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Tag: best career options after graduation

7 Emerging trends in derivatives markets

Posted on by Imarticus Learning

The derivatives market is the money market for derivatives, which are financial instruments generated from other types of assets, such as futures contracts or options. The derivatives market is separated into two parts: exchange-traded derivatives and over-the-counter derivatives.

best investment banking courses with placement in IndiaA derivative is a sophisticated sort of financial security that is agreed upon by more than two parties.

Traders utilize derivatives to get access to certain marketplaces and trade various assets.

The most widely known underlying assets for derivatives include currencies, stocks, bonds, commodities, interest rates, etc.

Contract values are determined by changes in the underlying asset’s price.

 

 7 Emerging Trends in the Derivatives Market:

Artificial Intelligence in Trading

 The derivative market is an essential component of financial services; it is a vast worldwide hut with ample capacity to accommodate cutting-edge technologies. Blockchain, artificial intelligence, and robots are already aiming towards it.

We all know that practically any asset may be traded in the derivatives market as futures and options. However, the intricacy of these instruments presents difficulties for investors. Reliable pricing solutions are essential due to continually changing market dynamics and regulatory restrictions.

A competent pricing tool is required by everyone from buy-side and sell-side trading desks to adherence, pricing, and accounting departments, among others. The most popular solutions in the market have some limits that must be overlooked.

For example, the answers are so complex that they must first be taught in order to be used. These technologies are so expensive that not everyone can manage to benefit from them; also, because of their vast size, they are confined to endpoints and can only be used with a few devices. Consider the following instances for better elaboration.

Based on the current SEBI rules, foreign investors or EFIs are participating in commodity derivatives. (For example — cotton exchange/trading, trading in metals such as nickel and zinc). Trading in fossil fuels such as natural gas and crude oil has seen a rise. The demand for these is booming like never before.

Emphasizing futures derivatives and forwards derivatives when deciding upon contracts. A major focus is on individual securities in Indian and even foreign markets or exchanges, new sets of compliances in foreign markets as well as Indian markets (especially when it comes to bonds and percentages in the agricultural sector)

Crypto derivatives are again gaining the spotlight and Indian investors are shifting towards modern trends or derivatives.

Physical settling of stock derivatives — It’s been determined that the physical setting of all stock derivatives will be made mandatory. Cash-settled stocks will be listed in decreasing order, based on daily market capitalization aggregated for the month of December 2018. SEBI has stated that in 2019, the worst 50 derivatives equities would be moved to delivery resolution every quarter.

 Conclusion

 Financial derivatives have taken a prominent place among all financial instruments (products) as a result of innovation and revolutionizing the landscape. Derivatives are financial instruments that help dealers manage risk and profit. It aids in the transfer of risk from one to the next.

Learn investment banking online to gain better insights into the derivatives markets and become an expert. Pursuing investment banking courses online will help you juggle between your work as well academics, seamlessly, and that will give you the right push you need for a successful career.

Related Articles:

Pros & cons of Derivatives Markets

Why choose a career in Derivatives Markets?

How are Derivatives Changing Markets?

Here’s why learning about derivatives is essential to begin a career in the capital markets

6 top careers you can choose after graduation

Posted on by Imarticus Learning

Choosing the right Career after graduation is crucial as it sets the foundation for your future career path. The finance and banking industry is famous for graduates as it offers lucrative career opportunities and job security. However, it can be overwhelming to decide which career path to pursue. In this write-up, we will discuss the top 6 careers in finance and banking that graduates can choose to kickstart their careers.

Top Career Options in Finance

Many career options are available in finance for those who wish to specialize in this field or pursue a career in professional financial jobs. 

Some of the most popular finance careers or finance jobs include:  

  • Investment Banking
  • Financial Analyst
  • Risk Management
  • Accounting
  • Financial Planning
  • Commercial Banking

investment banking courses

Each Career in banking has its unique skill set, responsibilities, and salary potential. By exploring these career paths, graduates can better understand which approach aligns with their interests and career goals.

  1. Investment Banking

Investment bankers have a responsibility to help companies and organizations that raise capital by issuing securities such as stocks and bonds. They also provide financial advisory services to clients on mergers and acquisitions, corporate restructuring, and other financial transactions. Investment banking courses after graduation is a great career choice for graduates interested in finance with affordable investment banker course fees. 

  1. Financial Analyst

Financial analysts analyze financial data to help companies and individuals make informed investment decisions. They use financial models to forecast future trends and identify potential investment opportunities. Financial analysis is a great career choice for graduates interested in finance, have strong analytical skills, and are detail-oriented. Financial analysts typically work for investment banks, asset management firms, or large corporations.

  1. Risk Management

Risk managers are responsible for identifying and assessing potential risks affecting an organization’s financial health or reputation. They develop strategies to mitigate those risks and ensure compliance with regulatory requirements. Risk management is a great career choice for finance graduates with strong analytical and problem-solving skills who are detail-oriented. Risk managers work for large corporations, financial institutions, or insurance companies.

  1. Accounting

Accountants are responsible for preparing and maintaining financial records for individuals, organizations, and government agencies. They also provide financial advisory services and help clients comply with tax laws and regulations. Accounting is a great career choice for graduates who are interested in finance, have strong attention to detail, and are good at math. Accountants typically work for accounting firms, corporations, or government agencies.

  1. Financial planning

Financial planners are responsible for helping individuals and organizations achieve their financial goals. They provide advice on investments, retirement planning, and other financial matters. Financial planning is a great career choice for finance graduates with strong communication skills who enjoy working with people. Financial planners typically work for financial planning firms, investment firms, or insurance companies.

  1. Commercial Banking

Commercial bankers are responsible for providing financial services to businesses, such as loans, lines of credit, and other banking products. They also help clients manage their cash flow and navigate economic challenges. Commercial banking is a great career choice for finance graduates with strong communication skills who enjoy working with people. Commercial bankers typically work for banks or other financial institutions.

Top Skills To Make a Big Career in Banking 

If you want to succeed in a finance career, there are several skills you should possess:

  • Analytical Skills: The capacity to analyze a situation to derive relevant conclusions is highly sought in finance. Skills such as strategic thinking and leadership are also essential.
  • Financial Modelling: This skill involves representing a financial situation using abstract methods to design a model that portrays the financial performance of a portfolio or asset.
  • Business Intelligence: Understanding the current and future data regarding sales, inventory, and other fields is essential for making well-informed business decisions. Business Intelligence experts use software like Tableau to gain insight into the financial area.

Discover Investment Banker Career With Imarticus Learning

Imarticus Learning provides an opportunity for individuals to embark on a career in the financial markets through the Certified Investment Banking Operations Professional program. Upon completing this program, students will possess the skills and knowledge necessary to excel in banking and clearing services at all stages of production. 

Course Benefits for Learners:

  • Students will learn about financial services, investment banking, and the complexity of derivative management products and securities throughout their trade-life cycles.
  • The student will also get the chance to become an investment banker and the assistance required to launch a career in investment banking.
  • It covers finance, strategic planning, financial management, and the evaluation of investment chances.

Visit our training centers in Mumbai, Thane, Pune, Chennai, Bangalore, Delhi, Gurgaon, and Ahmedabad. If you need further information, contact us via our chat support system.

Investment Banking Operations: The Vista Ahead in 2022

Posted on by Imarticus Learning

Investment banking is a sector of banking operation that helps organizations or individuals with financial consultancy services and raises capital for them. Most experts believe that after the rebound from the pandemic, investment banking has a broader scope in the near future. But, it is essential to understand that investment bankers primarily act as intermediaries between investors and security issuers for making them public.

Investment Banking course

As this has myriad prospects, including substantial career opportunities, it is vital to have proper investment banking training that will provide them with adequate knowledge to pursue a career in this sector.

Although the road ahead is highly optimistic, to pursue a career in it, individuals must understand the top trends in the investment banking sector. This is necessary because, most likely based on these changes, the road ahead is going to pave the way for 2022. 

Top Trends in Investment Banking 

In 2021, this concerned sector opened plenty of opportunities for investment bankers. Based on the previous year, most experts believe that this year is also likely to be eventful and will shape the future of 2022 and beyond. So, to enter this arena, aspiring individuals must opt for investment banking courses that will allow them to learn comprehensively, aligning with the modern-day industry demands.  

A few of the trends in investment banking that have the potential for future business opportunities and higher growth are: 

  • Sustainable Finance 

Although the term ‘Sustainable Finance’ is not a new concept, this idea is now achieving new heights as more investors and stakeholders are aware of the adverse environmental impacts. This concept has taken its place after this COVID-19 pandemic. And, now most investors are showing interest in net-zero carbon emissions. As a result, sustainably-linked bonds (SLB) are currently trending and it is likely to continue due to the global climate change commitments.  

  • Private Equity 

For the revival of the Indian economy after the pandemic, private equity players have shown significant confidence in the country’s growth. In particular, the private equities in infrastructure and renewable energy and fields like pharma and IT-enabled services have deployed around USD 50 billion.

  • Mergers and Amalgamations 

The mechanism of mergers and amalgamations came into the limelight because of investment facilities. Around 80 cases of this were reported in 2020, whereas 190 were witnessed in 2021. In addition, big players such as Adani, Reliance, and Tata have shown interest in the renewable energy, pharma, and retail sectors of the Indian market. Along with this, the opening of the economy with the availability of new schemes might trigger new such mergers in the near future. 

  • IPOs

In the FY 2020-21, Indian start-ups have raised a total valuation of around USD 29 billion. This amount is significantly higher compared with the previous financial year. This happened primarily due to the surge in sectors like pharma, tech, retail, financial services, and IT. The future potential of these sectors has increased the funding and will likely continue for FY 2022. 

So, it is evident that the market is changing slowly and is likely to return to the pre-COVID times with new variables. Hence, the booming field of investment banking is expected to require more talented job seekers. Therefore, individuals must look for investment banking courses with placement opportunities to get ample opportunity to grow in the future. 

Apart from seeking courses that secure a placement, make sure that the investment banking course aligns with the latest trends, is industry connected, and covers real-world scenarios of the same. A proper course or training in this field can provide rewarding careers like financial analyst, risk management consultant, and investment banking associate. 

Pros & Cons- Is it worth becoming an investment banker?

Posted on by Imarticus Learning

Investment banking is probably one of the top-level jobs all over the world. It is a perfect blend of high pay, long working hours, excellent people’s skill, fierce competition, and much more. When it comes to deciding a career path, various factors determine the choice. Knowing that an investment banking career could be a very challenging yet interesting career option, in the long run, some confusing questions are bound to occur to the mind.

Investment Banking course

The most important one is ‘is it worth becoming an investment banker?’. Or ‘what could be the pros and cons of investment banking?’. Thankfully, at Imarticus, we offer investment banking certification courses falling under the CIBOP program, which can boost your career path. 

Pros of Investment Banking

  • When you would start your career as an investment banker, you would receive a high joining bonus which would make you want to work more in this field.
  • Extensive networking with large enterprises and their people is also a trait of an investment banker. You can have the opportunity to connect with the people in big firms up to a very personal level as well. This opens the gates to building your network of people.
  • Every day is a new day in the life of an investment banker. You would get the opportunity to learn many different subjects from your manager, colleagues, and even customers. Not just an expert in investment banking, you would develop many other skills like financing, taxing, accounting, and of course people’s skills.
  • It can also teach you the skill of becoming a multi-tasker. Since you work with and for multiple people at the same time, you learn to prioritize your tasks in an effective manner.
  • Nonetheless, an investment banking career is a high-paid job. You would get outstanding compensations and bonuses for your work throughout the year.
  • Since everything is online, most of the work can be done from home. If your enterprise approves this, then you can work comfortably and efficiently at home. 

Cons of Investment Banking

  • Intense performance competition in investment banking has begun to affect personal lives as well. There is a shotgun every day at the head of an investment banker to give his career-best performance every single day. If not, there would be many others in line as a replacement.
  • Long tedious working hours would put your work-life balance at stake. You might need to do overtime as well to meet the target annual goals which might be very exhausting. Sometimes, even during your vacation or weekends, you cannot avoid customer calls and might need to work more than 15 hours a day.
  • Some customers can be very difficult to handle and it can be challenging to work with them and understand their needs. They might put up false and unrealistic goals in front of you.
  • There is always an element of fear attached to investment banking in terms of job security. During difficult financial times, it might become very difficult to find another job in case your current employment contract ends or if you are fired from the company in case they do not have enough funds to support you. 

Conclusion

So after having read extensively the pros and cons of investment banking, what should you choose? Although it depends on you and your interests, you can be sure of the investment banking certification courses offered by Imaticus.

These investment banking courses would help you become a successful investment banker in the future and would teach you the ways and tricks of handling all the above-mentioned cons like a professional. 

A novice’s guide to investing in the money market

Posted on by Imarticus Learning

In today’s day and age, it wouldn’t be wrong to claim that every aspect of our lives is in some way or the other connected to the money market. Times are uncertain, which makes it even more important to have a rooted understanding of what drives our money market. The financial sector has grown at an unprecedented rate over the last few years. We, at Imarticus, are here to help you catch up to it with our Certified Investment Banking Operations Professional program. 

Half knowledge is a dangerous thing.

Investment Banking analyst

Does your understanding of Investment Banking Operations only stem from being a passive participant in conversations involving the topic? Hand-me-downs of what people claim ‘expert opinions’? When it comes to Investment Banking, tangible experience and expertise are what you must build and count on. It is a resource like no other. With Grade A faculty members with a decade’s worth of knowledge and experience at their disposal from tier-I banks across India, Imarticus Learning makes sure that you learn from the best and harness your skills to the best of your abilities.

Seeing is believing 

Learning happens best when you successfully apply acquired knowledge to your benefit. There is no greater motivation than a positive result, and results come through action. Hence, at Imarticus Learning, we believe in putting you in the driver’s seat.

With hands-on experience and action-oriented courses, you apply what you learn and change the course of your action as per your understanding of the subject matter. We believe in “seeing is believing.” Hence, we make it a point to give you a crack at multiple industry-aligned case studies from various sectors and domains, which our expert faculty then evaluate. 

Working towards a future

There’s nothing as disheartening as wasted effort. Time is an investment and should be spent on worthwhile experiences that secure your future. As humans, we instinctively work toward goals and an envisioned tomorrow. With our Certified Investment Banking Operations Professional program, we guarantee all our students employment in the operations sections of global investment banks. Check out our Career Services section for more information: Career Services, Career Coaching – Imarticus Learning.

Brush up before you rush in

When we dive into the world headfirst, it’s essential to have adequate and appropriate information to aid us. The future of the financial world morphs into something new each day, and to understand that. It’s important to have a good hold on what used to be. It is essential to start from the beginning to comprehend new knowledge, which is precisely what we’re here for.

The Certified Investment Banking Operations Professional program is a 180-hour course that gives you an in-depth understanding of securities and derivatives, their trade life cycles, along with operational risk analysis, regulatory reforms, and all the other functions performed in the investment banking operations department.

Click here: Investment Banking Courses, Training & Certification – Imarticus Learning to download our brochure.

All’s well that ends well

Confidence backed up with learning and research is what writes a success story. When you have the proper guidance, the world is your oyster. Learning Investment Banking with Imarticus opens you up to a horizon of possibilities within arm’s reach.

The Certified Investment Banking Operations program specializes in moulding individuals and bringing out the best in them. To check out our alumni reviews and placement partners, click here: Investment Banking Courses, Training & Certification – Imarticus Learning.

7 trends shaping the future of the Money Market: Top picks

Posted on by Imarticus Learning

The money market is constantly evolving, and it can be challenging to keep up with the latest trends. In this post, we will discuss seven trends shaping the future of the money market. We will provide our top picks for each trend!

Here are some of the seven trends shaping the future of the money market:

# 1. The Rise of Digital Currencies

Digital currencies are becoming more popular each year. While traditional currencies are still the most widely used, digital currencies are gaining ground. Their popularity is due to their security and anonymity. 

Top pick: Bitcoin

Bitcoin is the most well-known digital currency. It has become the largest and most popular digital currency. 

 #02. The growth of mobile payments

Mobile payments are becoming more popular as smartphones become more commonplace. Mobile prices are convenient and allow users to make purchases without carrying cash. 

Top pick: Apple Pay

It is a mobile payment system developed by Apple Inc. It allows users to make payments using their iPhone or iPad. Apple Pay is secure and easy to use, making it a popular choice for mobile payments. 

# 3. The Rise of Peer-to-Peer Lending

It is a type of lending that allows individuals to borrow and lend money without using a bank. Peer-to-peer lending platforms, such as LendingClub, have become popular in recent years.

 Top pick: LendingClub

LendingClub is the largest peer-to-peer lending platform. It allows borrowers to get loans from individual lenders and has a low default rate.

#04. The growth of fintech

Fintech means the use of technology in the financial services industry. Fintech companies are developing innovative solutions to problems in the financial sector. 

Top pick: Robinhood

Robinhood is a fintech company that offers commission-free stock and cryptocurrency trading. It has a mobile app that is easy to use, and it has been growing in popularity among young investors.

# 5. The Rise of Robo-advisors

Robo-advisors are financial advisors who use artificial intelligence to provide investment advice. Robo-advisors are growing in popularity due to their low fees and convenience.

Top pick: Betterment

Betterment is the largest Robo-advisor and offers a range of investment options.

# 6. The growth of online banking

Online banking is becoming more popular as more people move to the internet for their banking needs. Online banking is convenient and allows users to access their accounts from anywhere. 

Top pick: Chase Bank

 It offers online banking and a wide range of other banking services.

  1. The rise of automated investing

Automated investing is a type of investment that uses artificial intelligence to make investment decisions. 

The top pick: Wealthfront

Wealthfront is a leading automated investing service that offers a wide range of investment options and has a low fee structure.

Discover Investment Banking courses with Imarticus Learning

Investment Banking course with placement

Students study what is investment banking, complex securities, and derivative products, their trade lifecycles, and the responsibilities that comprise investment banking operations. This 180-hour intensive Certified Investment Banking Operations Professional (CIBOP) course thoroughly prepares students for a career in investment bankings jobs.

Course Benefits for Learners:

  • Our investment banking courses cover complicated securities, derivative instruments, and the trading lifecycles and functions of these assets.
  • Students at Imarticus Learning work in most worldwide investment banks with the CIBOP credential authorized by the Euronext Group!
  • Students can connect with industry professionals and previous course graduates to deepen their learning and optimize their possibilities.

Financial modelling: The breakthrough of the new generation finance trends

Posted on by Imarticus Learning

Imagine a big manufacturing company with all its moving components – a team of administrators, a workforce that manufactures, a crew that procures the necessary raw materials, different units of regulators, marketing department, supply, and distribution chain.

Given the enormity of the company, gaining meaningful insights into its functioning and gauging its efficiency can be a daunting task. This is where financial modeling comes into play, and hence the growing popularity of financial technology courses among the newer generation of finance students.  

To cater to the growing demand of the online fintech program, Imarticus Learning has come up with a Financial Analysis Prodegree in collaboration with KPMG that offers young professionals a 180-hour financial planning and analysis course covering research on equity and valuation, financial modeling, and accounting. This article will give you an elementary understanding of financial modeling and how it will be a breakthrough for the new generation of finance trends. 

What is a financial model?

A financial model is a simple tool that utilizes any built-in spreadsheet software, such as MS Excel, to forecast the financial performance of any business in the future. It relies on the performance history and future performance assumptions to prepare a balance sheet, income, cash flow statements, and supporting schedules.

This dynamically connected financial model is called a ‘Three Statement Model’. It is the base on which we can build more advanced models, like Mergers and Acquisitions (M&A), Leveraged-Buyout (LBO), Discounted Cash Flow Analysis (DCF model), and other types of financial models.

How is a financial model used?

Company executives rely on the financial model to aid them in taking decisions regarding the analysis of the company finances. Some of the significant decisions that are based on such models are: 

  • Making organic business expansions
  • Divesting business units and assets
  • Raising and allocating capital 
  • Making acquisitions
  • Budgeting and forecasting 
  • Management accounting
  • Valuing a business
  • Financial statement analysis

A step-by-step guide of building a financial model

While building a financial model requires lots of relevant data, assessing them and understanding them comprehensively, using financial tools, and auditing and stress-testing. However, a generic but step-by-step breakdown of building a financial model is provided below:

  • Every financial model begins with an in-depth study of the past financial statements and reverse-engineering the data to forecast gross margins, fixed costs, revenue growth rate, fixed costs, among others.
  • The next step is to start an income statement to compute the revenues, operating expenses, gross profit, etc. With that, you can also begin to fill in the balance sheet.
  • The third step compromises building supporting schedules for capital assets like Property, Plant & Equipment (PP&E), and also for interest and debt.
  • Use the reconciliation method to build the cash flow statement by adding depreciation and starting with the net income.
  • After completing the Three Statement Model, perform the Discounted Cash Flow (DCF) analysis by evaluating your business value and calculating free cash flow.
  • Assess the risk of an investment or plan your business accordingly with different assumed scenarios by adding sensitivity analysis.
  • Build graphs and charts of the financial model to communicate the output with the clients.
  • Test your financial model by stress-testing it against extreme scenarios to check whether your model behaves as expected.

Conclusion

Even a cursory understanding of financial modeling will help you understand that it is imperative for most modern business giants. A global pandemic, recession, inflation, and other economic factors have already bolstered the need for financial models to grow businesses. Enroll in the  Financial Analysis course of Imarticus Learning to join the new generation of finance trends. 

Here’s how technology has changed investment banking operations

Posted on by Imarticus Learning

In today’s era, we can witness technology all around us. Almost every industry sector is now relying on technology for day-to-day operations. Investment banking operations have also changed over the years due to the introduction of new technologies. Investment banking operations are predicted to change further with the rise of new-age technologies like blockchain, AI, and ML.

If you are planning to get into the investment banking industry, you should be familiar with the technologies used for day-to-day operations. Many young aspirants look for Investment Banking courses that help them get familiar with the latest technologies. Read on to know how technology has changed investment banking operations.

Automation in the investment banking industry

An investment bank not only has to raise capital for its client. Besides its services to clients, several internal processes are also to be completed by an investment bank. For example, an investment bank has to maintain its account books regularly.

There are many such mundane tasks for which investment banks used to hire employees. An investment bank cannot ignore mundane tasks because many of them fall under the compliance requirements and need to be completed.

In 2022, it is observed that most investment banks have automated mundane tasks. Tasks like accounting, bookkeeping, and payment reconciliation are automated by investment banks. Instead of hiring employees for mundane tasks, investment banks now hire expert individuals for core job responsibilities like equity research, financial analysis, etc.

New-age technologies like AI and ML play a significant role in inducing automation in investment banking operations. It is just the beginning of robotics and automation in the investment banking industry. Investment banks are gradually moving towards hyper-automation with the rise of AI and ML.

Financial services with technology

Gone are the days when a client has to visit a physical investment bank to get financial advice. Investment bankers can now pass financial advice via several digital channels. Many other financial services are now offered to clients with the help of technology. For example, investors can now view the available securities and invest in them while sitting on their couches. Mobile applications and digital interfaces are enabling customers to access financial services digitally.

Many traditional financial services can now be accessed by customers quickly with minimum staff interference. It not only boosts customer satisfaction but also saves time for the employees of the respective investment bank. Seeing the rise of fintech services, it is evident that customers are loving to access financial services remotely via digital channels.

It is why investment banks are spending huge on developing digital channels that could offer financial services to customers. If you want to learn investment banking, you should know about the financial services that are being offered to customers with the help of technology.

How to get familiar with the technology used in the investment banking industry?

If you learn investment banking via an industry-oriented course, you can get to know about the technologies used in the industry. We at Imarticus Learning offer the perfect program for investment banking aspirants.

Our CIBOP course is endorsed by the London Stock Exchange Group and teaches job-relevant skills. By getting an investment banking certification after the CIBOP course, you can get into the industry easily. 

At the end of the CIBOP course, we will offer placement assistance to help students get a job with any reputed finance firm. During the investment banking course, you will participate in industry interactions. You will meet several industry experts during the CIBOP course.

Several aspects of investment banking will be covered in the CIBOP course. Start your CIBOP course and learn about technologies used in the investment banking industry!

Learn Financial Analysis: A Comprehensive Guide To Trading Methods And Applications

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Learn Financial Analysis: A Comprehensive Guide To Trading Methods And Applications

All of us want to make money in the stock market, to grow our wealth as quickly as possible. Stock trading and investing to make monetary gains require hard work. Two main aspects of stock trading and analysis include fundamental and technical analysis. You can learn about financial analysis through financial modeling, financial analysis, or chartered financial analysis courses at Imarticus Learning.

Fundamental analysis involves a detailed study of the financials of the company to determine the intrinsic value whereas technical analysis involves the study of historical prices of the stock through chart patterns to project the future price and the trend in stock prices.

What is Financial Analysis?

Financial analysis is the holistic study of the financial position of the company, including past trends, ratio analysis, and cash flows of the company to determine the solvency, liquidity, financial strength, and intrinsic value of the company. When you do a financial analysis of a company or a stock, it should be able to help you determine whether undertaking an investment in a particular company is worthwhile.

It helps you choose the best possible investment opportunities. It involves the study of the balance sheet, profit and loss accounts, cash flow statements, and ratio analysis. You can opt for a financial modeling course or a chartered financial analyst’s course to hone your skills in financial analysis.

Uses of Financial Analysis 

Financial analysis can be divided into two components—corporate financial analysis and investment financial analysis.

Corporate Financial Analysis 

  • Forecasting economic trends in the company/stock. 
  • Companies use financial analysis to enable them to determine future trends in financial policy, long-term budgeting exercises, peer comparison, etc.
  • Project identification teams also use financial analysis to make a comparative analysis of cash flows and return to determine the most investable project. Measures like internal rate of return and net present values form an integral part of financial analysis. Financial modelling courses can help you build your skills in this area.
  • Improve working capital management by improving the efficacy of collection of receivables/payables management, etc.

Investment Financial Analysis 

There are two popular approaches to doing financial analysis:

Top-down going from the macro to micro: This starts from analyzing major economic trends in the economy including  GDP growth, the future direction of interest rates, inflation, exchange rates and currency trends, movement of the economic policy, looking at sectoral trends or factors that accelerate or impede the growth of the industrial sector, and then cherry-picking the industrial sectors poised to perform very well in the economy. 

After the macro analysis, the next step is drilling down to the micro. Looking at specific companies in the selected industrial sectors, conducting ratio analysis and financial analysis of the selected companies, and doing both intra-firm and inter-firm analyses to finally choose the best investment opportunities. 

Value-based investing:  This is going from the bottom to the top. Selecting a company based on its intrinsic value and validating all other assumptions about the macro aspects affecting the company. If the stock markets are particularly choppy, it is always better to use a value-based approach to pick your stocks.

In both the above strategies, analyzing past performance using ratio analysis and other financial analyses is key. Per-share ratios such as price-earnings, price/book value, price to sales, price to enterprise value, leverage ratios like debt/equity, debt to total assets and interest coverage ratios, return ratios like return on equity, return on assets, gross profit margin, net profit margin are all important and can be used in the analyzing the past trends as well as in peer comparison. 

All of the above analyses help in determining the intrinsic value and whether the company is overvalued or undervalued compared to its long-term historical averages. Ratios such as dividend payout ratio and the earnings per share growth help determine whether the company is growing at a sustainable rate and whether it can maintain its growth momentum. 

Technical analysis: Technical analysis is based on the presumption that the current stock price reflects the intrinsic value and charting historical prices of shares will help project the future share price momentum. Various techniques such as bar charts and candlestick charts are used to portray the chart patterns. Various studies interpret different chart patterns to decide whether the stock is likely to give a breakout on the upside or the downside. This helps decide the price point of stock at which you should enter. 

Both fundamental and technical analyses should be used in conjunction with each other and not in isolation. Also, you must be aware that market sentiment depends on macro-economic trends influencing the economic policy of the country and also the impact of central bank action around the world. 

Recently, all central banks around the world raising interest rates due to excessive inflationary pressures in concert has turned market sentiment bearish. This has resulted in large falls in both the indices as well as stock prices.

Key Takeaways 

Doing financial analysis before undertaking any investment activity is very important as it is your hard-earned money at stake. Poor judgment calls or poorly done homework means significant portfolio losses. If you are a beginner in stock markets, learn both fundamental and technical analysis.

Only when you are proficient in both should you take stock of investment decisions or decisions to build your portfolio. Don’t delay. Register for a financial analysis course, a financial modeling course, or a chartered financial analysis course today. It is the difference between growing your wealth and losing it. 

Visit Imarticus Learning to learn more. Contact us through chat support, or walk into any of our training centers situated in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, and Gurgaon. 

Financial Valuation and Behavioural Finance: Insights

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Financial Valuation and Behavioural Finance: Insights

Every business activity is directly or indirectly related to finance. The financial aspect is included in the activities like production, marketing, purchasing, etc. The problems of finance are closely related to the problems of purchasing, production, and marketing. In this way, the problem of finance is inherent in some form or the other in the activities of all the departments.

Financial management is a set of specific strategies and tools that are used to increase the company’s profits and reduce the risk of bankruptcy. Its main function is to get the maximum benefit from the activities of the subject in the interest of its owners.

A Financial Risk Management course helps professionals understand and manage the risks faced by businesses which leads to a specialized career in risk management. Thus, Risk Management provides a safe environment for all employees and customers of an organization. The stability of a business is increased, and legal liability is reduced.

Here are the key functions of financial management:

  • Internal financial planning for the organization 
  • An estimate of a financial condition
  • Current asset control, monetization
  • Investment portfolio management, capital formation
  •  Concluding agreements with banking institutions, funds, and exchanges
  • To assist in making important management decisions for the organization

There are a variety of job opportunities in finance management, such as Financial Advisor, Finance Manager, Financial Planner, Investment Banker, Equity Analyst, and Banker. One can pursue higher study, Ph.D., in finance management after completing this course.

What is Financial Valuation?

Financial valuation is the analysis of the economic condition of the enterprise. The evaluation process is quite complex and time-consuming. There are several types of analysis depending on the purpose of the audit.

The finance management of organizations resorts to the financial valuation of the business. This need arises in various situations, for example, when selling a business, introducing a new direction, restructuring, or insuring a company. This work should be done by a highly qualified financial management team.

From the foregoing, it can be concluded that financial valuation is a business valuation for all the operations related to obtaining income.

What is Behavioral Finance?

Behavioral finance is a field of study which helps to understand that financial decisions about things like investments, payments, risk, and personal loans are greatly influenced by human emotions, biases, and cognitive limitations of the mind in processing and responding to information.

Behavioral finance is an area where psychology has an impact on the behavior of investors and financial analysts. Influences and biases are considered sources to explain different types of market conditions.

In behavioral finance, it is recognized that investors and financial analysts are not fully rational and self-controlled individuals, but have psychological influence with general and self-controlled tendencies. Another major area of ​​focus here is the effect of favoritism, which occurs due to various reasons. Understanding the different types of behavioral finance concepts can help to understand the industry and how to study the results.

To understand the technical side of the stock market, it is necessary to understand the advanced techniques of fundamental analysis. And Capital Market Courses online can be beneficial for stock market participants and learners.

Conclusion

Designed by IIM Lucknow Imarticus Learning’s Financial Services and Capital Markets Course will help you to learn the fundamentals of corporate finance and help you to boost your career to a new height.

The PGDM in finance management is a course that makes finance leaders in financial planning, analyzing, and control of financial activities, such as: raising and utilizing the funds of an organization. This means the application of general management principles to the financial assets of the organization.