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Tag: diploma finance courses

Why you should pursue a finance course online?

Posted on by Imarticus Learning

Overview of the Finance Industry

The finance industry is one of the most important and dynamic sectors of the global economy. It plays a vital role in promoting economic growth and creating jobs. Finance professionals are in high demand in a variety of industries. These include banking, investment banking, insurance and corporate finance. Here, we will explore the different aspects of the finance analyst course in India.

Let us understand how to become a financial analyst.

Overview of Roles and Responsibilities of Financial Analyst

Financial analysts are responsible for analysing financial data and providing insights. They offer recommendations to help businesses make informed decisions. Let us look at the roles and responsibilities in detail:

  • They assess company performance and financial trends to provide forecasts and projections.

  • Financial analysts play a crucial role in budgeting, forecasting and financial planning. They conduct research and analyse economic trends to provide strategic recommendations.

  • They are responsible for preparing financial reports and financial models to support decision-making.

  • They collaborate with other departments, such as sales and operations.

  • Financial analysts also monitor and analyse financial risks and opportunities. These include investments or mergers to help organisations maximise their financial performance.

Advantages of Pursuing a Finance Course Online

Pursuing a finance course online can offer numerous advantages for you. Here are some benefits of pursuing a finance analyst course in India:

1. Flexibility

One of the advantages of online finance courses is the flexibility they provide. Students can learn at their own pace and study from anywhere, making it convenient for working professionals or individuals with busy schedules.

2. Cost-effective

Online courses are often more affordable compared to traditional classroom-based courses. There is no transportation or accommodation expense. So, online finance courses let you gain knowledge without breaking the bank.

3. Accessibility

Online finance courses provide a wide range of resources that enhance learning. You have the opportunity to access online libraries and case studies. Access to industry-standard software used by finance professionals ensures makes you job-ready.

4. Practical skills development

Pursuing an online finance course can help you develop practical skills to excel. These courses often focus on real-world scenarios. They provide hands-on training in financial analysis, budgeting and investment evaluation.

5. Networking opportunities

Online finance courses often offer networking opportunities with fellow students. You also connect with experienced professionals in the finance industry. This allows you to build connections, share knowledge and gain insights from experts.

6. Career advancement

Completing an online finance course can open up new career opportunities for you. Employers value individuals who invest in continuing education. It demonstrates your commitment to professional development.

By gaining knowledge and skills through online finance courses, you can position yourself for roles such as financial analyst, investment banker or financial manager.

In addition to these benefits, online finance courses have more advantages. You can choose what you want to learn, get better at managing your time, use what you learn right away, change your career, keep learning throughout your career and work globally. So, online finance courses offer lots of different ways to learn and improve your life and career.

Online Finance Courses: Transforming Your Financial Future

Taking a finance analyst course in India can greatly enhance your knowledge. It provides a comprehensive understanding of financial concepts, analysis tools and industry practices.

This course equips you with the necessary skills to excel in various financial roles. It opens up opportunities for career growth and advancement. Whether you are a beginner or an experienced professional, investing in a finance analyst course is a valuable step towards achieving your career goals.

If you are looking to enhance your financial skills and boost your career prospects, consider enrolling in a finance analyst course in India today.

Are you a young professional thinking about how to become a financial analyst? Look no further than Imarticus Learning. It is the leading platform for accessing online learning programmes. Our online finance course equips you with the knowledge to become a successful financial analyst.

We offer industry-relevant curriculum, expert faculty and flexible learning options. Imarticus Learning is your go-to destination for professional development. Don’t miss out on this opportunity to take your career to new heights. Enrol in our online finance course today and pave the way for a successful future as a financial analyst!

Confused Between Model Building Approach Historical Simulation? Things To Consider!

Posted on by Imarticus Learning

If you consider Basel II, there are two ways of calculating Market Risks VAR:
• Historical Simulation Approach
• Model Building Approach

What makes them different?

Historical Simulation approach is most frequently used by organisations. As the name suggests, we consider daily changes in past/historical values to compute the likelihood of the variations in values of current portfolio between given time frame. The other advanced version of this model places more emphasis on recent observations. The key assumption in historical simulation is that the set of possible future outcomes is fully represented by what occurred in a definite historical time frame/window.

On the other side, model-building approach involves assumptions about the joint probability distributions of the returns on the market variables. This model is also known as variance-covariance approach.

This is more apt for portfolios which has short as well as long positions in their bucket. This consists of commodities, bonds, equities, etc. in the portfolio. Here, the mean and standard deviation are computed from the distribution of the underlying assets returns and the correlation between them.

Daily returns on the investments are normally assumed to be multivariate normal which can be the models biggest drawback. Hence, model-building approach makes it easy to calculate Var.

Model Building approach assumes two things:
• The daily change in the value of a portfolio is linearly related to the daily returns from market variables
• The returns from the market variables are normally distributed

Shortcomings of Historical Simulations
Over reliance on past data can fail to serve the purpose as markets change every moment. The momentum can be gradual or sudden, but does not remain static.

Large number of factors like Technology, regulatory changes, economic conditions, seasonal patterns, etc. influence market and in such scenarios manager who are using historical simulation can face unfavorable situation.

Shortcomings of Model Building Approach
Also this approach is much more complex to use when a portfolio comprises of nonlinear products such as options. It is also a grim task to relax the assumption that returns are normal without a significant increase in totaling time.

When to use? Model building vs. Historical simulation.
Depending on the situation, appropriate model should be adopted by the organisation. While both of them have pros and cons, it is important to list down the objectives of risk model before adopting either of them.

Model building approach producer quicker results and can be used in conjunction with volatility and other correlation procedures.

The advantage of the historical simulation approach is that the joint probability distribution of the market variables is determined by historical data. This approach may not be very complicated however, it is little slow for computation. However, the methodology used in historical simulation is in line the risk factor and does not involve any estimation of variances or covariance’s which are statistical parameters.

One should use historical simulation model only when they have data on all risk factors over a justified historical period if they want the model to depict strong representation of the outcome in future.

To know more about model building join Imarticus Learning’s Financial Modeling Certification Courses, which will help you understanding opportunities in the Investment Banking, Private Equity, Budgeting and Financial Control space.

 

Introduction to Capital Market

Posted on by Imarticus Learning

What Are Capital Markets?

Capital markets basically deal with stocks and bonds in general. In simple words, any firm is it private or government, is always in need of funds, so as to finance its various operations to achieve certain long-term goals. Thus every firm is supposed to acquire these very funds or capital; for which, it sells stocks and bonds. These stocks and bonds are basically like shares, all of which are in the companies name. For instance, when the government of any country, issues what are known as treasury bonds, it basically is tapping into the capital markets, thereby generating capital.
This process is basically known as the IPO or Initial Public Offering. Capital Markets are largely divided into two types, the primary markets, and secondary markets. The companies and governments sell their securities in the primary market, whereas the investors trade with these securities in what is known as the secondary markets. Thus, it is safe to say that the capital markets are an important area of the finance industry.

These markets are more like the foundations on the basis of which, various companies and governments are able to invest in businesses, generate employment as well as better infrastructure. One of the core responsibilities of any capital market includes getting the people who are looking to invest, in contact with those looking for capital. Put so simply, this sounds like a very easy task to do, but in reality, a lot of professionals, perform this high-pressure task, to get the desired results.
The private companies look to raise capitals for various reasons, other than just expanding their businesses. They could be looking to finance start-up business ventures, or to battle with the sudden decline in the turnover, or for buying out the competition. While it may seem like it is only those very companies, which are profited from this whole business, it is not so. The very reason someone would want to provide capital is that that person would be looking to gain profit from their financing efforts.
A lot of people know of capital markets as stock exchanges. These are places where anyone can invest and are more commonly known as the public markets. This is where the Initial Public Offering takes place, which is the first time when any firm, comes out into the public to sell their securities. The next step where securities are bought and sold by investors is known as secondary markets, as spoken about earlier.
These secondary markets take place, subsequently after the primary market proceedings are over. Just as there are public markets, there also exist the lesser-known private markets, which are also known as exempt markets. These can be called as more lenient as compared to the public markets, primarily because there are no regulations to be met. Also, this is seen as a more cost-effective way for companies to fund their financing needs.
Thus the arena of capital markets has come to garner more attention by a lot of people, which is why candidates look for programs, which can make them proficient in the inner workings of capital markets. Imarticus Learning one of the best education institute in India offers industry-endorsed courses in capital markets, finance, and investment banking.