Confidential

CAREERS IN FINANCE

Confidential

CAREERS IN FINANCE

Overview of Finance
‡ Accountant ‡ Financial Analysts ‡ Financial examiners ‡ Personal Consultants ‡ Financial Managers ‡ Sales Agents ‡ Credit Analysts ‡ Treasurers And many more

Want to be where the money is? Finance puts you right in the thick of it! You ll find a variety of careers that have to do with the management, analysis, and protection of finances for both individuals businesses

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Commercial Banking  One-stop shopping for banking services 4 Confidential . dealoriented work. Sales & Trading  Both raise capital for clients through investments  Investments differ in nature and timing I-Banking vs. Investment Banking Business  Raising capital for companies  Advising companies on financing and merger alternatives Players  Bulge Bracket vs Regional Bankers  Centered in Nariman Point and Worli I-Banking vs.CAREERS IN FINANCE Investment Banking ‡ If you like fastpaced. are at ease with numbers and analysis. have a tolerance for risk. then investment banking may be a great career choice. and don't mind putting your personal life on hold for the sake of your job.

CAREERS IN FINANCE Portfolio Management ‡ Portfolio managers typically handle other s money and earn a spread Portfolio & Asset Management  The buy-side Traditional Investment Managers  Mutual Funds Alternative Investment Managers  Hedge Funds  Private Equity  Venture Capital 5 Confidential .

CAREERS IN FINANCE Research Analysis ‡ Equity analysts typically have a gift for mathematical analysis and number crunching. and high standards of personal integrity Research & Analysis Sell-side & Buy-side Analysis  Research equity or fixed-income markets  Analyze company and industry fundamentals  Predict earnings and cash flows  Determine appropriate valuations The Start of a Career in Finance Sell-side  Associate Junior/Association-Analyst Analyst Buy-side  Assistant Analyst Portfolio Analyst Portfolio Manager 6 Confidential . a strong interest in economic trends. proficiency with computers. above-average writing skills.

CAREERS IN FINANCE Sales Client coverage and relationship management Knowledge of client asset/liability needs. as well as industry trends Knowledge of current economic environment and market conditions Knowledge of market opportunities and firm s product capabilities Promotion of the firm s products and capabilities Pricing and execution 7 Confidential .

CAREERS IN FINANCE Trading Providing liquidity to firm s clients Portfolio management (hedging) Knowledge of current economic environment and market conditions Knowledge of flows being executed in the market Maintaining views on underlying instruments Pricing and execution 8 Confidential potential movement of .

CAREERS IN FINANCE Corporate Finance ‡ ‡ ‡ ‡ ‡ ‡ ‡ Financial Analyst Credit Manager Cash Manager Treasurer Benefits Officer Controller Investor Relations Officers Work for a company to help it find money to run the business Grow the business Make acquisitions Plan for firm s financial future Manage any cash on hand 9 Confidential .

interact with people. and build up a clientele Starting at the branch level. credit card banking.CAREERS IN FINANCE Commercial Banking ‡ ‡ ‡ ‡ ‡ Credit Analyst Loan Officer Branch Manager Trust Officer Mortgage Banker Provides banking services to individuals. you might start out as a teller to a wide variety of other services such as leasing. international finance and trade credit 10 Confidential . small businesses and large organizations More people are employed in the commercial banking sector than any other part of the financial services industry Opportunities to learn about business.

INVESTMENT BANKING 11 Confidential .

CAREERS IN FINANCE Investment Banking ‡ The investment banking business is notoriously competitive ‡ Investment banking is seeing massive consolidation ‡ Investment banking is one of the most global businesses on earth Investment banking is an intense. life-absorbing career path that s not for everyone Potential rewards attract the brightest and most competitive individuals from the strongest backgrounds. so getting in is difficult It s definitely worth doing if you get the chance Decide if it s for you: Work/life balance Family vs. career Geography 12 Confidential .

Structured Products Industries .Institutional equities segments .Telecom / Media .M&A .Retail / Consumer .Fixed Income Products . Markets .Industrials .Power & Utilities Investment Management Function Products -Investment Management Products -Risk Management Products -Portfolio Allocation Strategies -Alternative Investment Strategies Research Function .Technology .Other Services: Economists.CAREERS IN FINANCE Investment Banking Various Divisions Typical Global Investment Bank Investment Banking Function Products .Provide Equity and Credit Research to Institutional Clients .Derivative Products .Financial Institutions .Cover about 7080% of listed companies in the country .Currency Products .Cap.Market making . Product experts Sales & Trading Function .Energy .Commodities Prime Brokerage Function Bundled services offered to Hedge Funds and other Institutional clients -Global Custodian -Securities Lending -Financing and Margin -Portfolio reporting -Cash Management 13 Confidential .

CAREERS IN FINANCE Investment Banking Services Offered Services Offered Work Profile Revenue Sources Mergers & Acquisitions Equity Raising Debt Raising Leverage Buyouts JV / Alliances Restructuring Valuations Financial Modeling Preparing Prospectus Roadshows M&A Documentation Interactions with Company Professionals Advisory Fees Capital Raising Fees Underwriting Fees 14 Confidential .

Research Support and Other Secondary-Support Divisions 15 Confidential .CAREERS IN FINANCE Hierarchy in a Typical Investment Banking Division ‡ Small hierarchy ‡ Hard work makes it easier to climb up to the Director position in less than 8 years Director and Managing Director Vice President Associate Analyst Intern Word Processing.

management presentations and road show involvement 16 Confidential .CAREERS IN FINANCE Analyst Responsibilities Financial analysis Industry and company research Developing client presentations Valuation (Financial Modeling) Marketing materials.

CAREERS IN FINANCE What You Should Expect 12-15 hour days Multi-tasking Lots of menial grunt work and micromanagement Meetings and conference calls throughout the day Sacrifice your personal life and health for this career Very common to be forced to cancel vacations and miss holidays/birthdays when needs arise 17 Confidential .

CAREERS IN FINANCE Fun Resources 18 Confidential .

EQUITY RESEARCH 19 Confidential .

CAREERS IN FINANCE Equity Research Produce research ideas (reports) and distributes it to their clients Buy Side: ‡ Money Managers at ‡ Hedge Funds ‡ Mutual Funds ‡ Individual Stock/Bond buyers Sell Side ‡ Internal salespeople (sales and trading desks) ‡ Proprietary trading desk = Think Tank Equity Research Department Hedge Funds/MM Sales & Trading Desk 20 Confidential .

CAREERS IN FINANCE Equity Research Services Offered Services Offered Work Profile Revenue Sources Independent Research Coverage of Equities Credit Research Valuations Financial Modeling Make Research Reports Research Notes Recommendations Interactions with Company Professionals Sharing Trading Fees Fee from Sale of Research 21 Confidential .

beneficial long term trends starting to develop Industry research reports Overview summary of the industry Market trend/conditions. diminished growth ‡ Hold (Neutral) Do not expect much growth. potential problems ‡ Upgrade (Outperform) Better expected earnings.CAREERS IN FINANCE Equity Research Products Ratings ‡ Downgrade (Underperform) Lower expected earnings power. change/confirm earnings estimate. and risk factors Update: Explain movement in the stock. news from management Change in rating Notes on importance events Industry and company related 22 Confidential . Past and future outlooks Current industry leaders and lagers Company-specific reports (3 types) Initiation of coverage: Company information. forecast model. smart acquisition.

CAREERS IN FINANCE Hierarchy in a Typical Equity Research Division ‡ Small hierarchy ‡ Hard work makes it easier to climb up to the MD position in less than 10 years Basic Structure Associate is junior to Analyst Who gets their name on reports? Analyst runs the group  Is the one in charge of making investment recommendations Within the Equity Research Department Structure looks similar to banking Not all analysts are MD s Most regarded talent sits on SSC 23 Confidential .

PP) Good writing skills are mandatory Good communication skills Good listeners and ask good questions MBA is not mandatory to advance Enjoy analyzing companies and trying to outsmart other people 24 Confidential . Excel.CAREERS IN FINANCE Formula for Success Work hard & learn quickly Comp skills (Word.

CAREERS IN FINANCE Buy Side vs Sell Side Analysts Buy-Side Asset managers who represent individual and institutional investors Buy assets with the goal of increasing client wealth Make money from performance commission and maintenance fees Use only public information Sell-Side Represent institutions who want to raise capital Sell debt and equity products and research to the buy-side Make money off of trading commissions and transaction fees Have access to private information Sell-side professionals issue. trade and "sell" securities for the investors on the buy-side to "buy" for their clients. recommend. 25 Confidential .

Private Wealth Management 26 Confidential .

selling assets. tax efficiencies Recommend and place trades on behalf of client Estate and retirement planning Helping clients obtain financial goals 27 Confidential .CAREERS IN FINANCE Private Wealth Management Assist client in constructing investment portfolio strategy Assist Clients in obtaining financing.

especially once established Relationship focused Geographic flexibility High demand for wealth management services Downside One of the most stressful jobs available Market takes away gains. competitors in same office 28 Confidential . high rate of failure Highly competitive work environment. hurts pay and angers clients Very hard to get established.CAREERS IN FINANCE Upside and Downside Upside Very entrepreneurial with nearly unlimited upside Work/Life balance.

CAREERS IN FINANCE CFA vs MBA (FINANCE) CFA Finance specific Master of trade Cost effective MBA Generalized Jack of all trades Expensive study 29 Confidential .

the CFA program will provide a wealth of knowledge.CAREERS IN FINANCE CFA vs MBA (Finance) A good analogy is that the curriculum of the CFA program is a foot wide and a mile deep while the curriculum of MBA programs are a mile wide and a foot deep If you plan on working in finance. the chances that you'll be able to utilize the curriculum are limited  In contrast. whether in finance or not 30 Confidential . an MBA program is likely to provide exposure across numerous fields of study that can be applied in almost any position. if your career path veers out of finance. However.

CAREERS IN FINANCE CFA vs MBA (Finance) The advantage of an MBA is that the knowledge obtained in the program is valuable in other industries outside of the investment world The great disadvantage is cost .000 study hours + to complete it Because of the commitments both in time and money. few go on to acquire both the graduate degree and the certification 31 Confidential . it is arduous. requiring a commitment of two years and 1.both the direct cost of the program and the loss of income that results from a two-year hiatus The advantages of the CFA program are the ability to acquire specific investment related skills at a relatively low cost. However.

CAREERS IN FINANCE Global Investment Banks 32 Confidential .

com/ Dealbreaker : http://dealbreaker.marketwatch.ibankingfaq.bloomberg.com/ Wall Street Journal: http://online.com/ Recreational: Wall Street Oasis: http://www.com/ BankersBall: http://www.com/ Bloomberg: http://www.com Investopedia: http://investopedia.com/ 33 Confidential .nytimes.blogs.com/home-page Seeking Alpha: http://seekingalpha.com/ MarketWatch: http://www.bankersball.CAREERS IN FINANCE Resources Educational: NYT Dealbook: http://dealbook.com/ IBankingFaq: http://www.wallstreetoasis.wsj.

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