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Master of Business Administration [MBA] (Finance)

  • STREAM

    MANAGEMENT

  • DURATION

    2 YEARS

  • COURSE

    Finance

  • COURSE TYPE

    Post Graduation

Master of Business Administration in Finance is among the most sought after specialization in field of Management. MBA (Finance) is a two year post graduate course, the eligibility for which is a bachelor’s degree in any discipline with aggregate of 50% marks or equivalent CGPA (Relaxation of 5% is granted to SC/ST Candidates). Candidates can get direct admission on the basis of merit list or management quota.

The course is best suited for those who wish to work in the financial sector such as insurance and mutual funds among others. MBA Finance syllabus is formulated in such a way that, besides providing the knowledge of operational aspects of  finance, also builds and enhances the candidate’s managerial and technical skills. 

Starting from the principles and practices of management to managerial economics and management of a bank, MBA in Finance is all-inclusive and well-rounded as far as the managerial and technical aspects in the financial sector are concerned.The average fee charged by institute ranges between INR 4 to 20 Lacs. 

Top Institutes offering MBA in Finance are: Faculty of Management Studies (FMS) DUICFAI Business School, HyderabadSymbiosis Institute of Management Studies, PuneDepartment of Management (BITS) PilaniChrist University, Bangalore

Candidates entering the industry after completing MBA in finance degree can earn about 5 lacs per annum as the starting salary. The salary can increase according to the experience and expertise of candidate in the particular field. 

MBA (Finance): Course Highlights

Following are some highlights of a general MBA Finance course in India- 

Program Duration2 years (4 or 6 semesters)
Number of Management Institutes in India3900 approx.
Associated Key SkillsCapital Management, Asset Development, Fund Management, Risk Management among others.
EligibilityA Bachelor’s Degree in any Discipline. Different Institute might have some additional eligibility criteria.
Admission ProcessEntrance Test + Group Discussion / Personal Interview
Top Entrance ExamsCAT, XAT, NMAT, CMAT, SNAP, MAT etc. Management Entrance Exams in India
Program FeeVaries from INR 4 to 20 Lacs
Average Starting Salary after the ProgramINR 5 Lacs
Top Recruiting Companies Ernst & Young, Genpact, ICICI, HDFC, HSBC

MBA (Finance): What is it About?

The Management of Finance is a crucial aspect of any business and requires able and expertly trained professionals to determine the why and how aspect of funding and investment. Since no organization can function without professionals to make such calls, MBA in Finance will always remain an in-demand course.

Some of the basic skills an MBA in Finance helps in building are:

  • Investment Strategy
  • Understanding of Local and Global Economy
  • Merger and Acquisitions
  • Corporate and Financial Risk Management
  • Hedge Fund Management

An MBA in Finance prepares an individual to for management level jobs in Banking and Finance Sector. Courses in MBA in Finance focus more on the managerial aspects of asset management. MBA in Finance is ideal for students who wish to secure managerial and leading positions in an organization.

Students who wish to pursue further studies in Business Administration, Fellow Programme in Management or FPM is a lucrative option. FPM is a doctoral program offered by top management institutes. Students who opt for full-time Residential Fellow Program are awarded monthly grants which range from 30,000 INR to 100,000 INR per month. FPM Programs are available at institutes like IIMs, XLRI, ISB, MDI etc.

MBA in finance is the most popular stream in Management studies these days. Course structure and curriculum is something that plays a vital role for making it the most popular among MBA aspirants. Course duration for MBA is two years in all B schools. However these two years are divided either in semesters or in trimesters. Each year consists of two semesters or three trimesters.

Students generally learn core subjects in the first year in all MBA courses. But at the end of the first year, the choice of specialization becomes clear. In the second year, the students take elective or optional courses to specialize in a maximum of two functional areas. So for the first year all the MBA courses have the same curriculum.

MBA in Finance Syllabus

 

MBA (Finance): Top Institutes

While choosing a B school everyone wants to know about the placement records of the institute, which without a doubt is the most important parameter to check. But apart from that there is another important pointwhat course you want to specialize in and which institute is better at it?

For MBA in Finance, some prestigious b schools both public and private are tagged as best not only in India but at global level. Following is the list of such b schools- 

Public

B SchoolProgram NameEligibilitySelection Criteria
Indian Institute of Management, Ahmedabad (IIMA)Post Graduate Program in ManagementBachelor's Degree with at least 50% marks or equivalent CGPACAT Score, GD, PI, WAT, Work Experience
Indian Institute of Management, Bangalore (IIM B)Post Graduate Program in ManagementBachelor's Degree with at least 50% marks or equivalent CGPACAT Score, GD, PI, WAT, Work Experience
Indian Institute of Management, Calcutta (IIM C)Post Graduate Program in ManagementBachelor's Degree with at least 50% marks or equivalent CGPACAT Score, GD, PI, WAT, Work Experience
Indian Institute of Management, Lucknow (IIM L)Post Graduate Program in ManagementBachelor's Degree with at least 50% marks or equivalent CGPACAT Score, GD, PI, WAT, Work Experience
Faculty of Management Studies, Delhi (FMS Delhi)MBABachelor's Degree with at least 50% marks or equivalent CGPACAT Score, GD, PI, WAT, Work Experience

Private

There are some private b schools that are also considered best in MBA Finance-

B SchoolProgram NameEligibilitySelection Criteria
Xaviers Labour Research Institute Jamshedpur (XLRI)Post Graduate Diploma in ManagementBachelor's Degree with at least 50% marks or equivalent CGPAXAT Score, GD, PI, Work Experience
S.P. Jain Institute of Management and Research, Mumbai (SPJIMR Mumbai)Post Graduate Diploma in ManagementBachelor's degree or equivalent (10+2+3) from a recognized universityCAT/XAT/GMAT Score, WAT, Psychometric Test, Interview
Management Development Institute, Gurgaon (MDI)Post Graduate Program in ManagementBachelor's Degree with at least 50% marks or equivalent CGPACAT Score, GD, PI, WAT, Work Experience
Jamnalal Bajaj Institute of Management Studies, Mumbai (JBIMS)Masters in Management StudiesBachelor's Degree with at least 50% marks or equivalent CGPACAT Score, GD, PI, WAT
Narsee Monjee Institute of Management Studies, Mumbai (NMIMS Mumbai)MBABachelor's Degree with at least 50% marks or equivalent CGPANMAT Score, GD, PI
Symbiosis Institute of Business Management, Pune (SIBM Pune)MBABachelor's Degree with at least 50% marks or equivalent CGPASNAP Score, GD, PI, WAT
ICFAI Business School, HyderabadMBA/PGPMBachelor's Degree with at least 50% marks or equivalent CGPAIBSAT Score, NMAT Score, CAT Score, GD, PI

MBA (Finance): Eligibility Criteria

Graduation and a bachelors degree in any discipline obtained through the 10+2+3 system or an equivalent qualification with a minimum aggregate of 50% or equivalent CGPA of any of the Universities incorporated by an act of the central or state legislature in India. A Relaxation of 5% aggregate is there for SC/ST candidates.

MBA (Finance): Admission Process

There are about 3700 B schools in India including public and private institutes. Among them there are 19 IIMs which are the premier institutes of Business studies in country. The application process in these institutes differs from institute to institute. Mostly B schools offer admission on the basis of some entrance test. There are also some institutes which provide direct admission to the students.

MBA in Finance Admission 2017

                                                                                                                          

Direct Admission

Direct admissions are done either on the basis of merit list or on management quota.  Direct admission in MBA Finance is offered by private institutes. These admissions are done on the basis of Management Quota/NRI/Sponsored seats. Direct admission for any institute only includes one round. They offer admission directly by submitting the course fee.

MBA (Finance): Entrance Tests

There are about 15 national level entrance tests which provide opportunity for students to pursue their MBA from their dream b school. Some most common entrance tests are CAT, XAT, MAT, CMAT, GMAT, IIFT, SNAP, and NMAT. Among them CAT and XAT are the most popular one.

Application process for most of the entrance exams generally starts from July to October.  Entrance tests are held in the end of the year. CAT the most renowned test for MBA in India is held in November, XAT in January and others are also held between months November to January. Classes in most of the B schools begin in July or August. Following are some brief details of these entrance tests-

MBA in finance Entrance Exams

Selection process for most of the B schools includes following steps-

  • Shortlisting on the basis of Entrance Test Score- Mostly B schools first, shortlist candidates on the basis of their score in the entrance test which is acceptable by the institute. Shortlisted candidates get a call from the respective b school for further rounds.
  • GD/PI/WAT- After shortlisting candidates on the basis of test score, next round of selection process is conducted. Almost all the top B schools of the country follow the same pattern for admission. Group discussion or Written Ability Test is the first phase of the second round. This process differs from institute to institute. Some prefer GD while some prefer WAT. PI is the final round for the selection. Apart from these stages, academic performance of the institute is also considered in the final selection. Following is the process followed by most of the institutes in final selection-

Criteria

Weightage

Entrance Test Score

60-70%

Academic Performance

10-15%

GD/PI/WAT

5-10%

Work Experience

5-10%

Above table shows a rough idea about how much weightage to which criterion is given by most of the institutes for final selection of the candidates.

MBA (Finance): Syllabus and Course Description

First year of every MBA specialization comprises of the core subjects.Core courses are compulsory to all. Following is the list of Core course and electives for MBA (Finance). However core courses may differ from institute to institute-

Core Subjects (First year of course)

Electives (Second year)

Organizational Behaviour
Quantitative Methods Managerial Economics
Financial Accounting
Marketing Management
Human Resource Management
Business Communication
Information Technology Management  Organization Effectiveness and Change
Management Science
Economic Environment of Business  Financial Management
Management Accounting
Production and Operations Management
Marketing Research
Management of Information System

 

Quantitative Analysis of Financial Decisions

Security Analysis and Investment Management

Portfolio Management

International Financial Management

Management of Financial Services

Management Control System

Corporate Taxation

Financial Derivatives

Project Planning, Analysis and Management

Risk Management

Fixed Income Securities

Corporate Governance

Financial Reporting

Above list is taken from only one institute’s curriculum. Not every B-School may have the same curriculum. However there are some other electives which are taught in mostly B-Schools, we are providing here a list-

Some other Electives-

Behavioral FinanceFinancial Markets
Business Analysis and ValuationFinancial Modeling Using Excel
Capital Expenditure Planning and ControlFinancial Risk Management
Commercial BankingFinancial Technical Analysis and Introduction to Global Intermarket Analysis
Commodities Derivatives MarketFixed Income Securities
Corporate TaxationIndian Accounting Standards
Financial Analysis, Planning and ControlInternational Business Economics
Financial Decision Making under Information AsymmetriesInternational Financial Management
Issues in Empirical FinanceMergers, Acquisition and Corporate Restructuring
Risk Management and InsuranceSecurity Analysis and Portfolio Management
Social Finance, Impact Investing & InsuranceStructured Finance

 Students can opt for any of these electives.Although, the course and list of electives differ for different MBA in Finance Colleges. 

MBA (Finance): Career Prospects

As explained earlier, all major organizations in the corporate world require capital management and hence demand for MBA graduates in Finance will never die down. Some of the top companies which recruit candidates with MBA in Finance and average range of package offered by them are:

Company

Packages

Ernst & Young

250,000 – 1,300,000 INR

Genpact

200,000 – 750,000 INR

Accenture

265,000 – 1,000,000 INR

HDFC

200,000 – 600,000 INR

HSBC

300,000 – 2,000,000 INR

An MBA in Finance is one of the top in-demand courses when it comes to a management degree. MBA in Finance boasts of almost 26% share in MBA job opportunities globally. With doors to International Investment in India widening, there is expected to be a propential growth in demand for MBAs in different specialized areas.  In a Survey conducted by Economic Times, MBA hiring are about to grow by 84% in 2015, 10% more than that in 2014, globally which means more job opportunities for those seeking to procure an MBA degree.

MBA Graduates in Finance usually find employment in organizations which require to maintain a balance of Capital. Some of the popular working areas for Finance Graduates in an organization are:

  • Asset Management
  • Corporate Finance and Corporate Banking
  • Credit Risk Management
  • Derivative Structuring
  • Hedge Fund Management
  • Private Equity
  • Treasury

Every year MBA graduates in Finance are recruited in multiple sectors for roles pertaining to capital management etc. The distribution of MBA graduates recruited in various sectors are:

MBA in Finance

MBA (Finance): Salary Trends

While salary should not be a priority while selecting a course, it is indeed one of the most searched queries when it comes to any of the vocational or non-vocational courses in India. When it comes to MBA degree, though job prospects are high, placement or probability to secure a good position highly depends on the institution of study. Below is an estimate of average salary package offered to students from top Management Institutions to average Management Institutions:

MBA in Finance

 

An Analysis of Career Roles and Salary Graph

Following graph shows lowest, median and highest salary offered to MBA Finance graduates in INR Lakhs

Median Salary means that 50% people make less than this value and 50% make more.

Top Management Institutes like IIMs or Narsee Monjee have high placement records with some of the highest pay Packages being offered to the students of these institutions. Average institutions too fare well in terms of placements though the packages offered might not be high.

Gender as a Key Factor in MBA Finance Salary Packages

With a meagre 19% women in MBA Finance, the average salary is less for women than for men. Men make 81% of the workforce with an MBA degree in Finance. The Gender-wise average salary is as given below:

MBA Fin 7

 

Gender

Average Salary Range

Women

190,000 INR – 750,000 INR

Men

210,000 INR – 1,000,000 INR