
	Tax accounting	Private equity
		Risk management
		Venture capital
Career potential	Accountant (trainee, public, professional and certified)	Commercial banker
	Actuary	Financial consultant
	Auditor	Financial manager
	Bookkeeper	Financial trader
	Budget analyst	Hedge fund manager
	Credit controller	Insurance officer
	Financial consultant	Investment banker
	Financial examiner	Quant specialist
	Forensic accountant
	Payroll administrator
	Risk assessor
	Tax advisor
	Treasurer
Key skills gained	Quantitative skill	Understanding of industry practices and principles
	Specialized knowledge of varied accounting topics and techniques	Strong theoretical knowledge
	Awareness of GAAP (generally accepted accounting principles)	Research skills
	Knowledge of accounting regulation issues	Communication skills
	Strong understanding of business industry	Knowledge of stock market, trade and investment
		Analytical skills
		Ability to understand and interpret numerical and statistical data
		Up-to-date knowledge of correct business practices
Types of qualification	Undergraduate level:	Undergraduate level:
	Bachelor of Accountancy (BAcc, BAcy or BAccty); Bachelor of Arts in Accounting (BA/ACC); Bachelor of Science in Accounting (BSc/ACC)	Bachelor of Arts in Finance (BA/F); Bachelor of Science in Finance (BSc/F)
	Graduate level:	Graduate level:
	Master of Accounting (MAcc or Mac); Master of Professional Accounting (MPA, MPAc, MPAcc or MPAcy); Master of Science in Accounting (MSA)	Master of Science in Finance (MSF); Master of Finance (M.Fin); Master of Financial Economics (MFE); Master of Applied Finance (MAF)
Professional accreditations	CPA (Certified Public Accountant - US)	CFA (Chartered Financial Analyst);CTP (Certified Treasury Professional); CPRM (Certified Professional Risk Manager); CF(Corporate Finance Qualification);CVA (Certified Valuation Analyst);CQF (Certificate in Quantitative Finance)
	ACA/CA (Chartered Accountant – UK and Commonwealth)
	ACCA (Chartered Certified   Accountant – UK)
Salary potential	Average postgraduate starting salary in the US: US$62,374	Average postgraduate starting salary in the US: US$71,527

                                                                                                                                                                                                                                                                                                                                                                                                            

Skills needed to succeed
In-demand finance skills	In-demand accounting skills
Financial analysis	Accounting
Accounting	Account reconciliation
Forecasting	Financial statements
Financial reporting	General ledger
Economics	Financial reporting
Financial planning & analysis	Generally accepted accounting principles (GAAP)
SAP	Accounts payable & receivable
Financial statements	Balance sheet
Financial modeling	Public accounting
Variance analysis	Accounting management
Finance majors’ top job titles
Financial Analyst	Financial Analyst
Applications Developer	Staff Accountant
Quantitative Analyst	Accounting Manager
Credit Manager	Tax Manager

Career Options in Finance : CFA (Chartered Financial Analyst)

What is CFA

The Chartered Financial Analyst (CFA) Program is a professional credential offered internationally by the American-based CFA Institute (formerly the Association for Investment Management and Research, or AIMR) to investment and financial professionals. A candidate who successfully completes the program and meets other professional requirements is awarded the "CFA charter" and becomes a "CFA charterholder". As of July 2014, there are approximately 120,000 CFA members in 35 countries. The top employers of CFA Charterholders globally are UBS, JP Morgan, Citigroup, Morgan Stanley, and BlackRock.

The CFA exams are widely considered to be difficult, with historical pass rates as low as 32%, and pass rates generally below 50% for the first two levels of the test. Successful candidates take an average of four years to earn their CFA charter. The program covers a broad range of topics relating to investment management, financial analysis, stocks, bonds and derivatives, and provides a generalist knowledge of other areas of finance.
 For more information visit official website:

https://www.cfainstitute.org/programs/cfaprogram/Pages/index.aspx

Eligibility criteria for CFA

You must have a bachelor's (or equivalent) degree or be in the final year of your bachelor's degree program at the time of registration or have four years of qualified, professional work experience (does not have to be investment related) or a combination of work and college experience that totals at least four years.
Part-time positions do not qualify, and the four-year total must be accrued prior to exam enrolment

You must also meet the professional conduct admission criteria (during the application process, you will be asked to sign statements of Professional Conduct and Candidate Responsibility) and have a valid international travel passport (required for enrolment and exam registration)

CFA Course Structure

Chartered financial Analyst program is structured into three levels (Level 1, Level 2, and Level 3). For most of the students CFA course duration takes 2 to 5 years to complete the chartered financial analyst course. There is no limit to number of times you can attempt the course.


CFA Level 1: Focuses more on the basic knowledge of investment tools with some analysis.


CFA Level 2: Focuses more on application of investment tools and concepts along with improving analysis.


CFA Level 3: Focuses more on concepts and analytical methods for effective portfolio management and wealth.

 For more information visit official website:
https://www.cfainstitute.org/programs/cfaprogram/courseofstudy/Pages/index.aspx

CFA Course Duration:

To earn a CFA Charter, one has to give a series of sequential exams Level I, Level II, and Level III. The minimum duration to clear all three exams takes about 2 years.

CFA SYLLABUS

 The CFA Level 1 syllabus focuses on a basic knowledge of the ten topic areas and simple analysis using investment tools.

The syllabus for CFA Level 1 is designed to introduce the candidate to the various concepts of the finance and investment world.

The topic areas covered in the CFA Level 1 syllabus and their weightage is as follows:

Topic	Sub topics
Quantitative analysis(12%)
	Time value of money
	Discounted cash flow applications
	Statistical concepts and market returns
	Probability concepts
	Common probability distributions
	Sampling and estimation
	Hypothesis testing
	Technical analysis
Corporate finance(7%)
	Capital budgeting
	Cost of capital
	Measure of leverage
	Dividend and share repurchase
	Working capital management
	Corporate governance
Financial reporting analysis(20%)
	Introduction
	Financial reporting mechanics & Standards
	Understanding income statements
	Understanding balance sheet
	Understanding cash flow statements
	Financial analysis techniques
	Inventories
	Long lived assets
	Income taxes
	Non-current liabilities and leases
	Financial reporting quality
	Financial statement analysis: Application
Fixed income analysis(10%)
	Fixed income securities
	Fixed income markets
	Introduction to fixed income valuation
	Introduction to Asset backed securities
	Understanding fixed income risk and return
	Fundamentals of credit analysis
Derivatives(5%)
	Derivatives market and instruments
	Basics of derivative pricing and valuation
	Risk management applications of option strategies
Portfolio management and wealth planning(7%)
	Portfolio management: An overview
	Portfolio risk and return part I
	Portfolio risk and return part II
	Basics of portfolio planning and construction
Alternative investment(4%)
	Introduction to Alternative investment
	Mutual funds
	Exchange traded funds
	Real Estate
	Private equity
	Hedge funds
	Commodities
Equity Investment(10%)
	Market organisation and structure
	Security market indices
	Market efficiency
	Overview of equity securities
	Introduction to Industry and Company analysis
	Equity valuation- Concepts and Basic tools
	Dividend and share repurchases
Economics(10%)
	Demand & supply analysis: Introduction
	Demand & supply analysis: Consumer demand
	Demand & supply analysis: The firm
	The Firm & market structures
	Aggregate output, Prices, Economic growth
	Understanding business cycles
	Monetary and Fiscal policy
	International trade and Capital flows
	Currency exchange rates
	Demand & supply analysis: The firm
Ethics(15%)
	Standards of professional conduct
	Global Investment Performance standard

TOPICS & STRUCTURE

Topic Area	Level I	Level II	Level III
Ethical and Professional Standards	15	10-15	10-15
Quantitative Methods	12	5-10	0
Economics	10	5-10	5-15
Financial Reporting and Analysis	20	15-20	0
Corporate Finance	7	5-15	0
Equity Investments	10	15-25	5-15
Fixed Income	10	10-20	10-20
Derivatives	5	5-15	5-15
Alternative Investments	4	5-10	5-15
Portfolio Management	7	5-10	40-55
Total	100	100	100

Check out below documents for elaborated syllabus and study material:

StudySessions_CFA_L1

Schweser's Secret Sauce for CFA Level 1

CFA Course Fees

Payment Deadlines	Program Enrollment (New Candidates Only)	Exam Registration	Total Cost
23 September 2015	$450 (One Time Charge)	$650	$1,100
17 February 2016		$860	$1,310
16 March 2016		$1,280	$1,730

All the Best. Hope it's helpful. Do write me in the comment box.