Global Financial Markets recoups amid the pandemic!

Posted on July 30, 2020Categories Financial Markets, Global finance   Leave a comment on Global Financial Markets recoups amid the pandemic!

Global Financial Markets surprised all investors and economic pundits as they recovered almost all the losses that occurred due to the global pandemic. Indices like SENSEX, NASDAQ and NIFTY made a new lifetime high, whereas Brazilian Bovespa and other emerging markets outperformed by 67 percent. Financial Market experts and economists, who predicted a negative outcome had to take back their words.

Jumbo stimulus packages announced by the central banks seem to be the reason behind this unpredicted recoup. But, a thing to worry about is the fact that institutions like IMF and World Bank were forecasting slowdown for the near future even before the pandemic broke out. So it is advisable for all the traders to remain alert without developing any fear as fall can be a minimum of 10 percent as happened in the past. Global Financial Markets is a wonderful place to follow as it witnesses volatility. To make our youth career-ready in Global Financial Markets, BSE Institute Ltd offers a course on this. To know more, please visit http://gfmp.bsebti.com/

Attachments area

Why you should delve into the world of Applied Finance!

Posted on June 13, 2020Categories Global finance   Leave a comment on Why you should delve into the world of Applied Finance!

An important question for all the people related to finance is how the current pandemic will affect the financial markets in the near future? Research shows that the price will move over the next 12 months and it is worth assessing to withstand the economic shocks and market volatility. So, the people who have a keen interest in applied finance, economy and investments and have an inquisitive and analytical mindset, you can choose a career in finance as it holds a bright scope globally! The world is in need of finance professionals, so if you study finance, you will always be in high demand. With the unique skillset and industry knowledge you’ve built over the years, you’ll be considered a very attractive hire to prospective employees.

Finance is very much a vocational subject that can open many doors to various career opportunities around the world, from financial management or insurance, to commercial banking and hedge funding. Although working in finance can be challenging, but if you get expertise in this field, you can be the highest-paid professional! So, if you want to learn more about Finance and obtain foreign education as well, BSE Institute in collaboration with Western Sydney University offers a course; Masters in Applied Finance! To know more, please visit: http://international.bsebti.com/western-sydney-u…/index.html

Art of Portfolio Management

Posted on November 21, 2019Categories Corporate Finance, Executive Courses, Financial Markets, Global finance, Indian Economy, Investment Banking, MBA, Mutual Funds   Leave a comment on Art of Portfolio Management

When you look at a financially stable person, you often wonder, “how do they do that”? What differentiates a financially stable and unstable person is their respective investment portfolios.

Today, if you are young and reading this, consider it to be your lucky day. Investing young and building an investment portfolio can take you places. If you know the power of compounding, you will realize how important investing is.

So, where do we begin?

Planning your investment portfolio is not easy. It is quite challenging, even more if you are not good with your personal finance. First of all, managing your portfolios is not simply about, “which stocks to buy”, and “which stocks to sell”. Portfolio management requires self discipline, patience, and a bit of knowledge about the companies you wish to invest in.

I’m not going to talk about the stocks to buy today, instead I will talk about how to build your portfolio and stand out!

Risk taking ability

The first question you must answer before investing and building your portfolio is, what is your risk taking appetite. The stock market today is like a restaurant which offers you variety of food to choose from.

You need to understand that some might have higher risks,but at the same time has the potential to give higher returns.

Similarly, there are shares that come with lesser risks, but the returns could be comparatively lesser. It is up to you to decide your appetite and hand pick the right stocks.

Another important step that you need to take, while deciding your risk taking appetite is to decide your short, medium and long term goals. This will help you construct your portfolio in a better way.

If your appetite for risks is extremely low, you could simply invest in mutual funds which is a much safer option. There are various types of mutual funds in India, starting from equity funds, debt funds, index funds, etc.

Assessing the external financial situation

The next step is crucial- to come up with an investment strategy. By assessing the economic situation of the market, you will be able to predict about the future. This assessment combined with your needs could help you plan for the future.

Since, the market landscape is bound to change with time, it is important that you always keep an eye on it and adjust your portfolio accordingly to reduce losses and maximize gains.

Build your portfolio

Now to the final step. Once you have done your analysis, you can finally start building your portfolio by allocating the necessary asset classes and securities. You can always hire a portfolio manager for expert suggestions. It is important to understand that the whole objective is to minimize the risks and attain your investment goals.

You should not see your investments as a source of long term income. Instead, look at it as a business which could help you make money without actually participating in any business. Once you look at it through a business’ perspective you will realize the impact it could have on your wealth and the benefits that are meant to follow.

Once you have built your investment portfolio, you can relax and continue to keep an eye on the market. Make the appropriate changes as per the market scenario and stick to the strategy.

All the steps we saw are part of a cycle, therefore an investor must ensure that he keeps going about the same steps during suitable intervals. This will ensure that your portfolio is stable and your graph is moving towards your goals.

Conclusion

The world could be a much better place if everyone was financially literate and focused on making their money work for them instead of working for money.

When it comes to the stock market, the potential is endless. BSE Institute Limited’s Executive Program in Wealth Management is a course built for you to exploit the potential of the stock market and multiply your portfolio. This is your chance to learn something incredibly important and secure your future.

Investing in Small-Cap Mutual Funds

Posted on November 13, 2019Categories Financial Markets, Global finance, Indian Economy, Investment Banking, Mutual Funds   Leave a comment on Investing in Small-Cap Mutual Funds

Every person who begins earning is given one common advice,“You become rich only when you consume less than what you produce”.

This doesn’t happen with a salaried job, but by investing regularly in stock market.

Any professional will underscore the importance of being financially independent. You can’t be financially independent just because you have a nice job with a 6 figure salary. Your needs grow faster than your salary. This is where financial intelligence is important. If you can make your money work for you, all your goals shall seem attainable.

That brings us to the Indian Stock Market. An ambitious person will look at the best investing options and diversify his investments. Small-cap funds are popular among investors who are willing to take risks and go big. It is always advisable to have a small portion of your portfolio dedicated to these small-cap mutual funds which might give you some great returns in the longer run.

What are small-cap mutual funds?

Small-cap equity mutual funds invest in equity shares of companies that have a smaller market capitalization. These have potential to give higher returns because of the fact that these companies are young, and tend to expand aggressively. At the same time these are vulnerable to economic slowdown when compared to larger companies. Investors who have an appetite for risks can go for such funds in the market.

What makes it popular?

Small-cap funds are bound to generate higher returns in years to come. There are over 2000 small-cap funds available. When it comes to the BSE small cap index, there is a lack of proper coverage and information. Since the options available in small-cap funds are diverse, it continues to be a great option – as there are many companies which can give you great returns on investment.

Who should invest in small-cap funds?

As we said before, investing in small-cap fund tends to carry greater risk when compared to other mid or large cap funds. An investor who has an appetite for taking risks and is willing to invest for upto 10 years should definitely look at these funds. Someone who has a long term goal like buying a luxury product, a home, education or any such product that could involve lot of money- should keep an eye on small-cap funds.

A good strategy while looking at small-cap funds is to invest through SIPs (Systematic Investment Plans).

Things to consider before investing in small-cap funds?

  1. Risk: Small-cap funds are lesser established companies who can go out of business in case of a market crash. This is one major reason why people avoid investing in such high risk funds. At the same time if everything goes well, the gains could be enormous.
  2. Return on investment: This is better left unsaid. Every single investor has returns on their mind when investing. They look at potential gains before investing and hope that they get best returns in the longer run. No other fund offers better returns than a small cap fund.
  3. Investment period: The market is bound to fluctuate throughout the year. There are times when the downfall is unbearable to an investor. If you cannot manage to stay invested for over 5 years, don’t think about investing here.
  4. Goals: Historically speaking, the market has always seen small cap funds generate better returns. The scope for growth is immense. You could end up making some staggering returns, that can help you retire fast. For someone with a long term financial goal, this is the perfect investment and one that could pay handsome dividends.

Conclusion

Being financially literate is a must, no matter who you are. Master the art of financial investing with BSE Institute Limited’s GFMP Edge Financial Markets Program. With modules that cover basics about capital markets and financial markets, make your money work hard for you and ensure you retire young!

Spread your wings, with mutual funds

Posted on October 1, 2019Categories Financial Markets, Global finance, Mutual Funds, Short term programmes   Leave a comment on Spread your wings, with mutual funds

It is said that only two things in life are unavoidable – death and taxes! Both may be unpleasant, but can be comfortable if you learn to plan well.

There are many things you need to learn in life, but none can be as important as investing. No one can work forever or live off their savings forever. This is why it’s important to know what to invest in and how to profit from it.

Availability of multiple schemes can be a bit confusing, and that is why we are writing to highlight the best bets out there.

Mutual funds is a set of money pooled in by investors who could be individual investors, companies or other organizations. This fund is managed by an Asset Management Company (AMC), who go on to invest the same in stocks, bonds and other investment vehicles.

The Net Asset Value (NAV) is the price of individual mutual fund unit, and an AMC can buy or redeem these units.

 

Benefits of mutual funds

  1. Diversification: One of the golden rules of investing is to diversify. This reduces the risk that comes with investing. When you invest in mutual funds, your funds are invested in a variety of industries. So, even if one of the industry experiences a downfall, the other industries will still keep your fund flying high.
  2. Simple to understand: The world of financial products is quite complex, diverse and most of them are difficult to understand. On the other hand, mutual funds demand no prior experience or knowledge in financial markets. Simple industry knowledge is enough to invest in them.
  3. Investment expertise: Investing in stocks is not easy. You need to be really experienced to do well in the market. Mutual funds are managed by experts with decades of experience of picking the right stocks at the right time.
  4. Variety: Mutual funds offer investors a variety of schemes which suit their risk appetite. Equity funds are schemes for investors with a high risk appetite. Debt funds are suitable for investors with a medium risk appetite. Balanced or hybrid funds are best for people with a low risk appetite.
  5. Affordability: Mutual funds schemes are usually a cheaper option for diversifying your portfolio. In cases where investors opt for SIPs (Systematic Investment Program), they end up investing a very small amount every month. This makes the mutual funds scheme attractive and affordable for any person.

 

Types of Mutual funds

There are many of mutual funds available in the market. We’ll mention a few that will help you get familiar with the schemes available.

  1. Equity funds: The money that you invest in equity funds are used to buy shares/ stocks of companies. The returns are determined by how these shares perform in the market. The chances of quick growth are high.
  2. Debt Funds: These are funds that are invested in bonds, securities, etc. These are suitable for people who are looking for a long term investment plans which gives regular returns.
  3. Balanced or hybrid funds: These are funds that invest in both, equity and debt funds. Basically, its a mixture of the first two funds. It’s the AMC which decides the ratios of the funds allocated to each one.
  4. Open ended funds: These funds don’t have any limitations on the period of time or the number of units. You can enter and exit whenever you like at the current/ existing NAV.
  5. Close ended funds: The name suggests what you can expect from a close ended funds. These funds have a predetermined sum that needs to be invested and at times, a lock in period is also put in place.

 

Conclusion

Be wise with your money and invest in only those assets that match your risk taking appetite. With mutual funds the options are many and that makes it easier for you to choose a specific plan as per your needs.

Putting your money to work sounds easy, but it’s not. BSE Institute Limited gives you the opportunity to do just that with a Basic Program on Mutual Funds Fact Sheet. Understand Mutual Funds to be a master investor and let your money do the talking.

 

Build your wealth, Build it with wealth management

Posted on September 9, 2019Categories Education, Executive Courses, Financial Markets, Global finance, Indian Economy, Investment Banking   Leave a comment on Build your wealth, Build it with wealth management

The money that you earn is what backs you financially throughout your life. The problem is when you realize that the money earned is not sufficient enough to cover certain long term/ short term needs. This is exactly why you need to plan for multiplying your income.

Wealth management is your master plan for building multiple sources of income that can keep you comfortable throughout your life.

In order to have a well-planned wealth management system at your disposal, individuals hire wealth managers who assess their income sources and their financial goals.

Wealth managers act like CFOs for individuals. A wealth manager will start by developing a plan for his client which will involve steps to increase his wealth keeping in mind his risk taking appetite, goals and his financial situation. Once this is done, the client and the manager meet periodically to make changes and update the portfolio as required.

Let us suggest you a few tips that could act as the backbone of your wealth management plan.

  1. Spend less than you earnThis has to be the most basic and obvious tip you’ll ever get. The reason we mentioned this is because if you are planning to start managing your wealth, this is where you need to start.
  2. Invest only after proper research- There are various investment schemes for you to choose from. It is very important that you have thorough knowledge about the scheme you wish to invest in. After all it’s your hard earned money that’s at stake. One of the most common mistakes committed are by people who listen to the words of their friends or people they know personally. Never have blind faith in anyone when it comes to investing.
  3. Diversify your investments- In the words of Warren Buffett, “never test the strength of the current with both feet”. The reason being that the market is a volatile place filled with unpredictability. One of your investments might be giving great returns for years, but that doesn’t mean you should invest all your wealth in the same place. Diversifying your investment will keep you on the safer side at all times and ensure that market fluctuations don’t mess your whole portfolio.
  4. Be patient- Investing is no doubt a thrilling game, but it is important that you be patient at all times. The nature of market is such that it could test your patience and cause frustration. Believe in your investments and keep monitoring them. Always keep an eye and observe the investments that are performing and non-performing and accordingly shuffle your investments.

We have spoken about wealth management from an individual’s point of view, but it’s certainly not that narrow. It is extremely important from a business’ point of view to keep an eye on managing its income, expenditure and planning for the future.

A fine example now in the news, is the story of Micromax. Micromax is a consumer durables company that started off by selling mobile phones and now is getting into selling fridges, washing machines and electric vehicles. From the time they were valued at Rs. 21,000 crores in 2015, to dropping to a valuation of Rs. 1500 crores!

Many Private Equity investors are now selling their stakes in Micromax for heavy losses. These PE players are selling their stake for Rs. 93.65 crore to the promoters, who will now hold over 85%.

So why are investors shifting their money away from Micromax, when the company still has a lot of sales. The reason is that there are many Chinese brands which have flooded the Indian telecom market.

Chinese brands have changed the entire mobile phone market in India. These firms introduced the latest mobile phones, advertised heavily and built a solid distribution network in the market. This put many established players like Micromax on the back foot and they have struggled to adapt ever since.

Venture Capitalists and Private Equity Investors are companies which have raised funds from other HNIs, banks and other financial institutions. They come under tremendous pressure to pull out of loss making investments. PEs and VCs have to make money and reinvest the profits in other businesses. The managers running the funds get paid only when they earn profits. By staying put in a company with a falling valuation, the chances of earning, are quite low.

This is what successful investors do. They move their money from one investment to another – multiplying each time they move it. That’s how they build their wealth. This is how HNIs grow their wealth, but remember this – they all begin at the same place.

Conclusion

Wealth management is one of the most basic financial information that a person needs to know. It doesn’t matter if you’re from a different background, because we all earn money and our goal is to multiply it.

BSE Institute’s Executive Program in Wealth Management offers you an opportunity to manage your money with ease. This is your chance to be the person who doesn’t have to worry about money, because money to work for you!

Building with bonds

Posted on September 4, 2019Categories Corporate Finance, Education, Financial Markets, General, Global finance, Indian Economy, Investment Banking   Leave a comment on Building with bonds

Current account deficits, budget surplus, fund raising, etc, are all big terms which we hear about Governments during budgets. Have you ever wondered how a Government earns revenue when it plans to build bridges, roads and ports?

The Government just cannot print money when it plans to spend! It needs to have money it receives in the form of taxes for planning infrastructure expenditure, social sector spending and to pay employee salaries. A big majority of the income earned by Governments is via taxes – income tax, GST, export and import duties, etc. However only income earned through these is not sufficient to fulfill all budgeted commitments.

This is why Governments also raise funds through financial markets, primarily by selling long term bonds to investors. A bond is basically a loan taken from banks, Private Equity funds, Venture Capital Funds or anyone who has the capacity to lend large sums of money. The investors are paid a certain rate of interest for investing in these bonds.

An advantage of these bonds is that an investor can easily sell these on the bonds market and get his investment and interest almost immediately after purchase. Therefore, an investor can literally invest today and get a great return on his investment in a matter of few hours. Also, the chances of a Government defaulting are very very low, as a country can simply print money in order to meet its debt obligations and hence there is no risk of any debt default.

This has been the greatest attraction for investors, as it’s possible to multiply your funds immediately, without any risk of default.

In India, we have different types of bonds which are as follows:

  1. Government Bonds- These issued by the central government with mandatory periodic returns. The government borrows money to fund roads, schools, etc. These are also known as ‘sovereign debt’, and a good option for people with a low risk appetite.

 

  1. Corporate Bonds- These are bonds used by large financial corporations. They tend to give better returns but, there is a possibility of default as it’s corporates who issuing the bonds. A company’s assets are usually tied as collateral against bonds.

 

  1. Municipal Bonds- These bonds are issued by the state governments or the local governments in order to raise money for the government activities. They need to have a maturity period of 3 years and are backed by the government, and hence are safe for investors.

 

  1. High Yield Bonds- These are bonds rated below investment grade. They offer a high rate of interest because it runs a higher risk of default. It is usually issued by small companies who have just entered the market.

 

  1. Public Sector Bonds- These bonds are issued by Public Sector Concerns, which are companies, owned by the Central or the State Government. Therefore, the risk of default is again very low.

 

France, the second largest economy in the Euro zone is one of the latest European countries to issue negative rate of interests on its bonds. The other few notable names are Germany, Switzerland, Netherlands, Austria and a few others. What this means is that an investor is paying these countries to take his money! This situation arises, when investors don’t find other safe investment option and are basically buying bonds to safeguard their funds from taxes.

It’s quite a turnaround for the European Union, which in 2008 was on the brink of collapse, due to a possible debt (bonds) default by Portugal, Ireland, Italy, Greece and Spain. From sky high bond yields to getting paid for accepting investments – its’ quite a turnaround!

As the Euro Zone countries share the same currency, they have only one bank, .i.e. the European Central Bank (ECB). The bank’s Governor is nominated by taking all Euro zone countries on board. But, here’s the catch! These countries cannot print as much money as they wish to as no single country has any control over the central bank. Therefore, no country can spend without any worry and investors run the risk of facing real defaults.

This was an unseen circumstance for investors and the Governments. It resulted in severe budget cuts for the countries mentioned above in order to have an economy that can pay for these bonds. This resulted in a severe recession across Europe and in effect the World.

Apart from the Euro Zone crisis there have been very few instances of countries defaulting on their bonds. Thus, bonds are a great way for investors to earn money safely and quickly.

Conclusion

An investor is blessed with multiple investment options to choose from. It is time Indian investors start taking bonds seriously. They are one of the most underrated forms of investment.

BSEVarsity.com offers you a Certificate Program on Bond Markets to give you a better understanding of bond markets, and help you diversify your investments.

 

All about Data Scientists!!

Posted on April 15, 2019Categories Global finance   Leave a comment on All about Data Scientists!!

“Information is the oil of the 21st Century”

With increased internet connectivity – all thanks to the availability of high speed 4G and 5G networks, people are spending almost their entire day in close proximity of one smart device or the other. The places people go to, the routes they take, the things they do along the way, etc. Data helps businesses understand what people do, why do they do them and how do they profit from this behaviour.

By understanding a consumer well, it’s easy to tailor a product according to his needs, which makes it easier to sell products to him/ her and a wide population that’s just like it. This is the end goal of data mining. Using data to understand consumers and predicting their behaviour in the future.

It makes data analysts one of the most sought after and well paid professionals. With an average base salary of $110,000/ annum and a job satisfaction score of 4.4 out of 5, it’s no wonder that Data Scientists get the number one spot on the best jobs list. Research by IBM shows that the demand for data analysts and scientists will increase by almost 30% in 2020.

A data scientist is defined as a professional who is employed to analyze and explain complex company data like sales, ad spends and revenue figures from various websites, reports etc. It helps the management take crucial business decisions. It is an interdisciplinary field that combines computer science, statistics, Machine learning, and business; which allows the management to plan the future course of the company.

With specialized skill sets, data scientists are often said to be the secret weapons of an enterprise. They conduct a SWOT analysis and find solutions for the business questions posed. Being a vital cog in a company’s structure makes a data scientist’s job among the highest paying ones of 2018.

Average salary structure:

The average salary range of an experienced data scientist ranges from Rs. 80 lakhs to over Rs. 1 crore a year. Different countries have different requirements, thus making the demand and compensation for data science executives vary wildly across the world. We share the details of some geographies with a lot of demand for data scientists

  • USA

USA ranks 1st globally, in their demand for data scientists who make an average of US $120,00 a year. The demand is mostly in the fields of IT, e-commerce, retail, professional services and the financial sector which make up over 60- 65 % of the total demand. USA is also slated to provide more opportunities in data science, with it having upto 2 million openings by 2020.

  • UK

British data scientists make over $66k per annum. However, the UK has the record of having most qualified data scientists with over 30% having a doctoral degree. The UK is an important market as it’s the gateway to the EU. Hence , it must be looked at from the perspective of the entire EU and not just the UK – thus making any experience gained while working here, invaluable.

  • India

Indian data scientists make an average of just Rs.9.5 lakhs per annum and are the highest paid data scientist group in the world in terms of purchasing power parity. This is commendable as more than 50% data scientists have ony a Bachelor’s degree. With the Indian Economy looking up, recruitment is set to ramp up at a rapid pace.

  • Australia

Australia ranks 2nd in terms of data scientist salaries in the world. The average salary of a data scientist in Australia goes up to $110,000 a year. These salaries are growing rapidly as 74% of professionals noted an increase of more than 6% in fresher salaries over the past 3 years.

Conclusion:

Having the skills needed to be a data scientist are very very important, not just for those who have to work in the industry, but also for other professionals who need to use data. It is infact a critical requirement for anyone hoping to vault into the senior management. Hence, it’s advisable to have a decent working knowledge of the languages of Python, R and SQL.

BSE Institute’s GFMP Edge Data Science program is an intensive course which has been exclusively designed by senior industry professionals to help you learn the various programming languages and softwares used in data science, in just 4 months.

 

New emerging opportunities in BFSI

Posted on March 25, 2019Categories Global finance   Leave a comment on New emerging opportunities in BFSI

“The science of today is the technology of tomorrow”

– Edward Teller

The world is waking up to explore the vast possibilities of emerging technologies. Artificial Intelligence, Robotics, Blockchain and Internet of things (IOT) are creating a big buzz in the global markets. They are attracting Billions of Dollars of Private Equity funding. These technologies are creating brand new markets which did not exist earlier.

When it comes to such digital transformations, sectors like Banking, Financial Services, Insurance (BFSI) and Telecom, are on a path to become the growth engines of our economy. Industrial giants are making big changes internally to adapt themselves to these changes, these technologies, which can make them more competitive globally. Let’s take an example of a company to understand this better.

IBM, nicknamed the “Big Blue” is one of the world’s largest employers, with most of them from India. When it comes to adopting new technologies, IBM believes that a majority of their growth will come from the BFSI sector.

They recently organized a two-day “The THINK Forum” where all senior IBM officials and key business leaders were present to discuss the future of business with these new technologies. In order to prepare a workforce that is well equipped to handle any new tech, IBM is planning to build skill development centers across the country.

“IBM is also in talks with NITI Aayog and other learning and development organizations to understand what platform we can put in place to skill more people” – Lula Mohanty, IBM Global Business Services.

Present in India since 1951, IBM India has now expanded its operations with regional headquarters in Bengaluru and offices across 20 cities of the country.

With the aim of helping Indian enterprises deliver next-generation consumer experiences, a global consulting agency known as Bluewolf, an IBM company, also announced a new practice in the country. They introduced “Salesforce”, a leader in the customer relationship management (CRM) solutions.

IBM now manages 100-200 customers for the Salesforce practice in the country. It expects the number to grow rapidly in the coming years as new enterprises (specially Banks) and government agencies depend heavily on them for digital transformation initiatives.

“India is one of the highest growth markets for Salesforce,”

says Sunil Jose, Senior Vice President, Salesforce India.

IBM is also looking to double its investments in the country. They are planning to hire 1,000 employees in Hyderabad alone by 2020. They already have a strong base in Bengaluru, Hyderabad, Mumbai, and Delhi. India is the market that is continuously growing and adding profits for the company as the young recruits can easily be trained on new technology.

The (CRM) solutions provider (Salesforce) also has a “Centre of Excellence” in Hyderabad. This is the first major center for the cloud software company in India.

A major reason for IBM to be extremely bullish about the Indian sub-continent is the large number of Fintech startups thriving here. These companies are offering many banking and financial services to people who previously had no access to banks and NBFCs. With a lot of citizens now having access to these services, the India BFSI sector is poised to become the largest in the World.

This is a major reason why the BFSI Industry continues to prosper even in a tough economy. Companies like IBM are bullish and are offering attractive career options for finance executives.

So make hay while the Sun shines, with BSE Institute Limited. We offer a  comprehensive program to help you gain an understanding of the BFSI industry. Our GFMP program trains a candidate to not only meet be knowledgeable about the industry, but it also helps them build the skills the industry needs immediately.

 

Why are Financial Analysts well paid?

Posted on February 27, 2019Categories Global finance   Leave a comment on Why are Financial Analysts well paid?

“Finance is not merely about making money. It’s about achieving our deep goals and protecting the fruits of our hard work.”

– Robert J. Shiller

Finance is one of the most competitive and the most rewarding industry of the world. It can be tough to enter the industry without the proper knowledge and skills, needed to excel here. One of the best ways to begin a career in finance is to aim for one which includes multiple disciplines at the same time. Maths, analytics, accountancy, economics etc,. – give you the ability to get a holistic view of the industry and your organization. This also gives you a better scope to earn better. Being a financial analyst is one of the most desired job profile for many youngsters. Financial analysts can work in both junior and senior capacities within a particular organization. An analyst’s role is quite indispensable in an organization.

Who is a Financial Analyst?

A financial analyst is a person who analyses all major financial statements at a micro or macro level to understand the financial health of a company and offer suitable suggestions. The major functions performed by a financial analyst include fundamental analysis, ratio analysis, financial modeling and valuation of a particular company. A financial analyst is also called an investment analyst/ an equity analyst/ a research analyst or a security analyst.

A financial analyst must always be aware of the current developments of the industry in which he/ she is specializing in. This helps in preparing financial models keeping historical data in mind, which is important while trying to predict the future economic conditions for any number of variables.

Employment wise, the outlook for the field of financial analyst is very good.

It has been predicted by the Bureau of Labor Statistics of the USA (BLS), that the financial analysts job vacancies are expected to grow by 15.5 percent between 2012 to 2022.

A financial analyst performs many roles and executes various responsibilities. Some specializations are credit analysts, investment analysts, budget analysts, rating analysts, security analysts, tax analysts, Wall Street analysts and mergers and acquisition specialists.

Financial Analyst jobs

  • Buy-side firms:

A majority of financial analysts work on buy-side firms. These firms are basically corporate or individual investors who invest in future returns. The risks are quite high and the investment decisions are only made by the final investors.

  • Sell-side firms:

A sell-side firm consists of corporates and individuals who are involved as facilitators for Buy-side entities. The risk is quite less and the corporates/ investors help each other in decision making.

  • Investment Banks:

These are some of the most well paid jobs of the World. The main objective of investment banks is to raise capital by issuing securities or underwriting them. They assess the current financial conditions and rely heavily on modeling and forecasting to make recommendations to investors. It is the duty of these analysts to advise their clients if a certain merger, acquisition or investment makes financial sense.

Salary of a Financial Analyst

The median salary of a financial analyst across all experience levels as of May 2017 was $ 84,300. In India, the average pay scale average is Rs. 353,991 annually, but it increases up to Rs.9 lakh per annum depending on the position and experience of the analyst.

In London, one can earn up to GBP 20,000 – 50,000 annually and in the US for the same profile, one can earn in a range of $ 35,000 to $ 80,000 annually.

Becoming a Financial Analyst

Just like anything else, it helps if you begin early, in order to build a lucrative career as a financial analyst. BSE Institute Limited, a 100% subsidiary of BSE India, helps you learn and excel in the subjects, needed to be a great Financial Analyst. With proper case studies, industry interactions, classroom trainings and the right corporate exporsure, one can easily begin their career as a Financial Analysts. Our 4-month GFMP program is perfect for all students who wish to begin their careers as financial analysts. One of the highlights of the course is the industry internships and placement assistance that is provided to help students begin their careers.