Roles of a Financial Analyst in the Finance Industry

The department of finance, makes for one of the most important department of any organization, covering everything from bookkeeping, to providing the heads with reliable, relevant and timely financial information, which is accurate to the T. This financial information is basically of key importance, as it has vital role to play in the dealings of the business organization. Those professionals who are responsible for performing these various duties are known as Financial Analysts.

Any Financial analyst, has a very important role in trying to determine, the company’s present financial value as well as future business prospects. Various other functions of these professionals include,  analyzing financial information to produce forecasts, of any particular business, that helps in a number of investment decisions. They are supposed to interpret the varied data, that is responsible for influencing the aforementioned investment decisions.

A financial analyst is involved in taking various other decisions, in particular those, that are involved in the creation of spreadsheets, conducting analysis, graphical representations in terms of charts, diagrams, graphs and so on but, not necessarily in the digital format. Most often these professionals perform roles, that revolve around illustrating various financial trends, in order for them to be transformed into, much simpler and understandable information in terms of the presentation of the same. Another responsibility that these professionals are assigned, is to develop a number of financial models, in order to be able to maximize business profits, which would be a direct result of accurate predictions of business opportunities and investments; while on the other hand maintaining minimal risk levels, especially when it comes to the maximization of the profits for the same. These functions are accomplished,  basically by not only reviewing, but also analyzing revenues and expenses of the business entity and then presenting them to the senior management of the firm.

The perfect candidate for a job like this, would be a professional who has sound knowledge about budgeting, making financial analysis and analyzing various business plans, in the most efficient and effective manner. Careers in this field are considered by many to be of a challenging nature, as they demand a professional to be of par excellence, especially when it comes to oratory skills as well as written skills. The industry of financial analysis, is usually on the lookout for potential candidates, who posses qualities like critical thinking, perseverance and investigating skills, especially for all the varied business related problems, that arise as an accompaniment to any business venture. While the job profile of any financial analyst, might expect qualities like determination and great responsibilities, this field is known to be extremely rewarding, especially in terms of salary packages. While there are many professionals working in the finance industry, who go on to change their jobs and switch to this field, it is not necessary to belong to a certain field to further your career here.

Candidates can belong to any field of study, such as business, economics, math, computer science or engineering, as well as those who have an MBA degree in finance. But the most popular route is to pursue a certification course, which offers a candidate the perfect, comprehensive training, especially when it comes to working in the industry. Many professional institutes like Imarticus Learning are offering great courses for candidates in the field of finance, analytics and more

How to Study for CFA Level 1 Exams

CFA is a world renowned designation, achieved after clearing the CFA exams, which are divided into three levels, taking place either annually or biannually.

Step 1: Cover the Basics

Research about everything from the curriculum, eligibility criteria, exam duration, required study time; make a skeleton plan, preview your study material and get started.

Step 2: Get Down To The Books

Study from both online and offline sources, consider joining a CFA course. Don’t stick to only rudimentary methods of studying, use flashcards, audio-visuals, anagrams etc. 

Step 3: Review And Polish

Take mock-tests, time yourself, make practice tests your best friends, solve, solve and solve! Ensure that you use your calculator to the utmost. 

Guide To Best Investment Banking Schools

MBA has been touted as the best degree when it comes to getting an entry into the field of Investment Banking. While there are many finance aspirants, belonging to the field of finance, who go ahead and pursue MBA as their post graduation course, there are also a number of others belonging to different fields, but having a great interest in finance who choose to pursue this course. Previously, top banks like Goldman Sachs, Morgan and Stanley, JP Morgan, Deutsch Bank and likes, only preferred to hire MBAs, who were at that time considered to be sufficiently qualified to take the world of Investment Banking head on. There seems to have been a certain kind of debate recently, on the alleged tumultuous relationship of MBA graduates and the field of Investment Banking. There seems to have been a substantial dip, in the number of MBA’s that the top banks were hiring before. One of the reasons sought for this development is the fact that just having an MBA course is not enough and a number of industry experts have been urging students to develop industry relevant skills, so at to get their dream job.

There are a majority of MBA students, who think of pursuing a professional course, so as to learn skills and techniques to get trained according to the industry standards. Institutes like Imarticus Learning, which offer comprehensive professional courses in subjects like Investment Banking, Asset Management, Portfolio Management, Corporate Finance and so on, are the most sought after institutes for a number of MBA graduates. So if you are one of those looking to pursue this extensive course, you must ensure that you pursue it from one of the top Business Schools, so that you increase your chances of getting hired by top Investment Banks. Rankings place the Columbia Business School at the top, in the list of Investment Banking Schools, which is closely followed by the University of Pennsylvania, Wharton and London Business School. While there a number of other institutes, like the Stern, from USA, which is enjoying its new found popularity, among MBA aspirants. According to a certain employment report, it is believed that Investment Banking remains one of the most sought after vocation, by the students of Stern University.

Let’s make a tabular representation of the top investment banking schools, there are, based on the number of graduates, who have gone ahead to work in the fields of corporate finance, sales and trading, equity research or other related field to investment banking. It is a well known fact that Investment Banks, usually tend to hire from among elite schools and those B-schools that are located right at the heart of financial centers, like for instance Stern, have a greater chance at being selected.

Here’s the guide to the best Investment Banking Schools:

1. Indian Institute of Management, Bangalore

2. Indian Institute of Management, Ahmedabad

3. IIM, Calcutta

4. Department of Management Studies, IIT Delhi

5. Department of Management Studies, IIT Madras

6. Indian Institute of Management, Lucknow

7. XLRI- Xaviers School of Management, Jamshedpur

8. IIM, Kozhikode

9. IIT, Roorkee

10. IIM, Indore

While applying to any of the above schools, depend on three important parameters; namely your abilities, both academic and aptitude, your academic background and the career objectives that you are looking at. Only then can you figure out which one of these is your best fit and apply to them. 

Morgan Stanley’s New Strategy Towards ICICI Prudential

The esteemed bank, Morgan Stanley as of Monday has initiated coverage on ICICI Prudential Life Insurance Company, with an ‘overweight’ rating with Rs 365, as target price. The firm stated that a balance of distribution mix and that the improving persistency ratio, which would result into a multiyear improvement of profitability, even as higher focus on Unit Linked Insurance Plans could result into a volatile state of growth.

“This should drive a strong 40 per cent VNB CARG during F16-19”, it was mentioned in the official note released on Tuesday. The concept of target price, basically implies an upside of about 19.5% from current levels. As of Wednesday, the 3^rd of November, ICICI Prudential has ended down 2 per cent at Rs. 305.35 on the BSE and continues to trade below issue price of Rs. 334.

The brokerage firm went on to state that the Prudential Company’s margins have been way lower, when compared to its peers in spite of the industry’s leading persistency and the cost ratios, but the widened gap is likely to narrow in the coming times, with the increasing shares of protection mix, improvement of persistency ratios and considerably, higher economies of scale. This announcement was also accompanied by the firm stating that the valuations are significantly higher as compared to their regional peers, but it went on to justify itself in keeping with the ICICI Prudential’s superior operational metrics and their distribution tie-ups. These would allow the gains of market shares and improve the profitability in the domestic insurance market.

Morgan Stanley has thus raised the target price on ICICI Prudential by about 4 per cent which brings it to about Rs. 266, this is because they plan to assign higher valuation for the life insurance subsidiary, while at the same time retaining equal weight rating. The firm expects that the stock of ICICI Bank would be volatile depending on news flow around corporate stress. At the time of the announcement, their official spokesperson said that, “to become more constructive we either need to see big recoveries on exiting NPLs or improvement in core PPoP (pre-provision operating profit) margins. We prefer ICICI bank to state owned banks, but prefer retail private lenders and Axis Bank over the same”.

Brokerage firms like Morgan Stanley have the responsibility of selling various types of securities to banks like ICICI Prudential in the field of investment banking. Thus it becomes important for the professionals working here in to be well versed with the various core concepts of the financial situations and the knowledge of the various trends in the market. While someone with a background in finance or related fields could understand this piece of news, but would just be scratching over the surface. This is exactly the reason why a lot of companies prefer to hire candidates with experience in specialization courses and a refined C.V. Private Institutes today, are also striving to offer industry endorsed courses, which ensure that the individual would understand everything that the current markets need. Imarticus Learning is a part of the same sphere, offering courses and guidance in a bid to bridge the gap between academics and industry.

Here’s What the Professionals Are Resolving For 2017

You must have definitely noticed, a number of people readily getting on to the bandwagon of, “New year, new me”, at the beginning of 2017, there’s one more phrase which is popularly being used by all those professionals, across the corporate industry. This slogan is the ‘New year, new job’, which is being entertained by a number of corporate professionals. While there is nothing new about this, as this feeling is a familiar notion, which every professional experiences annually. But, this time what’s interesting is the statistic, according to a certain study, out of the 3,411 employees who were a part of the survey, about one fifth which equals to about 22% stated, that their resolution for this year would be to leave their current job, in order to look for more lucrative opportunities elsewhere.

While it was 35% of the younger generation of workers, aged between 18 and 34, who would consider not only leaving, but also be certain about landing a new and better job by the end of 2017. At the same time, the past couple of years, have seen a steady rise in the search for employees, who possess skillsets that are in keeping with the industry standards. In order to tackle this demand of top employers and HR managers, many employees and professionals have begun to opt for professional online training courses, which ensure that a candidate is groomed according to industry standards.

here are many popular institutes in India, like one Imarticus Learning, which offer a number of courses in fields like Finance and Analytics.  Imarticus Learning is one of the best institute that specializes in courses covering fields like Investment Banking, Portfolio Management, and Asset Management, Certification courses in Big Data Hadoop, R Programming, SAS Programming, Python, and Corporate Finance and so on. But what sets this institute apart, is not only their online and classroom course format, but also their mentor run courses and the extensive industry relevant training.

Apart from the resolution to look for a new job, there are some other very popular resolutions, that the corporate world is known to take. Like for instance, every year, almost half of the entire workforce decides to unanimously take a pledge to put more of their pay checks, into savings. There are a number of professionals, who would be ready to look for more recreational ways, in order to reduce the amount of stress in and around their work sphere, while many would be aiming for a salary increment, or a promotion in order to jet set their career, thus climbing a rung higher on the corporate ladder. Many companies have begun to already roll out new health promoting activities, in order to ensure that all of their employees remain in the pink of their health. This is also a common resolution among a number of professionals, who are looking to eat healthier and cut out on the junk. While many others would be willing to learn a new skill or take up a productive hobby. 

Why Do Firms Train Their Employees

As the industry changes, there is an influx of new improved trends as well. Today a qualified professional doesn’t necessarily have to go out in search for jobs, its actually the employers who go out of the way, in their search for candidates, who would be able to suffice their expectations. With college or university placement rising in popularity, there is another line of thought, which is becoming quite well known these days. A lot of firms believe in hiring freshers, because they are like a blank canvas for them, apart from knowing certain basic theoretical details. This way the firms get to train these employees, in a way where these professionals would be able to meet specific expectations. Apart from that there are a lot of companies and HR managers who are of the belief that, about 30% of their candidates don’t have the proper skill set required to perform their job, hence have to undergo training.

The concept of ‘employee induction’ has become the most used policy of the HR teams, across various fields. Earlier, this process only comprised of a short description of the company, its various fundamentals and an introduction about all the head honchos, on board. Now it has transitioned into something bigger and inclusive of more layers. Firms today are actually going a mile, in trying to get all of their employees on par, by equipping them with the proper behavioral and technical skills, as well as the knowledge that is required to ensure that, the company’s operational and strategic objectives are met. A great effort is taken, to ensure that an employee fully understands the core values, that form the foundational base of an organization and works accordingly. Firms don’t just train their new employees, but also ensure that their old ones, have a successful transition into newer roles in a more seamless manner.

This has become quite the popular norm lately, which a lot of organizations indulge in. There are various other reasons why a firm, would want their employees to be trained. Like for instance, any kind of training that is in keeping with the organization’s strategies, would ensure that the employees would go the extra mile to complete the same. Another reason why training is the right way to go is, because every organization has employees with invaluable corporate experience and training these employees, would be like creating incentives for them. Thereby, ensuring that these employees remain loyal and prove an asset for the organization in the long run. Statistics state that only about 25% employees are engaged at work, the rest of them find it to be a fulfilling experience, of various degrees. Training these employees, would mean a more focused and productive workplace. Training is also used as a means for performance management and development of employees and can help develop leadership skills in those with a lot of potential. In a way, organizations also come across as places, where every employee is valued and encouraged to reach their optimum potential.

A new addition to this is the training in collaboration with various learning institutes. Organizations approach various institutes, to ensure their employees develop the necessary skill sets to excel in their profession. Imarticus Learning is one such institute, which has collaborated with many top banks and investment organizations, in providing their employees with proper suitable employee training programs.

 Source: http://articles.org/why-do-firms-train-their-employees/

Webinar on Software Development Life Cycle (SDLC) - Overview

Imarticus Learning conducted a session on the Software Development Life Cycle (SDLC) and the role of a Business Analyst on July 8, 2016. SDLC is often used in systems engineering, information systems and software engineering to describe a process for planning, creating, testing, and deploying an information system. SDLC is also often referred to as (i) Systems Development Life Cycle or (ii) Application Development Life Cycle. Mr. Mukhraj Saberwal, Solution Architect at Accenture, conducted this online webinar session where over 75 users from the world of academia and industry were present.

Mukhraj went on to illustrate the five key stages in SDLC, which include (i) Requirement Analysis, (ii) Design, (iii) Implementation, (iv) Testing and (v) Evaluation, with special focus on the role of a Business Analyst. He broke the process down further into the following 10 stages of software development.

1. Initiation – This process begins when the sponsor identifies a need or an opportunity and creates a concept proposal.  
2. System Concept Development – In this stage, the scope or boundary of the concepts are defined. This includes (i) System Boundary Document, (ii) Cost Benefit Analysis, (iii) Risk Management and (iv) Feasibility Study. 
3. Planning – Next, a Project Management Plan provides the basis for acquiring the resources needed to achieve a solution. 
4. Requirement Analysis – Analyses user needs and develops user requirements with detailed functional requirement documentation. 
5. Design – In this stage, the detailed plans are transformed into complete, detailed systems. The design document focuses on how to deliver the required functionality.
6. Development – At this stage, the design is converted to a complete information system that includes (i) installing systems environment, (ii) preparing test cases, (iii) coding and (iv) refining programs. 
7. Integration and Test – This stage is undertaken by Quality Assurance staff and demonstrates that the developed system conforms to the requirements as mentioned in the Functional Requirements Document.
8. Implementation – This includes the implementation of the system into a production environment and resolution of problems identified in the earlier Integration and Test phase. 
9. Operations and Maintenance – Once the application has been implemented, it is important to prepare a document that describes the tasks to operate and maintain the information system in a production environment, including in-process reviews. 
10. Disposition – This stage describes the end-of-system activities and emphasis is given to proper preparation of data.

Now that the SDLC life cycle was clear, Mukhraj went on to explain the key types of SLDC methods, including Waterfall, Agile, Incremental and Iterative, with special focus on Waterfall and Agile.

The Waterfall Model is a sequential phase-driven approach that focuses on completing one step before moving on to the next. A formal handover is given from one function to the next and the entire project is delivered in one single big bang. The advantages and disadvantages of this methodology were discussed in detail.

Next, we moved on to the Agile or Adaptive Model, where the entire system is not built at once, but rather develops incrementally.  Unlike the waterfall model, less time is invested upfront to document requirements, since the development is done sequentially. The key characteristic of agile software development is to collect customer feedback, which happens simultaneously during the process of development and implementation.

Towards the end, Mukhraj spent a lot of time on the role of a Business Analyst in each of these SDLC methods. Right from planning to design, development and implementation – the Business Analyst plays a key role in the development of any software or application. Once his session was over, he answered over a dozen questions from our curious and enthusiastic BA aspirants.

At Imarticus Learning, we have 2 programs that focus on how you can become a Business Analyst and play an integral role in the SDLC. Business Analysis Certified Professional (BACP) is our 75-hour classroom program that can be undertaken at our centers in Mumbai, Bangalore, Chennai and Delhi. The other offering is the Certified Business Analyst (CBA) program, which is a 33-hour online course. To know more about either of these programs, send us an email at info@imarticus.org