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MBA in Financial Management: The Complete Guide 2024

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Kamaldeep

10 April, 2024

MBA in Financial Management: The Complete Guide 2024

“The best way to predict the future is to invent it.” – Alan Kay (computer scientist)

In India, an MBA is one of the most valuable degrees. Students learn about business and management, while finance is considered the core of any business operation.

Today, an MBA in Financial Management is regarded as one of the most valuable postgraduate degrees, with an average salary of 12.25 lakhs INR.

However, it is forecasted that the demand for job opportunities in the other specialisations of MBA, such as human resources, will grow by 5%. So, in the present era and the upcoming years, will the MBA in financial management still be one of the most relevant and high-paying, or will it be replaced by some other specialisations? Let’s dive into it.

What is an MBA in Financial Management?

An MBA is a two-year post-graduate program where the students excel in the knowledge of business management.

Financial Management is the combination of theories and principles to make complex financial decisions in the finance world, including financial planning and analysis.

An MBA in the specialisation of financial management is the complete two-year post-graduate degree of an individual where the student learns the management in the financial world and it rewards an individual with a bunch of the following skills.

  • Financial Expertise:

    It provides an understanding of the financial market, including investment analysis, risk management, and corporate finance.

  • Development in Finance:

    Finance opens the doors to several new opportunities, including, fintech and data analytics where the postgraduate MBA degree provides you an edge in the competitive marketplace.

  • Practical Knowledge:

    Business is like a mind game, where you have to understand and manage numerous strategies. MBA in financial management will provide several case studies, projects, and real-life examples that give you exposure to think out of the box.

  • Soft Skills Development:

    MBA provides leadership courses where soft skills play a vital role, including communication, and critical thinking in every corner of our lives.

Syllabus of MBA (Financial Management)

The program syllabus varies, depending on the type of institute you are studying but here’s some of the common syllabus provided by many institutes:

1st Semester 2nd Semester
Management Concepts & Organisational Behaviour Financial Management
Managerial Economics Accounting for Managerial Decisions
Financial Accounting & Reporting Investment Analysis & Equity Research
Quantitative Techniques for Management Risk & Insurance Management
Marketing Management Mutual Fund Portfolio Management

 

3rd Semester 4th Semester
Strategic Management Corporate Governance and Business Ethics
Strategic Financial Management International Trade and Finance
Banking & Financial Services Security Analysis & Portfolio Management
International Financial Management Business Leadership
Tax Planning & Management Financial Derivatives & Project Work

Package/ Salary of Finance Manager

The salary of a financial manager varies and depends on the type of skill set you have acquired. It differs from company to company. According to Ambition Box, the average salary of a financial manager is INR 16.8 Lakhs.

The salary also varies according to the finance manager’s departments.

Finance & Accounting INR 12.6 lakhs
Customer Success, Service & Operations INR 17.6 lakhs
BFSI, Investment, and Trading INR 10.3 lakhs
Strategic and Top Management INR 22.9 lakhs
Sales and Business Development INR 4.2 lakhs

Scope of Financial Management

We’re living in an era where finance and leadership are the two most valuable skills for individuals whether you’re in any department. The MBA with a specialisation in finance will help you excel in both these skills and open the door to several new highly lucrative opportunities.

1. Financial Planner

As the name suggests, it’s planning your investment portfolio. You prepare a roadmap by taking care of your client’s current financial position to make better and more informed decisions.

Here, an individual has to understand their financial position, set monetary goals, like buying a house or starting a business, and have a clear plan by exploring the investment opportunities and expenses to achieve them.

It not only brightens the individual’s future, but the job market for a Financial Planner is lucrative, too. The market is forecasted to grow by 15% by 2031. The current average salary of a finance planner is 3.9 lakhs INR.

2. Financial Reporting Analyst

Certified Fraud Examiners estimate that companies lose 5% of their revenue every year because of fraud, and to deal with this issue, companies hire financial reporting analysts to minimise unethical activity.

A Financial Reporting Analyst plays a big role. They deal with the financial health and performance of the company’s stakeholders to maintain transparency and facilitate informed decisions.

Stakeholders are individuals and groups of people who are interested in a company’s financial position and performance to get a higher return on investment or with other monetary motives, including investors, managers, and financial institutions.

They not only prevent companies from fraud but also earn a handsome salary, with an average of INR 8.4 lakhs in India.

3. Credit Risk Analyst

There are several financial institutions available in the market that provide loans to borrowers. Financial institutions seem highly lucrative, providing loans and helping individuals.

But the reality is beyond it. A report by Gartner shows that over 26% of bad debt had increased after 2020. Credit risk analysts are like superheroes for financial institutions and commercial banks because they understand and check the creditworthiness of the borrowers and minimise the loan default risk.

They perform several types of activities to minimise the risk of the lenders by analysing financial data, including the balance sheet, credit reports, and income statement.

Like a Financial Reporting Analyst, a Credit Risk Analyst not only prevents commercial banks from bad debts but also enjoys an average annual salary of INR 11.7 lakhs in India.

4. Equity Analyst

An Equity Analyst is a finance professional who researches and analyses publicly traded companies, especially their stocks, to make informed investment decisions about buying, selling, and holding them.

An Equity Analyst performs detailed research on a set of companies by analysing their financial reports, news articles, and industry trends. They build strong financial models to forecast the company’s future, including revenue and stock price movements.

An Equity Analyst’s average salary is INR 6.2 lakhs in India.

5. Investment Manager

In today’s world, everyone understands the power of compounding and investment, whether young individuals or the elderly.

Thanks to a never-ending stream of life hacks and financial influencers on social media.

A good investment opportunity is always a good factor for a business from the beginning. Hence, there is a massive demand for an Investment Manager.

An Investment Manager is an individual who excels in knowledge of investments and understands how to manage the big investment portfolios of their clients for higher returns.

An investment manager enjoys profit by investing in stocks and other kinds of profits and charges a good amount with an average salary of 6.8 lakhs INR.

These are some of the future opportunities for an individual who wants to pursue an MBA in the specialisation of finance, but the market is not limited to only these job opportunities. There are numerous types of opportunities in the market, including asset management, assessing capital needs, capital budgeting, financial modelling, investment banking, and many others.

Takeaway

I conclude by stating that the sky’s the limit. If you pursue an MBA in the specialisation of Financial Management, you will have numerous opportunities and scopes in the future.

Several new opportunities appear in daily life, which seem more lucrative. The need for finance in business is necessary. So, in the upcoming time, the postgraduate MBA degree in the specialisation of financial management will still be very relevant and highly valuable.


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