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Tag: Investment Banking

Steps Investment Banks are Taking to Cope with the Covid-19 Crisis

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The world never saw what was coming. The Covid-19 pandemic has impacted the global economy and the Indian economy. The downsizing and disruption of small and medium-sized enterprises, establishment of new business model and the business continuity plan, excessive demand and adoption of digitalisation and introducing a high standard of digital transformation like AI, Cloud computing, SaS and many more such trends were visible for quite some time in 2020 and also extended to 2021. The services like loan advancements, remittance, credit and debit cards, payments, investment management, risk management, raising capital and others were massively affected which resulted in crises of banks. This forced the possibility of revolution. The banks had to come up with alternative actions to regain the profitability margin.

Several operating divisions like commercial banking, retail banking, investment banking transformed to cope up with the Covid-19 crisis. Multiple challenges have affected revenue generations because of interruption in services, social distancing and digital mode of service offering. The investment banks specifically needed to take immediate actions as specified below.

  1. The services and offerings have to be digital, also known as touchless mode of operations
  2. Introduction of Artificial Intelligence and software that offers quality data and insights to drive company growth
  3. Offering self-service and smooth interface to enhance the experience of online platforms making it easier for customers to access
  4. Strong Infrastructure that can withstand or foresee risk also known as resilience

Based on the mixed impact on the Investment banking platform and how different firms responded or continue to respond to the Covid-19 crisis, it is expected that this division will undergo some permanent changes like the adoption of Cloud Technology and mutualisation of services through partnering with fintech companies; risk management which is majorly taken care of by the digital technologies; adaptation of new client engagement models because of a hybrid working ecosystem- virtual collaboration is trending.

To keep up with these permanent changes in the business model and succeed in the post-covid era, investment banks need to accept and adopt digital transformation and build resilience to avoid such global attacks in the future.

Just to have an idea of how investment banking works, we will highlight the top two ways to give an overview of their functionality.

  1. Mergers and Acquisitions: An investment bank will evaluate the companies and identify the strengths of each division which allows the M&As to happen at a fair price and in return the bank gets a certain percentage of the deal as their fees.
  2. Initial Public Offering (IPO deals): An investment bank helps set the price of the offerings going public for the first time and get enlisted on the stock market. They market it proactively to their clients and earn a commission on the raising capital.

There are other ways of how investment banking works such as Private Wealth Management, Prime Brokerage and Proprietary trading and these are as popular and revenue generation oriented as the other ones. 

Investment banking is one of the highest paying jobs in the world of finance. Investment bankers usually make 30-40% higher salaries because such banks are more profitable compared to other management firms.  Investment banks deal at an institutional level with big tech firms, global or national banks. Having a curiosity to know about this industry is good but also is important to know what do you learn in investment banking. You do not require any specific degree to learn investment banking but having said that, some skills in economics, mathematics, business and finance will add to your benefit when you are in an interview. An investment banking certification course will introduce you to several subjects like financial modelling and accounting, risk management and market analysis.

You may enrol yourself for a program like Certified Investment Banking Operations Professional that offers you investment banking certification which will help seek clarity on what you learn in investment banking. Once you have an entry into the industry, you can only see yourself flourish and achieve a future that you dreamt of.

Use of Data Analytics in Improving Working Capital Management

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What is working capital management?

Working capital is an organization’s utilization of money to cover its daily needs, such as paying for raw materials, supplies, and salaries. The term can also be applied to individuals. Working Capital Management is defined as “managing cash flow so that it fulfills all the business needs”.

For example, if you have $10 in your wallet but need $100 worth of groceries today, your working capital would be negative $90. Working capital management takes care of the flow of funds within the organization. It ensures that funds are available to meet short-term obligations without having to borrow or sell assets. It’s essential for all businesses because it affects the growth and the profits of the company.

Without sufficient working capital, companies will fail before utilizing their full potential. Working capital management is a critical function for every company. Whether you are operating in the manufacturing or service industry, managing your working capital will impact your ability to grow and succeed.

How does it help the organizations?

Data analytics can help organizations measure how much money they need for their working capital based on their current situation. This way, they can improve their working capital management by minimizing risks such as overinvesting or underinvesting in one area while neglecting others.

There is a need for both MSMEs and large manufacturers to remotely manage their supply chain, cash flows, etc. This has led to a rapid and massive shift away from manual processes. This is where automation comes into play – Accounts Receivable Automation (ARA) was developed as an alternative solution by many companies who needed more control in this area of their business while still managing all aspects with less workforce. These systems allow businesses to deal directly with suppliers and it drastically cuts down processing between payments and delivery.

Application in the real world

In the past few years, the use of Data Analytics has been steadily increasing as a way for organizations to understand their customers better and identify trends.

In today’s world, data analytics is indispensable as it facilitates the efficient working of an organization. The proper recording and analysis of every activity related to the manufacturing cycle of the products help in having visibility of the processes.

Data Science Course

One particular area where Data Analytics can be applied is in examining customer payment patterns, such as when customers pay or don’t pay on time. For example, one company found that because of the customers who paid late, they were losing roughly about $21 million annually due to delayed payments from other clients. It also examined the reasons as to why people pay late. They came up with several insights like cash crunch during month-ends, etc. that stopped them from making these payments.

Using a company’s balance sheet and cash flow statement, a financial analyst can determine when the business has excess funds and also the times when they need more money. This analysis can then be used to establish an appropriate financing strategy that balances the company’s needs with its ability to repay the debt over time. Data Analytics makes the entire process smoother and better.

Conclusion

To maintain change, it is imperative to differentiate between noise and signal. This is done by developing measurable, granular  KPIs that are monitored strictly. Carefully analyzing historical data can provide valuable insights into managing networking capital by quickly finding and dealing with emerging issues.

Contact us today if you want to be well equipped when it comes to dealing with such situations. With a digital analytics course, implementing these tactics in your business becomes easier.

With a data science course, you become aware of the techniques that go into it. The course comes along with a placement opportunity so that you’re all set to apply your business analytics knowledge in managing operations.

What’s The Current Deal With Commodities Trading?

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Commodity refers to a raw material (can also be agricultural produce) that could be bought or sold. A fun fact: in ancient times, commodities were used as a currency in a system known as the Barter System. There are still certain places on Earth (like tribal areas) where the barter system is still prevalent.

Almost similar to this concept, commodities trading refers to the exchange of commodities in specific markets like Multi Commodity Exchange – MCX, The Universal Commodity Exchange – UCX, etc.

However, the global coronavirus pandemic shook everything. Trade Life Cycle is not the same anymore. We would be discussing this sudden shift caused by this pandemic and the exact situation of commodity trading today.

Trade Life CycleA brief History of Commodity trading:

Trading commodities could be easily linked back to even the prehistoric era. In fact, the rise and fall of entire empires have a direct relationship with their ability to sell and manufacture commodities. It would also be prudent to note that the empires that rose to dominance could create a complex and robust structure for commodity exchange.

In recent times this tradition of buying and selling commodities is retained. The only things that have changed are the commodities and the medium of transferring goods. Some of the most prominent ones responsible for commodity exchange are NYMEX, ICE, LME, etc.

Current State of Commodity trading:

It was 11th March 2020 when the World Health Organization declared the Coronavirus as a Global Pandemic. To curb the spread of the virus, lockdowns were initiated globally. Effectively, the world came to a standstill. Although a little normalcy has returned, however, things are far from what they used to be.

Because of the global shutdown, the demand and supply of commodities have been shaken from the inside, according to the reports of Commodity Market Outlook. The strength of the pandemic would determine how badly things would turn out to be in the future.

However, in today’s paradigm, things aren’t looking too optimistic. It has been estimated that this pandemic could leave a permanent impact on the supply chains, thus adversely affecting the producers and consumers worldwide.

The exact extent of the situation could be easily estimated by looking at the oil prices. The demand for oil is expected to go down by an unprecedented 9.3 Million barrels a day. The energy sector fairs no differently. The natural gas and coal prices are also supposed to fall by over 40% by the time this year draws to an end.

Metals (both precious and enterprise-grade) are also expected to fall. Needless to say, the entire world has been pushed to the brink of another recession. The only sector that remained untouched is the food sector. However, with the excessive regulations on export, things aren’t looking too bright.

What does it have to do with commodity trading, you ask? See, traders are in the game for profits and since the prices of almost all commodities are reaching an all-time low, so are their profits. Long-term challenges are being expected in commodity trading sectors.

Transport costs may start rising which would eventually accumulate as higher trading costs. Stockpiling goods can also result in restricting trade flows. Reduction of demand, supply chain disruption, and economic downturn can affect multiple economies and thus affect the commodity markets.

Companies worldwide struggled because of Covid-19. To overcome this, now every company have started giving the Investment Banking Training, that helps employees, traders, freshers, graduates to cover the financial crises and be ready for any such future crises.

An Investment banking career helps not only to manage the finances wisely but also helps to prepare the funds from a company level, business level to a retirement plan.

Investment Banking CourseThe Investment Banking course is for each and everyone, there is no such criteria to apply for this course, except the graduation in any field. But this helps truly in making big Financial decisions.

How Tough is Investment Bankers Life

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Responsibilities of an Investment Banker

The Finance industry is for the opportunists, most people aim to get into finance because the remuneration is far more lucrative to pass on. Investment banking seems to be everybody’s dream job or at least for those who just seek the perks and not the work hours involved. The job role of an investment banker is very dynamic and takes a combination of hard and soft skills to succeed and thrive in the face of competition.

The traditional investment banking criteria puts an investment banker’s job as helping the clients raise capital from the market by using the tools of debt and equity after thorough analysis given the client’s need and capital requirements. The job role has much more in its purview; let’s breakdown some of the key responsibilities of an investment banker.

Finding business opportunities for the company by interacting with new prospects and maintaining the relationship with the old ones

Preparation of financial models for suitability of capital structure for mergers and acquisition deals or other capital raising expeditions

Formulate recommendations on various financial product offerings

Perform thorough company analysis, doing due diligence and documentation for transactions

How to be an Investment Banker?

Most people aiming for a career in the investment banking segment often wonder what is the best approach to land the job of an investment banker. Newcomers are often puzzled by what it takes to be an investment banker and how can they kickstart their careers. It can be rather confusing given the dynamic nature of the job that requires you to work on multiple aspects.

To enter the field of investment banking the best approach is to do your majors in finance, commerce or economics, this provides you with an edge by building a solid foundation and a robust knowledge base. It provides you with an in-depth understanding of the finance industry.
In the contemporary scenario the competition in the industry in on an unprecedented scale, to steer clear of the competition in the industry you can pursue a Master’s in Business Administration (MBA) with your specialization in Finance. This will not only consolidate your stand but will also give you a comprehensive understanding of the world of Finance.

There are courses designed specifically for entering into the Finance industry such as Chartered Financial Analyst course, it takes a holistic approach and covers all possible aspects of your financial education, the subjects include Alternative Investments, Financial Reporting & Analysis, Corporate Finance, Economics, Portfolio Management, Ethics, etc.

What separates investment banking jobs from other jobs in the finance industry is the fact that it requires much more than just a good technical knowledge of the finance industry. Investment baking jobs require stamina to work long hours and by long hours we are talking at least 70-80 hours a week.

It requires people to have good interpersonal skills to meet and connect with the client, socializing with people is a must-have skill here. Other than that, it also requires effective communication and presentation skills. If you are striving for a career in this industry you need to have a lot of patience and stamina to do hard work, there’ll be no work-life balance here at least in the initial days and entry-level positions. However, the perks are equally rewarding and satisfactory if you manage to survive the initial phase of this career.

Conclusion

Yes, it is tough to work as an investment banker, if anybody says otherwise, they are keeping you away from the reality of the job. It looks all glorious from the outside but it requires hard work, perseverance, and determination to succeed as an investment banker.

Also Read: Tips to Become Investment Banker

Will an MBA Help You Become an Investment Banker?

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Investment Banking as a Career

The investment banking industry offers one of the most lucrative and rewarding career prospects for individuals aspiring to make a mark in the finance industry. So what’s so lucrative about the job that so many people want to join it?

Well, at first glance, the remuneration certainly seems like the cherry on top and that makes it far more lucrative for those who want to make a fortune for themselves.

Most of the people who aspire to become investment bankers are unaware of the work it takes to survive in this industry, let alone thriving. If you are dedicated and hardworking with good financial acumen and social skills, you will certainly go a long way in this sector.

best Investment Banking courses with placement in IndiaThose of you who are only charmed by the high-profile deals and monetary benefits and not the work won’t survive in the long run in the investment banking sector. The role of an investment banker is very dynamic and involves overviewing a lot of things.

From networking with your clients and industry experts to researching and conducting complex financial analysis, there’s a lot that you need to do for being a successful investment banker.

It is certainly one of the best choices if you are passionate about finance and investing and won’t mind working 60-70 hours per week. One of the most mainstream questions is how to become an investment banker and will an MBA degree help or not.

Let’s delve deeper into the subject to obtain a comprehensive understanding of the matter.

Will an MBA Degree Help?

So coming to the big question, will an MBA degree help you break into the investment banking industry? Is it worth getting an MBA in investment banking? Well, at first glance, yes, an MBA degree surely improves your chances of getting into the investment banking industry but it’s not a necessity in many cases. If we go deeper into addressing this question, the answer is very subjective and highly varies from person to person.

There are a lot of factors that count when getting into the investment banking segment. First and foremost is your educational background, it has a huge role to play as it helps to establish your foundations. So, let’s take an example, there are two people named A & B. A has always been driven towards business and commerce and has an educational background in the same domain. B, on the other hand, has a technical background and pursued engineering.

best Investment Banking courses with placement in IndiaLet’s say A pursued an undergraduate program in Business Administration or Commerce. The chances of A getting a job as an investment banker straight after completion of this under graduation program is higher as he is already aware of the basics of investment banking.

Comparing it with B who has a technical background, A will surely beat B if they both are to apply for an investment banking job in most cases.

B can now improve his/her chances of getting a job in an investment banking firm by completing an MBA degree in Finance as it will fill up the knowledge gap, A too can opt for an MBA and improve his chances further for getting a high profile investment banking job.

So, there are two aspects to this whole scenario, first, what type of job are you looking for? Is it an entry-level or a high-profile one? Secondly, what is your educational background? Have you completed any investment banking courses?

So if you are looking for an entry-level job and you have a relevant educational background then you don’t need an MBA degree to break into investment banking. However, if you are looking for a high-profile job then an MBA degree will surely help as it adds more credibility to your profile.

In case you don’t have a relevant academic background and you are looking to switch from a different industry, an MBA degree will surely help your cause. If you are short on time and monetary investment then an investment banking course will help you land a decent job in this industry.

Investment Banking and Its Key Advantages!

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Understanding Investment Banking

Investment banking Training is a specialized division within the finance and banking industry that engages in advisory-based financial transactions for its clients, the clientele includes individuals, government, and corporations. Investment bank helps in capital creation for its clients. The primary function of these banks is to act as a mediator and facilitate financial transactions between two or more parties.

The investment banks leverage their vast network to connect borrowers seeking funds with investors having surplus capital to invest in profitable avenues.

Investment banks help the economy on a macro level by channeling funds between borrowers and investors. Investment banks also help to facilitate Mergers and Acquisitions deals; it requires conducting rigorous research on the companies that can be a good fit for its client’s M&A strategy. Investment banks also help with underwriting new debt and equity securities for various corporations.

Let’s understand the functioning of an investment bank using a familiar example. You must’ve heard of Initial Public Offering (IPOs), during the IPO process the company issues shares and invites the public to be a part of the organization by buying its shares at a predetermined price. A lot is going on behind the scenes, like valuation of the company, market analysis, competitor’s analysis, etc.

All these complex tasks are carried out by Investment banks to help companies go public and accumulate the required capital for their growth and profitability. Investment banks also determine the share prices so that the chances of oversubscription and under subscription can be avoided. Let’s dig deeper into some of the key advantages of Investment banks and how they help the economy.

Key Advantages of Investment Banks

The key advantages of Investment banks can be highlighted in their functioning.

  • Initial Public Offering (IPOs): Initial Public Offering process is an overwhelming financial transaction process and requires expertise in various aspects. Investment banks serve their clients going public by acting as intermediaries between corporations and investors.

    Investment banks provide underwriting services for companies opting for equity funding by issuing company stocks to the public. The underwriting process is not as simple as it sounds. The underwriting process involves investment banks purchasing the shares of the company at an agreed-upon price which it then resells to the public using a stock exchange.This requires the investment bank’s commitment to purchase a specified number of shares, it could purchase all or part of the total shares being issues. There are three types of underwriting commitments; it includes firm commitment, best efforts, all or none. In the firm commitment, the investment banks have to purchase all the shares being issued at a predetermined price.

    The best effort commitment is suggestive of the name, here investment banks commit their best to sell as many shares as possible and there is no legal obligation for them to buy all the shares being issued. All or none case requires selling all the shares being issued to the public, any under the subscription will lead to a null deal.

  • Mergers and Acquisitions (M&A): Mergers and acquisitions is a strategy used by corporations to come together and boost collective profit by eliminating competition. Corporations leverage their synergy in operations to boost profitability and growth prospects. The merger involves two companies usually competitors coming together whereas acquisition involves one company buying a majority stake in another company or acquiring it.

This whole process entails complex research work to understand the competitors in the market and what they bring to the table for a profitable M&A deal. The M&A deals also require investment banks to value to targeted companies that could be a profitable prospect, this valuation requires conducting rigorous due diligence to understand the financials of the prospective company.

Also Read: Beginner Guide to Investment Banking

An Extended Insight of Investment Opportunities in the Shipping Sector!

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The strategic position of India by the world’s largest sea route in the Indian Ocean emphasizes the significance of its shipping sector, which accounts for 95 percent of India’s global trade value.

For India, increasing investments to $81 billion, port and harbor construction projects are a top priority. Under an automatic pathway, foreign investment is permitted up to 100 percent in harbor construction projects

India’s shipping sector is a vital component in the country’s economic growth, both by value and volume. According to data from the Department of Ports, Shipping, and Waterways (MoPSW), maritime transportation channels account for around 95% of India’s global trade volume and 70% of overall trade worth. As of April 2020, India had a fleet of 1431 vessels.

Investment opportunities in the Indian shipping industry

With a focus on indigenous developing, maintaining, and operating ports, inland waterways, and shipbuilding, India has streamlined and expanded the scope of investments in the maritime sector.

Port and harbor projects are eligible for up to 100% foreign direct investment (FDI) under the automatic route in India. Indian ports have attracted a cumulative FDI total of INR 122 billion during the previous two decades (US$1.64 billion).

More than 574 new projects relating to the development of Sagarmala have been identified for implementation by 2035, and an investment of INR 6 trillion (US$81 billion) is being sought, both from the public and private sectors, in areas such as port modernization and new port development, port connectivity improvement, and port-linked industrialization.

As of September 30, 2019, a total of 121 projects at a cost of INR 302.28 billion (US$4 billion) have been completed, and 201 projects at a cost of INR 3.09 trillion (US$42 billion) are in progress.

The use of clean/renewable energy sources, as well as the improvement of associated infrastructure for trade and tourism, are also priorities in this sector.

In March 2021, India announced 400 new projects in the maritime sector with an investment potential of INR 2.25 trillion (US$30 billion) for developing its coast. India has also published a 10-year strategic vision for the maritime sector, “Vision India 2030,” which sets out its goals for the development of the industry.

Leverage the Growing Opportunity

Every industry needs cutting-edge professionals to bear the right fruits. The shipping industry is no different. With the right knowledge of investment banking and asset management, you can become a sought-after professional in this field.

Want to Learn Investment Banking and Asset Management?

best online MBA classesJoin Imarticus’ hosted MBA program in Investment banking and equity research in association with JAIN University.

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4 Common Mistakes Made by Beginner Stock Investors!

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Stock investing is a highly competitive and risky business. The risk of losing your money in the stock market can be mitigated by learning about treasury management, trade finance, and other related areas. If you are a beginner stock investor, there is no time like the present to learn as much as you can about this exciting field.

There are many mistakes that beginners often make, and those mistakes could cost you dearly in the long term. In this post, we’ll discuss four common mistakes made by beginner traders and offer advice on how to avoid them. 

Common mistakes made by beginner traders and how to avoid these mistakes are:

Purchasing without doing the research: One of the most important parts of trading is understanding what you are buying. This requires some background knowledge and information on your part to make an informed investment decision. You should have all this before making any investments to avoid mistakes like jumping into something just because someone else said it was good or looking at a graph that makes something look more promising than it really is.

Not considering risk management: When people hear about successful traders, they often think that these traders were simply lucky; however, there’s much more behind their success than luck alone. These professional investors know how to manage risks properly, which has helped them navigate through rough patches while maintaining portfolios over time. Risk management also helps know what to sell when things go south and how much of a loss is too big.

Not having an exit strategy: Another common mistake investors make is not having an exit strategy. They often get caught up in the moment when something starts to go well and don’t sell it even though they know that it might come back down. Having a solid plan for exiting trades should include some type of profit-taking or using stop-losses, which are set according to your preferences as they can limit potential losses while still allowing you to take advantage of gains.

Getting caught up on emotions: Investing requires patience more than anything else as it takes time for good investments to pay off—but this doesn’t mean you should be patient all of the time. When new traders make a lot of money, they tend to hold onto those stocks thinking that their luck will continue, which isn’t always true; hence why risk management is so important because if things go south (i.e., there was an unanticipated event like bad news from another company), then these beginner traders may end up losing a lot more than they bargained for.

Learn treasury management by joining MBA course at Imarticus Learning Institute

Avoiding these mistakes is the primary step towards becoming a successful trader. The second and equally important part of learning to trade profitably is good risk management skills as well as understanding various compliances in the market. Learn risk and treasury management in banking & finance with Imarticus Learning.

Imarticus Learning offers MBA courses in finance in collaboration with Jain University. This course will enable you to gain in-depth knowledge & understanding of the various treasury operations and also help you understand risk management.

For more information, connect with us through the Live Chat Support system or visit any of our training centers based in – Chennai, Mumbai, Thane, Pune, Bengaluru, Hyderabad, Delhi, and Gurgaon.

The Difference between Investment Banking And Equity Research

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The field of Finance has always been considered as a very attractive career option, because of the adrenaline rush that one gets, due to working for high profile companies, the exciting hours of the stock exchange and being able to close, deals worth multi-million dollars. Investment Banking and Equity Research are two of the most famous professions in the field of Finance. Although both the professions enjoy a lot of demand from aspirants, but only one of these offers limelight and importance, while the other enjoys being the game changer, behind the curtains. If you are a finance aspirant, looking to make it big and get entry among the big leagues, then either one of these careers can be your sure shot chance. If you are someone, who is very goal oriented and does not need any acknowledgment, equity research would be the best option for you. While on the other hand, if you happen to be someone, who thinks of acknowledgment and appreciation as the biggest motivators, then investment banking is the way to go.

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While these differences don’t make much of a difference for someone, who is absolutely fascinated by numbers and logic, there are quite a few nuances in both of these fields, which make them very different from each other. In the earlier days, there were quite a lot of assumptions and reservations regarding both the fields. Equity Research for instance, was thought as the dark horse of the lot and was considered as a dull, unglamorous field to work in. The recent times have brought about a lot of changes, including the much deserved recognition that the field of equity research requires. On the other hand, the field of Investment Banking was always looked up to as an amazing, awe-inspiring career option.
Roles Of An Investment Banker

The professionals in this field, are said to be the major decision makers of the industry. Their job is basically to conduct an extensive research on various financial deals, go ahead and be an intermediary between the deal makers and close the deals. They are said to add tremendous value to their firm, probably which is why they earn handsomely.
Roles Of An Equity Researcher

Equity Research Analysts, are hailed as the real financial heroes, because it is these people, who create valuation models, research reports, which later on assume the status of major decision makers. These professionals are experts in financial modeling, financial statement analysis, valuation of companies and have a clear idea about, how the economy as well as the currency works.
While both the roles are diverse, they are equally important for any financial corporation, in the market. A huge number of aspirants vie to be working in either of these fields. It is well known that, having just a mere graduation degree, will not really get you there. Which is why a lot of candidates opt for, specialization training programs in both investment banking, equity research as well as, financial modeling, corporate finance and so on.

Why Is Chartered Financial Analyst a Good Career Option?

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In recent times, Chartered Finance Analyst (CFA) is a designation which is quite revered and regarded by most as a key certification for professionals in the areas of portfolio management and research.

The chartered financial analyst program is a certification from the CFA Institute. It is a globally regarded certification. It is essentially a self-study methodology, graduate level program for professionals who want to pursue a career in investment. A person coming out of any discipline or academics can pursue the CFA program.

Applications to the program are usually from students and undergraduates to an early professional who intent to get a boost to their career. Although it is important to note that just getting a certification will not guarantee the same.

Passing all the three exams of CFA in itself is a very daunting job when compared to the efforts and commitment of the time required as against other management programs like the MBA. In fact, there are many MBA pass outs and CA’s who join CFA to get into core investment banking jobs. CFA gives a great technical grounding and offers broad-based scopes suitable for investment banking, research analyst, equity research and portfolio management.

The CFA course focuses on ethics, portfolio management, accounting, corporate finance, fixed income and equity investments, so basically if one does not have a very specific choice but needs to build their career in the field of finance then they should opt for the CFA certification as it is broad-based, opening many career opportunities.

Passing a CFA exam shows that the person pursuing the same has the ability to show commitment, tenacity, comes across as a professional with resilience, and rigour. In addition to the learnings from the course, the charter holders are also considered internationally mobile as well due to their association with the global professional network.



Some of the most common jobs taken by the CFA professionals

Portfolio Management:
Since CFA focuses on essentially training you on portfolio management skills, this job becomes a no-brainer for most pass outs. Under this profile, you are responsible for making financial/investment-based decisions for people who have given the control of their money to you or to your company.

Research Analyst:
Here the profile is responsible for analysing the financial transactions and records of the firm for its clients. Here you need to prepare your observations and reports and primarily have an insight of what the client would want to know about the financial health of the organization in such a way that nothing essential is overlooked before making any strategic decisions.

There are many other nomenclatures for this role within the organization, such as investment analyst, rating analyst, financial analyst, equity analyst, to name a few.

Consultant:
Here the person needs to provide suggestions that will benefit the firm with professional advice. The CFA course covers corporate finance which will assist the professional to make alternative decisions and suggestions to the third party or the client satisfying their requirements.

Accountant/Auditor:
Here you are required to keep a track of all financial footprints and documents of the business or company that you are associated with.

Investment Banking Analyst:
Here a person needs to check all possible pit stops, analyse, evaluate, all possibilities before any investment is made. The person usually is responsible for directing and making the firm aware of mergers and acquisitions. The task can be efficiently performed by any CFA pass out as the course has a section on corporate investment, equity investment, economics and more which prepares them to handle such requirements.

These are just a few opportunities out of the many that you can take advantage of if you wish to pursue the CFA certification.

So to conclude, it is quite obvious that in recent times many organizations and individuals alike are getting highly interested in CFA. The fact that a CFA certification will benefit the organization and the individual in revenue growth and career growth, it is perhaps why most organizations are also considering sending employees usually from the start up a level for this certification as the long-term advantages cannot be ignored.

It is then true to say that the CFA designation does distinguish the charter holders from other counterparts in the eye of professionals and investors. As a successful CFA charter holder has already proved the test of time and their ability and intention of commitment to conducting their professional life according to high professional standards.