The document outlines the fundamentals of finance, covering its definition, key decisions (investment, financing, dividend, liquidity), and various career paths within the field. It highlights different finance jobs across sectors such as investment banking, wealth management, hedge funds, private equity, real estate, and venture capital. The document also lists potential employers and the essential skills needed for success in finance careers.

1. FINANCE AS A CAREER
FIRDAUS KHAN
ASSOC. PROFESSOR – ICBM-SCHOOL OF BUSINESS EXCELLENCE

2. WHAT IS FINANCE?
• The science that describes the management,
creation and study of money, banking, credit,
investments, assets and liabilities.
• It is the language of business and consists of
Financial Systems and Financial Instruments

3. FINANCE DECISIONS
• INVESTMENT / LONG-TERM ASSET - MIX DEC.
• FINANCING / CAPITAL – MIX DEC.
• DIVIDEND / PROFIT ALLOCATION DEC.
• LIQUIDITY / SHORT – TERM ASSET - MIX DEC.

4. INVESTMENT DECISION
• Evaluate & measure profitability of new
investment (expected risk & return)
• Recommit funds when asset becomes less
productive or non-profitable
• Set a std. or hurdle rate against which the
expected return of new investment can be
compared. (required rate of return or
opportunity cost of capital)

5. FINANCING DECISION
• Determine proportion of debt and equity
(Capital Structure). Objective is to maximize
shareholder’s return.
• Consider other factors such as control,
flexibility, loan covenants, legal aspects, etc.
• Decide when, where and how to acquire funds
to meet the firm’s needs.

6. DIVIDEND DECISION
• Decide whether to distribute all the profit or
none or a certain percentage to shareholders
and retain the rest.
• Decision will be based on
-Preference of shareholders
-Investment opportunities available
• Consider issues such as dividend stability,
bonus shares to existing shareholders, cash
dividends, etc.

7. LIQUIDITY DECISION
• Estimate current asset needs and make
appropriate arrangements for funds
• Consider profitability – liquidity trade-off
• Make efficient use of current assets

8. FINANCE AS A CAREER

11. FINANCE FUNCTION IN A FIRM
TREASURER
• Capital expenditure
• Financial planning &
fund raising
• Cash management
• Credit management
• Foreign-exchange mgt.
• Pension fund mgt.
CONTROLLER
• Tax management
• Corporate account mgt.
• Cost-accounting
• Financial Accounting
VICE-PRESIDENT FINANCE / CFO

13. MAJOR FIELDS OF FINANCE
• CORPORATE FINANCE
• INVESTMENT FINANCE
• PERSONAL FINANCE / WEALTH MGT.
• PUBLIC FINANCE
• BFSI

14. MEDIAN SALARY

16. WHAT SORT OF EMPLOYERS ARE THERE
FOR FINANCE JOBS?

17. INVESTMENT BANK
• An investment bank assists governments,
corporations and even individuals in raising
assets by underwriting or acting as an agent of
the client for issuing securities.
• It even assists companies in undertaking
Mergers and Acquisitions
• It offers ancillary services like market-making,
foreign exchange, trading of derivatives,
commodities, equity, etc.

18. INVESTMENT BANKS
• ABN-AMRO
• ANZ BANK
• GOLDMAN SACHS
• CITIBANK
• DEUTSCHE BANK
• JP MORGAN
• DSP MERRILL LYNCH
• MORGAN STANLEY

19. MONEY / WEALTH MGT. FIRMS
• Specialize in managing investments for
individuals or institutions.
• Very large firms might manage a wide variety
of asset classes while smaller boutique firms
might focus on a particular market niche, such
as small – cap stocks or high-yield bonds.
• Common roles at a money management firm
include portfolio manager or security analyst.

20. MONEY MGT. / WEALTH MGT FIRMS
• BANK OF AMERICA
• MORGAN STANLEY
• WELLS FARGO
• GOLDMAN SACHS]
• FIDELITY
• CREDIT SUISSE
• BARCLAYS WEALTH

21. HEDGE FUNDS
• They are similar to money management firms
in that they also manage money for institutions
and wealthy individuals.
• However, they are often known for taking more
risk and are focused upon providing very high
returns.
• Common roles at hedge funds include portfolio
manager or security analyst.

22. HEDGE FUNDS
• JP MORGAN ASSET MGT.
• BALCKROCK ADVISORS
• D E SHAW & CO.
• CANYON PARTNERS
• INDIA DEEP VALUE FUND
• FAIR VALUE CAPITAL

23. PRIVATE EQUITY FUNDS
• Usually manage money for institutions & wealthy
individuals.
• While hedge funds and money management firms usually
buy and sell public securities, private equity firms usually
purchase entire corporations.
• When a private equity firm purchases a public co. it "takes
it private," which gives the industry its name. Eventually
the private equity firm seeks to either resell the
companies they own after improving its performance or
to take them public again in order to make a profit.
• Most employees at private equity firms are investment
bankers & their functions can include analyzing potential
purchases, negotiating deals, raising financing, or
attempting to improve portfolio companies' operations
and profitability.

24. PRIVATE EQUITY FIRMS
• IDFC – PRIVATE EQUITY
• NEW SILK ROUTE
• CHRYS-CAPITAL
• INCOFIN
• ICICI VENTURES
• UTI VENTURES
• JM FINANCIAL
• KOTAK PRIVATE EQUITY GROUP

25. REAL ESTATE FIRMS
• Real estate firms attempt to either develop
new real estate projects or purchase existing
projects in an effort to better manage them
and increase the returns.
• Common finance jobs at a real estate firm
include financing specialist, analyst or deal
manager.

26. REAL ESTATE FIRMS
• DLF LTD.
• JAYPEE INFRATECH LTD.
• DB REALTY
• INDIABULLS REAL ESTATE
• DUFF & PHELPS
• CUSHMAN & WAKEFIELD

27. VENTURE CAPITAL FIRMS
• Financial capital is provided to early-stage,
high-growth potential, start-up companies.
• VC earns money by owning equity in the
companies it invests in, which usually have a
novel technology or business model, usually in
high technology industries, such as biotech / IT
applications / software.
• Through an IPO or trade sale, VC exits the
company.
• Venture capital is a type of private equity.

28. VENTURE CAPITAL FIRMS
• CATAMARAN VENTURES
• CANBANK VENTURE FUNDS
• INVENTUS CAPITAL
• SEQUOIA CAPITAL
• INTEL CAPITAL
• HELION VENTURE PARTNERS
• ACCEL PARTNERS
• KHOSLA VENTURES

29. BFSI – BANKING, FINANCIAL SERVICES
AND INSURANCE
• Banking includes core banking, retail / private
/ corporate / investment banking
• Financial Services may include stock-broking,
payment gateways, mutual funds, credit
rating, etc.
• Insurance includes Life and non Life insurance

30. CFO ROADMAP

31. COMPANIES FOR PLACEMENTS
• Ernst & Young
• Thomson Reuters
• Factset
• Crisil
• CARE
• ICRA
• Wells Fargo
• Invesco
• JP Morgan Chase
• Wipro
• Bercadia
• Cognizant
• ADP
• Genpact
• Accenture
• BroadRidge
• Capital IQ
• Capgemini
• Deloitte
• Banks – HSBC, HDFC,
ICICI, Kotak, etc.

32. WISH YOU A SUCCESSFUL CAREER
& I HOPE TO SOON SAY…
BEST OF LUCK!