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Here's All You Need to Know About MBA in Finance

Lesson 5 of 15By Gayatri Dubey

Last updated on Feb 2, 202484349
Here’s All You Need to Know About MBA in Finance

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We live in a time where everyone wants to learn about the intricacies of business operations. That’s why there is a massive hype around the Masters of Business Administration Program, leading to many candidates enrolling in it without really thinking about the equation of specialization. There are multiple electives an MBA program has to offer. However, Finance is one of the most sought-after degrees, with a surge in demand and high corporate scope. In this MBA in Finance article, we will discover the intricacies of finance specialization and why it is the best among many.

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Introduction to MBA in Finance

Finance is an important asset of any organization. And matters related to finance need experts who understand how the financial world operates. That’s where the specialization of MBA in Finance comes into play. This program can help you become a financial wizard. It offers candidates a wide range of opportunities, be it freshers or experienced. The course is a mix of finance and management, covering topics such as stock markets, financial risks, trend forecasting, capital investments, business analysis, etc.

An MBA degree provides an individual with the ability, knowledge, and skills to obtain a job in the corporate and government sectors. MBA in finance graduates can also find work in stock exchanges, asset management, auditing businesses, and taxation firms. The global reach of an MBA in finance is tremendous since many renowned universities provide international finance degrees with a great history of lucrative placements.

Moving forward, we will learn about eligibility criteria to get into the specialization of Finance.

Eligibility Criteria

The fundamental criteria for an MBA degree in finance or any other field are essentially the same. You must have all of your ducks in a row.

  1. Good CGPA or GPA (Minimum 50% Aggregate score)
  2. High scores in competitive entrance exams depending on university and geography (GMAT, CAT, XAT, CMAT, MAT, SNAP, GRE, etc.)
  3. Appealing Resume
  4. MBA Essays
  5. Some finance and accounting work experience on the back
  6. Employer recommendation Letters

The factors E & F are important for working professionals trying to get into the Executive MBA in finance program.

After qualifying and advancing to the interview selection process, you will need to prepare for one of the most common yet profound questions admission officers are bound to ask - Why MBA? However, if you are willing to get into finance specialization, interviewers are likely to focus on your decision to get an MBA in finance compared to any other financial program, such as MFin. Because of that, the preparation for this question needs to be two-pronged. Why MBA and Why MBA in Finance?

Moving forward, let’s focus on that second question.

Why MBA in Finance?

The maximum number of students answer this question by highlighting finance's higher salaries. However, this response gives the wrong picture of the applicant because money should not be your primary focus when it comes to your career. Hence, the first piece of advice we have for you is to avoid citing professional benefits such as higher pay as the only reason for your specialization decision.

MBA_in_Finance_1

While framing your response, consider what draws you towards this discipline's quantitative and analytical challenges. Think about how finance is an essential component of every business and does not exist in a silo by itself. Consider how you can prepare yourself to be versatile and valuable enough, with this remarkable degree to back you up. Think about which sectors of business you are passionate about and how finance can help you achieve desired outcomes in that sector. 

Syllabus for MBA in Finance

An MBA in finance program aims to develop an analytical and statistical foundation amongst students. Major universities use a blend of economic analysis, statistics, and mathematics tools to achieve that. 

The hot topics covered in the MBA finance program are corporate finance, financial derivatives, macroeconomics, and international finance. Let’s look into more details about these subjects:

  • Corporate Finance: This section is associated with how corporations deal with funding sources, capital structure, and investment decisions. 
  • Finance Derivatives: A derivative is a contract whose value is determined by the performance of an underlying entity. This underlying entity can be an interest rate, index, or asset and is often simply called the underlying.
  • Macroeconomics: This is the branch of economics concerned with large-scale or general economic factors, such as interest rates and national productivity.
  • International Finance: It studies monetary interactions between two or more countries, focusing on foreign direct investment and currency exchange rates.

Other popular topics included in the finance domain are shown in the image below:

MBA_in_Finance_2

Next, we will discover career opportunities after finishing this post-graduation finance degree.

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Career After MBA in Finance 

Graduates with an MBA in finance can find jobs in financial institutions such as investment banks, brokerage companies, commercial banks, and non-financial institutions such as consulting businesses and non-profit organizations. After finishing the MBA finance program, one can work in corporate finance, asset and liability finance, insurance, taxation, financial planning, hedge fund management, international finance, banking, accounting, financial investment, portfolio management, taxation & planning, and insurance management. Let’s look at the job descriptions for the job profiles mentioned above:

Job Role

Job Description

Corporate Finance

Responsibilities include discovering and securing acquisitions, mergers, and transactions, investing big sums of money, and purchasing and selling financial goods on behalf of customers.

Corporate Banking

In this position, you will be advising private and corporate customers on financial matters such as acquisitions, capital markets, and mergers.

Asset Management

The primary responsibility is to evaluate asset acquisition viability and submit relevant reports to company stakeholders.

Treasury

The responsibilities for treasury include corporate liquidity, risk management, and investments connected to the company's financial activities.

Derivative Structuring

The primary responsibility of this profession is to focus on derivatives trading, modeling, and structure challenges.

Credit Risk Management

Predicting future hazards, developing and implementing policies and processes to decrease credit risk, and supervising the creation of performance reports are all core tasks of credit risk management.

Hedge Fund Management

Managers help individuals manage hedge fund investments, including investment objectives, fee structures, and liquidity provisions.

Private Equity

The key responsibility of a Private Equity associate is to attract investors, assist with investments, and support current bank clients with their investment-related operations.

The job roles in the financial services industry provide a controlled work-life balance. People do work hard, but the 16 hours shift is very rare. 

Considering all the facets mentioned above, thinking about MBA in finance is worthwhile!

Conclusion

Pursuing an MBA in finance opens doors to a world of strategic financial management and leadership. The skills acquired, from risk assessment to financial analysis, form a robust foundation for navigating the complexities of today's financial landscape. For those seeking a broader skill set, complementing an MBA with an Executive Certificate Program in General Management further enhances versatility. This dual approach ensures professionals are not only financial experts but also well-rounded leaders capable of steering organizations towards success. Together, these educational pursuits create a powerful combination, propelling individuals to excel in the dynamic field of finance.

If you have any questions or need clarification on any section of this article, please leave them in the comments section at the bottom of this page; we will respond to them soon.

About the Author

Gayatri DubeyGayatri Dubey

Gayatri is Manager in Content Marketing at Simplilearn. She is a Computer Science Post Graduate and shares a keen interest in the Search Engine Optimization and Digital Marketing domain.

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