Finance & Economics

 Finance & Economics

Mathematics is not about numbers, equations, computations, or algorithms: it is about understanding”

—William Paul Thurston

In the past 2 decades, India’s economy has seen a massive growth. If your have a love for numbers and are good at analytical thinking, then this domain provides a good opportunity to gain an edge in today’s rapidly globalizing world. Well-trained financial professions are in huge demand across industries, not only at the national but also at the international level as well.

Although they are often taught and presented as very separate disciplines, economics and finance are interrelated and inform and influence each other.

Economics is the study of production, consumption and distribution of goods and services, with an aim of explaining how economies work and how their agents interact. For those who choose to pursue economics as a career, academia is an obvious option. Academics not only spend their time attempting to teach students the principles of economics, but also researching within the field and formulating new theories and explanations of how markets work. A prominent figure in this domain is Indian economist Amartya Sen who received his Nobel Prize for Economics in the year 1998.

There is also call for economists in the corporate world, working for major investment banks, consultancies, and other corporations often focus on forecasting growth (GDP, for instance) and inflation.

Finance in many respects is an offshoot or outgrowth of economics and focuses on the study of prices, interest rates, money flows and the financial markets. Broadly finance seems to be most concerned with notions like the time value of money, rates of return, cost of capital, optimal financial structures and the quantification of risk.

A degree in finance is a common denominator among many who populate banks and investment firms, as analysts, bankers or fund managers. Likewise, many of those who work for commercial banks, insurance companies and other financial service providers have college backgrounds in finance. Apart from the finance industry itself, a degree in finance can be a pathway into and through the senior management of companies and corporations.

 


 

 

1. Career Options

Banking and Corporate Sector
  • Banker

As a financial institution, banks employ finance graduates for various roles in their organization. This can include loans, insurance, mutual funds and other allied financial products. You can seek a role in credit management where you would be involved with controlling and collecting payments from customers, or a mutual fund manager, involved with professionally managing investment funds that pools money from many investors to purchase securities. With the advent of private banking, the demand for quality finance graduates is ever increasing, and offers a host of career choices. Completing a specialized professional course in banking or post graduation with a specialization increases your chances of a position as a banking officer with private banks.

 

  • Auditor

An auditor is an official whose job it is to carefully check the accuracy of business records. An auditor can be either an independent auditor unaffiliated with the company being audited or a company hired auditor. Auditors are used to ensure that organizations are maintaining accurate and honest financial records and statements.

 

  • Financial Controller

A financial controller is the lead accounting executive in a company. He provides financial leadership and is instrumental in forming accounting strategies. A controller’s role, especially in smaller companies, can include broad visionary responsibilities as well as hands-on management. A financial controller is responsible for ensuring that all accounting allocations are appropriately made and documented.

 

  • Investment Banker

An individual who works in a financial institution that is in the business primarily of raising capital for companies, governments and other entities, or who works in a large bank’s division that is involved with these activities. Investment bankers may also provide other services to their clients such as mergers and acquisition advice, or advice on specific financial transactions.

 

  • Fund Manager

A Fund Manager is mostly responsible for implementing a private equity fund’s investment strategy and managing its portfolio. He must have a high level of educational and professional credentials and appropriate investment managerial experience to qualify for this position.

 

  • Chartered Accountant

A chartered accountant’s work involves auditing, taxation, accounting and financial planning, serving as a financial caretaker. In recent times, accountancy has become popular as a profession as services of a CA are required in money matters even in a small business. Moreover according to the Company Act it is mandatory for every company to employ a CA. As a student of charted accountancy the course offers theoretical education with complementary practical training. This balanced approach helps students appreciate the underlying practical applications of the theoretical education scheme and makes them more job-ready.

 

 

  • Financial Analyst

Financial analysts help people decide how to invest their money. There are various other terms such as securities analyst, research analyst, equity analyst or investment analyst that are used to describe a financial analyst. This job involves writing reports that may contain fundamental analysis principles; include technical chart analysis and tactical evaluation of the market environment. At times financial analysts work in close coordination with financial planners and are required to have expertise over finance management and analysis. The job profile will include offering investment suggestions to clients, evaluation of the economic outlook of different sectors and industries for organizations.

Economics
  • Economic Analysts

 

An Economic Analyst conducts research, prepares reports and formulates plans to address economic problems related to the production and distribution of goods and services or monetary and fiscal policy. Economic analysts apply principles of economics to help businesses as well as regulators and policy makers to evaluate and implement strategic decisions.

 

  • Financial Economist

Financial Economics is a branch of economics that analyses how time; risk (uncertainty), opportunity costs and information can create incentives or disincentives for a particular decision. Financial Economists evaluate how time, risks opportunity costs and information can create incentives or disincentives for a particular decision.

 

  • Environmental Economist

Environmental Economics is an area of economics that studies the economic impact of environmental policies. Environment economists perform studies to determine the theoretical or empirical effects of environmental policies on the economy. This field of economics helps users design appropriate environmental policies and analyze the effects and merits of existing or proposed policies.

 

  • Political Economist

Political economy is the interplay between economics, law and politics, and how institutions develop in different social and economic systems, such as capitalism, socialism and communism. Political economy analyzes how public policy is created and implemented and how economic theory and methods influences political ideology.

 

  • Industrial Economists

A business economist, also known as an Industrial Economist, is a specialized analyst that focuses on the structural side of business. Business economists often study the business structure and determine if it is ideal for development or should be changed to cater to business demands. They constantly acquire data that would affect the economic setting of a business or an organization, applying the data acquired for the profitability and success of the company.

 

  • Statistician

Statistics is the practice or science of collecting data, expert analysis and feedback as well as analysis of numerical data in large quantities. Statisticians use this knowledge to design, collect, and interpret data experiments surrounding many different fields of industry. This may include the fields of economics, medicine, psychology, marketing, public health, biology and even sports, finally using the data to summarize, analyze, and interpret theories, predict scenarios and develop policies.

 


 

 

 2. Academic Steps

 

  • Eligibility

For B.A. (Hons) And Business Economics (BBE)

  • The candidate should have passed Senior Secondary School Examination (10 +2) of CBSE or any other examination considered equivalent.
  • The candidate should have secured an aggregate of at least 60% marks in his/her XII class examination (55% for SC, ST, CW and PC categories) in four papers including English and Mathematics.
  • The candidate should have obtained pass mark in each of the four papers considered for computing the aggregate in the above-mentioned subjects.

 

  • Entrance Exams

The Delhi University organizes joint entrance exams for providing education to three years full time undergraduate courses named BBS (Bachelor Of Business Studies), BFIA (Bachelor Of Financial And Investment Analysis) and BBE (B.A (Honors) of Business Economics) at the following colleges.

  • DU Bachelor of Business Studies
  • Deen Dayal Upadhyaya College
  • Keshav Mahavidyalaya
  • Shaheed Sukhdev College of Business Studies
  • DU Bachelor of Financial and Investment Analysis (BFIA)
  • Shaheed Sukhdev College of Business Studies
  • DU B.A. (Honours) Business Economics (BBE)
  • Bhim Rao Ambedkar College
  • College of Vocational Studies
  • Gargi College

Most other colleges offer BA. and B.Com do not have mandatory entrance tests.

  • Exam Pattern

There is no defined syllabus but the questions in each section are usually from the following topics; Quantitative Ability, Reasoning and Analytical Ability, General English, Business and General Awareness and Current Events

 

  • High Ed

Candidates who have successfully completed B.A Economics can explore various options specializing in domains such as banking and finance, teaching, retail, stock and share brokering, FMCG at the MA level or opt for an MBA course. Some suggested options:
M.A. in Economics
M.A. in Mass Communication (MMC)
M.Sc. in Advertisement & Journalism
Master of Business Administration (MBA)
Masters in Applied Economics
MBA in Economics

 

Chartered Accountancy

The Chartered Accountancy course comprise of the following stages:

  • Common Proficiency Test
  • Integrated Professional Competence Course
  • Computer Training
  • Articled Training
  • Final Exam
  • General Management & Communication Skill Course

A Candidate who has passed the 10th examination conducted by an examining body constituted by law in India (or an examination recognized by the Central Government as equivalent thereto) can register for the Common Proficiency Test (CPT) of the CA program. But they can write the examination only after passing the Senior Secondary Examination (10+2) or waiting for the 10+2 exam results. There are no restrictions with regard to the age of the candidate or marks secured in Senior Secondary Examination.

Commerce graduates with 50% marks, non-commerce graduates with subjects other than Mathematics with an aggregate of 55% marks and non-commerce graduates with Mathematics with an aggregate of 60% marks are exempted from the Common Proficiency Test (CPT) and are permitted to register for Integrated Professional Competence Course (IPCC). Candidates who have passed the Final Examination conducted by the Institute of Cost & Works Accountants of India (ICWAI) or the Institute of Company Secretaries of India (ICSI) can register for Professional Competency Course.

After passing Integrated Professional Competence Course, the candidates can register as Articled clerks for practical training and for admission to the Final course of the Chartered Accountant. Every graduate above 18 years of age is eligible to register as an articled clerk/ Audit Clerks for Chartered Accountancy. Computer Training Program is compulsory for the candidates who wish to register themselves as auditor clerk. They should under go 100 hours training in Information Technology along with IPC.

 


 

 3. Scope

 

  • Prospects

Opportunities for economics graduates (or those with an economics component to their degree) are particularly strong in the corporate sector, law, journalism and public policy. Economists work in the private and public sectors. Work in the former often involves analysis of domestic and international market developments, while work in the latter is more likely to focus on the role of government in policy and regulation of markets. Eight of the top ten occupations for economics graduates are business, management and finance related.

Once you complete a selective professional course in banking, lucrative position are available as a banking sales officer with the private banks. Also positions in insurance, personal loans, mortgages, collections and back office operations are available.

Banks such as ICICI, HSBC, Kotak Mahindra, HDFC, Standard Chartered, Barclay’s, and American Express are some of the companies that hire banking students at all levels. Demand for banking process executives, collection officers and financial analysts is the high in India, with the fast developing KPO industry. There is still a considerable dearth of graduates, post-graduates who have mastered cost accounting.

  • Scope

Salaries earned by economics majors can vary depending upon a number of factors, including degree level, job title, city and employer. The type of education one gets can make a difference in salary as well. In most of the government services Economists are getting Rs. 15000 to Rs. 25000 as assistants, while experienced and seniors have average monthly salary of about Rs. 35000. In case of private sector remuneration are even higher. Banks are now offering good salary packages. Financial consultants are also earning good returns depending upon number of their clients. The pay scales for banking student who is a fresher could vary anywhere from Rs 14,000 to Rs 20,000.

 

 

 


 

4. Information on Colleges

Given Below are some of the more reputed colleges in India (not in rank or order).
Note: This is not an exhaustive list.

 

Funding and Scholarships

Tata Education and Development Trust

 


 

5. International Focus

Given Below are some of the more reputed colleges internationally (not in rank or order).
Note: This is not an exhaustive list.

 


 

 

6. Top Companies

International
  • Aecom
  • DCT Industrial
  • BCS Wealth Management
  • Hilliard Lyons
  • Welcome Group
  • Northwestern Mutual
  • Wells Fargo
  • Allianz:: Germany
  • Suncorp Group Australia

 

India
  • Creative Group
  • Allstate Insurance Co.
  • Birla Sun Life Asset Management
  • Franklin Templeton
  • Religare Asset Management Company Limited
  • IndiaFirst Life Insurance Company Limited
  • ING Vysya Life Insurance Company Ltd

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