Tag: best financial services and capital markets course

The functions of Indian financial system are made up of various essential segments called sectors. These sectors consist of businesses and enterprises providing services and goods to their consumers. The services provided by these business institutions are mainly brokerage firms, lending entities, and other financial services like safekeeping money. 

Capital Market Course

The structure of indian financial system comprises a broad spectrum such as banking, credit cards, mortgages, payment services, taxation, investments, accounting, and planning. Financial services are also inclusive of professional and firm activities, which are often referred to as financial instruments. 

In this article, let’s learn in detail about the importance of financial services and what the main elements of a financial services course are if you think about taking one. 

What are financial services? 

The role of the Indian financial system in economic development is taken care of by business entities or professionals, with large conglomerates being dominant in this sector, contributing immensely to the country’s economic growth.

Financial services are considered to be temporary rather than tangible assets. This is because financial services have limited their horizons to the activities of financial services entities and firms. In this scenario, financial products are goods, accounts, and investments that are bestowed upon an individual. 

Types of financial services

The importance of financial services cannot be overstated; they are the backbone of the Indian economy, and various types of services are provided by financial entities in the country. They are: 

Banking 

The banking sector is an important function of Indian financial system. The country comprises several public sectors, foreign sectors, private sectors, rural sectors, and urban cooperatives such as banks. The services offered by the banking sector are: 

Individual banking. 

Business banking. 

Loans. 

Treasury services. 

India’s banking sector is regulated by the RBI, or Reserve Bank of India, which monitors its liquidity, financial health, and capitalisation. 

Professional Advisory 

Professional advisories offer a wide portfolio of important financial services to individuals and businesses, like investment due diligence, real estate consulting, M&A advisory, risk and tax consultation, etc. These services are offered by several entities, from domestic consultants to large organisations. 

Wealth Management 

Financial services offered in this segment include investing and managing the customer’s wealth across various financial instruments. These financial instruments include, notably, equity, debt, mutual funds, insurance, derivatives, structured products, commodities, and other important financial goals.

Mutual Funds 

Mutual funds tend to offer various services highlighting the importance of financial services in India through professional investment offerings consisting of different assets, primarily debt and equity-linked assets. These buy-ins of mutual fund solutions are compared to stock markets and debt products. However, the mutual funds’ segments have witnessed immense growth over the last five years and are considered to be the low-risk multipliers. 

Portfolio Management 

This segment includes a customised range of solutions that enable clients to reach their financial goals with the help of portfolio managers. This would help in analysing and optimising their investments across a wide range of assets like equity, debt, insurance, and real estate. 

The services of portfolio management are widely targeted at different HNIs with both discretionary and non-discretionary client interventions. 

Role of the Indian Financial System in Economic Development

The core functions of Indian financial system are what enable the county to improve its economic conditions. The benefits of economic growth are therefore reflected in the people as a sign of economic prosperity. Here are some aspects that emphasize the importance of Indian financial services in today’s economy. 

Promotes Investments

The presence of financial services in the country not only creates a substantial demand for products and their producers, but it also meets the demands from one consumer to another for maximum investment. The role of financial services in India is to act as a rescue for investors like merchant bankers to enable an exponential capital raise. 

Promotes Savings 

Financial services like mutual funds and bonds provide an individual with opportunities for opening different kinds of savings. Therefore, differential investment options are now open for pensioners to gain reasonable returns without any risks. This scheme substantially increases the growth in income and other reinvestment opportunities that are initiated by the Government. 

Minimises Risks 

With the presence of insurance companies, the risks of financial services are minimised. Therefore, various types of risks are not only covered to offer protection in business conditions, but financial services also make it easier to curb losses from natural calamities. Moreover, insurance is not the only source of finance but also a great source of savings as well. 

Maximises Returns 

Businessmen acknowledge the importance of financial services due to their significance in yielding maximum returns. This is only possible because of credit availability at a very reasonable rate. They also go on leasing assets of very high value as well. This enables sellers and producers to increase turnover, which proliferates profit growth. Even during stiff competition, the producers can even sell their products at a lower margin and get high turnovers. 

Provides Greater Yields

Even though yields and returns might have a remote similarity, they are way different from one another. Yield attracts more producers to join the markets and increase their production to attract more customers. 

Hence, the importance of financial services lies in their ability to generate not only exponential profits but also serve as a great source for wealth maximization. Furthermore, financial services also enhance goodwill and induce immense diversification, which results in linear growth. 

Conclusion 

Financial services are important for enabling the user to obtain assets on credit at a very convenient and reasonable interest rate. However, it is not easy to track the growth of financial services all the time. Therefore, it is required of some individuals who are good at understanding growth. This says a lot about the importance of financial services, overall.

If you are interested in taking up a financial services course and learning about its impacts on the Indian economy, check out Imarticus Learning’s Advanced Management Programme in Financial Services and Capital Markets in collaboration with IIM Lucknow. This IIM Lucknow course on financial services enhances your knowledge of financial services and also helps to shape your professional life. 

For more details, check the website right away!

Behavioural economics examines the effects of cultural, social, psychological, and emotional factors in the decision-making process and how it affects economic theory.

It pulls many ideas and methodologies from other social sciences, like neuroscience, psychology, and economics.

Behavioural scientists study how different methods persuade public choice and how stock markets function. They also look at the decisions of both individuals and corporations to reach different conclusions.

How Behavioral Economics Differs From Traditional Economic Theory

Behavioural economics differs from traditional economic theory in several key ways:

Assumptions about Rationality: Traditional economic theory assumes that individuals are rational and make consistent decisions to maximise their self-interest. Alternatively, behavioural economics acknowledges that biases, emotions, and cognitive limitations bind individuals, which can lead to deviation from rational decision-making.

Decision-Making Factors: When describing decision-making, the traditional economic theory emphasises objective elements like prices, costs, and benefits. Behavioural economics considers subjective aspects that significantly impact decision-making, like social influences, cognitive biases, emotions, and psychological elements.

Prospect Theory: Behavioral economics introduces prospect theory, which challenges the traditional economic theory’s notion of utility maximisation. Prospect theory suggests that individuals evaluate potential gains and losses relative to a reference point and how the perception of risk and the tendency to be loss-averse influences their decisions.

The Impact of Behavioural Economics

The impact of behavioural economics has been significant in several areas:

Improved Policy Design

Behavioural economics has influenced policy-making by suggesting interventions to help individuals make better choices.

By understanding the factors that drive human behaviour, policymakers can design interventions that nudge individuals towards desirable outcomes, such as encouraging savings, promoting healthy behaviours, and increasing participation in beneficial programs.

Financial Markets and Investments

The study of behavioural economics has significantly impacted how we comprehend financial markets and investor behaviour.

It has drawn attention to the psychological biases that can cause market inefficiencies and asset price bubbles, such as herding behaviour and overconfidence.

Investment strategies are becoming more intelligent due to investors and financial professionals incorporating behavioural insights.

Consumer Behavior and Marketing

Behavioural economics has influenced the field of marketing and consumer behaviour. Understanding how individuals make choices and what factors influence their decisions has helped marketers design more effective strategies.

By leveraging behavioural insights, marketers can create persuasive messages, design pricing structures, and optimise product placement to align better with consumer preferences.

Personal Finance and Wealth Management

Behavioural economics has significantly impacted personal finance and wealth management. By recognising common biases and behavioural tendencies, individuals can make more informed decisions about saving, budgeting, investing, and retirement planning.

Financial advisors now incorporate behavioural economics principles to help clients navigate biases and achieve their financial goals.

How Behavioral Economics Shapes Your Financial Choices

Behavioural economics shapes your financial choices in several ways:

Cognitive Biases

Behavioural economics highlights the presence of cognitive biases that can influence your financial decisions.

For example, confirmation bias may lead you to seek information that confirms your pre-existing beliefs about an investment, ignoring contradictory evidence.

Anchoring bias may cause you to rely too heavily on initial information when making financial judgments. By being aware of these biases, you can be more cautious and objective in your decision-making.

Emotional Factors

Behavioural economics recognises the role of emotions in financial decision-making. Emotions such as fear, greed, and regret can impact your investment choices.

Fear of losses may lead to overly conservative investment strategies, while desire may drive you towards excessive risk-taking.

Knowing your emotions and their potential influence can help you make more balanced and rational financial decisions.

Loss Aversion

Behavioural economics emphasises loss aversion, the tendency to feel the pain of losses more strongly than the pleasure of gains. Loss aversion can make you overly cautious and reluctant to take necessary risks for potential improvements. 

Understanding loss aversion can help you evaluate risks more objectively and avoid letting the fear of losses prevent you from pursuing profitable opportunities.

Social Influence

Behavioural economics highlights the impact of social influence on financial decisions. People often look to others for guidance and validation, leading to a herd mentality in investment choices.

Being aware of the power of others and understanding that their decisions may not always be rational or well-informed can help you avoid making impulsive or uninformed financial choices.

Present Bias and Delayed Gratification

Behavioural economics recognises the tendency for individuals to prioritise immediate gratification over long-term financial goals. This present bias can hinder your ability to save, invest, and plan for the future.

Awareness of this bias can help you implement strategies to overcome it, such as setting up automatic savings or using commitment devices to stay disciplined in your financial decisions.

Applying Behavioral Economics to Achieve Financial Success

Recognising and overcoming biases: Applying behavioural economics involves acknowledging cognitive biases that can hinder financial success, such as confirmation bias or loss aversion. You can make more objective and rational economic decisions by understanding these biases.

Setting clear goals and priorities: Behavioral economics strongly focuses on establishing clear financial priorities and goals. You can make more deliberate and focused decisions that contribute to long-term financial success by establishing your goals and matching your actions with those goals.

Automating savings and investments: Behavioral economics suggests leveraging automation to promote saving and investing behaviours. Setting up automatic contributions to savings or retirement accounts can overcome present bias and make it easier to achieve financial goals.

Designing effective budgeting systems: Behavioral economics emphasises the need for realistic and flexible budgeting systems. Rather than relying solely on willpower, incorporating behavioural techniques like mental accounting or “nudging” can help maintain discipline and encourage sustainable financial habits.

Seeking financial education and advice: Behavioral economics encourages individuals to seek financial education and advice to make better-informed decisions. Understanding financial concepts, investment strategies, and risk management can empower you to navigate the complexities of personal finance and make choices aligned with your goals.

Building accountability and support: Behavioral economics recognises the power of accountability and support in achieving financial success. Sharing goals with a trusted source can provide accountability and encouragement to stay on track and make responsible financial decisions.

Conclusion

The impact of behavioural economics on financial decision-making is significant, as it considers cognitive biases, emotions, and social dynamics. Enrolling in a financial services and capital market certification course is essential to gain a foothold.

Imarticus Learning’s IIM Lucknow Advanced Management Program in Financial Services and Capital Markets course offers a comprehensive curriculum that equips individuals with specialised knowledge and practical skills. 

Consider enrolling in the financial services course to enhance your understanding of behavioural economics and excel in the dynamic world of financial services and capital markets.

Central Banks often issue monetary policies also known as central bank policies. These policies are launched to boost the economic growth of a nation. The main goal of these policies is to maintain the price of goods, reduce the unemployment rate by generating new jobs, and build a well-established economy. 

Most countries prioritise two things while creating their monetary policies. One is their internal economic as well as political issues and the other is the geopolitical situation. This helps them to deal with the uncertainty of the capital market.

The capital market is so volatile that it can be influenced by any new monetary policies and new geopolitical issues. Therefore, one must possess enough knowledge about the volatility of the capital market before commencing a career in financial services. In this article, we will discuss in detail the impact of central bank policies and geopolitics in capital markets.

What do you know about the Capital Market?

The capital market is a financial market that allows several traders and customers to trade closely. Stocks, bonds, funds, etc are bought and sold by the individuals who are associated with this market. The participants of this market can either be an individual or any organisation.

The investments which are executed in the capital market are long-term investments. There are two kinds of capital markets one is the primary market while the other is the secondary market. Bombay Stock Exchange(BSE) is one of the perfect examples of a secondary market.

How do Central Bank Policies influence the Capital Market?

There are several Central Banks in the world. It is the main bank of a country whose main job is to look after the financial condition of its nation. To achieve this banks launch various monetary plans that stabilise economic fluctuation which means fluctuation is under proper control. 

The central banking policies can be broadly classified into three categories. The first one is the accommodative policy which is considered to be very expansionary and loose, while the second kind of policy is known as the restrictive policy which is usually tight and leads to a contradiction in the economy of a country. The last policy is the neutral policy which chooses the middle path. 

These various kinds of policies have direct as well as indirect impacts on the capital market. It directly impacts the interest rates, commodities, cash, bonds, equities as well as funds. And it indirectly affects the future of inflation. 

Here is how various monetary policies affect the capital market:

• Accommodative Monetary Policy- 

When a nation opts for the accommodative policy the value of the cash decreases. This is mainly because the interest drops down and this will minimalise the returns. However, the market real estate improves with this type of policy.

People can easily avail the mortgage loans at low interest as it is quite profitable. Along with real estate, equities, commodities as well as stocks also witness a sharp robust due to low interest. However, bonds and currencies tend to yield lower during this type of monetary policy. 

• Restrictive Monetary Policy- 

This is a rigid or tight monetary policy. During this policy, there is rapid economic growth and a reduction in inflation. During the restrictive monetary policy, many assets in the capital market perform poorly. 

As the interest rates increase during this phase bonds, equities, and real estate underperform. Therefore, it is quite expensive to buy equities and take a mortgage for real estate. However, cash and currencies tend to perform well during a restrictive monetary policy.

Cash and currencies tend to perform well because the interest rates increase. During the period between 2010 and 2013, Candana used a restrictive monetary policy that’s why their currency was performing better than the USA. 

How influential is Geopolitics in the Capital Market?

Geopolitics deals with political and social issues but at a global level. These issues include territorial disputes, water issues, military intervention, climatic change, disputes over natural resources, etc among various nations. Geopolitics is one of those mediums that can easily influence the capital market. 

The experts at Federal Reserve had invented the way one can measure the impact of Geopolitical tension on the capital market. This method is known as Geopolitical Risk Index (GPR). The GPR method is quite useful as Geopolitical incidents are very unpredictable and have a direct effect on the global economy and finances. 

Financial investors and traders are always intimidated by any new Geopolitical situation as it mostly affects the capital market negatively. The market returns are adversely affected. The biggest meltdown took place in the year 2008 that had negatively impacted the society and economy as many people failed to repay their loans.

Another situation took place during the Covid-19 pandemic. This pandemic had created great concern across the world and had an adverse impact on the financial market. As most of the ventures were forced to shut down due to the lockdown.

During calamities, diseases, and war the equity and finance market has to face downfall. However, Geopolitical issues are not permanent. Hence, after all the problems are sorted the companies which have a strong foundation will end up giving positive returns.  

Conclusion

To learn more about the monetary policies and capital market one needs to opt for an excellent online course. Therefore, Imarticus Learning has launched the IIM Lucknow Financial Services And Capital Markets course. This course is beneficial for those who want to start a career in financial services. 

This course of Imaticus Learning is a collaboration with IIM Lucknow so the best and most experienced faculty is going to lead this 6 months programme. So without any further delay get yourself enrolled in this online course to bag lucrative opportunities. 

A-Z of building the right skills to enter the financial services and capital markets

The financial services and capital markets are complex, ever-changing, and can be intimidating for those looking to enter the industry. If you’re looking to enter the financial services and capital markets, you must have the right skills. Therefore we bring this post to help you identify the skills needed and learn how to build them.

Identify the skills needed

You must identify the necessary skills to succeed in financial services and capital markets.

• Financial Services Skills: You should understand how money works, how banks make loans and other investments, and how they help businesses grow. You should also understand accounting principles such as cash flow analysis, budgeting, and forecasting.
• Capital Markets Skills: If you work in this field, then it’s likely that your role involves developing business plans for new companies or helping existing ones raise funds from investors.

Capital and financial markets fundamentals

• Investors can buy, sell and trade securities such as stocks, bonds, and currencies in capital markets. The capital market is of two primary components: debt and equity. Debt refers to the money borrowers need to finance their assets, while equity refers to ownership stakes held by individuals or companies when they invest in businesses.
• Financial markets: These include everything related to investing money as well as how it works financially within an economy—including commercial lending (such as mortgages), foreign exchange trading (the buying or selling of one currency versus another) and derivatives contracts (financial instruments that allow you to profit from changes in prices).

Technology fluency

Technology fluency is one of the essential skills for financial services and capital markets professionals. The technology you use to run your business is constantly changing, so you must be able to adapt and stay up to date. You’ll also need to use new technologies as they become available to improve customer experience and provide better service.

Communication and presentation skills

 Communication and presentation skills are important if you want to be a financial services professional. You will need to be able to communicate with a range of people in different situations and ages. You can improve your communication skills by learning how others present information through public speaking or presentation coaching courses. 

There are many aspects to financial markets, but they all have the same goal: making money. What’s different is how they go about it. The best way to get started is with a course or micro-degree in one of these areas to begin your career on the right foot and build up experience through training courses or internships at firms with relevant training programs.

Explore financial services and capital markets course with Imarticus Learning

Students will learn about investment banking, capital markets, risk management, and fintech through our course on financial services and capital markets. The leading business school developed this rigorous six-month program at IIM Lucknow.

This capital markets certification course would benefit middle managers with experience who wish to relaunch their careers in finance.

Course Benefits For Learners:

• As part of this financial services management course, students may network with their classmates and industry professionals.
• The students will understand critical concepts, including investment banking, capital markets, risk, and fintech.
• Capital market training courses teach students all they need to know about the financial sector and its operations.

Contact us through chat support, or drive to our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, Gurgaon, or Ahmedabad.