Smart Skills
Financial analysis: A Calculated CHOICE
Usha Albuquerque

Today, in an era of global business, global markets and global competition, a career in finance offers a host of opportunities. With markets tumbling up and down, there is increasing scope for bulls and bears in the many financial activities such as finance management, financial analysis, foreign exchange and capital market services, leasing and hire purchase, commodity markets, and a range of non-banking services that can provide excitement to those interested in a career in finance. Moreover, as Indian industry looks progressively outward for investment, there has been an increasing demand for specialists in the field of financial services.

Among the various specialisations, that of the Chartered Financial Analyst (CFA) has gained in importance as it covers some of the core areas of finance — corporate finance, financial services and investment management.

The CFA programme while providing training in financial accounting, focuses more on financial management and analysis, helping business optimise returns on financial resources. The CFA programme looks at areas of corporate finance, financial services like venture capital, leasing and hire purchase, project planning and so on, as well as international finance, and investment management.

The CFAs can work in a range of functions, from managers of specialised services to general managers. The area of expertise includes: Corporate Finance, which deals with management accounting and financial management; Investment Management, which includes aspects of economics, quantitative techniques, economic legislation and security evaluation; and Financial Services, which covers project planning, merchant banking services, portfolio management, venture capital, leasing, hire purchase, new issue management, credit rating and other allied areas.

The CFA training develops in the student an analytical bent of mind which is a prerequisite for effective evaluation of the various alternatives in money management.

The Institute of Chartered Financial Analysts of India (ICFAI) head-quartered in Hyderabad, conducts a certified Financial Analysts Course. This is a three-year postgraduate programme conducted as a distance education course with contact classes conducted in major cities in the country. You must be a graduate in any discipline with at least 50 per cent marks and a minimum of 18 years of age. Admission is based on an admission test, which focuses primarily on verbal and quantitative reasoning abilities and tests the aptitude of a candidate for professional studies in financial studies. The course also includes practical training which enables students pick up some practical experience in the fields of corporate finance, investment management and financial services.

You can also take up the CFA course as a regular full-time programme at some business schools like Narsee Monjee Institute of Management, Mumbai, SP Jain Institute of Management and Research, Mumbai, International Management Institute, New Delhi, BITS, Pilani and Xavier Institute of Management, Bhubaneshwar.

Professionals and executives who complete the CFA programme in order to update their knowledge and enhance their expertise, have a distinct advantage.

On completing the ICFA course most students receive offers for challenging professional positions. Openings for CFAs are available in banking, insurance, corporate sectors, finance and leasing companies.

In the corporate sector, CFAs can work as financial analysts, fund managers, or as executives in charge of resource mobilisation and investment.

CFAs can work in banks and financial institution as appraisal executives, specialists in leasing, hire purchasing, portfolio management and merchant banking.

With some years of experience, CFAs can also work on their own as financial consultants and investment advisors.

The Reserve Bank of India (RBI), International Development Bank of India (IDBI), Unit Trust of India (UTI), Industrial Finance Corporation of India (IFCI) and several other corporate organisations take on CFAs.

So, if you love working with numbers and long to be in the buzz of financial activities, the CFA course could be a good option to pursue.