A career in financial modelling in India is a popular option for aspirants. The immediate proofs of the growth in the field are the startup bubble of the current decade and the accommodating nature of the Indian government. Today, both private companies and public enterprises are looking at sharpening their financial decisions in a volatile market. And helping them in this pursuit are concepts such as financial modelling, quantitative finance, and mathematics.
If you are a student looking to build a career in this niche, you should start by learning financial modelling. The first step would be to create a rough path of your career journey, which will involve education, internship, followed by a job. This will require you to deeply understand the field and the work that you are expected to do. Here is a basic starter guide.
What is Financial Modelling?
Financial modelling is a subfield in the larger corporate finance sector and involves using mathematical models and tools to mimic the performance of an asset or a portfolio. It primarily focuses on understanding the life curve of a financial asset before it is activated. This allows financial analysts to understand the loopholes and risks in the asset and tweak/plan accordingly when it actually goes live.
Organizations make use of financial modelling to make better decisions when it comes to investments, spending, and taxation. When you learn financial modelling, you will start with these basics and then go on to master the concepts and tools used in it.
What Does a Financial Modelling Career Look Like?
As a professional financial modeller, your job will be to prepare a forecast for a financial asset, a portfolio, or a project. The idea is to mimic its performance in the real finance world and obtain insights. These insights will, in turn, be used to improve the execution of that asset or project.
In corporate finance, financial modelling has a huge scope as companies are constantly looking to improve their financial infrastructure. Following are some of its major applications:
- Business valuation
- Capital budgeting
- Cash flow forecasting
- Working capital management
Apart from having excellent math skills, you will also need to know a variety of tools that are used in financial analysis. But theoretical understanding will come first, so you should explore financial modelling as a career field before making the jump from your existing path. An online financial modelling course will help you make this decision.
The Scope of a Financial Modelling Career in India
As mentioned above, financial modelling has already taken off in the country. Today, professionals who are expert in financial analysis and corporate finance are considered hot picks and are in great demand. Finance is already a lucrative industry for aspiring professionals and financial modelling acts as a great niche to focus on.
Because it is a field that is still in a nascent stage, the demand for such skills is high. This makes it a good career for finance students who may want to branch out and make themselves employable in the future.
Instead of studying finance in general, why not pick this niche and make a career out of it? At a time when jobs are being cut across industries, a career in financial modelling promises a safe bet. As long as there is money in the world, professions like financial modelling are here to stay.
There is no doubt that financial modelling makes for a good career for aspiring students. The need, then, is to start preparing right now when there is ample time in your hands. Learn financial modelling and kickstart the next phase of your life.
Also Read: What is Scope in Financial Modelling