CFA Or FRM, Which Financial Certification Is Better?

All of the finance aspirants, looking to get certified on the international front, there seems to be one debate which is the most common occurrence. This deals with the two pristine financial certifications, the CFA or Chartered Financial Analyst and the FRM or Financial Risk Manager. Both of these certifications are internationally recognised and offer the chance to have a sterling career in the world of finance. This is exactly where a lot of candidates are faced with the big dilemma of, which certification should they go for and which one would be the most profitable for them.

While it is true that both of these certifications, open up a world of enriching possibilities for the candidate; it is also true that both of these are highly competitive, expensive and tough to crack. Thus it becomes very important for an aspirant to choose the most suitable certification, lest it all go to a waste or they reconsider their career choice, down the road after a few years. To someone who is thoroughly aware of both of these certification, would notice a world of difference between them. But someone who is an amateur could end up making the wrong choice. Hence a clear distinction between the two is necessary so as to make it easier to choose.

Here we explore both the certifications in great detail and highlight their differences.

CFA Program: Careers, Qualifications and Eligibility Criteria

The inception of the Chartered Analyst Program took place in 1963. Originally intended for equity analysts working in the field of Investment Banking; today it is compared to the MBA program. It has become one of the go-to certifications, which a professional opts for when looking to target some specific positions in the fields of investment andbanking. The various roles offered under this program range from, Portfolio Managers, Fund Managers, Risk Managers, Financial Advisors, Private Bankers, Consultant, Research Analysts, Accountants, Relationship Managers, Hedge Fund Research and many others. When it comes to the eligibility criteria, a candidate needs to have a bachelor’s degree and around four years of professional work experience.

FRMCertification: Careers, Qualifications and Eligibility Criteria

This certification was originally intended for those candidates, who wanted to pursue the profession of risk managers in financial institutions. Modern times were infused with rapid changes and high competition, which resulted in the need for professionals, who were able to manage risk, money and investment efficiently. Thus as a result of this, the certification came to be recognised as an important designation. The various career prospects and roles here include Chief Risk Officer, Senior Risk Analyst, Head of Operational Risk, and Investment Risk Management. Unlike CFA, here no educational or professional qualifications are required for a candidate to get qualified for the FRM certificate.

Some Major Distinctions

While the CFA program deals with concepts like, financial analysis, ethics, and asset valuation and so on; the FRM certification mainly covers risk, valuation at risk, models of risk, credit risk and so on. Basically topics which revolve around the concept of risk. Some common concepts, where both these certifications overlap include, credit, derivatives, hedge funds, risk/return metrics and so on.

Imarticus Learning is an education institute offering courses for certification in both CFA and FRM. It is recognised by the Global Association for risk management as well as by the CFA institutes and proves to be an instrumental set up for those looking for a career in finance and investment banking.

How Does Corporate Finance Differ From Investment Banking

Corporate Finance and Investment Banking, both form very essential divisions of any firm, dealing in the field of Finance. According to Investopedia, the most basic difference between these two is, that Corporate Finance deals with the management of a company’s finances, whereas Investment Banking deals with the financial growth of the company. Regardless of their differences, it has been seen that these two fields make for great, promising careers for finance aspirants. A professional working in either of these fields, has to deal with similar kind of challenges and prospects. Corporate Finance, is like a blanket term, used to refer to all things finance, including every vertical that deals with financial activities. In a very broad sense, Investment Banking can also be called a type of corporate finance, which makes their differentiation slightly difficult. While corporate finance can be used more like a general term, Investment Banking is a more of a niche concept.

Have you been on #LinkedIn, looking for some good insights on the #Finance industry, yet stumped on where to it is? https://t.co/Z9dr5MuxJL— Imarticus Learning (@imarticus) October 29, 2016

The field of corporate finance, is concerned with all the day-to-day financial activities of a firm. The main objectives herein are, to take decisions regarding investments, raising capital, maximizing the value of the company, distributing the resources throughout, issuing of securities, analyzing and identifying areas, where it would be necessary to raise capital. Investment Banking, by and large deals with the process of making a firm grow. This is done mainly through, the process of mergers and acquisitions, issuing of securities and various other functions, through which the capital can be raised. Investment Bankers are the professionals, who carry out these activities for a firm and are hired for their specialized knowledge and approach. Investment Bankers are known for their abilities to steer a company out of financial turmoil on to calm waters, this why in spite of being a sub-field, Investment Banking is still considered to be a separate field.

The education requirement for Corporate Finance is a background in either economics, business, or any other finance related field. A degree in accounting makes for a lot in this field due to the nature of the job. As this field covers a lot of job profiles, the skills required here are, good analytical abilities, thorough knowledge about corporate theory, financial analysis, strong communications skills and familiarity with other related concepts of finance. Investment Banking requires a more specific set of skills, but a base in finance, investments and other areas is expected. A lot of Investment Bankers complete their MBA degrees and a few other certification courses, which gives them expert knowledge about the field of Investments. Lately a lot of companies have begun looking for candidates with exceptional resumes, which is the reason for the increasing number of people doing certification courses.

There are eminent institutes like, Imarticus Learning, which offer certification programs specializing in both of these field. Their courses are available both in the classroom as well as online format and can be done by professionals who already have a job. While both of these fields are equally challenging and rewarding, Investment Banking has become a front-runner choice for a career in finance; while on the other hand, Corporate Finance offers a variety in terms of career roles. Differences apart, both the fields have great perks and opportunities to offer.

Best Financial Modeling Courses in India

The field of Investment Banking deals with evaluation of financial standing of a firm, business or a company. This basically involves evaluating the net worth of a company so as to either create capital for the same, get into mergers with other firms or dabble into acquisitions. The very skill required to asses a company’s financial structure, is known as Financial Modeling.

Simply put, financial modeling is a process which draws up the strengths and weaknesses of a company in terms of finance. This process aims at the creation of a mathematical model, which reflects a firm’s financial accomplishments or pitfalls from the time of its inception. Every top notch company has certain assets, some variables as well as some financial value and can be weighed in order to calculate its net worth in the market.

Thus various firms have varied values depending upon their financial standing. A financial model can be any mathematical formula that is used to calculate or estimate the value of a firm under the umbrella of corporate finance. In other words, anything from just a simple calculation to a series of highbrow complex calculation falls under the banner of a financial model. The various types of financial models relied on range from the DCF analysis (discounted cash flow), mergers and acquisitions, enterprise value calculations, estimations, to financial statement modeling and dilution modeling. People working in the Investment Banking industry look at the skill of financial modeling as an asset to have.

There are quite a number of courses on financial modeling, sought out by those who want to make a career in the field of InvestmentBanking. This is one field which covers a vast array of subjects, thus learning becomes a continuous process and learning new modeling techniques is always looked forward to. These courses are offered both in the classroom formats as well as online formats. Although there is a tilt towards opting for online courses, as they provide students with the autonomy to pace themselves through the course.

Breaking Into Wall Street Premium Package

This course includes Excel and financial modeling fundamentals courses in addition to sections of DCF analysis, financial statement modeling, mergers and acquisitions. This course is crafted by senior investment bankers and managing dir

ectors of investment banking firms. This course although does not have an official usage, but can be treated as a refresher to all the comparable, which come under financial modeling.

Financial Modeling & Valuation Certification- Imarticus Learning

This course has comprehensive coverage of concepts of both Financial Modeling and Valuation and it comprises of concepts of core corporate finance like, modeling and forecasting, Equity, Enterprise, Three Financial Statements, Valuation in project Finance and others. The course focuses on real life business scenarios and takes up a methodology based approach coupled with its unique feature of mentor ship. Every student is assigned a mentor, a dedicated senior level industry professional, who guides the student through the course. At the end, students also receive the FMVC certification, which is industry endorsed and the optional CISI Corporate Finance Technical Foundations certification. Career assistance and a 24/7 access to the online portal, sets this course a class apart from the others.

This is one of the reasons why a lot of graduates from the background of Finance opt for this course, so as to level up in their Investment Banking Careers.  

Imarticus Learning Webinar: Demystifying Analytics Careers

Imarticus is excited to invite you to our Webinar on careers in Analytics on September 27th.

 Harvard Business Review has called the Data Scientist, the sexiest IT career you can have. But what exactly do Data Scientists do? What is Data analytics? Is it just picking through numbers? But I was terrible at Math and Science in school!

 According to this article in the Harvard Business Review – More than anything, what data scientists do is make discoveries while swimming in data. It’s their preferred method of navigating the world around them. At ease in the digital realm, they are able to bring structure to large quantities of formless data and make analysis possible. They identify rich data sources, join them with other, potentially incomplete data sources, and clean the resulting set. In a competitive landscape where challenges keep changing and data never stop flowing, data scientists help decision makers shift from ad hoc analysis to an ongoing conversation with data.

 If you are still grappling for answers, then join our webinar, which demystifies this fascinating career path, and answers questions like what do data analysts do actually? What tools do they use? Where can I study it? Why is the Imarticus Learning Program in Data Analysis the most respected program in the country for Data Analytics? And the most burning question of all, what am I going to earn when I finish the program? Our industry experts will be on call to counsel you on which path to take and will fill you in on all the latest trends.

Imarticus Learning courses focus on the tools and techniques needed to excel in the competitive analytics landscape. What are the differences between our dedicated programs for R, SAS and Python?

Our speakers are Mr Mohan Rai, Director at S & R Analytics, involved in Delivery of Analytics Consulting/Training solutions and SIP Partners for TCS. He is a visiting faculty at several Universities and colleges, and is regularly invited as a panelist on Analytics conferences. Mohan has 8 years of experience in Core Analytics (Sales & IT). He holds degrees in Business Analytics and Intelligence from IIM-Bangalore, MBA in Marketing and BSC in Statistics.

Joy Parekh is Assistant Vice President at Imarticus and helped initiate the Online Learning vertical. Presently, he manages a 20-member team across Online Business Development, Product and Governance functions within Imarticus Learning. His exposure to both the start-up and the corporate world will be instrumental and can offer valuable insights to aspirants to kick-start their careers in Data Analytics.

Here’s what Jasmine had to say about our previous webinar on Data Analytics Careers –

Understanding the difference between Data Analytics and Data Science was always confusing, but this webinar helped. I learned a lot from Mr Vishal as he gave a lot of tips on how to get into analytics ”

 For more information please register here. Limited spots available.  http://imarticus1.viewpage.co/imarticuslive_sep27

Source: http://imarticus.org/careers-webinar-demystifying-analytics-careers

Wealth Management Learning Objective

Wealth management refers to the provision to private individuals of financial services that have the goal of preserving and enhancing those clients’ wealth.  It delivers a wide range of services that enable an individual to manage their financial affairs and assets effectively, such as:  tailored banking products; managing the investments; allowing them to lend against investment portfolios in the most secured and safe manner to allow them to be leveraged; investment products in areas such as foreign exchange, structured investments, property and non-conventional investments like venture capital, private equity, hedge funds, real estate investment trusts, commodities as well as assets such as metals, coins and art, trusts and estate management; tax planning; estate planning.

The provision of these services is typically divided according to wealth, with clients classified as highly influencial in society, high net worth or even ultra-high net worth.
What value is applied to define each segment will clearly change from market to market, but the below gives an explanation of the asset profile of individuals making up each segment:

• Upper ends of the middle class– investable assets over US$100,000.
• High net worth individuals – investable assets of over US$1 million.
• Very high net worth individuals – investable assets of over US$5 million.
• Ultra-high net worth individuals – investable assets of over US$30 million.

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There is a wide range of firms that provide wealth management services to clients. They may be referred to as wealth managers, stockbrokers or private banks, each of which specialise in different segments of the market. Private banks provide a wide range of services for their clients, including wealth management, estate planning, tax planning, insurance, lending, enhanced credit lines. Their services are normally targeted at clients with a certain minimum sum of investable cash, or minimum net wealth. Private banking is offered both by domestic banks and by those operating in a different jurisdiction from the client’s home country – usually one with a favourable tax structure. Each of these firms will usually undertake portfolio or investment management. Portfolio management is the management of an investment portfolio on behalf of a client or institution with a primary focus on meeting their investment objectives. Portfolio management can be conducted on the following bases:

• Where the portfolio manager makes investment decisions within parameters laid down by the client.
• Where the client makes all of the investment decisions, with or without seeking advice from the portfolio manager. The portfolio manager usually has the choice of investing directly in a range of assets classes and/or indirectly via several individuals come together to pool their money for investing in a particular asset(s) and for sharing the returns arising from that investment as per the agreement reached between them prior to pooling in the money.  Wealth managers increasingly use platforms to efficiently distribute and operate their services. Platforms are online services used by intermediaries to view and administer their clients’ financial assets and wider financial planning requirements. Platforms enable advisers to take a good and overall view of the various financial instruments that a client has in a variety of accounts. Advisers also benefit from using these accounts to simplify and bring some level of straight through processing or automation to their back office using internet technology. They also offer a range of tools which allow advisors to see and analyse a client’s overall portfolio and to choose products for them including discretionary managed portfolios for clients with sufficient assets. As well as providing services for investments to be bought and sold, platforms generally arrange safekeeping for clients’ assets.

To improve the knowledge about wealth management join Imarticus Learnings Diplama in retail and wealth management course to know more visit here

Make Career in Finance with non-finance Background

 If you are looking for a job in finance they say that it’s mandatory to have a finance degree, but if you really want to work in this field and you don’t have any relevant degree then what do you do?  Still there is a hope.

Every organization wants motivated, dedicated and smart employees to do their work. Finance degrees train students on skills such as financial modeling and data analysis, but may not do much to provide other skills required for success in almost any job, such as communication, problem-solving and time management.

Below are some of the ways to show potential employers that you possess the skills that they desire in an employee, as well as the passion necessary for a successful career in finance. We’ll rate each of these by degree of difficulty to achieve (for example, signing up for a financial course is easier than obtaining an internship) as well as the positive impact it may have on getting you closer to your objective of embarking on a financial career.

1.       Learn Jargon:
If you are looking to make career in finance, then you must have knowledge about Wall Street lingo, difference between dilution and dividend, or between NPV and DCF. Learn some financial terms and
concepts. If you are a non-finance graduate and if you don’t know about financial terms and concepts it will become very difficult to get pass in preliminary interview stages. Interviewers want knowledgeable applicant for finance position, irrespective of his/her educational background.

2. Round off Your Education

Even though you are a non-finance graduate, you can match your level by taking relevant finance courses as per your education level. If you are an undergraduate then courses in economics, accounting or financial analysis will be a great options. And for a graduate students can prefer MBA in finance or CFA/financial modeling program

3. Enroll in Best Financial Courses

There are lots of finance institutes who provide Intensive courses which will help you to boost your skills which are essential for career in finance, such as advanced excel techniques and financial modeling. This are short term courses, as they typically conducted over a few days. But due to these short span programs’, you may need to be familiar with basic financial concepts to derive the maximum benefit from them.

4. Improve Your Knowledge Base

It’s not necessary that you will get full-fledged knowledge from your college degree. You can get plenty of information from local library or online. You might get some paid resources from course providers. Being self-taught in a difficult field like finance demonstrates a number of desirable attributes to an employer such as initiative, passion and drive.

5. Link up with a Mentor

Linking up with a mentor is another way of boosting a financial career. A mentor can be anyone who can influence, who thinks highly of your capabilities and is willing to help you achieve your goals. A mentors can be your favorite professor at college, a family friend or relation with a successful career in finance or someone you know in a professional capacity, such as a supervisor during a previous internship. Don’t hesitate to approach a contact who you think could help you in your job search.

6. Score a Meaningful Internship

Scoring a summer internship still remains one of the best ways to lock in a prestigious full-time job in finance, as many Wall Street firms pick their new hires from the ranks of their summer interns. At the best business schools, an estimated one-third to half of MBA students work for their summer employer after graduation.

But since obtaining a paid internship in finance is likely to be very difficult for a non-financial graduate, one must consider other options such as an unpaid internship or volunteer work with a broker. The opportunity cost that arises from doing such unpaid internships or volunteer work may be offset in due course by the higher earning potential of a finance career.

7. Do Your Best to Get Your Foot in the Door

Grab opportunities! Expand your job search to other locations, and use your network to check for job openings in a financial organization. Try to get an entry-level position with a financial company, even for a non-finance role, may open doors to other career paths in finance down the line.

But for the vast majority of non-finance degree holders, getting a job in finance is likely to pose a significant challenge. This is more so because thousands of positions were reduced by banks and financial institutions in the effect of the 2008 global recession. However, using a combination of the tips discussed above should enable a non-financial graduate to substantially improve his or her chances of launching a career in finance.

So to become part of one of the fastest growing sectors in India, join Imarticus learning, we offer various finance and investment banking courses across many cities in India.

How to Prepare To become a Financial Model

Financial Models are are used to correctly assess a firm’s current state, as well as devise a future state in multiple scenarios. Financial modelling is a skillset that any serious Finance student must have and used extensively when you work for Investment Banks, Analytical/Research Firms, KPO’s, Credit rating organizations, Hedge Funds, PE’s, Venture Capitalists and even Startups!

 Here is a quick 10 question basic quiz to test if you are pro or an amateur modeler!

 1)     To start with the basic, walk us through a sample cash flow statement

2)     What are the two ways that the terminal value of a firm can be calculated?

3)     Define the three ratios that help to analyse the liquidity of a company?

4)     How do you calculate the Debt service coverage ratio?

5)     In Excel, which is more useful LOOKUP or VLOOKUP? When should each be used? And what are the pitfalls of each?

6)     What is the difference between NPV and XNPV? When would you use either? What are the limitations of the two?

7)     What is sensitivity analysis? How do you run a sensitivity analysis on a company?

8)     How do you model a leverage buy out? How is it different from a typical M&A deal?

9)     All things equal, what happens when a firm with a lower P/E ratio acquires a firm with a higher P/E ratio? Will the deal be accretive or dilutive? How does it impact EPS?

10)You do not have time to run an extensive financial model. How do you value a firm in 2 minutes?

 If you were able to answer 8/10 questions (without cheating), you are a pro!!! Model away – your financial models will make us proud!

 If you are able to answer 7 and less, no worries. It looks like you need a refresher!