Career In Finance Sector In India

While choosing a career in Finance Sector in India, have you ever given a thought that the money which is being deposited in the bank or which is invested in stocks shares or bonds where it goes or who manages it? Well, all these investments are smartly further distributed in a range of financial instruments so as to maintain a proper balance between debt and equity by the financial services segment of the bank and standalone financial corporations. There are many opportunities available in the domain of finance and financial markets. 

Financial services include products and services offered by financial institutions to assist in financial transactions and other similar activities. It may include various types of investment opportunities, loans, credit card etc. However, the significant chunk of work ensues in capital markets. 

Indian Financial Market 

Indian financial market is one among the oldest ones in the world and with a faster rate of growth it has also entered among the best markets emerging economies. The history of Indian capital markets dates back 200 years when it was under the rule of the East India Company. 

At present, it includes the primary market, FDIs, alternative investment options, banking and insurance and the pension sectors, asset management segment and many more. The capital market was at first established around Mumbai including approximately 250 security brokers participating in active trade throughout the second half of the 19th century. 

The scope of career in Finance Sector in the Indian Financial Market 

Currently, the financial market in India is growing at a much faster pace than any other sector. It has widened itself and also organized from the 19th century with the securities exchanges in Mumbai, Ahmedabad, and Kolkata. In the 60s the number of securities exchanges became eight which includes Madras, Kanpur, Delhi, Bangalore, and Pune apart from those three. At present India has 23 regional securities exchanges. 

Career in Finance Sector for graduates and MBA graduates 

Rapid growth in the industry definitely calls for a huge workforce throughout the nation. It mainly looks for graduates having commerce, economics, finance, mathematics and management background. Freshers get started in the financial advisory companies. Mutual fund houses also hire fresh and skilled graduates and so does the stock brokerage firms.  The Mutual Fund company mainly includes sales and marketing, fund accounting, investment and research, operations and administration. One can become an advisor or a financial planner and with an experience of around five years go further to become a research analyst and following that a fund manager. 

One can also opt for an intermediary but for this, it is important to clear an exam which is conducted by the NISM. As soon as one clears the exam and get the NISM certificate, he/she can work for the marketing and distribution of mutual fund schemes as business development managers, relationship managers, and advisors. Apart from these, one can also get involved with the back office functions as fund accounting and IT/network support. An MBA fresher from a top institution is always on the priority of recruiters for this role. Good compensation packages are being paid to the most suitable candidate in Investment banking. 

Skill, knowledge and latest information about the current finance market certainly assists candidates to increase their chances of getting hired at the topmost financial companies. 

Here is a brief of the most common career opportunities in the finance market of India: 

(i) Money Management: Money managers are an integral part of the finance industry. They typically buy and carry corporate bonds and other fixed-income investment products. Their specialization lies in small stocks, and large-cap funds. Some of the common job options include Portfolio Manager, Mutual Fund Analyst, and Hedge Fund Traders. 

(ii) Insurance: You can either make a career with insurance companies or also have a career in the corporate sector, stockbroking firms, finance companies, and shipping companies. The privatization of the insurance sector has led to an increase in the number of employment opportunities.  

(iii) Financial Planning: With more and more people becoming rich and going to the millionaire club, the demand for financial planners is increasing by the day. These financial planners assist people with disposable wealth to make advance provision for financial needs that may arise in future. Just like a family doctor takes care of the biological health of the family, a financial planner ensures good financial health for a sustained period of time in present and future. To become a financial planner one has to undergo the strict training of Chartered Financial Planner (CFP) course which is currently offered in India by Association of Financial Planners (AFP) in technical collaboration with the Financial Planning Association of Australia.

The financial service sector is going through the golden phase where it is experiencing astounding growth in all spheres. In the past, the sector has lagged behind, but that was in the pre-reform era, and now it has evolved and matured into a consistently growing industry with a number of high paying new financial jobs for qualified professionals. As this sector continues to expand, deserving young candidates with a background in finance will have a diverse range of new job opportunities coming their way.  

Vineet Patawari

Guest Author Vineet Patawari is the CoFounder of stock analytic app StockEdge and financial market learning portal Elearnmarkets.com. He is a Chartered Accountant and IIM Indore Alumnus.