The Indian financial sector has faced several challenges over the past few years, such as economic downturns, rapidly changing business environments, and increasing market risks. As a result, it has become necessary for businesses to manage their finances better. In general, this has led to increased job opportunities related to finance. Interestingly, the IT, banking, and finance sectors together have contributed to 93% of a net increase in jobs in India from 2021–2022. Moreover, companies aren’t just seeking skilled finance professionals but rather candidates with an MBA in finance. Clearly, this preference is because they believe such candidates could navigate challenges and facilitate better business growth. This shows why finance makes for a promising career path today. Let’s understand how an MBA in finance could further boost your career opportunities.
What are the Benefits of an MBA in Finance?
In essence, an MBA in finance offers interdisciplinary knowledge as it teaches skills in two domains—finance and business. It thus helps finance professionals become business leaders. Here are five key benefits of pursuing an MBA in finance:
1. Opens up Employment Opportunities
This MBA program teaches the technical and soft skills required to become a financial expert. It thus accelerates career growth and makes financial professionals eligible for leadership or executive roles in finance, such as Chief Financial Officer (CFO), wealth manager, portfolio manager, etc.
2. Financial Acumen
An MBA in finance offers a comprehensive understanding of advanced financial principles, concepts, techniques, and tools. Additionally, it helps professionals gain expertise in financial skills such as corporate finance, asset management, financial management, financial modeling, and risk management. Hence, it enables finance professionals to solve complex financial problems by enhancing their decision-making and analytical skills.
3. Holistic Development
An MBA in finance curriculum teaches business acumen and core financial skills. These skills include strategic planning, financial management, risk assessment, crisis management, and efficient allocation of resources. This program facilitates the holistic development of professionals or business owners who want to build or manage their businesses, especially during economic downturns.
4. Expansion in the Professional Network
An MBA in finance often requires learners to collaborate and work on team assignments, case studies, or presentations. It also includes group discussions and webinars where learners network with other professionals and even finance leaders. Therefore, a solid network connection is advantageous for mentorship, career guidance, job referrals, and gaining practical industry insights.
Completing an MBA in finance from a renowned institution boosts your credibility in terms of skills and performance as industry experts teach these programs. Hence, it also adds value to your resume.
What to do After an MBA in Finance?
An MBA in finance opens up diverse niche career paths in the finance sector, such as:
It deals with how businesses raise funding and manage their finances. This includes key investment decisions for business growth, accounting decisions, and long-term and short-term financial planning. After an MBA in finance, one can build a successful career as a corporate finance analyst or a liquidity analyst.
Many professionals build a career in investment banking after an MBA in finance. It involves planning and handling complex financial transactions such as an Initial Public Offering (IPO), underwriting, and mergers and acquisitions. The average annual salary of an investment banker in India is ₹12,00,000. Furthermore, investment bankers with several years of professional experience can earn up to ₹50,00,000 annually.
This refers to managing the assets of a firm, company, government institution, or high-net-worth individuals. It, moreover, ensures an asset’s value maximization in the long term. The key role of asset managers is to clearly understand the client’s financial goals, market research, and invest in securities or real estate. The average annual salary of an asset manager in India is ₹19,00,000.
Financial advisors guide their clients on how and where to invest their money. They, in fact, help their clients in financial planning and achieving their financial goals. Portfolio management, financial analysis, and investment planning are some of the most preferred skills for financial advisory roles.
In the past few years, corporate social responsibility and sustainable business development have become integral to business strategies. Companies are, therefore, increasing their focus on strategies like the green economy and circular economy to combat climate change risks and promote economic stability. Clearly, CFOs thus play a crucial role in helping businesses achieve sustainability goals as they allocate financial resources for sustainability initiatives.
What Key Skills are Developed Through an MBA in Finance Program?
1. Advanced Financial Management
This helps learners strategically plan and manage the finances of a company to ensure its growth while complying with applicable laws.
2. Corporate Budgeting
This involves estimating a company’s future expenses and revenue to prepare budgets.
3. Corporate Restructuring
This skill includes rearranging or modifying companies’ debt and finances to increase liquidity or achieve other business goals.
4. Investment Analysis
An MBA in finance will teach professionals how to predict the future growth or value of the stock by researching current market conditions and industry trends.
5. Financial Modeling
Learn to create a financial model depicting a company’s financial performance based on cash flow statement, balance sheet, and income statement.
6. Managerial Accounting
This kind of accounting means checking, analyzing, and documenting financial reports, statements, etc.
7. Financial Accounting
This kind of accounting, on the other hand, involves recording, scrutinizing, and reporting all financial transactions of a business.
Involves tax planning and saving for companies and entrepreneurs.
9. Financial Analysis
Analyzing the viability and profitability of a business or a new project from a financial perspective.
10. Portfolio Management
It entails managing an individual’s or firm’s investments in mutual funds.
Additionally, an MBA in finance also teaches the following soft skills to help finance professionals become better leaders:
- Effective communication
- Analytical thinking
- Critical thinking
- Presentation and storytelling
What are the Career Opportunities for an MBA in Finance Graduate?
An MBA in finance makes professionals eligible for senior-level finance roles such as:
- Financial analyst
- Chief financial officer
- Investment banker
- Financial manager
- Portfolio manager
- Private equity analyst
- Hedge fund manager
- Credit analyst
- Financial advisor
- Internal auditor
- Tax director
- Chief compliance officer
Is an MBA in Finance Worth it in India?
The Banking, Financial Services, and Insurance (BFSI) sector in India is experiencing a surge in job opportunities due to the use of digital payments and technologies like AI and blockchain. In fact, 8% of the total jobs on Monster, a recruitment platform, are finance-related. However, most of these jobs are for senior-level management roles, so now is the right time to do an MBA in finance and build a successful career in this field.
Moreover, recruiters seek candidates for financial roles with skills like financial management, investment banking, and credit operations. Clearly, all of these skills are taught in MBA courses. Therefore, an MBA in finance is definitely worth it in India.
You can pursue online finance courses to boost your knowledge and learn the latest skills and trends in the finance industry. These courses are taught by industry experts or financial leaders who provide practical training to learners. Furthermore, learners also get an opportunity to connect with other finance professionals and expand their network. This helps get job referrals or develop new business ideas.
By Sneha Chugh