India is one of the fastest growing economies in the world. Financial services is one of the fastest growing sectors in the Indian economy. It has huge untapped potential. With large middle income population and low penetration of financial services in the country, makes personal finance management an absolute essential. Financial services sector can be divided into various sub sectors like Banking, Insurance, Non-banking Financial Services and Financial Markets etc. All the sub sectors in the financial services sector have great potential to grow. Among these Financial Markets have to lowest penetration in the country due to lack of awareness, less risk appetite and limited reach. With drop in interest rates, advancement of technology and increasing awareness, more and more people are getting attracted towards capital markets.
The increased flow of capital in Indian capital markets offers big opportunities for the talented and skilled people. The sector is looking for qualified professionals to take it forward. The rewards are the best, if compared to other sectors of the economy.
Below are the top 5 career opportunities in Financial Markets in India
Fund Manager: One of the most sought after and highest paid career opportunity in the sector is this. The Financial Institutions like Mutual Funds, Insurance Companies and other Companies with large investible funds appoint Fund Managers to manage the funds in alignment with the objectives of the organization / investment scheme. The minimum qualification here is MBA finance, but people with CFA qualification are preferred. Potential to earn is unlimited because the compensation of the fund manager is generally linked to performance of the fund.
Portfolio Managers: Parallel to Fund Managers are the Portfolio Managers. They have a similar role to play but in slightly different manner. The portfolio managers manage smaller amounts for multiple clients at the same time. Their job is to manage the portfolios of HNI Clients or Companies with smaller investible funds keeping in mind the needs of the clients and their investment objectives. Job expectations, qualifications and compensation profile are similar to that of the fund managers.
Business Analysts / Financial Analysts: One of the high in demand career options in Financial Markets is the Analysts, may be called Business Analyst or a bit more niche Financial Analyst. There role is to help top executives get precise information for decision making. The analysts work with data both internal as well as external, understand and analyze it to create meaningful information out of it. The Analysts may have general assignments or specific assignments. The qualification is generally MBA Finance, but graduate level qualification will depend upon the nature of organization employed with. Entry level salary is not very high, but as the person gets experience and develops domain expertise, the compensation increases geometrically. Basic understanding of Economics and expertise in connecting the dots and pulling the threads is required.
Risk Managers: With increasing globalization and large number of startups popping up every day, the risk of business has multiplied over the time. The number of business failures has also gone up exponentially. Hence Risk Managers help organizations evaluate the risk associated with a business and take calculated risk. They also help in managing the risk and take suitable action to bring down the risk or hedge the risk. Risk managers are also required to have strong fundamental knowledge of business. Apart from Masters degree in Finance, they are required to have additional qualification in Risk management.
Investment Banker: Investment banks help organizations and government raise capital. The people working with an investment bank are generally referred to as Investment Bankers. They are generally advisors to organizations and governments in matters of raising funds – like correct source, time and form of capital. They also advise organizations on matters relating to Mergers, acquisition, takeovers, downsizing, share buybacks etc. Investment bankers are also highly paid. Qualifications desired are MBA Finance and CFA.
Traditionally the Financial Services sector is always dominated by Chartered Accounts in the country due to various reasons. The curriculum at most Indian B-schools is not that exhaustive and updated to create excellent human resources to manage the above roles. IIMs are at the top among the Indian B-schools in preparing Finance Professionals. Pass-outs of other B-schools take a little more time and experience to get into proper job profile. A few institutions offer add on courses to prepare people for the above roles. There is large gap in demand – supply for skilled and experienced professionals in this sector.
Author : Prof. Sanjeev Bajaj has done his MBA with Finance specialization in year 1992. He has a total of 25+ years of rich experience which includes 11 years in corporate and 14+ years in academics. He teaches at Post Graduate Level specialization finance courses like Security Analysis and Portfolio Management, Project Appraisal and Finance, Strategic Financial Management, Insurance and Risk Management. He is interested in promoting Financial Literacy among masses. He writes guest post on behalf of Elearnmarkets.com as well as a number of institutions and has conducted MDPs for many corporate like Central Coalfields Ltd, Hindalco, etc. He conducts Investor Awareness Programs for various financial institutions. He is also a master trainer for “Train the Trainer” programs.