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MBA in Finance: Your 2023 Guide to a Lucrative Career
According to the U.S. Bureau of Labor Statistics, overall employment in business and financial occupations is expected to grow by 7% between 2021 and 2031. Furthermore, professionals with an MBA in finance can earn an average salary of $88,335 per year. What’s more, the field can open a variety of lucrative opportunities for those who want to pursue their career in the business and financial sectors. If you are interested in doing an MBA in finance, the first step is to know more about the degree and what it could mean for your career—the subjects to study, the required skills, the top hiring companies and the salaries they offer, and more. You will find what you need to make an informed career choice here!
Introduction to MBA in Finance
An MBA in Finance includes in-depth studies related to different facets of finance, such as stock markets, financial trend predictions, capital investments, financial risks (credit, legal, equity, and liquidity risks), and the financial health analysis of a company. This two-year postgraduate program prepares aspirants to take various management roles in finance-related organizations, including tax consulting firms, asset management companies, auditing firms, and stock exchanges. Many international and prestigious colleges provide an MBA in Finance with a strong track record of lucrative placements.
Why Pursue an MBA in Finance
With an MBA in Finance, students and working professionals can enhance their management aptitude, critical thinking capability, and innovative ability. Besides, jobs for those with a finance MBA mean a handsome salary and an upward trajectory for their career. Let’s look at some other reasons why finance graduates can benefit from this degree.
1. High Job Demand
An MBA in Finance offers great job opportunities across almost every kind of industry and business sector, including advertising, public relations, IT, education, and real estate, among others. Your job would involve performing tasks related to budgeting, investment, risk management, and financial planning.
2. A Variety of Job Roles
Fundamentally, finance is a very broad field. There are several career options to choose from, such as investment banking, corporate banking, and risk management, in both the public and private sectors, depending on your interest.
3. A Handsome Salary Package
An MBA in Finance is a top specialization that offers a great salary package if you plan to build a career in this field.
Subjects of Study in an MBA in Finance Program
The goal of this program is to help you with a strong background in analysis and statistics. Corporate finance, financial derivatives, macroeconomics, and international finance are some of the most popular topics included in this program.
1. Corporate Finance
This focuses on how companies handle their sources of funding, their capital structure, and their investment decisions.
2. Finance Derivatives
A derivative is a type of financial contract in which the value of the contract is contingent upon the performance of an underlying entity, such as an interest rate, index, or asset.
Large-scale or general economic issues, such as interest rates and national productivity, are the focus of this subfield of economics.
4. International Finance
This topic covers the examination of economic ties that form between two or more nations by focusing on Foreign Direct Investment (FDI) and currency exchange rates.
An MBA in Finance vs. a Master’s in Finance
If a job in finance is something you’re considering, you might be debating between getting an MBA or a Master’s in Finance (MF). In the end, the decision will come down to the level of experience as well as the degree to which you wish to specialize in the field.
While MBA programs allow you to cover a wide variety of management courses, along with specializing in finance, MF programs concentrate solely on financial matters. Moreover, an MBA will better equip you for senior roles in an organization.
An MBA in Finance is ideally suited for professionals who have around three to five or more years of experience in their field. A majority of MF programs are geared toward applicants with little or no work experience.
Then there’s the fact that if you plan to launch your own business in the financial sector, an MBA in Finance will give you a better foundation.
Top Careers to Pursue with an MBA in Finance
Candidates who have completed an MBA in Finance are qualified for the following positions:
- Corporate controller
- Chief financial officer
- Management consultant
- Management analyst
- Financial analyst
- Financial manager
- Financial examiner
- Accounting manager
- Chief executive officer
ALSO READ: What is Asset Management? Does it Ensure Business Growth?
Careers After an MBA in Finance
Finance graduates with an MBA can find employment in a wide variety of fields, including corporate finance, asset and liability finance, insurance, taxation, financial planning, hedge fund management, among several others. Let’s see what these jobs involve:
- Corporate finance: Investing large sums of money, the acquisition and sale of financial products, the discovery and securing of acquisitions, mergers, and transactions
- Corporate banking: Offering financial advice to both private and business clients about mergers, acquisitions, capital markets, etc
- Asset management: Exploring asset acquisition, determining the feasibility of which assets to acquire, and reporting pertinent information to the company’s various stakeholders
- Treasury: Managing the firm’s risks and investments in financial instruments and ensuring that the company has sufficient liquidity
- Derivative structuring: Concentrating on the difficulties associated with trading derivatives, modeling, and structuring financial products
- Credit risk management: Forecasting potential dangers, formulating and putting into action policies and procedures designed to reduce credit risk, and supervising the development of performance reports
- Hedge fund management: Managing clients’ investments in hedge funds, which may include investment goals, fee structures, and liquidity provisions
- Private equity: Bringing in new investors, providing assistance with investments, and offering support to existing clients of banks in all investment management activities
Top Companies Hiring MBA Finance Graduates
Many finance MBA students aspire to work with renowned organizations, including the world’s largest banks, insurance companies, investment firms, and accounting firms. Here are the top five companies across different sectors that should be on the radar of MBA finance graduates.
1. JP Morgan Chase & Co
- Financial Analyst: Average remuneration: $71,119
- Investment Banking Analyst: Average remuneration: $109,623
- Financial Advisor: Average remuneration: $76,875
- Financial Analyst: Average remuneration: $87,418
- Accountant: Average remuneration: $74,290
- Finance Specialist: Average remuneration: $79,735
- Investment Banking Analyst: Average remuneration: $104,582
- Investment Banking Associate: Average remuneration: $116,418
- Financial Analyst: Average remuneration:$79,243
5. Wells Fargo
What are the Benefits of Earning an MBA in Finance?
Pursuing an MBA in Finance comes with a number of benefits:
- Earning a lucrative package: An MBA can help you to gain more knowledge about business and finance. It fast-tracks your chances of getting a promotion and opens up more opportunities with lucrative salaries.
- Developing a set of skills: You can learn skills that are more specific to finance, like risk management, portfolio management, or corporate finance. In addition, you can acquire general business management skills that can help you prepare for leadership roles as soon as you graduate.
- Opportunity to work in diverse industries: You can work in almost any industry because most businesses need finance and business experts to assist them in boosting or sustaining profitability.
- Fostering connections: During your program, you’ll probably work with other students, professors, and advisers. Building connections with other business and finance professionals can help you build a network you can use throughout your career.
An MBA in Finance can help you earn a comfortable income, respectable professional status, and secure employment. However, a financial career requires you to acquire detailed knowledge in this field. And to ensure you get the best possible opportunity to do so, enroll in Emeritus’ online courses on finance and fintech and increase your chances of pursuing a lucrative career.
By Riku Ghosh
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