A career in finance can be very satisfying and lucrative. That’s what engages many MBA graduates to finance jobs ranging from highly specialized investment banking jobs to general financial management profession. Finance in simple terms is all about obtaining and managing money. Of course, it sounds more magnificent when you use the appropriate jargon. And we will get to that part fast. For now, it would be enough to understand that people and businesses need money. Part of the complexity is involved in raising the funds and the rest engaged in knowing what to do with it. Examine your own story. You have probably identified the big expenses (studies, marriage, healthcare, house, vacations) that you would hope for over the next several years. In order to suffer or improve your standard of living, you would require a job (or begin a business) that pays sufficiently. Over a period of time, you will save sufficient to tackle each of the big milestones you have planned for yourself. If the requirement to spend is urgent you might borrow the difference from someone who believes you. And in turn, you pay back the borrowed amount overtime. It's pretty much similar for business as well excluding that the scale and complexity go up several notches. Finance is examined to be a subset of economics.
Meaning of Finance Management In MBA: financial management means planning, organizing, staffing, directing, controlling the financial activities such as acquirement and utilization of funds of the enterprise. It means applying common management principles of the financial resources of the enterprise.
Definition of Finance Management in MBA: “finance management is the process concerned with planning, raising, and controlling and administering of funds used in the work.”
Top Colleges For MBA Finance Management In India:
- Indian Institute of Management (Kolkata)
- Indian Institute of Management (Ahmedabad)
- Indian Institute of Management (Bengaluru)
- Jamnalal bajaj institute of management studies (Mumbai)
- Faculty of management studies (new Delhi)
- Indian school of business (Hyderabad)
- Indian Institute of Management (Lucknow)
- Xavier labor research institute (Jamshedpur)
- Management development institute (Gurgaon)
- SP Jain institute of management and research (Mumbai)
MBA Finance Courses:
- Accounting for managers
- Business Communication
- Quantitative Methods for management
- Organizational behavior
- Managerial economics
- Marketing concepts and practice
- Corporate finance
- Strategic Management
- Investment analysis and portfolio management
- Financial markets and institutions
- Advanced financial management
- Public financial administration
- Business and corporate laws
- Human resource management
- Information technology for finance
- Production and operation management
- Treasury and risk management
- Mergers and acquisitions
- Microfinance and insurance
After completing the MBA in finance one can find the job in the various sectors:
- Corporate finance
- Corporate banking
- Credit risk management
- Asset management
- Hedge fund management
- Private equity
- Sales and Trading
The average salary of MBA Finance in India is Rs 6,78,000 per annum. The salary increases with increasing experience and knowledge.
EY, HDFC bank, Accenture, TCS, ICICI Bank are top recruiters for MBA finance applicants.
MBA in Finance Management Job Roles and Career Opportunities:
MBA in finance is a tough course; imagine it as a training for one of the most liable courses in the world. Yes, you would be holding the finance of the business and everyone knows finances run an enterprise and you will be in charge of finance. There are multiple chances for finance grads and the cause for this magnetism is the various subjects taught to the students in the course of 2 years.
Job After MBA in Finance management:
- Accounting manager
- Chief financial officers
- Cash managers
- Manager consultants
- Investment banking associates
- Credit managers and specialists
- Financial analyst
- Corporate controllers
- Finance officers and treasurers
- Insurance and risk managers
- Investment bankers
- Investment sales traders and associates
- Accounting manager: an accounting manager implements systems for gathering, analyzing, verifying, and reporting certain types of financial details. Hardly an accounting manager is a part of a huge group that involves the mid-level managers.
2.Chief financial officers: a chief financial officer is a senior executive in charge of managing the financial actions of the company. The chief financial officer's work involves tracking cash flow and financial planning as well as examining the company’s financial strengths and weaknesses and proposing written actions.
3.Cash Managers: a cash manager specializes in supervising cash management activities such as posting procedures for payments and repay or bank account administration. Cash managers are required in a variety of organizations such as health care businesses or financial services companies. They usually work full time in an office environment.
- Manager consultants: management consultant is the practice of helping companies to improve their performance. Companies may draw upon the services of management consultants for a number of reasons involving gaining external advice and access to the consultant's exclusive expertise.
5.Investment banking associates: in the investment banking career path associates are one run greater than analysts. While analysts are recruited from top undergraduate colleges. Associates are promoted internally or enlist from top MBA programs.
6.Credit managers and specialists: credit managers are in charge of overseeing the credit granting process of a company. Their task is to analyze company sales and reduce bad debts losses by maintaining the credit policy.
7.Financial analysts: a financial analyst pores over information to identify business opportunities or make investment advice. More junior analysts tend to do a lot of data collecting, financial modeling, and spreadsheet maintenance.
8.Corporate controllers: a company’s controller is the chief accounting officer and heads the accounting division. The controller is in charge of the company's financial statements. Journal ledger and cost accounting, payroll, accounts payable, accounting receivable, etc.
- Finance officers and treasurers: treasurers are not just bookkeepers they are financial decision-makers who shoulder a lot of authority. They required an eye for smaller details with the vision to handle big picture problems. They are superior and advisors at the same time and especially when there is serious capital investment entangled. They sometimes act as a financial planner for the entire business.
10.Insurance and risk managers: risk managers specialize in identifying potential causes for accidents or loss and executing preventing measures. Devising a plan to reduce the cost.
11.Investment Bankers: an investment banker in an individual who often works as a part of a financial organization. And is primarily concerned with increasing capital for corporations, governments, and other entities.
12.Investment sales traders and associates: sales and trading is a community at an investment bank that consists of salespeople who call institutional investors with ideas and chance and traders who execute orders and guide clients on entering and existing financial positions.
Functions Performed In Finance Management:
- Estimating the amount of capital required: this is the foremost work of the financial manager.
- Business Company needs capital for:
(i) Buying of fixed assets.
(II) Meeting working capital needs.
(iii) Modernization and growth of the business.
3.Control Capital Structure: Once the need for capital funds has been determined a decision regarding the kind and portion of various sources of funds has to be taken. This financial manager has to determine the proper mix of equity and debt and short term and long term debenture ratio. This is done to accomplish reducing the cost of capital and increasing shareholders' wealth.
4.Choice of sources of funds: before the real procurement of funds are to be raised. The management can increase finance from various sources like equity shareholders, preference shareholders, debenture holders, banks, and other financial institutions, public deposits.
5.Procurement of Funds: the financial manager takes steps to obtain the funds needed for the business. It might need negotiation with creditors and financial institutions, issues of the prospectus, and so on.
6.Utilization of funds: the funds obtained by the financial manager are to be prudently invested in various assets so as to increase the return on investment while taking investment decisions management should be guided by three main principles: safety profitability and liquidity.
- Disposal of profits: the financial manager has to choose how much to retain for plowing back and how much to divide as dividends to shareholders out of the surplus of the firm. The trend of its cost of the share, the need for the funds for self-financing the feature programs, and so on.
- Management of cash: management of cash and other current assets is the main task of a financial manager. It includes forecasting the cash inflows and outflows to ensure that there is no shortage of cash within the company. Enough funds must be available for buying the material payment of wages and meeting day to day costs.
9.Financial control: assessment of financial performance is also the main function of a financial manager. The overall measure of assessment is the return on investment. The other techniques of financial control and assessment involve budgetary control, price control, internal audit, break-even examination, and ration examination. The financial manager lays emphasis on financial forecasting as well.
Types of Finance Management:
1.Capital budget management: capital budgeting is the forecasting procedure used to choose if a company fixed assets, for example, the new plant, new mechanism. Numerous formal master plans are utilized in capital budgeting for example profitability index, payback period.
2.Capital structure management: in corporate finance capital structure manner in which firm finance through a mix of a debenture or equity securities. Debenture finance comes as a bond issue while equity comes from retained income.
3.Working capital management: working capital management of a company defined as managing bookkeeping methodology and accounting masterplan intended to keep track of current assets and current liabilities.