Most students today dream to make it big in finance but not many know the avenues within this space. While capital markets remains a known section, there are ample opportunities in the global capital markets space.
With India emerging as a global outsourcing hub, the top investment banks have their captives set up and expand in India.
These banks carry out not just the core operations functions but also finance and treasury, legal and compliance, taxation and audit functions.
The third party companies also have a significant presence expanding to other areas like finance and accounting for not just BFSI but other sectors as well.
Another area where there is a demand for finance professional is the fund accounting space. India was more of a cost arbitrage destination but it is the talent in India which makes it a value addition destination.
More and more knowledge intensive processes are finding ways to India. These involve processes like valuation validation, investment research and product control.
Such processes require a high degree of specialisation and competencies thereby providing excellent career opportunities for finance graduates.
Chartered accountants, CFAs and MBAs have a strong foundation of finance. With an incremental specialised training in these areas, the aspirants are perfectly poised to take on some of critical roles in an investment bank.
Read: MBA India vs MBA abroad
Some indicative avenues are:
Financial planning and analysis:
Overseeing the accounting / financial / regulatory reporting for the firm.
Prepare external financial Reports for public filings, tax And regulators.
Monitor limits and maximise efficiency of financial and capital resources
Management reporting and analytics to the business management teams
– Team provides PnL substantiation coverage across securities, derivatives and capital market groups and investment management.
– Perform price testing and off market rate checking and resolve variance
– Assist with P&L report, production of trading, accrual and funding books.
– Ensure accuracy in terms of classifications, entities, value and booking of transactions
Corporate treasury and tax
– Provides corporate finance advisory services to management and business units, maintaining the firm’s liquidity, optimising its capital base.
– Cash management, tax arbitrage and calculations The tax ensures compliance with income and indirect tax filings.
Fund administration is name given to the set of activities that are carried out in support of the actual process of running a collective investment scheme, whether the scheme is a traditional mutual fund, a hedge fund or something in between.
Fund managers often choose to outsource some or all of these activities to external specialist companies, these companies are often known as fund administrators.
These administrative activities would include:
– Reviews fund formation documents
– Reviews registration and filing documents
– Performs corporate secretarial and director services
– Maintains the financial records of the fund
– Maintains the general ledger and prepares a trial balance (a summary of the general ledger broken down by capital, income statement and balance sheet)
– Responsible for calculation of net asset value
– Responsible for the allocation of profit and loss to investors coordinates the annual audit
– Prepares initial draft of audit package for auditors
– Oversees the day-to-day operations of the fund
Fund accounting is the part of fund administration which includes processing the end to end accounting, which includes the transaction booking, reconciliation, valuation and pricing and the financial reporting to the client.
Few of the activities performed in fund accounting are:
– Maintaining the fund accounting records, reconciliations with Broker/ Custodian etc.
– Preparation of Balance sheet and statement of operations.
– Computes the NAV, obtains security quotes, calculate Market value and Cost of investments and calculates fund appreciation/ depreciation.
– Researching and Posting the Corporate Action events and ensures the accuracy of NAV.
– Provides tax lot detail, obtain shareholder activity from the transfer agent.
– It also provides the performance analysis.
Investment research is about analysing companies and their business. Investment research helps clients invest their capital to achieve the best risk-adjusted investment returns possible.
Comprehensive research analysis of the world’s economies, companies and industries, enable to take informed investment decisions.
Investment research also includes comprehensive quantitative analysis at both industry and company level.
Investment research is broadly classified into following groups:
– Equity research analysts analyse macro, sector and company fundamentals to identify investment opportunities in global stocks.
– Credit research analysts make investment recommendations for the corporate debt and credit derivatives of issuers in various industry sectors.
– Economics research analysts formulate macroeconomic forecasts for economic activity, foreign exchange rates and interest rates.
– Portfolio and Strategy research analysts formulate equity market views, forecasts and recommendations on both asset and industry sector allocations for every major market.
– Commodities Research analysts analyse macro fundamentals to formulate forecasts for commodities in six main areas: Oil, gas, base metals, precious metals and agriculture.
High-end investment research services support the equities, fixed income and corporate finance divisions of banks and buy-side firms. Investment research firms hire investment analyst who are qualified MBA’s, CFA’s or chartered accountants.
— authored by Sonya Hooja, Co-Founder & COO, Imarticus Learning.