Why MBA in Finance – Must Read for MBA Aspirants

Money, finance, economics are some of the relative terms that we use or come across in our daily lives, either in discussions, news, or when we are dealing with it for business or any other important purpose.

Finance has always been such a topic which has interested all, be it a businessman or a college student or a freelancer. Even if we do not understand the nitty-gritty of the term at all, yet we cannot avoid it.

In academic circles, there are even specialized courses, and majors in finances and its allied terms, and topics.

These courses enhance one's knowledge in finance, and its management, and guides how to deal with it in a systematic manner, while studying about it using practical as well as theoretical methods.

Now, finance does not only mean money, although it is about funds, capital, money, and managing all its components. The umbrella of finance encompasses all these and much more.

So, when it comes to answering the question “why MBA in finance”, it is always better to start from the basics.

MBA in Finance: Things you Need to Know

Having a bare minimum idea is necessary to clear the question, Why MBA in Finance.

Firstly, don’t give in to preconceived notions - do not fear if you are not an expert with numbers.

Using logical and analytical skills, with the ability to quick calculations, and a pleasing personality, good observing skills is enough.

• If you intend to enter a career in finance only for its fat pay packages, remuneration, and its lucrative career opportunities, then you would not succeed, unless you have a true calling for the finance and its related subjects, i.e., the name of finance incites a passion in you.
• Prepare for the entrance exams like CAT, MAT, GMAT religiously, because they are the only way you can enter your favorite B-school. Practice writing answers, reasoning and aptitudes by keeping a schedule for yourself.
• If you have completed your B.com or any graduation in Economics or related stream, join a job, gain experience and prepare for the management exams while you earn, if you have planned for a career in finance in future.

What are the pre-requisites for an MBA in Finance?

One needs to be good with numbers, balance sheets, and has to have an interest in financial analysis, financial crisis management.

A minimum score of 50% and above in their graduation, and a score in CAT, MAT, GMAT is also needed. Four to five years of work experience in the business and management field is an added advantage.

MBA in Finance - Detailed Explanation

This degree is generally about two years, and a postgraduate degree offered by most Indian universities, and business schools.

Generally, the first year of the study of this degree is dedicated to simple management theory, while from the second-year students are allowed to study their specialisation, along with industry exposure.

What are the subjects taught?

The MBA finance subjects, mostly depend upon the individual institution. This list provided below is just indicative, not exhaustive-

1. Cost accounting
2. Financial planning and control
3. Investment analysis and portfolio management
4. Banking and Insurance
5. Micro and Macro Economics
6. Fixed Income Securities
7. Advanced Accounting
8. Marketing and strategy
9. Financial statement analysis
10. Corporate Finance

Super-specialization in Finance

Some business schools or universities which offer finance related courses also offer in-depth specializations within the MBA in Finance course. Few of them are like -

• Certified Public Accountant(CPA) - CPA's deal with taxes, wealth management, investments, audit and other finance-based roles for companies or even for an individual.
• Certified Financial Advisor (CFA) - Roles are helping people to make wise investments and managing money, and building investment portfolios.
• Certified Management Accountant (CMA) - Forecasts the profit margins of companies and helping to achieve financial growth, and protecting the company from financial risk.
• Financial economics - This course deals with microeconomics and the relation between producers and consumers in a given economy.

The Benefits of doing an MBA in Finance

While studying about finance, the most sought-after courses are diplomas, bachelors, and postgraduate in finance and marketing. Among these, the most significant cause for the contemporary job market is an MBA with Finance specialization, which has been a favorite amongst students and working persons for the past few years.

Now the question arises, that MBA is a degree of business administration, then “why MBA in finance?”

Well, the answer lies in the question itself.

• Demand in all industries - MBA, in general, focuses in business administration, and sometimes it also has specializations like HR, marketing, sales, operations, etc. while finance is a subject that is responsible for managing and maintaining the costs and capital required for these aforementioned sectors. So unlike certain specialized streams of MBA like IT or hospitality, this one is not confined to certain specific industries alone. No matter what industry it is, the demand for an MBA in Finance will always be there, which solely makes this stream highly versatile and much in demand.
• Expertise in handling Corporate finance - Corporate sectors require financial assistance, in terms of how their profits and losses are to be handled. How the finance should be controlled, and managed in a way that it does not harm the company’s reputation or the company’s credibility in the market is something that only Finance managers can deal with. Hence an MBA in Finance is the top choice for many.
• Deliver financial stability - Over the past few years, companies which have been incurring losses and are not able to save profits need financial managers to sail them through the market, that remains unstable most of the time. With an MBA degree in Finance, you will have that necessary knowledge and business acumen to pull a company out of danger and help it grow and earn financial stability.
• Strategic acumen - And one can only become a financial manager or financial analyst by pursuing a degree or diploma in finance that teaches strategy, statistics, economics, leadership, and market situations. A finance manager is generally one that possess a keen sense of strategizing and planning, which makes them highly lucrative assets in any organization.

The scope of MBA in Finance

"Despite the recession and speculation, finance has remained one of our most popular courses under the general MBA programme across the IIMs," says Ishita N Solanki, Manager of Global Partnerships, IIM, Ahmedabad. (As said in an interview to India Today)

This statement itself says how much scope, studying or pursuing a career in finance has.

And it is more important to emphasize the fact that even after several financial problems our country has faced, the most recent being the demonetization announced in November 2016, the study or the wish of studying finance as part of MBA curriculum has gained momentum instead of dying down.

The scope that the students get while studying MBA in finance varies from being a financial advisor to a company to being a financial manager, asset management executive, cost manager, investment banker, to name a few.

In the Government sector too, the utility of a financial analyst, or a manager who can understand and manage finance is significant because along with private assets, public properties, and government offices to need financing to function accordingly.

Career options for an MBA in Finance

There is a wide variety of lucrative career paths that befit an individual with a degree in Finance. Some of the major career options that one can opt for after an MBA in Finance are -

1. Investment banker- Gains capitals for the company from other prospective shareholders, and also aids in the private wealth risk management, and helps in managing bonds and securities.
2. Cost Accountant- One can also pursue a career in cost accounting as the MBA in finance in India also teaches students about auditing, costing, accounting, etc.
3. Financial analyst- A financial analyst analyses the market situations, investments, shares, bonds, assets and every financial component of a company and observes the risks and downs, and advises when to invest and when to not.
4. Financial officer- A financial officer can work for banks, credit unions, public sector company, or any company that deals with funds and capital. They can be loan officers, securities trader, brokerage expert, taxation expert, etc.
5. Consultancy services- Amidst all these, one can also counsel government and private offices on financial aspects as part of a freelance job. It is a great opportunity since almost everyone requires financial advice to go on with their day to day work. And the advantage is one will not have to work under anyone and enjoy a great work-life balance.
6. Further studies - One can also pursue Ph.D. in Management after an MBA in finance and become a professor in a college or University, teaching students about finance and creating future financial planners, and CFOs (Chief Financial Officers).

Conclusion

Thus, a degree in MBA with Finance as specialization is important not only for today's job market but it significantly plays a greater role in shaping the career of a person whose interests lies in the domain of finance and who loves the world of capitals, funds, money, wealth, and assets.

While selecting a course of MBA in Finance, one has to plan accordingly, keeping in mind the cost which is expensive as this course covers theory and also gives practical exposure.

So, be ready to venture into the world of finance with the calculators, ledger books, pens, and laptop as the weapon of wealth and finance management and get ready to rule the world with excel sheets acting as the vigilant companion.