Professional Documents
Culture Documents
www.Financewalk.com
www.Financewalk.com
Employers are not looking for job-seekers, they are looking for people who can contribute, take bigger responsibility and have long term vision and REAL passion for such jobs. I will make YOU empowered and smart through my interaction on Analytics. I am here to teach you strategies that will help you make a long term career in FINANCE and Equity Research, Investment Banks, Private Equity and Financial KPOs. One advice: If you think, you can make your career without the above skills, Think Again. This career requires your passion and contribution. So, if you really want to LEARN the strategies, stick to this place and see the change within you.
90% of you will not have any clue. I have an answer. You should plan your career in such a way that you do not need to find a job. I will tell you the difference. Career is a long term planning whereas getting a job is a short term thing. You will make your career in equity research IF you are really passionate about the equity research area and want to acquire the skills by investing time and energy into it. Ask yourself this question: Why the company should hire me if I do not have the required skill set? Now, if you are committed to build a successful career in FINANCE, you will follow the structured career path. What is this structured career path? Lets see.
www.Financewalk.com
and its usage? Are you smart enough to gain new clients? If the answer is No to any or all of the questions, then, its high time you focus on acquiring these skills and then start applying to companies and see the difference. This is about functional aspects of the career. What about other skills? Yes, they are equally important. The HR people make use of the job sites like Naukri, Monster extensively for recruitment. They look for certain skillsets and keywords in your profile. So, this is one of the important steps in searching a job. Your resume should be strong and in presentable format to get you shortlisted. I have seen many people tweaking their resumes and making the profile search friendly and presentable and they have got good response from the employers and some have even started their careers with good companies. How about your resume (CV)? Is it in presentable format? Are you getting calls from employers? Feel free to share your experience with me.
www.Financewalk.com
6. Financial Analyst 7. Relationship Manager in Mutual Fund / Insurance /Financial Products 8. Financial Planner/ Wealth Manager You can look forward to work as an equity research analyst or any of the above profiles, provided you have required skills and knowledge. The career is rewarding if you know the right strategies and execute them well. Many times the candidate is not aware of the required skill set for such careers and he wonders why he is not getting interview calls even after having the qualification like MBA,CA,CFA. Well,the only thing you can grab this career is,by learning the right skills. Lets see what the job responsibilities of the above profiles are.
www.Financewalk.com
www.Financewalk.com
Ability to effectively manage multiple simultaneous project deadlines Proficiency in Excel and PowerPoint Solid understanding of capital markets and spreadsheet modeling Strong written and oral communication skills. Previous experience in M&A sector is highly desired Highly motivated with demonstrated ability to manage conflicting priorities and requests Excellent interpersonal skills with ability to maintain relationships at all level in organization Ability to take initiative and function independently balanced with strong teaming skills Maintain high standards of professional and ethical conduct The salary comparison of 3 cities, New York, Mumbai and London, for the Investment Banking Analyst post is here : A person with Certifications like Chartered Financial Analyst (CFA) and 1-year experience can earn U.S. $50,000-$70,000 in New York. In Mumbai, the same person may earn in the range of INR 3,00,000-10,00,000. In London, the person with the same qualification and experience may earn in the range of GBP 20,000-50,000. These are entry level packages for the people with the above mentioned qualification, skill set and job responsibilities in 3 different geographic locations.
www.Financewalk.com
Hedge Fund is pooling of investments from high net worth individuals. These funds invest in equities, bonds and commodities. The funds use investment strategies as long, short, leverage and derivative positions. They invest in local as well as international markets. They operate as a private investment partnership and investors are required to invest very large amount initially. The funds take the investments for minimum a year. They are similar to mutual funds in the concept of pooling the investments but differ in flexibility and approach. The goal of the hedge funds is to minimize the risk and maximize the return on investment. But, while doing so, they enter into speculative transactions. The profile of Hedge Fund Analyst: 1. Maintaining financial models for current and prospective companies of the fund 2. Performing valuation techniques 3. Data mining 4. Idea generation 5. Assist in the overall portfolio management process 6. Analysis of financial markets and institutional investors 7. Preparation of proposals, marketing materials, client presentations and client reporting 8. Developing risk and asset class guidelines for managers 9. Making on-site calls to investment managers 10. Writing due diligence reports in accurate and timely manner 11. Developing a deep knowledge of the assigned hedge fund strategy
www.Financewalk.com
10
Qualification and Skills required: 1. Deep knowledge of hedge funds 2. Need to demonstrate accountability and responsibility 3. Superior writing and analytical abilities 4. Excellent interpersonal and communication skills 5. Attention to detail 6. Ability to deal with colleagues, investment managers and clients. 7. Strong relationship building skills and ability to work independently 8. Leadership and initiative 9. Willingness to travel 10. Masters Degree and/or CFA, CAIA The average entry level pay (combination of base & performance bonus) for the Fund Accountant in this category, is US $40,000 in United States, in London,UK the pay for the same post would be GBP 35,000 and in India it is Rs. 6,00,000. Top hedge funds in US like Stark Investments, Davidson Kempner Advisors, and Wellington Management have around US $ 10 Billion Assets under Management (AUM). In India, there are Hedge Funds like Karma Capital Management, Atyant Capital, and Atlantis India Opportunities Fund. The career in Hedge fund is challenging and rewarding too. As you go up in the ladder and reach manager position, you get strong grip on different investment products and strategies and you get paid as per your performance unlike that of mutual funds where the performance is compared with economic performance.
www.Financewalk.com
11
www.Financewalk.com
12
Some of the current openings for freshers in India give an excellent platform for the students to start their long term career. There are 35+ Asset Management Companies (AMCs) in India having thousands of mutual funds in the market. There is a huge talent crunch in the market for such roles. So, if you want to make career in mutual fund analysis, have required skillsets, right attitude with educational qualification, you can surely look forward to a long term career. You can read more about mutual funds analysis on following websites : 1. Value Research Online 2. Mutual Funds India Now,some of you might be interested to work in mutual fund industry.
www.Financewalk.com
13
2. Provide input for strategic development and acquisition opportunities within the specific industry 3. Develop and implement specific hedging strategies for various regions to maximize profits and minimize price volatility 4. Effectively manage industry specific trading activity to insure compliance with companys financial, risk, and strategic objectives. 5. Reviewing and processing potential new private equity investment opportunities 6. Portfolio monitoring, reporting, and business development 7. Conducting research What the companies look for in candidate : 1. 1-2 years experience in structured transactions, banking, consulting, trading or analytical experience for a specific industry. 2. Strong knowledge of different industries and business models 3. Effective at handling multiple tasks, analytical and logical reasoning 4. Self-starter and excellent communication 5. High energy level 6. MS office, Excel, PowerPoint competency 7. Ability to build positive and productive relationships 8. Integrity, Professionalism, practical judgment 9. Result oriented and self-directed
www.Financewalk.com
14
In India, Post graduates/ MBA/ CFA candidates are preferred for this role. However, in London and in the US even Bachelors are considered for this role. You can get more information on private equity on following websites: 1. vccirlce dot com 2. privateequity dot com 3. indiape dot com 4. indiavca dot org 5. vcindia dot com According to PayScale, Private equity analyst having 1-2 years of experience in Mumbai, India earns anywhere between INR 3 Lakhs to 14 Lakhs a year. In New York, US, the same profile will earn $ 40,000 -1,00,000 a year and in London GBP 23,000 58, 000.
Financial Analyst
Financial Analyst is the person who performs financial analysis to understand the financial health of the company. In my previous articles, Hedge Fund Analyst and Private Equity Analyst, we covered the details about the profiles. Financial Analysis covers fundamental analysis, ratio analysis, financial modeling and valuation. Broadly, in following areas the financial analysts are required. 1. Buy side firms 2. Sell side firms
www.Financewalk.com
15
3. Investment Banks Buy side firms are basically different funds, including mutual funds, where the financial analyst studies different companies, performs research and analysis tools and give recommendations whether to invest in the company or not for the fund. This is in house research. Sell side firms are basically research houses or brokerage firms. They cover certain companies and write detailed equity research reports and sell this research to the clients. The main idea here is to sell research and generate brokerage from clients transactions. In Investment banks, the financial analysts role is different. Here, he covers mainly IPO (Initial Public Offering) process and M&A (Mergers and Acquisitions) deals. The analyst plays active role in all these deals. Following is the skill set required for financial analyst profile: 1. Solid analytical skills 2. Curiosity and interest in analyzing, understanding companies in depth 3. Solid fundamental valuation skills acquired in business school, or as a consultant 4. Interest in understanding, analyzing a companys business 5. Clear financial and quantitative concepts 6. Ability to build financial models 7. Sectoral expertise in Telecom, Media, Technology, Insurance, Banking, Food & Beverage. 8. Strong analytical and MS Excel skills (Macros, V-Lookups and Pivot Tables) with strong communication skills
www.Financewalk.com
16
In India, entry level financial analysts earn in the range of INR 3,00,000 7,00,000 per annum. In London, the same profile will give you the salary in the range of GBP 20,000 50,000. In US, for the same profile, you can earn $ 35,000- 80,000. There are many KPOs where fresher and entry level openings are available. However, check the skills they want for these roles. The selection process for the companies involves case based test, and two rounds of interviews. My experience says, if you are really good in fundamental and analytical skills, you can grab such roles. So, brush up your financial knowledge and be ready to test your analytical skills.
www.Financewalk.com
17
A financial planner or a wealth manager is a practicing professional who helps people deal with various personal financial issues through proper planning, which includes but is not limited to these major areas: cash flow management, education planning, retirement planning, investment planning, risk management and insurance planning, tax planning, estate planning and business succession planning (for business owners). The work engaged in by this professional is commonly known as personal financial planning. In carrying out the planning function, he is guided by the financial planning process to create a detailed strategy tailored to a client's specific situation, for meeting a client's specific goals.
www.Financewalk.com
18
Strategies/ Tactics
If you really want to know the secret of building a successful career in FINANCE, you need to understand the strategy, I call it Framework. The framework doesnt just focus on short-term gains though. This helps you develop a solid foundation of knowledge and skill set that will lead to a lifetime of building a successful FINANCE career.
www.Financewalk.com
19
The framework is based on 3 core principles. 1. Mindset and Passion 2. Knowledge and skill set 3. Creating a personal brand and promotion As a coach, I will help you focus on these 3 principles and build a successful career in Finance.
www.Financewalk.com
20
www.Financewalk.com
21