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Best certification programs for the capital market of 2023

Posted on by Imarticus

Certification programs are your lifeboats in the huge finance ocean, where every choice impacts the global economy, guiding you through the capital market’s erratic tides.

A capital market is a financial market where long-term debt or equity-backed securities are bought and sold. Capital markets direct savers’ wealth to organizations or governments that can invest it long-term for productive use.

Among other things, financial regulators like the U.S. Securities and Exchange Commission (SEC), Bank of England (BoE), and Securities and Exchange Board of India (SEBI) regulate capital markets to safeguard investors against fraud.

The stock market is like a complex maze with many turns, but it also holds a wealth of opportunity. You need the proper equipment, information, and experience to navigate it properly. These certification programs can help with that. They serve as your anchor, sextant, and compass in the turbulent realm of finance.

As we set sail across the financial education waves and investigate the top certification programs that will enable you to succeed in the capital market in 2023, we invite you to join us on this thrilling adventure. 

In this blog post, We’ll share some top leadership programs specialized in the capital market and how they can benefit you and your prospects.

How does the capital market shape the economy?

Capital Market

The capital market is where businesses, governments, and individuals raise and invest long-term funds.

It also includes the stock market, the bond market, the derivatives market, and other financial instruments. The capital market plays a crucial role in the economy, as it facilitates the allocation of resources, the creation of wealth, the diversification of risk, and the innovation of products and services.

The capital market also reflects the expectations and sentiments of investors, which can influence the performance and stability of the economy.

The capital market is not a static or homogeneous entity. It constantly adapts to its participants’ changing needs and preferences. Various factors, such as regulations, policies, technologies, trends, and events also influence it. Therefore, working in the capital market requires high expertise, agility, and vision. You need to be able to analyze complex data, make sound decisions, communicate effectively, and lead teams and projects.

Why Capital Market Certification Matters in 2023?

In the dynamic world of finance, where the winds of change blow faster than a hurricane, staying afloat requires more than just a well-fitted suit and a keen sense of intuition. It demands knowledge that cuts through the noise and a skill set to navigate the labyrinthine world of capital markets. Enter the age of 2023, where the importance of certification in the capital market has never been more pronounced. 

Let’s delve into the key reasons why this certification holds the power to shape your financial destiny:

  • Navigating Complexity: The capital markets are like a vast, intricate tapestry woven with threads of risk and opportunity. A capital market certification also equips you with the tools to decipher this complexity, turning what seems like a chaotic puzzle into a structured roadmap. 
  • Globalization: In a world where boundaries are blurred, understanding the nuances of international markets is paramount. A capital market certification is your passport to traverse the global financial landscape, ensuring you can seize opportunities anywhere on the map. 
  • Risk Mitigation: Financial crises may be unpredictable but not unexpected. A certification arms you with the knowledge to anticipate, assess, and mitigate risks effectively, making you a guardian of assets in turbulent times. 
  • Employability: In an era of stiff competition, certifications are your golden ticket to the job market. Employers are increasingly seeking candidates with specialized knowledge and expertise. A capital market certification makes your resume shine. 
  • Regulatory Compliance: The financial sector is governed by constantly evolving rules and regulations. Keeping up with these changes is challenging but crucial. A certification ensures you’re always on the right side of the law, safeguarding your career and your organization. 
  • Network Expansion: The saying “It’s not what you know, but who you know” still holds. A capital market certification connects you with a community of like-minded professionals, opening doors to invaluable networking opportunities. 
  • Strategic Decision-Making: Every move in the capital market is a chess move. With the insights gained through certification, you’ll be better equipped to make informed, strategic decisions that can lead to financial victories. 
  • Investor Confidence: Whether managing your portfolio or advising others, a capital market certification instills confidence in your ability to protect and grow investments. It’s a trust signal that can attract investors like bees to honey.
  • Adaptation to Technology: The finance industry is embracing technological innovation at an unprecedented pace. Certification ensures you’re not left behind in the fintech revolution, allowing you to harness the power of cutting-edge tools and strategies.

Top capital market certification programs in 2023

Staying updated with the latest market trends in capital certification is crucial for career growth in finance. If you want to enhance your capabilities and credentials in the capital market, you might want to check out these certification programs that are designed to help you achieve your goals:

  • Advanced Management Programme In Financial Services And Capital Markets

Imarticus Learning’s Advanced Management Programme in Financial Services and Capital Markets is your gateway to a profound understanding of the digital banking, capital markets, risk management, and fintech domains. Covering essential areas like corporate finance, valuation, fundraising, treasury operations, and financial analytics, this program, in partnership with IIM Lucknow, is tailor-made to rekindle the careers of high-performing middle management professionals, guiding them toward senior management roles.

Enrolling in this program will acquire the prestigious IIM Lucknow alumni status and unlock additional benefits. Immerse yourself in a forward-looking curriculum that delves into the foundational elements of financial services and capital markets, encompassing financial planning, investment banking, risk management, and corporate banking.

What’s more, experience the thrill of a five-day campus immersion at IIM Lucknow, where you’ll have the opportunity to attend classes on their esteemed campus. Learn from the nation’s finest faculty members and cultivate valuable professional relationships with your peers. Imarticus Learning’s Advanced Management Programme is more than just a program; it’s your launchpad into a brighter, more accomplished future in financial services and capital markets.

  • Executive Programme in Investment Banking And Capital Markets

Imarticus Learning, in collaboration with the prestigious IIM Calcutta, presents an Executive Programme in Investment Banking and Capital Markets tailored to elevate your existing financial skills. This initiative is a niche offering designed to equip professionals with knowledge of top-tier investment banking and capital markets, encompassing foundational and advanced learning. Throughout this program, you’ll delve into the fundamentals of debt and equity capital markets, portfolio management, sales, trading, securities regulations, and the intricacies of mergers and acquisitions.

This cutting-edge curriculum is meticulously crafted to cater to the needs of aspiring finance professionals, aiming to provide you with highly sought-after technical and managerial skills. With a strong emphasis on practical application, you’ll have the chance to work on real-world projects and case studies, gaining invaluable insights into investment banking and capital markets, all while acquiring essential technical skills.

Enrolling in this program gives you access to the wealth of knowledge offered by the esteemed faculty at IIM Calcutta and becomes part of a vibrant learning community. Interact with faculty experts during the campus immersion program and benefit from their real-world experience through live online learning. Additionally, the rigorous admissions process ensures that you’ll be surrounded by accomplished professionals, providing you with a unique opportunity for peer learning and the chance to gain valuable insights from their diverse experiences.

What are the Benefits of Capital Market Certification?

Capital market certifications offer many benefits for those venturing into the dynamic world of finance. 

  • These certifications provide unparalleled expertise, equipping candidates with the knowledge and skills needed to excel in this complex field. 
  • Moreover, they open doors to career advancement, paving the way for higher-level roles and more competitive compensation. 
  • Beyond personal growth, capital market certifications emphasize risk management, preparing individuals to assess and mitigate risks effectively, and safeguarding investments in turbulent markets.
  • Recognized globally, these certifications are your ticket to international financial markets while ensuring you stay compliant with ever-evolving regulations, reducing legal risks for yourself and your organization. 
  • Additionally, they offer opportunities for networking and connection-building within a community of like-minded professionals. 
  • Ultimately, these certifications instill confidence in investors and empower you to make informed, strategic decisions in a world where financial success is the ultimate goal. 
  • Lastly, they keep you abreast of cutting-edge fintech innovations, ensuring you remain relevant in a technology-driven industry. 

Capital market certifications are a powerful investment in your career and personal growth, promising a future where you stand at the forefront of the finance industry’s ever-evolving landscape.

The Final Words

The capital market is a dynamic and complex sector that offers many opportunities and challenges for professionals who want to advance their careers. To succeed in this sector, you must have a solid foundation of knowledge and skills to help you navigate the changing environment and deliver value to your clients and stakeholders. 

The certification programs mentioned above are some of the best options to help you achieve this goal. They can provide relevant and updated content, rigorous assessment, and recognition from peers and employers. 

Best Certification Courses for Finance Aspirants

Posted on by Imarticus

In today’s dynamic and face-paced world of finance, maintaining a competitive edge is paramount for personal and professional growth. Aspiring finance professionals seeking to carve a successful career in finance understand the significance of honing their skills. 

Fortunately, there are numerous certification courses, such as the IIM Capital Market Course, that enhance career prospects for finance aspirants. With courses like these, you can upgrade your expertise, adeptly navigate emerging trends, effectively tackle intricate challenges, and astutely seize opportunities in the dynamic world of finance. 

In this blog, we will explore some of the best certification courses for finance aspirants, equipping you with the insights needed to make informed decisions for your professional journey.

Why Choose a Career in Finance?

A career in finance is a financially secure and prestigious career option. As much dedication as it needs, once you are certified in a course, it is an exciting job prospect. Success in finance demands a mix of hard and soft skills. Here are some reasons why a career in finance is a sound decision:-

advanced program in financial services and capital markets

Lucrative opportunities: The finance industry offers a wide range of roles, from investment banking to corporate finance, allowing individuals to explore diverse career paths. Finance professionals often enjoy competitive salaries and potential financial growth. 

Intellectual stimulation: Finance is a dynamic field that demands critical thinking, problem-solving, and analytical skills. It presents constant challenges and opportunities to learn, keeping professionals intellectually engaged and stimulated.

Impactful decision-making: Finance professionals play a crucial role in shaping business strategies, investment decisions, and risk management. By influencing financial outcomes, they contribute to organisational success and long-term sustainability.

Continuous learning and growth: The finance industry is ever-evolving, requiring professionals to stay updated with the latest trends, regulations, and technological advancements. This fosters a culture of continuous learning and personal growth.

Versatility and mobility: Finance skills are transferable across industries, enabling professionals to pivot their careers and explore different sectors. This versatility offers flexibility and mobility in career progression.

Networking opportunities: The finance industry provides a platform for building a vast professional network. It provides mentorship opportunities, collaboration, and future career prospects.

Stability and resilience: The finance sector tends to exhibit relative stability, even during economic downturns. Finance professionals with robust skills and knowledge are better equipped to navigate uncertainties and adapt to changing market conditions.

Best Certification Courses for Finance Aspirants

Capital Market Course

Capital market is one of the most upskilling financial courses for aspirants striving to gain an understanding of equity and debt markets, derivatives, and securities analysis. Several top universities have their own CMC, such as the IIM Capital Market Course. 

One such IIM Capital Market Course is the EPIBCM programme which prepares aspirants for careers such as investment bankers, financial analysts, portfolio managers, equity research analysts, or risk managers. These professionals facilitate the efficient functioning of the capital markets and meet the needs of investors and corporate clients.

Chartered Financial Analyst (CFA)

Chartered Financial Analysts  analyse investment opportunities, manage portfolios, and make informed investment decisions. They work in roles such as portfolio manager, research analyst, or investment consultant.

Aspirants with strong analytical skills, an understanding of ethical standards, knowledge of investment principles and financial analysis, and effective decision-making abilities should definitely opt for this career option.

Financial Risk Manager (FRM)

FRMs identify, assess, and manage financial risks within organisations. An FMA handles risk management, compliance, or consulting roles. Their forte lies in analysing market, credit, operational, and liquidity risks.

The FRM exams are held in two parts- Part I and Part II. Candidates must pass both these parts to be certified in FRM. Aspirants with proficiency in risk assessment and modelling, an understanding of risk management frameworks, strong analytical skills, and an interest in risk mitigation decisions must apply for FRM courses.

Certified Public Accountant (CPA)

CPAs perform financial reporting, auditing, taxation, and advisory services. The scope of their job includes public accounting firms, corporate finance departments, or as independent consultancies. Specific educational and experience requirements are set by the licencing board, which includes but is not limited to clearing the CPA exam and having a bachelor’s degree in finance or a related field.

Go ahead and choose to be a certified CPA if you are interested in accounting principles and financial reporting, taxation regulations, auditing skills, attention to detail, and possess strong problem-solving abilities.

Certified Management Accountant (CMA)

CMAs take up roles such as management accountant, financial analyst, or finance manager. They focus on financial planning, analysis, and decision support. To become a certified CMA, aspirants must clear the CMA exam administered by the Institute of Management Accountants (IMA). Candidates must also be a member of the IMA.

To make a successful career as a CMA, you definitely need to be skilled in financial planning and analysis, cost management, budgeting skills, performance evaluation techniques, strategic thinking, and the ability to provide financial insights for decision-making.

Financial Modelling and Valuation Analyst (FMVA):

FMVAs build financial models, perform valuation analysis, and support investment decisions. Investment banking, corporate finance, or financial planning and analysis roles are best suited for certified FMVAs.

To become a successful FMVA candidate must possess proficiency in financial modelling techniques, strong Excel skills, an understanding of valuation methodologies, financial statement analysis knowledge, and the ability to communicate complex financial information effectively.

Conclusion

These certification courses provide specialised knowledge and skills for various finance roles, and the eligibility criteria and required skills differ accordingly.

Aspiring professionals can choose the certification course that aligns with their career goals and enhance their expertise in their chosen field of finance. 

Courses such as the IIM Capital Market Course come with the prestige of a reputed institution guaranteeing to prepare you for your dream career. Remember, investing in yourself today will yield dividends in your future success. With a commitment to upskilling and staying abreast of the latest industry trends, you can unlock remarkable opportunities and make a lasting impact in the dynamic world of finance.

How Technology is Reshaping Capital Markets in India

Posted on by Imarticus

Capital markets are one area of finance that has mostly stayed the same over the years, despite the industry’s ongoing evolution. These humming centers of commerce have been crucial in promoting development, establishing links between financiers and companies needing capital, and promoting wealth accumulation. But as the twenty-first-century advances, a new force—technology—swiftly alters how capital markets function and India’s financial ecosystem works.

The hectic trading floors of stock exchanges crowded with yelling traders waving documents and phones are a thing of the past. Modern-day capital markets have entered a new era of efficiency, openness, and accessibility because of cutting-edge technology like artificial intelligence, blockchain, and high-frequency trading algorithms. 

 

This blog will explore how technology is reshaping the Indian financial markets, specifically focusing on its effects on diverse stakeholders and its transformative impact on the capital markets. A capital market course can provide you with an invaluable foundation in the fundamentals of the sector if you are interested in a career in finance.

With a wealth of domain knowledge, the future has much to offer to simplify trading. About 20% of all exchange trading volumes in 2021 were conducted on mobile devices. Traders often utilize mobile applications like Moneycontrol, Stockedge, Quantsapp, Opstra, and others to access market data and information for effective trading. Since Algo-based trading accounts for more than 60% of all exchanges, trade volumes have increased exponentially in recent years.

How are emerging technologies revolutionizing Indian capital markets?

  • The Rise of Fintech Startups: Paving the Way for Change

In recent years, India has witnessed a surge in fintech startups, causing quite a stir in the capital markets. These innovative companies utilize cutting-edge technology to challenge traditional financial institutions and democratize investment opportunities. With user-friendly mobile apps, secure online platforms, and simplified processes, they’re making investing more accessible to the masses.

  • Embracing Artificial Intelligence: Smart Investing at Your Fingertips

AI is no longer confined to science fiction movies; it’s transforming our investments. Through machine learning algorithms, AI-powered investment platforms analyze vast data, identify patterns, and provide personalized investment recommendations. Whether you’re a seasoned investor or a newbie, these intelligent assistants can help you make informed decisions and optimize your portfolio.

  • The Blockchain Revolution: Transparency and Security Reinvented

Blockchain technology, famous for powering cryptocurrencies like Bitcoin, is also shaking up India’s capital markets. Its decentralized nature ensures transparency, reduces fraud, and facilitates secure and swift transactions. By leveraging blockchain, companies can streamline processes such as issuing and trading securities, making transactions more efficient and reducing costs. It’s a win-win for investors and companies alike.

  • Robo-Advisors: Your Financial Sidekick

Gone are the days of relying solely on human financial advisors. Robo-advisors are investment platforms that use algorithms to manage and create portfolios. They provide customized investment strategies based on your risk appetite and financial goals. The best part? They’re accessible 24/7, and you can get started with as little as a few bucks. It’s like having a financial sidekick that’s always there to guide you.

  • Mobile Trading: The Stock Market in Your Pocket

Mobile trading apps have empowered individuals to take control of their investments like never before. With just a few taps on your smartphone, you can buy and sell stocks, track market trends, and manage your portfolio on the go. These user-friendly apps bring the thrill of the stock market right to your fingertips, making trading more convenient and accessible for everyone.

  • Crowdfunding: Power to the People

Innovation doesn’t stop at investing; it also extends to funding new ventures. Crowdfunding platforms allow individuals to pool their resources and invest in startups and businesses they believe in. This democratized approach to fundraising gives entrepreneurs access to capital and will enable investors to support projects they’re passionate about. It’s a win-win situation changing the game for investors and entrepreneurs.

What are the challenges and opportunities associated with digital finance in India?

Digital transformation of capital markets in India presents both challenges and opportunities. With a market size of $31 billion in 2021 and an anticipated increase to $1 trillion by 2030, India is one of the fastest-growing fintech marketplaces in the world.

Let’s delve into these aspects:

Challenges:

  • Competition from fintech players: Traditional banks face fierce competition from the existence of fintech businesses and online financial platforms like Amazon, Google, and Facebook. Banks aren’t involved in this direct client engagement. Therefore, they must change and stay relevant.
  • Security issues: The danger of cybersecurity risks and data breaches increased as digital banking transactions increased. Maintaining consumer confidence in digital finance depends on protecting client data and providing safe transactions.
  • Digital literacy and access: In India, not all demographic groups have equal access to digital infrastructure or the required level of digital literacy.

Opportunities:

  • Financial Inclusion: India’s financial inclusion has a lot of promise thanks to digital finance. The government’s Digital India effort and programs like the Pradhan Mantri Jan Dhan Yojana have greatly aided financial inclusion. Even in remote locations, customers may easily access banking services, loans, insurance, and other financial goods and services thanks to digital finance.
  • Ease of Transactions: Financial transactions are streamlined and made more convenient for both consumers and enterprises, thanks to digital finance. 
  • Expanding consumer population: In India, digital finance allows connecting with a sizable consumer population, including those previously underserved or unbanked. 

The Final Words

As technology evolves rapidly, India’s capital markets are being reshaped remarkably. Fintech startups, AI-powered investment platforms, blockchain technology, robo-advisors, mobile trading apps, and crowdfunding media are transforming the landscape, making investing more accessible, secure, and exciting than ever before.

Imarticus Learning presents an immersive journey through the IIM Lucknow certificate courses. Prepare for a life-changing experience with in-depth knowledge of the fintech, risk management, capital markets, and digital banking sectors. Aspects like corporate finance, valuation, capital raising, treasury operations, and financial analytics are all carefully included in this curriculum.

So, whether you’re a seasoned investor or someone just starting their journey, there has never been a better time to embrace the power of technology and explore the opportunities it presents. The future of finance is here, and it’s in your hands. Let’s ride this wave of innovation together and unlock new horizons in capital markets!

Remember, the most successful journeys begin with a single step, so take that step today and embrace the exciting world of technology-driven capital markets. Happy investing!

10 Advanced Projects for Final Year Finance Students

Posted on by Imarticus

Whether you are watching the news on the television, catching up on the news or OTT content on your phone, listening to ‘finfluencers,’ or just talking to your friends, you will have heard the mention of ‘finance’ at least once throughout the day. This one word captures the complex dynamic system of money, currency, investments, capital assets, and other financial instruments. 

A finance degree is just what you need to grasp the workings of this system. By the time of degree completion, you will be able to make sense of how money moves and how it makes the world move. 

The final year of college is an exciting, stressful and busy time for students. The excitement for the future is peppered with anxieties about final-year projects and exams. To help you make the most of your time left in college without compromising your grades, we offer you a curated list of the best-advanced projects for your finance course. 

Let’s walk you through 10 handpicked advanced projects for final-year finance students.

10 Advanced Project Ideas for Final Year Finance Students

As a final-year finance student, choosing the right topic for your final project is crucial. Here are some advanced project ideas that will give you the practical experience you need. 

Merger and Acquisitions: The Zomato-Blinkit Case

Capital Market

Mergers and acquisitions are at the heart of understanding how finance works. The recent acquisition of the quick commerce company, Blinkit by Zomato, the food delivery company, is an interesting study. The acquisition deal and the ensuing controversy is a case study in the intricacies of mergers and acquisitions and their impact on the wider market. 

Business Model: The Rise, Fall, and Rise of Cafe Coffee Day

How businesses manage their cash flows, and liquidity can tell you a lot about them. The case of Cafe Coffee Day and its rise, fall and rise again is a story that generated a lot of attention. As a finance student, the historical trajectory of this business can give important insights into how companies can improve their financial health after severe liquidity issues. It can help you develop business models to achieve the positive fiscal health of organisations. 

Securities and Investment: The Karvy Stock Broking Controversy

Institutional and retail investors invest their money into the stock market in the hopes of gaining returns that beat the returns of more secure investment options. However, the case of Karvy Stock Broking Limited misappropriating client funds shook up the market. The stock broking company illegally pledged the shares of its clients to lending agencies to raise loans, diverting securities to group companies, and more. The fall of the agency can be an interesting study for a deeper knowledge of the securities market.

Market Regulatory Bodies: The Securities and Exchange Board of India

The Securities and Exchange Board of India (SEBI), established in 1988, is the regulatory body for the securities and commodities market in India. They are the overseer, executor and judge of the market. As one of the most powerful regulatory bodies in the world, the SEBI presents an interesting case to understand how regulations are formulated, implemented and enforced in the securities and commodities market. 

Retail Investment: The Growth of Retail Investment and the Pandemic

Retail investment constitutes an important section of the investment market. In India, the pandemic did something strange. The market witnessed all-time highs in retail investments that have continued beyond the pandemic. Through this unique project, you can explore the dynamics of retail investment and what is driving its growth. It will help you understand how markets can be kept afloat through the participation of retail shareholders in the equity market.

Insurance Sector: Health Insurance and the Indian Population

A recent study suggests that most Indians don’t have health insurance or at least adequate health insurance. The study of the health insurance industry and people’s attitudes towards investing in health insurance can shed further light on the subject. Health is one of the most important dimensions of measuring the quality of life, and so it is an important aspect to account for when studying finance. 

Pandemic: The Growth of ‘Revenge Tourism’

Unexpected events that shake up the world, like Covid-19, make a big dent in the financial world. With social distancing policies becoming the norm, people were locked in their homes. However, when the restrictions were lifted, people rushed out of their homes and flocked to tourist destinations. It led to the beginning of ‘revenge tourism’ that not only revived the hard-hit tourism industry but made it flourish. A look at the phenomenon of revenge tourism can be an interesting study of how the pandemic’s impact can affect how people and money move.

Bankruptcy: The Demise of Kingfisher Airlines

Bankruptcy is a scary word in the financial world. It is the epitome of a seriously unhealthy financial health of a business. The bankruptcy of Kingfisher Airlines and the fall in the grace of the ‘King of Good Times,’ Vijay Mallya, is one of the most high-profile bankruptcy cases in India. The legal implications are still ongoing. The fortune of a billionaire, crushing debt, the humane story of unpaid employees, and more make the case a saga that requires in-depth analysis to understand businesses and their financial management or mismanagement. 

Benefits: Direct Benefit Transfer in India

Governments have several programmes and policies that require the state to transfer benefits to its citizens. Direct Benefit Transfers (DBT) is the mechanism adopted by the Government of India to transfer subsidies directly to its citizens through their linked bank accounts. A comprehensive analysis of the system is integral to understanding how state subsidies in India work. It is an exceptionally interesting project for those who want to effect transformational change in the system.

Taxes: The New Tax Regime

As a citizen of a country, everyone is required to pay taxes. It is a public policy that has very personal implications and affects how consumers spend money. An understanding of India’s New Tax Regime and its evolving nature can show the inter-relationship between public policy and individual financial behaviour. 

Conclusion:

Finance students have a very bright future ahead of them with an ever-expanding job market. The jump from a student to a professional is significant. Your final-year finance project can bridge this distance by allowing you to explore real-world scenarios and how to navigate their issues. 

Courses like capital market courses and even financial markets course online make it a point to include projects that let you look closely at financial realities. IIM Lucknow finance courses are among the best in the world if you want to expand your horizons and upskill. 

To make IIM Lucknow courses easily accessible, Imarticus brings to you the Advanced Management Programme in Financial Services and Capital Markets. Learn from A-Z about financial services and capital markets from the premier institute with a world-renowned faculty.

If you have ambitions to hold senior management roles in the best corporations and organisations, this course is how you can get a head start!

5 Key Methods of Valuation Used in Financial Management

Posted on by Imarticus

Valuation is crucial in financial management. It determines the economic value of assets, investments, and companies. By understanding these methods, you can assess the worth of assets and make informed financial decisions. 

Valuation in finance is determining the worth of a (possible) asset, security, or investment. Discounted cash flow and relative and contingent claim valuations are the three main methods.

Discovering insights and unlocking secrets that can help you on your path to financial success will be our goal as we examine the 5 Key Methods of Valuation in this post. 

Importance of valuation methods in financial management

Evaluating the value of companies in financial management is a crucial aspect. It allows for the educated decision-making of investors, financial managers, and analysts about essential company strategies, including mergers and acquisitions, divestitures, and equity investments. There are several methods for determining a company’s worth, each with particular benefits and drawbacks.

The actual worth of an asset may be found by seeing past the surface level of data with the aid of valuation methodologies, which act as magical magnifying glasses. They enable financial managers and investors to make wise choices, control risks, and grasp lucrative opportunities in the constantly shifting financial landscape.

Using these valuation techniques, we may study and contrast various investments, measure possible returns, calculate a company’s fair market value, and assess its value to stakeholders. These valuation techniques serve as guiding lights in the opaque world of finance, helping us make wise choices and illuminating the way to financial success.

What are the key methods of valuation used in financial management?

Capital Market

Financial managers and analysts utilize strong tools called financial valuation methods to estimate the value of assets, investments, and companies. These techniques offer an organized way to determine the worth of financial assets, assisting with decisions on choosing investments, mergers and acquisitions, and financial reporting. 

  • Market Capitalization:

Market capitalization is widely used to value publicly traded companies. It calculates a company’s value by multiplying its share price with the total outstanding shares. It reflects investors’ perception of a company’s value. Market capitalization indicates a company’s size and value compared to competitors. 

  • Price-to-Earnings Ratio (P/E Ratio):

The price-to-earnings ratio compares a company’s stock price to earnings per share (EPS). It shows market expectations of a company’s future earnings growth. A higher ratio suggests high expectations, while a lower ratio may indicate undervaluation. Consider other factors alongside the P/E ratio for a comprehensive valuation.

  • Discounted Cash Flow (DCF) Analysis:

The discounted cash flow (DCF) analysis estimates a company’s present value based on future cash flows. It considers the time value of money, where future cash is worth less than today’s cash. DCF analysis forecasts cash flows, selects a discount rate, and calculates the present value. It helps evaluate investment worth based on expected returns over time.

  • Comparable Company Analysis:

Comparable company analysis compares a company’s financial metrics to similar industry peers. It uses ratios like price-to-earnings (P/E), price-to-sales (P/S), or enterprise value-to-EBITDA (EV/EBITDA). Analysts estimate a company’s fair value by analyzing comparable companies’ performance. Choose relevant and truly similar companies for an accurate valuation.

  • Asset-Based Valuation:

Asset-based valuation values a company based on tangible and intangible assets. Tangible assets include physical properties like real estate, equipment, and inventory. Intangible assets include intellectual property, patents, trademarks, and brand value. This method calculates the net asset value (NAV) by subtracting liabilities from total assets. Asset-based valuation suits companies with significant physical assets or when other methods are unsuitable.

What are the Latest trends in financial valuation?

Financial valuation is a constantly developing area that aids managers, analysts, and investors in making wise investment decisions. 

  • bData-driven approach: To get correct appraisals, extensive data analysis uses artificial intelligence and machine learning technologies.
  • Sustainability emphasis: To evaluate a company’s long-term profitability and maintain its moral standing, environmental, social, and governance (ESG) issues are being added to valuation methodologies.
  • Focus on intangible assets: Valuation techniques are now taking into consideration intangible assets like brand value, customer loyalty, and intellectual property, which helps to provide a more realistic image of a company’s worth.
  • Global perspective: To guarantee that values reflect various cultural and legal factors, cross-border investments are assessed using international accounting standards.
  • Risk management techniques: Analysts use risk assessment methods, including stress testing and scenario analysis, to forecast outcomes and assist stakeholders in making better investment decisions.

Financial valuation is evolving due to these tendencies into a more inventive, accurate, and exciting field better suited to handle the complexity of the modern global and digital marketplace.

The Final Words

The field of financial management opens up a wealth of valuation techniques that let companies discover the actual value of their assets, investments, and businesses. 

Financial managers can confidently navigate the rough waters of decision-making by delving into the depths of market capitalization, peering through the prism of the price-to-earnings ratio, traveling the road of discounted cash flow analysis, traversing the landscape of comparable company analysis, and embracing the essence of asset-based valuation.

These valuation techniques weave together strands of figures, forecasts, and market knowledge to create a vivid image of worth, much like experienced artisans creating a masterpiece. They allow companies to make wise decisions, grab profitable opportunities, and steer their companies toward prosperity.

Introducing the financial market certification course by Imarticus Learning! Embark on a transformative journey where digital banking, capital markets, risk management, and fintech converge.

Explore the complexities of corporate finance, valuation, capital raising, treasury operations, and financial analytics to understand the constantly changing financial world. Immerse yourself in the statistics, tactics, and insights that power the financial services sector’s beating heart.

You will travel the paths of knowledge with Imarticus Learning as your dependable guide, gaining the abilities and information necessary to succeed in senior management posts. With the help of this program, your potential is rekindled, and you are propelled to new heights of accomplishment.

Leading Careers for Finance Aspirants in 2023

Posted on by Imarticus

Money makes the world move, and finance is at the heart of understanding it. Whether planning an individual’s food budget for the month, handling the investments of a large MNC, or proposing a budget for a country of over a billion people, you need to understand how finance work. 

From small questions to big ones, finance will give you the skills to understand them all. No wonder it is one of the most sought-after degrees in the world today. Out of the 3.82 lakhs net increase in jobs in the financial year 2022, finance (along with IT and banking) was one of the three sectors that contributed to the 93 percent net increase. According to the Federation of Indian Chambers of Commerce and Industry, the domestic financial sector is expected to generate another 50 lakh jobs in the next ten years. Moreover, the salary in the financial services sector is predicted to increase by 9-12%. 

Capital Market Course

To meet the ever-increasing demand among aspirants and professionals looking to upskill, some premier institutes in India are offering financial services courses, like IIM Lucknow online certificate courses for finance. 

If you want to ride the wave of growth in the financial sector, here is your chance! Take a look at some of the leading careers for finance aspirants in 2023.

Leading Careers for Finance Aspirants

Finance professionals are an essential part of any organisation, no matter their size. The job prospects are immense, and the roles pay incredibly well. If you want to secure your professional growth in the financial sector, these are the careers that you can look into.

Financial Advisor

A financial advisor is your one-stop shop for all finance-related advice. These professionals help their clients make informed financial decisions, build an investment portfolio, make retirement plans, provide insurance coverage advice, strategise tax planning, manage debt, and much more! They help people get their financial affairs in order based on their goals. A financial advisor can expect to earn an average base salary of INR 4,26,380. 

Financial Analyst

One of the most sought-after positions in the financial services sector is of a financial analyst. A financial analyst is responsible for assessing and analysing the financial data of an organisation to help it steer business decisions through recommendations. They evaluate the fiscal health of organisations based on which they advise the stakeholders and help them draw up a plan of action. The average salary of a financial analyst in India is INR 4,81,684, subject to various factors. 

Investment Banker

Investment bankers are at the top of the chain in the financial services sector. One of the most highly-paid careers, with an average salary of INR 8,94,943, it is also an extremely demanding and competitive career option. An investment banker is a professional who provides financial services to corporates, retail and institutional investors, and governments to raise capital, invest, manage debt, and arrange mergers and acquisitions. 

Financial Software Developer

If you want to combine your love for technology with finance, a career as a financial software developer is just what you need! As the world becomes even more technologically advanced, the finance industry is increasingly relying on technology to foster its growth. Financial software developers provide their technical expertise to the finance industry by developing, maintaining and upgrading software that provides solutions and meets its transforming needs and requirements. The boom in the Fintech industry is a testament to the collaboration between the two sectors. 

Financial Risk Manager

Whether it is a recession, inflation, pandemic, natural disaster, or war, the financial sector has to weather several storms. Financial risks constantly threaten the economy and market. A financial risk manager protects an organisation from internal and external risks to ensure its financial stability and growth. It is a professional designation issued by the Global Association of Risk Professionals (GARP) through their FRM Certification. They identify, analyse, and mitigate threats to the organisation through strategic risk management.  

Actuary

If mathematics is your field of expertise, then the role of an actuary will be right up your alley! An actuary uses advanced mathematical and statistical techniques and models to measure and manage the risks and uncertainties of future events. They analyse financial risks resulting from future scenarios and assess their impact based on historical trends and future projections. Actuaries are essential for sectors like insurance, social security, annuities, pensions, health benefits, government schemes, investments, and business management. The average salary of an actuary in India is INR 10,13,674.

Treasury Manager

A treasury manager is the gatekeeper of an organisation’s financial resources. They are responsible for overseeing the management of corporate finances, including cash flows, liquidity, financial records, investment management and risk management. You can expect to earn INR 12,31,513 per annum for helping an organisation achieve its financial goals and safeguarding its financial health. 

Hedge Fund Manager

For those seeking a fast-paced, intensive career track with high rewards, being a hedge fund manager is the career for you. Hedge fund managers are responsible for managing a hedge fund (a pooled investment fund) and making investment decisions that are high-risk and high-reward. They constantly seek ways to outdo the market returns by reading market indicators and the general economic climate. The world’s richest hedge fund managers have a net worth in the billions!

Chief Compliance Officer (CCO)

A member of the C-suite (the coveted club of ‘Chiefs’ leading an organisation), the Chief Compliance Officer (CCO) oversees and ensures that an organisation adheres to the laws and regulations of the state. They protect the company by ensuring it toes the lines of governmental regulations that affect its operations. The average salary of a CCO in India is a whopping INR 32,22,193!

Chief Financial Officer (CFO)

The head honcho of the financial department in any organisation, the Chief Financial Officer (CFO), is the zenith of success for any finance professional. This C-suite executive works closely with the CEO and other C-suite members to strategically lead the company’s financial growth. The CFO is responsible for overseeing the entire financial management of an organisation, liaison with external financiers, assessing and evaluating the financial health of the company, managing financial risks, and much more! A CFO in India can earn a mind-boggling average salary of INR 35,71,771!

Conclusion

The ever-changing and ever-evolving financial sector is continuously expanding. One thing that has remained constant throughout its dynamic growth is the demand for financial services. Finance professionals have the flexibility to move across industries equipped with their expertise. But, if you have higher aspirations and want to be the next CFO of a Fortune 500 company, you have to continuously learn and grow.

This is where Imarticus’ Advanced Management Programme In Financial Services And Capital Markets, offered by IIM Lucknow, can be your guiding hand.

Among the top IIM finance course, this program will help you develop a comprehensive knowledge of digital banking, capital markets, risk management and fintech domains. Connect with the brightest minds in the world as you become part of the illustrious IIM Lucknow alumni.

Why are banks called financial institutions? Significant differences between banks and financial institutions

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Why are banks called financial institutions? Significant differences between banks and financial institutions

Banks and financial institutions are two terms often used interchangeably. However, a common query, or rather a confusion here, is why banks are addressed as financial institutions. Well, the answer is simple, banks are organizations that manage various financial activities. It acts as a financial intermediary and accepts capital in the form of deposits and savings. Then it uses these deposits and begins various lending activities in the market. This lending can either be direct to the debtors or through capital markets.

So, calling banks financial institutions is not an issue in the larger scheme of things. To learn more, you can complete a PGDM in financial management.

What Else Does a Bank Do?

Banks connect capital deficits and capital surpluses through customers. So, the cash flow can be redirected to people who need it the most. But that is not the sole function of the bank. They can also issue letters of credit and also issue travelers’ cheques and perform other activities of a similar nature.

Along with that, they also offer locker facilities that help to keep valuable items and documents safe and secure.

Banks also provide foreign exchange dealings for customers. They also assist in the underwriting of market tools like shares and debentures.

What Are Financial Institutions, And What Do They Do?

Financial institutions are organizations that serve as channels between borrowers and servers. A financial institution collects money and invests assets like stocks, bank deposits, bonds, or loans. Institutions like these are considered to be financial institutions. But it is a non-deposit financial institution. A financial institution accepts the customer’s cash deposits but strictly uses them for investment or security, and then it returns the revenue to the investor. The entire amount may be returned on maturity or when the account is terminated.

best investment banking and capital market courses

Financial institutions interact directly with banks and governments. But when they are dealing with clients, they do not collect the customer’s deposits and provide them with deposit accounts while handling their cash. The only source of return is a fixed rate of simple interest. Banks can do both of these, and so, banks are financial institutions, but vice versa is not true.

If you wish to learn more then, you can enroll in financial services and capital markets course.

Differences between Banks and Financial Institutions

Now, a financial institution is a broader term; it includes banks, NBFCs, Co-operatives, and other organizations that deal under the guidance of RBI. To be specific, RBI is the apex bank of India, and it draws the framework and guidelines for these organizations to work.

However, you should not confuse it with the share market and mutual fund distributors; they come under the scope of SEBI (Securities and Exchange Board of India).

So, to decide the difference between banks and other financial institutions, let’s take up a few pointers –

Definition

The definition of a bank is more precise when compared to financial institutions. Financial institutions will include the definition of NBFCs, modern-age payments banks, etc.

License

Banks operate under the specific Banking Regulation Act of 1949, and they need a separate banking license from the RBI to operate in India.

Accepting deposits

Banks are free to accept demand deposits, but other financial institutions that do not have a banking license cannot accept them. Furthermore, banks can offer the whole suite of banking services, but for other financial institutions, there are limitations in place.

Foreign investments

As per Indian laws, foreign companies can invest up to 74% in Indian banks. Whereas, in the case of all other financial institutions, there are no such restrictions in place.

Maintaining reserve ratios

Banks in India need to maintain a reserve ratio as per RBI’s instruction. Moreover, this is mandatory for every bank to keep this ratio. Whereas, for other financial institutions, there are no such provisions.

Payment and settlement system

Banks are a crucial part of the country’s payment and settlement system. In contrast, non-banking financial institutions are not.

These are some of the main differences between banks and financial institutions.

Conclusion

Hopefully, now you have an idea of why banks are called financial institutions and how banks stand out from other financial institutions. But if you wish to learn more, then there is plenty of study material available across the internet.

However, if you are planning a career in this domain, then completing a Post Graduate Program in Banking and Finance from Imarticus Learning can be a great idea. 

Why Professionals Are Opting For Financial Services And Capital Markets Courses

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Why Professionals Are Opting For Financial Services And Capital Markets Courses

The Banking and Finance course delves into the fast-paced financial sector, including stocks, credit, savings, and investments. Finance is an essential component of a country’s economy. It ensures the liquidity of assets and money or helps and aids people, enterprises, and businesses make long-term investments.

If you complete a Banking and Finance course as a student, you will be a part of the systemized working. This post is here to help you why professionals are opting for financial services and capital market courses.

An overview of Financial Services And Capital Markets Courses

Capital markets are financial exchanges that connect buyers and sellers of stocks, bonds, currencies, and other financial assets. The bond market and stock market are examples of capital markets. They assist people with ideas in becoming entrepreneurs and small firms growing into large corporations.

Reasons to Enroll in a Banking and Finance Course

Banking and finance shape the economy’s and everyone’s future and are concerned mainly with money management. Every individual and company rely on banking and finance to keep their operations operating. As a result, the need for banking and financial professionals is constantly increasing.

Endless job alternatives that are both fast-paced and challenging

Banking and finance courses train students for various vocations, including banking, consulting, broking, insurance, and funds management. Aspirants have the chance to collaborate with corporations, governments, and financial markets worldwide.

With the shift in global business, applicants can now work in a fast-paced, diverse, and adaptable industry.

Personal investment knowledge: Besides providing great employment options, the investment banking course helps individuals manage their money. It teaches learners how to save and invest money wisely to maximize returns and secure a future. The Banking & Finance Programme provides individuals with the investing knowledge to manage their finances.

A decent salary with additional incentives: After completing a Finance & Banking program, the typical beginning income for a new graduate is between 3-6 Lakh PA (depending on qualification). Experienced experts might earn up to 8-11 lakhs per year.

Insurance, private health care, travel fees, meals, and rent are common financial incentives provided by reputable institutions.

Furthermore, employees are eligible for significant yearly incentives, which motivate them to continue working in the same profession. There will be over 20 lakh employment openings in the banking sector in India during the next five years.

Discover a financial risk management course with Imarticus Learning

Our financial risk management certification will teach students about investment banking, capital markets, risk management, and fintech. IIM Lucknow’s best business school created this six-month rigorous curriculum. This course may benefit experienced middle managers looking to relaunch their careers in the financial services industry.

Course Benefits For Learners:

  • As part of this equity research course, students will have the chance to meet and interact with their peers and industry professionals.
  • In this finance and capital markets course, students will master essential areas like investment banking, capital markets, risk, and fintech.
  • A diploma in risk management includes all the information students need to know about the financial industry and its functioning.

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

5 steps to make better career decisions with Executive Program in Investment Management

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Making a career change can be difficult, but it’s not impossible. If you’re feeling stuck and don’t know what to do next, consider enrolling in an Executive Program in Investment Management.

This program can help you make better career decisions and give you the necessary skills to succeed. This blog will discuss five steps to help you make the most of your investment management education.

 Define your goals

The initial step is to define your goals. What do you want to achieve with your education? Do you like to learn about financial planning and investment analysis? Or do you want to become a portfolio manager or investment advisor? Define your goals and make sure the program you choose aligns with them.

 Research different programs

Once you have defined your goals, it’s the right time to research different programs. Many investment management programs are available, so it’s essential to do your homework and find the right one for you. Make sure to compare the curriculum, faculty, and other features of each program.

Evaluate your skills and interests.

It is essential to consider your skills and interests when making a career decision. What do you enjoy doing? The Executive Program in Investment Management can help you build on your skills and explore new interests. It is the perfect opportunity to gain knowledge and experience in the investment management industry.

If you are not sure what you want to do, take some time to evaluate your skills and interests. Look online for career assessments to help you identify your strengths and interests. The more you know about yourself, the easier it will be to find the right career for you.

Evaluate your option

One of the essential steps in making a career decision is evaluating your options. It also means looking at the different opportunities available to you and assessing which one would be the perfect fit for your goals and interests. Take some time to research all of your options, and then compare and contrast them to figure out the best fit for you.

Consider the risks and rewards of each path.

One of the most important things to consider when making a career decision is the risks and rewards of each path. What are you giving up by selecting one option over another? And what can you gain? Weighing these factors will help you make a more informed decision.

If you’re considering an Executive Program in Investment Management, it’s essential to understand the risks and rewards of this decision. 

The Executive Program in Investment Management is an excellent way to make better career decisions. 

Discover IIM investment banking and Capital market course with Imarticus Learning

Our Executive Program in Investment Banking and Capital Markets collaborates with the prestigious IIM Calcutta. Students will master the foundations of mergers and acquisitions, debt and equity capital markets, portfolio management, sales and trading, and securities legislation for finance professionals with at least two years of experience.  

Course Benefits for Learners:

  • This IIM Calcutta executive program will help students achieve their goals and develop a solid career in the financial sector.
  • This comprehensive one-year curriculum will provide students with a fundamental and advanced understanding of global capital markets and investment banking.
  • The IIM Calcutta Investment banking certification is ideal for professionals who wish to further their careers in the finance industry.

What can you do with a capital market certification?

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What can you do with a capital market certification?

A Capital Market Certification is highly desired by individuals hoping to make a career in the financial services industry. Imarticus Learning and IIM Lucknow have collaborated to compose for their candidates the perfect course which will offer them excellent skills, insights, and resources required to upskill and always be a step ahead in their career. Imarticus Learning’s Advanced Management Program in Financial Services and Capital Markets is the ideal course for finance professionals with at least two years of experience and individuals who wish to reinvent themselves in the financial services industry.

This course opens up a wide array of possibilities, not just for individuals who are already pursuing a career in the financial services industry but also for individuals who wish to explore the financial services industry.

To learn more about what our course offers, click here: Advanced Management Program In Financial Services And Capital Markets By IIM Lucknow (imarticus.org)

It will not be wrong to claim that the financial services industry is one of today’s most rapidly evolving industries. Hence, compliance and risk management courses are highly sought after by candidates and recruiters. Therefore, a capital market certification from a reputed institute highly increases your chances of taking a step forward towards your career in the financial services industry, and who better to learn it from than one of the most prestigious members of the IIM industry and a tech-driven, educational institution committed to providing high-quality and industry-specific education through the use of innovative technologies and tailored training. The candidates get the best of both worlds through Imarticus Learning’s Advanced Management Program in Financial Services and Capital Markets.

For further information, use our chat support on Advanced Management Program In Financial Services And Capital Markets By IIM Lucknow (imarticus.org) 

With a Capital Market Certification from Imarticus Learning and IIM Lucknow, candidates will learn about Primer – Corporate Finance & Accounting, Investment & Corporate Banking, IB and Equity Research, Corporate Banking & Structured Finance, etc. At Imarticus, we promote a seeing is believing attitude in our candidates. Hence, we have inculcated hands-on training in all our programs which proves highly beneficial for the candidates in Capital Market Certification, Diploma in Risk Management, etc.

We can help you make the best decision about your career. Visit us at our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, Gurgaon, or Ahmedabad.

Our highly skilled faculty at IIM Lucknow and Imarticus Learning ensures that students benefit from their highly skilled evaluations, their decades’ worth of experience in the financial services sector, and their compiled knowledge and resources, which would be at the disposal of the candidates. Through an advanced learning process, students will understand, hypothesize and apply their know-how in various subjects, which will render them job-ready by the end of their capital market certification course.

Some of the best features of the ‘Advanced Management Program in Financial Services and Capital Markets’ at Imarticus Learning are: Peer networking through Campus immersion, Executive Alumni status of IIM Lucknow, Capstone projects, and Simulations from Imarticus, Unique AMP curriculum in Financial Services and Capital Markets. All of these features will help the candidates learn from the experiences of their peers and colleagues, all the while developing their insights and advancing their knowledge. 

So, the question stands, ‘What can’t you do with a capital market certification?’ Let us help you be the best at what you do.

To download our brochure, click here: Advanced Management Program In Financial Services And Capital Markets By IIM Lucknow (imarticus.org)