Make a career in Financial Services

By Urmila Rao | Yahoo! India News – Tue, Jan 18 3:06 PM IST

• Ever wondered who manages the money that you deposit in the bank or invest directly in
stocks and bonds? Well, the financial services segment of the bank and standalone
financial corporations further invest this money in a range of financial instruments,
striking a balance between debt and equity.

On a broader canvas, financial services encompass products and services offered by

financial institutions in order to facilitate financial transactions and other related
activities. These could be associated with loans, insurance, credit cards, investment
opportunities, money management and stock broking services. But the substantial chunk
of work happens in capital markets.

Normal savings bank account gives out very low interest for your money with fixed
deposits paying slightly higher interest rates. So, the only way to provide the customer
best services- maximum returns and added benefits - is to invest the same in capital and
commodity markets.

“Capital Markets comprise the stock exchange, stock market and mutual funds,” informs
Atul Kanwar, an analyst working with Bajaj Capital. The Securities and Exchange Board
of India (SEBI) is the authorised body, regulating the operations of stock exchanges,
banks and other financial institutions.
Jobs for graduates, MBA grads
The financial services sector looks for graduates with commerce, economics, finance,
mathematics and a management background. Candidates start in financial advisory
companies, in mutual fund houses and in stock brokerage firms. “We usually prefer
postgraduates from leading business schools, with specialisation in finance or sales and
marketing,” says Sunaina Matto, executive vice-president, HR Bajaj Capital. Bajaj
Capital is a distributor of investment and investment products with expertise in financial
planning and investment advisory.

In a mutual fund company, the function areas include sales and marketing, fund
accounting, investment and research, operations and administration. You can be an
advisor or a financial planner. Once you gain four to five years of experience, you can
move on to be a research analyst and some years later, a fund manager. As a fund
manager, you have to be apt at portfolio management skills and possess knowledge of
various asset classes to take decisions on buying and selling (see table: Financial Services
Sector).

One can also be an intermediary, but for that one has to clear an exam conducted by the
Association of Mutual Funds in India (AMFI). Graduates with AMFI Certification can
work as business development managers, relationship managers and advisors for the
marketing and distribution of mutual fund schemes.

There are back office functions such as fund accounting, IT/network support also. The
compliance areas in mutual funds and brokering firms also recruit candidates possessing
law degree or a company secretarial degree. The job is also open to NCFM-certificated
candidates, the examination of which is conducted by National Stock Exchange (NSE).
Various stock exchanges such as Bombay Stock Exchange, National Commodities and
Derivatives Exchange (NCDEX), NSE, other commodity exchanges and market entities
such as NSDL, SEBI and power trading exchanges also have job openings at various
levels.

Opportunities galore
The total Foreign Institutional Investment inflow in equity during January to May 2010
was US$ 4.6 billion, according to ibef.org. The average assets under management of the
Mutual Fund industry stood at US$ 170.46 billion for May 2010, as compared to US$
135.58 billion in May 2009, according to the data released by Association of Mutual
Funds in India (AMFI). What do these figures convey? It means that the capital markets
are buzzing with action. The inflow of funds is feeding domestic businesses with capital,
giving them the base to grow. Growth in markets means need for human resources. The
April 2010 report of FICCI report said, there will be three-fold rise in India’s capital
markets by 2020.

Where you can work

As a stock broker, you may work with institutional investors as securities traders,
securities analysts, advisors or dealers. Brokers also work with banks, MF, pension funds,
insurance companies and other FIs or work with individual clients. Small time stock-
brokers perform the combined roles of researchers, equity and investment analysts as
well as that of financial advisors.

Companies depend on researchers and analysts to understand the market behaviour and
make investment decisions. One division of capital market called the Equity Capital
Market deals with trading shares and the other, Debt capital Market, deals with fixed
income.

Companies hire equity analysts to research the market and suggest profitable investment
options. The research analysts do the valuation, and track the companies’ financial
performance. Organisations also hire investment analysts who research, study and
analyse financial reports of companies. The analysts also study market and company
statistics, stock performance, assess financial results and suggest long/short-term
investment options.

You can rise in the corporation to become a fund manager. They identify buying and
selling opportunities,and risk return trade-off while maintaining knowledge of liquidity
requirement

The advisors or financial planners understand the financial goals of the customers. They
chart out a plan of action for them, so that their financial goals can be realised.

Entering the sector

An MBA from a top institution is always the preferred entry route. Investment banking
pays the highest salaries and recruits the best candidates. The job demands tremendous
analytical skills, ability to understand apply stochastic forecasting techniques, and very
good communication skills. Some institutions like NMMIS, also offer specialised MBA
programmes focusing on the capital markets. A Certified Financial Planner is another
preferred route of entry.

Trading in stocks does not require formal qualifications but a keen sense of the financial
system. A basic ability to analyse balance sheets is very essential. Some renowned stock
brokers do not have much qualifications, though with the changing nature of the stocks
and the values they represent, a qualification like Certifed Financial Planner (CFP) would
help. So if risk taking is your forte, and you can withstand high pressure and stress on a
daily basis, this may be the job for you.

EXPERT TALK: What Mutual Fund Managers do at work?

Mr. T N Radhakrishnan, Head of HR, UTI MF talks to Urmila Rao.
Q: What are the role responsibilities of an MF Manager?
A: The core responsibilities involve taking investment decisions through interactions with
brokers, company officials, market players, research specialists and other sources. He has to
monitor the portfolio and review the performance of funds regularly. He has to work closely
with the marketing department to share knowledge on funds, schemes and portfolios, dividend
schedules. .
Q: Which institutions have mutual fund managers?
A: There are 43 AMCs that have mutual fund managers. Besides us, some of them are: Birla
Sun Life Mutual Fund, LIC Mutual Fund, HDFC, Reliance, Kotak Mahindra, ICICI
Prudential mutual funds.
Q: How long does it take for a fresher to graduate to MF manager?
A: It takes approximately 12-15 years become a full-fledged MF manager. A fresh recruit’s
career progression is thus: Research Analyst , Senior Research Analyst, Assistant Fund
Manager, Co Fund Manager, Fund Manager.
Q: What are the challenges?
A: For firms, retention at times becomes a challenge as small firms can afford to give better
titles faster compared to the larger companies. In larger companies, the size of the Portfolio
coupled with the performance of the fund plays an important factor. Large organisations are
structured and need to respect the issues related to internal parity etc.

PROFESSIONAL SPEAK: "Investment banking, his true calling"

Institute of Management Studies, (NMIMS), Mumbai
Ashish Gupta, 25
PGDM (Capital Markets)
Narsee Monji
After completing Engineering with an IT specalisation, Ashish decided to embark on a career
in Capital Markets after a two-year stint in the IT industry. This helped him discover that
investment banking was his true career destination. What took him so long to realise that? “As
you grow and get exposed to new things in life, you see other opportunities that hold your real
interest,” replies the 25-year-old sagaciously.

The first-year syllabus had apprised him of concepts like Debt Market, Macro Economics,
Corporate Finance, Taxation, Computer Application in Finance among others, and it ended
with an internship. “The real experience is different and enriching,” says this NMIMS student,
who interned with a domestic brokerage house.

“In the second year, I am getting acquainted with the basics of Financial Risk Management,
Equity Analysis, Global Capital Markets, and Commodity Markets and Trading,” shares
Ashish, the second-year student of MBA (Capital Markets).

PROFESSIONAL SPEAK: The stock markets make weekdays more exciting!

Atul Kanwar, 32
Assistant Research Analyst Bajaj Capital Services
For Atul, Saturday and Sundays are boring! Mondays excite him the most, when the stock
markets open to a frenzied start, post the weekend lull.

The 32-year-old started dabbling in stock markets while in college. As a retail investor,
research on financial health of companies, tracking the performance of asset classes, investing
and redeeming portfolios and activities related to capital markets fascinated him.

But before taking up a profession that married his aptitude with interest, he took up ‘a few
wrong jobs’. Currently working with Delhi-based Bajaj Capital, he shares, “While completing
management studies with a specalisation in marketing, I thought sales and marketing was the
most glamorous line of work offering high salaries and a certain lifestyle.”

So, as soon as management studies were over in 2000, the MBA graduate from University of
Pune headed for the US-based Turner International, a media conglomerate, and started his
professional life selling distributorship to domestic media houses.
But reality dawned, soon. The work wasn’t as alluring as he had perceived. “I got tired of
travelling and the rigour,” he says. Seven years later, he enrolled at the International College
of Financial Planning (ICoFP).

“I completed a two-year full-time PG Diploma in Securities Analysis and Trading, “says

Kanwar, who rues that institutes offering specialised studies in trading hardly exist.

Today Kanwar identifies stocks for HNI clients. He also prepares financial intelligence reports
by researching the financial histories of companies. His reports are published on the
company’s website under “Just Trade” section. Kanwar also pens “Stocks to Buy”- a column
for ‘Investor India’, Bajaj Capital’s monthly magazine.
“I suggest long-term stock options, which is my area of expertise,” he apprises. Finally he
feels at home.

JOB PROFILES IN FINANCIAL SERVICES

VERTICALS/SERVICES FUNCTION DESIGNATIONS

Retail

Equities

Brokerage, Research, Online Investing in Stocks of the Dealer, Advisor, Analyst,

trading, Portfolio mgmt listed companies Operations Manager,
Services, Investing in IPOs, Relationship Manager,
Depository services

Mutual Funds

Equity funds, Debt funds, Investing in Stock market Relationship Manager, Back
debt-equity funds, ELSS through asset mgmt Co office/Operation Manager

Bonds

Government bonds, Investing in the form of debt Relationship Manager, Back

convertible bond, zero to the companies yielding office/Operation Manager
coupon bonds interests.

Commodities

Buying, Selling, Research, Investing funds through Dealer, Business

Online trading, Spot and commodity exchange in Development Officer,
future trading commodities like soya, Research Analyst,Sr.
cotton, sugar, wheat etc. Research analyst,
Relationship Manager

Derivatives Trading

Forwards, Futures, Options, Investing in instruments Dealer, Relationship

Swap which derive value from Manager, Analyst,
underlying value of Operations Manager, Advisor
commodity, security,
exchange rate etc.

Insurance

Life and General Insurance Providing coverage against Agents, Managers,

policies various risk and Relationship Managers
 securing future expenses

Banking

Commercial, Investment, Managing funds for day-to- Management Trainee,

Private Banking, NRI/HNI day working capital Assistant Manager, Manager
Banking requirements, investments
and other financial
transactions

Institutional Services

Capital Market

Managing IPOs and rights Services to Indian and foreign Deputy Manager, Manager,
issues, allotments, managing corporations for fund raising, Assistant Vice President
takeovers investing through capital
markets in India and abroad

Investment Banking

Infrastructure, Restructuring, Helps to identify, evaluate Vice President, President

Mergers and Acquisition, and tap investment &
Advisory opportunities, while leading
all aspects of deal structuring
and negotiations

• Content courtesy: Careers360.com

8 comments
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anirban 1 hour ago Report Abuse
let me tell you what finance people do with an example...suppose in a firm, there are
engineers who have been given the task of making a processor for laptop. The enginner
will try make it the best way with best materilas, with best technology. BUT the finance
manager doesnt want him to do that. he will order him to make a processor within a given
 budget. Mostly that budget is such , that finally a weak , unsustainable product is the
result. Also the marketing professionals poke their nose to invest more on advertisements
and unwanted packaging . So the quality comes down further. The engineers are further
asked to design the product in a way that the product breaks down after a while, generally
within a warranty period. so that customers are retained.

All these create the products to become unsustainable and we keep on buying and buying
with a never achievable goal of satisfaction. Finally we end up with three devastating
consequences.

1) tremendous waste and pollution

2) unhappiness and depression
3) inequality and class

But its not the fault of these finance managers or marketing professionals. They are doing
their job.
But the fault is in the system which creates such need of waste like finance and
marketing.
But we can change that,
look upto the venus project www.thevenusproject.com

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arun 1 hour ago Report Abuse
I think now Yahoo news must now find some time to report about the Zeitgeist
Movement which majority of the world are interested in.It already has 500000+ members
over 3 years time and it is expected to skyrocket after the big success of the third part of
the documentary Moving Forward,on jan 15 th all over the world.It is pretty clear from
the comments section that there is no one with any more interest in the obsolete and
detrimental monetary system,economics,commerce,politics etc.Especially after the
release of the documentary Moving Forward every almost every one has understood the
fact that money is the root cause of all evil viz poverty,hunger,war,crime,greed,unhealthy
competition and all the innumerable entities which you can list.What people need is good
food,good health care facilities,good transportation,provision to acquire knowledge
without any barriers and above all the opportunity to express his creativity for the welfare
of the individual and the society.We do have the technology to bring about that.This
monetary system with it's unhealthy consequences like
economics,commerce,business,trade alone is the barrier for that.It is high time that those
engaged in studies related to monetary system understand their folly and instead go and
learn something constructive and useful for the individual as well as the society like
Science,Engineering,agriculture,music,literature,medicine,fine arts etc.
•
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Vivek 1 hour ago Report Abuse
Intersting!!!
Ok now let us see what is goin on here.A reporter reports on the possibilities of making
money through a career in Financial Services.
1) She would have wrote such an article because her boss would have asked her to do
so.But it is clear shes got no clue on global economics and factors like fiat currency ,
fractional reserve system and their impact on people.Forget people her on life.If she
doesnt know...shes not a true reporter.But if she does her boss anyway wouldnt want such
an article.
2) The Boss would have wanted such an article because the schools and institutes would
have paid money to yahoo as part of their ad campaigns.Obviously even if the boss is
aware of the true nature of economics he wouldnt get paid if he didnt write the artice the
way the schools want it.
3) There are a few students and experts who claim the following to be true.Now the
students dont know anything beyond their text books acceptable.But UTI manager
claiming a good career in these area is beyond insane.He lies through his teeth which is
nothing less expected from anyone in the Banking and Finance industry.The whole
system is structured over lies.Anyone with a little interest doing a bit of research would
soon come to realize that most financial experts have no clue whats goin to happen apart
from a global economic collapse.

If you look at the sort of news provided here all i see is lady gaga...ipl cheer
leaders....ipad2 and a few meaningless local news.Meaning the target audience is middle
class idiots.Hence to a bunch of idiots this article serves a purpose.

For the rest of the people who are looking for some news that actually matter to
Humanity...I suggest to not even visit this site ever again and look around over the
Internet.

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ankit s 2 hours ago Report Abuse
Hii just one question :: What is the salary statistics for the Research analyst in the Top to
medium mutual fund company ?

Do anyone of you have idea ?

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Andrew Buxton 5 hours ago Report Abuse
In this age of technology, where we can create an abundance of the neccessities of life
what need is there for monetary economics? It is outdated just like the horse and cart we
no longer use for travel.

Our current methods of rationing the neccesities of life to only those who can afford it in
this monetary market paradigm is inhumane.

Economics is supposed to be the social science that analyzes the production, distribution,
and consumption of goods and services for the most efficient use of the available
resources on this planet.

We currently have a so called economic system that is based on infinite consumption,

infinite waste of resources and infinitie growth model, on a planet with finite resources.
You have to be a complete idiot to even call this economics - its perhaps the most insane
and retarded economic system that has ever existed on this planet.

What we really need as a species is an economy that is based on reality and available
resources not fiat currency that benefits only the top 1% and puts most of the world in
debt through the IMF and Banking Cartels we will continue to be limited and important
work like that being done at SENS foundation will continue to struggle for human and
material reosurces required to do their work.

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arun 6 hours ago Report Abuse
I had an online with a guy who claimed to have attended some classes on economics and
business administration.I'll copy paste relevant parts of it here.
Arun Padmakumar:Business and economics itself is crap.What you are trying to do is to
justify a crap with another crap lol [:p]
Josh Easton:I took business classes. Zeitgeist is full of CRAP on money creation and
anyone who knows anything about business will tell you the same.
Arun Padmakumar:Business and economics itself is crap.What you are trying to do is to
justify a crap with another crap lol [:p]
6 hours ago · Like
Josh Easton:
What science and engineering points of this CRAP would you like to stand behind? There
 are some slices of apple but it's mostly dirt.
Go ahead. Tell me what things you think I need classes to understand. I'm a pretty bright
fella. Come on, l...ay it on me.
If not, I have a few scientists and engineers that I can ask if it gets too technical. Go
ahead. Waste me.See More
6 hours ago · Like
Arun Padmakumar:Well the problems at hand are all technical.What technical
competence does a politician or an economist claim?
There are some slices of apple but it's mostly dirt.-I cannot stop laughing.So next time
you have a viral fever don't go to a hos...pital.It is all a product of science lol.And stop
using computer and internet also,they are all products of engineering lol.
Josh Easton:The problem that we have is that we have governments that are neoliberals.
This means that they are pro corporation and concede political power to them and shift
the tax burdens to the people. This is then spent mostly in @#$% corporate subsi...dies,
more corporate tax cuts, more deregulation of our trade protections, environmental
protection, and labour protection.
The number one problem facing our western societies today is inequity.
What do you have in the toolbox to fix inequity?
Arun Padmakumar:Dude Can your politicians and economists develop the technology
that will ensure food,good health care facilities,housing ,transportation facilities,for all
the inhabitants of this planet?Can the politicians help in automating the useless jobs and
hence allow people to engage in creative pursuits,and which to very high extent will
contribute to the well being of all the inhabitants of this planet? I can't see anything
politicians or economists can contribute for solving the existing problems.All they can do
is to enslave others in an outdated obsolete system,stunting their growth at every stage.
So there is no place in the agenda of politicians or economists for the methods dedicated
to solving the fundamental problems that are nagging the inhabitants of this planet,which
the technologists are capable of now.
If you are still convinced of what I am talking kindly watch these videos:
Awakening Video(A must watch)

Part 1:http://www.youtube.com/watch?v=cAjFBsp__aE

part 2:http://www.youtube.com/watch?v=yCJqP18gBlc&feature=related

part 3:http://www.youtube.com/watch?v=tdhklzlF3Dw&feature=related

part 4:http://www.youtube.com/watch?v=Q1a5MlHFJu4&feature=related

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Yekeen 6 hours ago Report Abuse
Very soon, the monetary system is going to collapse. This is due to the inflation which
has reached a saturation point at the moment. In the monetary system, anything which is
 not scarce looses its value. Even money when too abundant, will inflate in other words,
loose its previous value. This is what is happening right now. The government is trying to
curb inflation with more inflation and hence the results are staggering. The buying power
of INR is bound to go down. And when that happens, prices are bound to sky rocket.
Very soon, money itself will loose its value (absolute devaluation will occur). When that
happens, mass-panic will occur. Banks will shut down. Transaction will find another
temporary medium- Gold. Not all people in India have reserved Gold. They will starve.
Riots will happen. Governments will fail. And people will soon realize that monetary
system is a false economic system. Its a fraudulent system with inherent debt hidden in it.
Due to which people resort to slavery. Once the monetary system completely collapses,
for the first time in the history of human civilization, people will be free in a true sense of
the term. They will be united after much turmoil. And Resource Based Economy will
grow. Remember money = debt =more money = more debt. If you are new to this idea.
Download Zeitgeist Addendum the movie into your hard-drives and learn what they wont
tell you in your commerce classes without technical jargon to confuse you out of the
truth.

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rama 6 hours ago Report Abuse
It is about the popular media encouraging the financial career of the country, so that we
can also be on the same track as if the whole western economic system has succeeded
with this idea of CAPITAL and Capitalism ... just try finding who owns the media
industries... ;)
Do you guys really think that monetary system is going to give us mileage...??