Plethora of opportunities

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    May 15, 2015 | 06:08 AM

In a global economy that is ever evolving, one would want to know how to be on top and one step ahead of others. If that is what you really want, you will find that having knowledge about financial modeling will help boost your career aspect in incredible ways. Instead of waiting for the boss to show what to do and how to do it, financial modeling experts hit the ground running and accomplish much more. Because today&’s economy is fraught with uncertainty, you would want to learn the skills, concepts and tools required to gain an edge in the ultracompetitive job market. These models can be used not only in the finance industry but across a plethora of industries.

This is a process by which a firm constructs a financial representation of some or all aspects of the firm or given security. It is the practical application of finance that is taught in the degree courses. Where regular education provides the learner with “Know-what” of finance, this programme adds on by giving them “Know-how.” The participants are trained how to use excel features like referencing, validations, lookup, pivot tables, etc. Further, one can gain knowledge to historical information of companies, analyse their performance on various financial parameters and then use this information to build successful models, which can project the future performance of these companies.

Analysis of these models is desirable in the fields of investment banking, financial research, commercial banking and various other sectors. Any business may use these models to build scenarios, perform what if analysis and to take important business decisions.

The course covers relevant topics like introduction to financial modelling, named ranges, charts, data validation, conditional formatting, and financial statements. This is a new and interesting field with a lot of scope for business and finance students. There are “n” numbers of multinational companies, private banks and financial companies who are on a tenterhook for these professionals. Initially one can expect a salary package of at least Rs 20,000-25,000 per month but it keeps on increasing with experience.

The Institute of Banking and Finance, New Delhi, BSE Institute Limited, New Delhi, Indian Institute of Quantitative Finance, Mumbai and IFMR, Training for excellence, Chitoor, Andhra Pradesh are some of the best institutes offering courses in financial modelling. “Know-How of financial modelling and analysis can lead to a satisfying career in the industry. A good hand with advanced excel and a mention of financial modelling opens number of opportunities for finance graduates and postgraduates,” said Amit Goyal, director TKWS Institute of Banking and Finance.

A few job areas where financial modelling skill is a must have are business analysis, equity research, investment banking, project finance, private equity and venture funds. Also, these skills will be desirable or an advantage in job areas like corporate finance, banking, business planning and strategy, entrepreneurship, family business and portfolio management.

Financial modelling harps on the ‘knowhow’ aspect, giving students the competitive edge to survive in the rat race.