Career in professional courses: Financial Markets - We bring you expert insights on Career in Financial Markets with which you can exploit demand-supply gap for qualified personnel. Read here to know the courses offered and career prospects in Financial Markets.
Atul grew up seeing his dad engrossed in stock market news or evaluating stock movements. Atul naturally had an inclination for financial markets. After an MBA in Finance, he decided to follow his father, a technical analyst at Bombay Stock Exchange. He opted for a 1-year PG Programme in Securities Markets (PGPSM), equivalent to MBA, from National Institute of Securities Markets (NISM). Now he teams up well with his father while debating fluctuations in stock prices, as NISM exposed him to subjects like Economics, Financial Statement & Analysis, Corporate Finance, Portfolio Management, Equity Analysis, Technical Analysis, Security laws & Compliance.
A similar course with a different nomenclature is taught at National Institute of Financial Management (NIFM). Himanshu Sardana, pursuing 2-year PGDM (Financial Markets) from NIFM says, “I want to become a Financial Research Analyst and this course gives a great platform for one to learn necessary skills and get a placement in financial research industry.”
Slowly and steadily courses on financial markets are gaining ground. Market regulator SEBI is playing an instrumental role through tie-ups with various education centres/universities. It now conducts many certification programmes. NISM, established by SEBI, conducts awareness programmes/workshops/seminars that give you firsthand knowledge on capital markets. The National Stock Exchange (NSE) also plays an important role by providing institutional support besides offering practical inputs through seminars/workshops etc.
Growth of capital market has opened up opportunities for companies to raise funds for expansion of business. It also creates employment opportunities for professionals. In a recent survey by Ernst & Young (October 2015), India is ranked 4th after China among the top five investment destinations. China and India also remain attractive destinations for investors, notwithstanding recent concerns about Asia-Pacific region’s economic growth and stability. “Financial Markets act as a barometer of the performance of economy. Many times capital markets performance is directly perceived as the performance of the economy as a whole,” informs Dr Navin Mukesh Punjabi, Faculty at BSE Institute Ltd, the learning solutions arm of Asia’s oldest bourse, Bombay Stock Exchange (BSE) Ltd.
“If government keeps itself committed to spend money on economy in the near future, this will cause a pick-up in industrial growth, while keeping the inflationary effect intact. The growth of the financial market is an outcome of economic activities along with external factors revolving around,” shares Ashish Sharma, Deputy Senior Associate at Copal Amba, a leading provider of offshore research and analytics services to global financial and corporate firms.
The unprecedented growth indicates that the securities markets would require about 32,000 professionals every year. “There is a perceptible ‘demand-supply gap’ in the area, mainly because, the people are not well equipped/skilled to embrace the opportunities,” says Dr A.M Sherry, Professor & Program Chair PGP (Financial Markets).
Fast Facts -
Programme MBA/PGDM (Financial Market/Security Market); BCom (Financial Market)
Institutes National Institute of Securities Markets; National Institute of Financial Management; BSE Institute Ltd; Mumbai University
Certifications Currency Derivatives Certification; Securities Intermediaries Compliance (Non-Fund) etc.
Top recruiters Banks, securities firms, insurance companies, brokerage firms and mutual fund companies
Job positions Securities analyst, research analyst, equity analyst or investment analyst
What you learn?
“PGDM-FM prepares students to fulfil the skill gaps in the financial market industry. They learn investment and trading skills in a simulated environment, without investing actual money,” says Dr Sherry. Students learn a range of finance subjects - corporate accounting, financial statement analysis, corporate finance managerial economics, quantitative finance, security analysis & valuation, fixed income, technique analysis, understanding of Forex markets, commodity markets, mutual fund, banking & taxation, financial derivatives, FM regulations, theory and practice, financial modelling and computing, corporate governance, behavioural finance, global financial markets, mergers and acquisitions.
“The teaching prepares them to a range of roles across different segments within market space, from investment banks, mutual funds, stock exchanges to credit rating agencies,” informs Dr Latha Chari who teaches PGPSM at NISM. What intrigues Shruti Nair who is doing Post Graduate Program in Global Financial Markets at BSE Institute, is to learn economic forces that drive the global markets. She is happy to gain practical knowledge from the experts in financial markets industry.
At BSE Institute the curriculum is based on recent development in financial markets. “In the equity market class the students are given virtual money and asked to perform fundamental analysis and justify their choices. At the end of the term the student’s portfolio is evaluated and then the portfolio theory is introduced in the next term. The competitive spirit of which group is going to win the competition keep the students on their toes,” Dr Navin reveals. Students benefit from the BSE brand and whenever there is listing of an IPO, the faculty takes the students to attend IPO roadshows and discuss the valuation in class.
One unique feature of NISM as mandated under SEBI is that the course blends with eight mandatory certifications. These industry-ready certifications can be acquired before you join any job in the financial markets, enabling you to get an edge over others. The certification ranges from merchant banking, mutual fund, compliance, common derivatives, compliance, investment adviser, research analyst to internal auditors for stock brokers.
Dr A.M Sherry
Professor & Program Chair PGP (Financial Markets)
There is a perceptible ‘demand-supply gap’ in the area. PGDM-FM prepares students to fulfill the skill gaps in the financial market industry. They learn investment and trading skills in a simulated environment, without investing actual money
Dr Navin Mukesh Punjabi,
Faculty, BSE Institute Ltd
In the equity market class the students are given virtual money and asked to perform fundamental analysis and justify their choices. The competitive spirit about who is going to win keep the students on their toes
PGPSM 2015-16 NISM
Along with the classroom learning we are given training to deal as stock brokers on a simulation terminal with live market feeds to help us gauge and get a feel of what live trading on a terminal is like
Deputy Senior Associate, Copal Amba
Financial market is a world that always requires experts and specialists for effective decision-making. This implies that there will never be a dearth of jobs in this sector for financially knowledgeable personnel
Real world experience
Many institutes have attempted to create trading architecture in the form of finance labs for students to give them the feel of real world trading. Students play both investor and trader’s role. The broking infrastructure on campus is stimulated by the use of technology such as Databases (Bloomberg, Prowess), Application Software (Matlab, SAS, R) and SMART (Simulated Market Algorithm Related Trading). “Along with the classroom learning we are given training to deal as stock brokers on a simulation terminal with live market feeds to help us gauge and get a feel of what live trading on a terminal is like,” says Atul.
The class is divided into 2 batches with branch managers in each batch, and every morning the branch manager will give research-based calls and tips to the batch and they are expected to trade as if in a live market scenario. These sessions provide good learning to those who want to be stock dealers in the future. “Portfolio management and derivative projects helped to refine my skills in that field. We were asked to construct a portfolio of different stocks, generate the optimal weights for the stocks to be held in that portfolio and hedge the same against NIFTY movements and back test with historical data,” adds Atul. The FLAME University’s FLAME Investment Lab (FIL) is a platform to harness students’ investment acumen, help them understand risk, and analyze the market as a whole before they become active participants. “Once equipped with the tools, students channelize it to the stock market. The challenge allows students to invest in stocks from a corpus made available to them. Investment recommendation presentations are made to a committee that judges the investment rationale and decides whether the particular investment should be made. The profit generated from these transactions would be credited and transferred to the respective students who generate such profits,” says Prof. Sujay Joshi, Finance Department, FLAME University.
The selection process differs across institutes. Typically, you should be a graduate from any field, preferably from finance. Some institutes also look for CAT score to get into MBA programme. For PG course at par with management degree the fee could range from Rs. 1 to 5 lakhs. At NISM, BSE and NIFM the course fee is Rs. 1,25,000, Rs. 5,60,000 and Rs. 4,50,000 respectively.
Have you ever thought who manages the money you invest in banks? Its well taken care of by development managers, advisors, relationship managers, fund managers, financial planners. So the place of financial analysts is inevitable in this field. “Job prospects in this area are ample. Usually a fresher can start his career with financial advisory companies, mutual fund houses, brokerage firms. Roles generally offered are sales and marketing, fund accounting, investment and research, operations and administration,” says Ashish.
Starting as an advisor can fetch you somewhere between Rs. 16,000-20,000 p.m. As one’s career progresses, he/she can become a financial planner (Rs. 25-30k), research analyst (Rs. 25-30k) and fund manager (Rs. 40-50k). Top recruiters at NISM include Federal Bank, HDFC, Kotak Mahindra, Yes Bank; Markit, Prime Database, Bloomberg, Anand Rathi Broking House, Care Ratings and UTI Mutual Fund. Other KPOs regularly hiring these candidates are Evaluserve, Copal Amba, EY, Delloitte and KPMG.
You can become an intermediary of mutual funds after clearing the exam conducted by the Association of Mutual Funds in India (AMFI). Job opportunities are in marketing and distribution of mutual fund schemes as Business Development Managers, Relationship Managers and Advisors. You can also become Portfolio Manager, Mutual Fund Analyst, and Hedge Fund trader. Jaimini Gunvantrai Patel, alumnus of BSE Institute, works as Assistant Manager at Online Surveillance Department of BSE Ltd. His job function includes analyzing price movement/abnormal fluctuation in prices or volumes of any security; reporting to SEBI, RBI & Finance Ministry on a daily basis; providing all market-related database; maintaining Confidentiality of the data. He earns Rs. 6 lakhs per annum. The financial market space is a great space to create wealth. “Financial markets always require experts for effective decision-making. This implies that there will never be a dearth of jobs in this sector for financially knowledgeable lot,” Ashish rounds off.
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