The finance industry in India is one of the most burgeoning sectors. In this industry, the workforce demand includes freshers as well as experienced professionals.
The finance stream is the backbone of all kinds of industries/businesses. Progressing into a finance career after spending a lot of time in other industry is interesting, but at the same time, it is complicated too. The finance industry in India is challenging as well as beneficial in terms of financial rewards.
It requires few professional skills such as domain knowledge along with analytical skills. Also, with the technology changing at a clock speed rate, to navigate your path in finance industry in India, the first step is to upgrade your skill set.
Below are some common career streams in the financial industry:
Certified Financial Planner
It is one of the fastest growing careers in the world. Financial planners help to develop a plan for financial stability and security. These planners will check the client’s goals and generate a plan to achieve those goals. This planning mainly focuses on investments, savings and tax planning, retirement planning, insurance, etc. Financial planners work with organizations as well as independently.
Financial planners with the Certified Financial Planner (CFP) certification are on high demand. The CFP international certification is awarded by Financial Planning Standards Board of India (FPSB India). This certification is globally recognised (more than 22 countries).
Currently, there are more than 1200+ certified financial planners in India and more than 50000 opportunities in upcoming years. In all multinational banks or chartered banks, CFP certification is a must. Professional bodies like SEBI, IRDA etc. are also encouraging their customers to take advice from CFPs for their financial requirements.
This stream mainly deals with investment and portfolio management. The Chartered Financial Analyst (CFA) is a globally recognised course with a lot of opportunities in India as well as abroad. The syllabus covers 10 key topics in financial and investment analysis.
One has to complete the 3 levels – level I, level II and level III in sequential order for the CFA program. There are lots of opportunities for CFA to explore their growth trajectory with mutual funds, investment companies, government and regulatory bodies, private wealth management area, insurance sector, banking and consultancy services. Hedge funds have massive demand for financial analysts.
International Accounting Standard Board (IASB) has developed common global standards for accounting and reporting field. The primary advantage of establishing such a global accounting standard is everybody will be on the same page with a single format with a consistent approach.
This will help all the companies to provide comparable financial statements and details. IFRS – International Financial Reporting Standards are accounting principles and standards set by IASB. Maximum countries are trying to adopt IFRS practices and standards; hence IFRS program is booming in India.
Multinational sectors like IT/ ITES, Pharmacy, Auditing firms, KPOs, Banking industries, insurance industries and automobile sectors are demanding the IFRS profiles. Also, IFRS expertise can start own firms and consultancy services.
Financial modelling is nothing but constructing a financial representation of a firm or company. This involves historical data and information analysis and building a model based on it. Also, these models are helpful for future estimations and recommendations.
Financial modelling is used in finance as well as non-finance industries and is a vital tool for investment bankers. Financial models are developed for company revenue forecasting. In equity research, modelling is used to determine the risk assessments and returns on investments.
Financial modelling is a handy tool for assessing the project finance viability, funding plan and equity components. It is also an essential tool in corporate finance and credit rating. Apart from the finance sector, a financial modelling tool can be used in business plan preparation.
Critical thinking and analytical skills are vital tools of any management field. Excel is a base tool for all kind of quantitative analysis across all industries.
The finance industry in India is multidisciplinary, offering different positions with a variety of skill set. It has multiple sub-industries; with a bunch of opportunities.