Finance Blog Posts

Finance is a key aspect of the business world. Financial and management accounting are essential for the successful running of a company. These assist the business in making strategic decisions based on their financial performance. Understanding these two types of accounting can help an organisation’s smooth functioning. This blog will cover financial accounting vs. management accounting, the difference between cost accounting and management accounting and more. Read on to learn how applying both can help grow your business successfully. Financial Accounting: A Short Definition An accounting system involving the financial transactions of a business, it assists in analysing, recording and classifying transactions. Financial accounting is essential in preparing the financial statements of the company. External stakeholders analyse these statements to make investment decisions. Financial accounting uses a company’s past financial performance record to assess its present financial health. A company has to follow GAAP and Schedule III of the Companies Act 2013 to make financial statements. The statements include the income sheet, cash flow statement and the company’s balance sheet. The strict guidelines and rules governing financial accounting statements ensure transparency between the company and the stakeholders. An independent auditor verifies the accuracy of the financial statements.  Purpose of Financial Accounting Among the various functions of financial accounting, some are listed below: 1. Analysing transactions Analysing each company transaction as soon as it occurs is essential. A team assesses the company’s financial activity and records the authentic transactions. They can assess the loss or profit of the company, use the data in trial balance form and finally prepare a balance sheet. All stakeholders must keep track of the required data to manage their investments. 2. Communicating transactions The company’s stakeholders, like investors, lenders, creditors and banks, have the right to see the financial statements and reports of the same during the end of a fiscal year. The transactions must be communicated adequately to ensure people know their implications. 3. Meeting legal needs While preparing the financial statements, the company has to comply with legal guidelines. They must adhere to GAAP (Generally Accepted Accounting Principles) and IND AS (Indian Accounting Standards). The company’s team responsible for preparing the financial statements should be aware of the laws and must meet the accounting rules and regulations while creating the financial statements. 4. Sequential recording of transactions In large firms and major companies, a huge chunk of transactions occurs daily. It is difficult to keep track of each transaction. Financial accounting is advantageous in such circumstances. It provides a systematic way to record each transaction with the help of ledgers, journals and other accounting books. Management Accounting: A Short Definition Most people fail to distinguish between management accounting and financial accounting. This is why understanding management accounting, also known as managerial accounting, is imperative. Management accounting assists in analysing, collecting and understanding cost information. Managers use management accounting data to plan and control future operations. Management accounting focuses on internal operations and assists with organisational decision-making. The managers can use the data to make financial decisions to achieve the company’s vision for the future. Management accounting provides both quantitative and qualitative information to managers. Reports generated using financial data include cost analysis, budget forecasts and variance analysis depending on the requirements of managers and specific departments. There are no fixed guidelines or regulations regarding generating reports in management accounting. There is more flexibility in reporting financial data compared to financial accounting.  Key objectives of management accounting focus on market forecasting and emerging developments. Company leaders often need to make quick operational decisions. Management accounting comes in handy during such times. Check out our free courses to get an edge over the competition. Management Accounting Functions Management accounting entails a range of functions, some of which we have discussed in the following section. 1. Organising Management accountants strive to organise an organisation’s accounting tasks using modern techniques. They analyse distinct activities and help the managers administer the company’s human and non-human assets. Managers must be aware of the best ways to utilise human capital. Management accounting focuses on identifying and developing the skills for making employers productive. It teaches managers to develop a positive work environment. This branch of accounting even helps in managing change. 2. Controlling reports Another function of management accounting is to check that the company’s goals are met. Monitoring, measuring and correcting reports’ outcomes can show a company’s actual performance compared to expected performance. Management accountants can use these reports to take appropriate action to keep the operations under their control. They can focus on what is missing if they find any discrepancies between actual and budgeted outcomes. 3. Forecasting Forecasting is one of the key functions of management accounting. By presenting reports and data, forecasting can help business executives to estimate the impacts of various actions. Managers use capital budgeting, statistics principles and marginal costing to plan for the company. Management accounting can help companies predict their position in the continuously changing social, economic and political business climate. 4. Coordinating tools Management accounting uses several coordinating tools to maximise the company’s revenue. These tools include financial analysis, budgeting, financial reporting, and interpretation. The tools help the management in various ways, such as preparing budgets, analysing costs, and developing standard costs. 5. Communicating Management accountants develop various reports as part of their work. They must communicate their findings efficiently to managers and have some distinct control over their tasks. They assist the management in coming up with smart decisions. As a result, external parties learn about the business’ performance from the findings. 6. Analysing finance Management accountant helps in financial analysis. They analyse financial data such as cash flow statements, balance sheets and profit/loss statements to find out the financial status of a company as well as its operating performance. Analysing the financial data of a company can help in predicting its future outcome along with its effectiveness. Explore our Popular MBA Courses Master of Business Administration from Golden Gate University Master of Business Administration (MBA) Liverpool Business School MBA from Deakin Business School MBA in Digital Marketing from Dekin University Executive MBA from SSBM View all MBA Courses Difference Between Financial and Management Accounting Now that you know the basics of financial accounting and management accounting, let’s learn about the differences between the two through the given table: Basis for comparison Financial Accounting Management Accounting Meaning It is an accounting system that involves a company’s financial transactions to inform external stakeholders about its financial position. This accounting system helps a company’s management make strategic business decisions for formulating policies and plans for the successful running of the company. Objective The primary objective of financial accounting is to create periodic reports of the business and its financial standing on a specific date. The primary objective of management accounting is to help the management plan future goals and evaluate these goals based on substantial data. Audience Financial accounting has both internal (managers, employees) and external (investors, creditors, customers) users. Management accounting only has internal users (management of the company). Nature of Statements Financial accounting statements are created for general purposes. Management accounting reports and statements are created for some specific purpose. Rule Financial accounting has to strictly follow the rules of IND AS and GAAP while preparing the reports. There are no fixed rules to follow for the preparation of statements in the case of management accounting. Scope The financial accounting scope is minimal. Management accounting scope is much broader. Statutory Requirement Companies are legally required to prepare the financial statements of the past. Preparation of management accounting reports begins when the need arises, and there isn’t any legal requirement to do so. Format The reports are developed in a specific format as multiple teams have to compare them. There is no specific format for management accounting, and it depends on the department or the company. Period Financial accounting is done based on the history of the past quarter or year. Management accounting is done during the present while simultaneously forecasting the future. Verifiable The data found in reports of financial accounting is verifiable. The data found in management accounting reports is not immediately verifiable as its nature is predictive. Basis of Decision-making Decision-making for financial accounting is done based on historical information. Decision-making for management accounting is done based on historical and predictive information. Application Financial accounting shows the true image of the company’s financial standing. Management accounting helps the company’s management to make strategic decisions accordingly. Cost Accounting and Management Accounting Difference Before moving on to the difference between cost accounting and management accounting, let us learn about cost accounting. It is a business practice that involves collecting, classifying, and analysing cost information. The information helps the managers in their decision-making process. The key objective of cost accounting is to fix the cost of business and keep track of the production cost. The information can help reduce various costs. Although financial accounting has some similarities, there is no need to report the information at the end of a fiscal year. Now, let us distinguish between cost accounting and management accounting. Basis for comparison Cost Accounting Management Accounting Meaning It is the record of cost information of a company and its classification. It is a way of analysing financial and non-financial data for making effective business decisions. Objective The objective of cost accounting is to control a company’s production cost. The objective of management accounting is to plan effective management strategies. Scope Its scope is narrow. Its scope is comparatively broad. Information type Quantitative data Qualitative and quantitative data Planning Useful for short-term plans Suitable for both long-term and short-term planning Dependency It can be used without a management accounting Cannot be used without cost accounting. Recording There is a recording of both past and present data The focus is more on the future of the company Learn MBA Courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. How Are Managerial Accounting and Financial Accounting Similar? Apart from financial accounting and management accounting differences, it is also essential to know about their similarities. Here are some of the similarities: These accounting types co-exist to provide accounting information to internal management and stakeholders. Both are useful for preparing a company’s financial statements. You need basic expertise and education in accounting concepts for both accounting types. Both collect accounting data for preparing financial statements. Users can find the cost of various accounting departments and periods from both accounting types. Top MBA Skills MBA in Finance MBA in HR MBA in Marketing https://www.upgrad.com/mba-course/mba-in-international-business/ MBA in Operations Management MBA in Business Analytics MBA in IT MBA in Healthcare Management MBA in General Management MBA in Agriculture MBA in Supply Chain Management MBA in Entrepreneurship Conclusion Most companies use both management accounting and financial accounting. These accounting types depend on financial transactions; hence, a proper financial system is necessary for the smooth running of a business. To push forward a career in accounting, you can take courses to equip you with the latest accounting systems. If you want to reap maximum benefits from an MBA in Finance, apply for upGrad’s MBA programs. We provide MBA in Finance from Liverpool Business School. All the subjects are carefully crafted, keeping into consideration the current world scenario and competition in the market. Plus, the courses are taught by eminent industry leaders and experienced management faculty. FAQs

Are you interested in pursuing a career in finance management but are unaware of how much it pays and are unsure about work responsibilities? Well then, say no more! You have come to the right place with your queries. We will also discuss the skills that will offer you a higher salary and the career paths you can explore as a finance manager. This article will give you an insight into how fruitful it is to have a finance management career and why it’s worth pursuing a career in this sector. A finance manager is responsible for developing and monitoring a company’s budgets. If you have a knack for numbers, becoming a finance manager would be the perfect career choice for you.  A unique highlight of this role is that finance managers work in various sectors, including healthcare, FMCG, banking, retail, EduTech, etc. In the following points, we’ll explore the average finance manager salary in India and the factors that affect their annual salaries.  Read: Career in finance and its Scope. Why is the Finance Manager’s salary in India high? When you’d look at the average monthly salary of finance managers in India, you’ll notice that their pay is significantly higher than many roles. Why is that?  The most prominent reason behind the high pay of finance managers is the specialised nature of this role and its high demand. Companies rely on finance managers to oversee their budgets and manage the financial aspects of their operations. In other words, finance managers help companies achieve their financial goals. They play a vital role in an organization’s success.  Furthermore, the demand for finance professionals is steadily rising.  As of November 2020, the mutual fund industry in India’s Assets Under Management (AUM) was INR 30 lakh crore (US$ 407.39 billion). This staggering amount is set to increase further as India’s finance sector expands over time.  In FY20, the total first-year premium for life insurance reached INR 2.6 lakh crore. Experts predict that India will be the fourth largest private wealth market in the world by 2028. Moreover, India’s mobile wallet industry is expected to grow at a CAGR (Compound Annual Growth Rate) of 150% by 2022.  These statistics show just how big the finance sector in India has become.  Needless to say, the scope for finance professionals is quite bright in India, which is probably why they earn hefty annual packages.  Learn Online MBA Courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. What is the Average Finance Manager Salary in India? The Average Finance Manager Salary in India is (INR) ₹991,180 per annum, including bonuses, profit sharing, and commissions. The pay in this field ranges from ₹353k per annum to ₹991 per annum on average, and the income depends on multiple factors like experience, location, skills, and employer.  Source As a beginner in this field with less than a year’s experience, you will usually earn around an average of ₹518,021 per annum. An early finance manager with 1-4 years of experience can make an average total of ₹729,127. If you have an established mid-career as a finance manager with 5 to 9 years of experience, you can earn an average of ₹1,078,115 per annum. With 10-19 years of experience, a professional is highly likely to earn an average total compensation of ₹1,199,548 per annum. Finance management is the largest sector in India, with diverse career opportunities. It is the Finance manager’s responsibility to take care of the financial health of an organisation. They are responsible for creating financial reports, direct investment activities, and plans for their organisation’s long-term financial goals. Hence, you can find Finance Managers’ roles in MNCs, Banks, startups, and almost every other organisation across all sectors.  What do Finance Managers do Exactly? It is a finance managers’ responsibility is to create and monitor departmental budgets. They are responsible for making creation significant financial forecasts for their company. They work alongside other managers and their staff to determining the future budgets of the company. Their department is subjected to keeping track of ongoing expenses to ensure that they are not going over the budget.  They are also in charge of clarifying other respective managers when their departmental expenses exceed the established budget. Finance Managers also handle accurate and timely reporting of various financial reports and budgets. They take ownership of various projects, delegate them to their staff, and follow up with the team regarding projects’ progress.  Financial Managers ensure that each project meets the finalised deadlines, but they also regularly conduct performance evaluations and provide regular feedback to the staff.  Key Hard Skills for Financial Managers To excel in a financial management career, you need to possess a combination of technical and analytical skills. Here are some key hard skills essential for financial managers: Financial Data Analysis Financial managers need strong quantitative skills to analyze financial data, evaluate market trends, and make data-driven decisions. Proficiency in statistical analysis and financial modeling is crucial for effective data analysis. Accounting A solid understanding of accounting principles and practices is essential for financial managers. They need to interpret financial statements, analyze financial data, and ensure compliance with accounting standards and regulations. IT Skills Financial managers must be proficient in using financial software and data technologies. They need to leverage technology to streamline financial processes, analyze data, and generate accurate financial reports. Reporting Financial managers are responsible for preparing financial reports and presenting complex financial information to senior management. Strong reporting skills, including data visualization and effective communication, are essential for conveying financial insights and recommendations. Key Soft Skills for Financial Managers In addition to technical skills, financial managers also need to possess certain soft skills to excel in their roles. Here are some key soft skills crucial for financial managers: Communication Critical Thinking Time Management Collaboration Prerequisites for Becoming a Finance Manager  To work successfully as a Financial Manager, you need to have a bachelor’s degree in finance, management, accounting, or business administration. Few employers prefer to select candidates that have a CPA certification and/or MBA.  Finance Managers must be familiar with the Microsoft Office suite and their organisation’s computer system, a high-level proficiency in working with various financial applications, and reporting tools required in their field of work. Apart from work-specific skills, Financial Managers need to have strong leadership, interpersonal skills, and sharp analytical skills. They must have an excellent command of oral and written communication. Their job requires them to build strong teamwork and work ethic.  Related Roles that Offer High Salary Packages in India We have already discussed the average Financial Manager salary in India. This section will discuss some additional career paths for Financial Managers that offer high pay and benefits. 1. Senior Finance Manager The senior finance manager has several responsibilities in an organisation. As a Senior Financial Manager, you will be responsible for the organisation’s monetary operations and decisions. The senior finance manager controls an extensive amount of capital that belongs to the company, and it’s inclusive of how that capital will be spent. As a Senior Finance Manager, your role will require you to determine how the company’s money will be spent in the best way possible. That is why the professional must be well equipped in creating forecasts that can explain and predict the outcomes of specific investments. Besides, the senior finance manager compiles information on assets and sales and communicates these figures to executives and subordinate managers in the organisation. And finally, a senior finance manager keeps the communication lines open with business partners to discuss potential joint ventures. A senior finance manager earns an average of around ₹1,781,987 (INR) per annum in India. Your pay in this field would depend upon the experience and skills you have. As a beginner in this career with around 1-4 years of experience, you will be able to earn an average total compensation (including tips, bonus, and overtime pay) of ₹1,364,604. With 5-9 years of experience, you can earn an average total compensation of ₹1,747,760. A highly experienced Senior Finance Manager with 10-19 years of working experience will earn an average total salary of ₹1,868,770. 2. Finance Director Finance directors hold a powerful leadership position. They are responsible for general management duties such as scheduling, hiring, and carrying out performance evaluations. The Finance Directors usually lead a finance team to develop strategic plans for the company’s finances, including the accounting duties and financial analyses and projections.  A finance director earns an average of around ₹3,604,211 (INR) per annum in India. The income in this field is also dependent on the experience and skills you have. As an early career Finance Director with around 1-4 years of experience, you will earn an average total compensation (including tips, bonus, and overtime pay) of  ₹1,500,000, a mid-career level a Finance Director with experience of 5-9 years will allow you to earn an average total compensation of ₹1,500,000. A highly experienced Finance Director with 10-19 years of experience earns an average total compensation of ₹3,798,643. 3. Financial Controller The job of a financial controller revolves around managing the financial departments of a company. These departments include the accounting department, budget department, audit department, and every other finance-related department.  Financial controllers have various responsibilities, including making profit-and-loss statements, producing critical financial reports, balance sheets, and financial prospectuses. They also create reports that predict the financial performance of a company over time. And the financial controller completes and submit any paperwork that needs to be done for federal and state regulatory agencies. A finance Controller earns an average of around ₹1,825,945 (INR) per annum in India. The experience and skills you possess will determine your pay in this field. As an entry-level career Finance Controller with less than one year of experience, you will earn an average total compensation (including tips, bonus, and overtime pay) of ₹560,000, an early career Financial Controller with 1-4 years of experience earns an average total compensation of ₹742,381. A mid-career level Finance Controller with expertise ranging from 5 to 9 years will allow you to make an average total compensation of ₹1,492,046. A highly experienced Finance Controller with 10-19 years of experience earns an average total compensation of  ₹2,475,072. 4. Finance Manager A finance manager is responsible for monitoring and developing the departmental budgets in an organisation. They make financial forecasts for their company and work with other department heads to prepare future budgets. Finance managers determine the financial requirements of their organisation by tracking the performance of its various departments. They assist the operations manager in performing monthly operations reviews. They are also responsible for the financial projects of their organisation.  Finance managers should have strong leadership skills as they usually work with a team of finance professionals and colleagues. In addition to this, they must also possess excellent interpersonal and analytical skills.  What is the average finance manager salary in India? The average finance manager salary in India is INR 9.93 lakh per annum. Bonus for this role ranges from INR 17,000 to INR 3 lakh, while shared profits go up to INR 2.85 lakh per annum.  The salary of a finance manager in India can go up to INR 20 lakh per annum depending on multiple factors such as their experience and skills.  How to Get the Top Finance Manager Salary in India? The Finance sector offers some of the most well-paying jobs. However, it is essential to cultivate the requirements and the necessary skills for these profiles if you wish to bag high-paying roles and move up the promotional ladder.   The best way possible to build a skill set and gather experience is by taking a course on financial management. A good and well-developed course will give you a structured curriculum that will aid you in learning everything step-by-step.  upGrad is one such online platform that offers multiple online courses in various fields. One of the courses on financial management that are offered by upGrad is Master of Business Administration (MBA) in Digital Finance & Banking in collaboration with the O.P. Jindal Global University (JGU).  This course will walk you through topics like Artificial Intelligence in Business, Blockchain and Cryptocurrency, Managing Fintech Ecosystems, Financial Management & Valuation, Data Visualization in Finance Digital Fraud & Risk Analytics, and Design Thinking & Leadership Essentials for Business. This course’s minimum eligibility is a Bachelor’s degree, preferably in science/engineering /business administration/commerce/mathematics with 50% or equivalent passing marks. Also, you must qualify for the JMAT-Online National Level Entrance Exam. Here, you will receive one-on-one mentorship with industry leaders. Not just that, upGrad provides you with career support and an opportunity to connect with peers across the banking, insurance, fintech and financial services industries. This program is highly beneficial for Working Professionals/Business Owners/Entrepreneurs with prior work experience. Factors affecting Finance Manager Salary in India If you want to predict how much you can expect to earn in this field, you should be aware of the factors that affect your pay in this industry. Following factors play a huge role in determining your income as a finance manager: Location Experience Skills Company We’ll explain each one of these factors in detail to see how they influence the average finance manager salary in India: Location The city you work in plays a huge role in determining your pay in the finance sector. Different cities pay different salaries to finance managers. That’s mainly because the cost of living differs from one city to another. The cost of living depends on the city’s particular climate, economy, and unique highlights.  Some cities pay above-average salaries to finance managers in India. The most notable cities in this category are:  Mumbai (13% higher than the average) Chennai (10% higher than the average) Bangalore (23% higher than the average) Gurugram (34% higher than the average) Conversely, several cities offer below-average pay to finance managers. These include: Delhi (6% lower than the average) Kolkata (25% lower than the average) Noida (10% lower than the average) Jaipur (39% lower than the average) Here we have a table representing the finance manager salary across the country (city-wise) City Average Salary(per annum in Lakhs) (Rs.)  Bangalore ₹1,268,914 Mumbai ₹1,234,297 New Delhi ₹1,194,268 Gurgaon/Gurugram ₹1,367,678 Chennai ₹1,154,107 Hyderabad/Secunderabad ₹1,034,431 Experience Another huge factor that affects finance managers’ salary in India is the amount of professional experience you have.  Entry-level finance managers earn 48% lower than the median, while early-career finance managers earn 26% lower than the median. On the other hand, late-career and experienced finance managers make 21% and 20% higher than the median respectively.  To be more specific, a finance manager with less than a year’s experience earns INR 5.15 lakh per annum on average. Similarly, a finance manager with one to four years of experience earns INR 7.32 lakh per annum, whereas those with five to nine years of experience make INR 10.7 lakh per annum on average.  Finance managers with 10+ years of professional experience earn INR 11.97 lakh per annum on average. Hence, it’s evident that as you gain more experience in this field, your salary increases.  Skills Like any other profile, your skills affect your earnings as a finance manager. Having industry-specific skills ensures that you get paid more. Learning and developing the most in-demand skills would ensure that you get access to the most lucrative job opportunities in this sector. The most rewarding skill for finance managers is project management, as professionals with this skill earn 83% more than the average. Tax consulting is also a highly lucrative skill for finance managers as professionals with this skill make 76% more than the average.  Other beneficial skills for finance managers are: Payroll tax compliance (51% more than the average) Financial modeling (46% more than the average) Forecasting (39% more than the average) Strategic planning (41% more than the average) SAP financial accounting and Controlling (43% more than the average) Pricing (36% more than the average) Product costing (39% more than the average) Similarly, the most popular skills among finance managers are financial reporting, financial analysis, accounting, and budgeting. Possessing these skills would help you stand out from your peers and make it easier for you to bag high-paying roles.  The most rewarding skill for finance managers is project management. Pricing is also a highly lucrative skill for finance managers as professionals with this skill make 87% more than the average.  Skills That Impact Finance Manager Salaries are: Pricing: 87% Strategic Planning: 77% Project Management: 76% Tax Consulting: 66% Auditing: 58% Here we have a table representing the finance manager salary based on different skills Skill Finance manager salary Pricing ₹1,965,270 Strategic Planning ₹1,862,500 Project Management ₹1,851,461 Tax Consulting ₹1,750,000 Auditing ₹1,660,000 Company The salary of finance managers varies according to their employers. Certain companies offer higher salaries than the average, while some others offer below-average pay.  However, you shouldn’t pick a company solely based on the paycheck it offers. You should also consider the company reputation, offered benefits, and the organisation’s work environment while selecting an employer. Companies that offer the highest salaries to finance managers are HSBC, Standard Chartered Bank, and Novartis. At Novartis, the median pay of a finance manager is INR 18.5 lakh per annum. Similarly, HSBC offers an average finance manager salary of INR 15.26 lakh per annum, and Standard Chartered Bank offers an average pay of INR 13.8 lakh per annum to its finance managers.  Types of Jobs in Financial Management Financial management roles exist in various industries, and professionals can take finance manager qualifications in specific areas based on their interests and expertise. Here are some of the top jobs along with their associated job titles: Banking Financial managers in the banking sector play a vital role in providing financial consultation, maximizing profits, and supporting product development and campaigns. Some job titles in banking include branch manager, credit manager, financial analyst, and revenue manager. Insurance In the insurance sector, financial managers negotiate rates and contracts terms, evaluate risks, and personalize marketing efforts to fulfill business goals. Job titles in insurance finance management are risk manager, actuary, underwriter, and corporate finance officer. Tax and Payroll Financial managers in tax and payroll industries handle tax compliance, compensation packages, and financial reporting. They work with tax advisors, attorneys, and auditors. Common job titles in tax and payroll finance management are tax manager, finance officer, auditor, and payroll officer. Wealth Management Financial managers in wealth management organizations or as independent practitioners assist clients with estate planning, retirement planning, and investment opportunities. Job titles in wealth management finance management include wealth manager, certified financial planner, personal finance planner, and investment advisor. Finance Manager Salary in Other Countries (UK & USA) India isn’t the only country that offers lucrative pay to finance managers. This role compensates handsomely overseas as well. Thus, if you have the right skills, expertise, and qualifications, you can definitely aspire for a global career because the demand for talented finance professionals is rising globally.  The following statistics will throw more light on this fact:  Finance manager salary in the US The average pay of a finance manager in the United States of America is $93,198. Pay for this role starts from $51,000 and goes up to $141,000, including bonuses, commissions, and shared profits.  Prominent skills for finance managers in the US are financial analysis, budgeting, and financial reporting.  Finance manager salary in the UK In the UK, the average finance manager salary is £38,819 per year. Here, the pay of a finance manager starts from £26,000 per annum and can go up to £62,000 per annum.  Skills that can help you earn above-average salaries in the UK as a finance manager are performance management, business strategy, financial modelling, and business planning.  How to become a Finance Manager? To pursue a career in finance management, you’d need the necessary qualifications and expertise. Most companies look for candidates with an MBA in Finance for this role.  Hence, the best way to start a career in this field is to get an MBA in Finance. At upGrad, we offer an MBA in Digital Finance and Banking with the OP Jindal Global University. It is a blended program (online + 1-week immersion on campus) to deliver the best learning experience possible. As it’s an online program, you can study safely from your home without interrupting your professional life. OP Jindal Global University received the title of Institute of Eminence (IoE) from the UGC and is one of the most reputed B-schools in India.  Conclusion A career in Finance management can be highly fruitful since its scope in India is expanding, the need for skilled individuals is increasing as we speak. It is an excellent opportunity to develop the right skills for becoming a well-paid Finance Manager in India.  upGrad works with 300 plus hiring partners at the moment – as a result, we are effectively able to offer candidates worthwhile placement after completing their MBA. If you are interested to do a Global MBA in Finance, upGrad provides an MBA in Finance from a top-UK school, Liverpool Business School. With upGrad, aspirants can choose to pursue MBA in Finance specialization from Liverpool Business School or MBA in Digital Finance and Banking from O.P. Jindal Global University. Ranked among the top B-schools of the UK, Liverpool Business School provides a 20-month MBA Finance course online, including a one-week immersion program at the university campus. The course comprises simulations and case studies from Harvard Business Publishing. During this program, the students get a chance to be mentored one-on-one by the industry leaders.

Most advanced leadership and management positions hire MBA candidates with a specialization in Finance. This is because the MBA finance syllabus covers a wide array of core areas pertinent to an organization’s success.  When one thinks of ‘finance,’ one may picture a work scenario loaded with numbers and spreadsheets. But a glance at the coursework is enough to counter this belief. We have made this task more convenient for you by compiling the subjects below. So, read on to get familiar with some essential components of an MBA Finance program!  MBA Finance Syllabus 1. Business Economics Business Economics links economic theory and quantitative techniques with an organization’s structure. It explores the relationships of firms with capital, labor, and product markets. And in this way, this subject attempts to give you a ‘big picture’ view of the overall business landscape.  Typically, the learning module covers both microeconomics and macroeconomics. The former studies the behavior of individual units like households and enterprises, the latter helps you understand the economy as a whole. This knowledge guides managers in their different decision-making and analytical tasks, such as framing pricing policies, predicting future market trends, etc.  2. Financial Accounting This subject focuses on the baseline financial health of an enterprise. When a manager is trying to assess the existing money position of the organization to visualize its business prospects, having the financial information communicated as reports and analyzing them forms the first step.  Financial accounting equips you with the knowledge of the rules and nuances of preparing such statements and reports, which further aids the critical choices you make – for example, investing in a new asset or letting go of an unprofitable product. This includes getting a grasp on some fundamental concepts, such as preparing profit and loss statements, balance sheets, cash flow statements, and so on. Learn MBA Courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. 3. Corporate Finance When you are working on a senior position in a corporation, heading a particular department, you are invariably held accountable for the success or failure of the initiatives undertaken under your leadership. Some of your responsibilities may be to justify the application of several financial resources and advise the C-level executives on money matters. The task of evaluating the pros and cons of new financial decisions is a highly perceptive task in itself as it has a direct bearing on the sustainability of a business. You would require two basic skill sets to implement corporate finance strategies: Evaluating the risk of a particular financial decision Evaluating projects and their returns on investment For instance, when a company is considering avenues like investing in stock, procurement of funds through debt, and distribution of funds to inventors in the form of dividend, it would need people with expertise in the domain. As a manager, you would make comparative statements for different alternatives and recommend solutions that maximize the returns and minimize the risk for the corporation.  4. Business Communication Working as a manager encompasses written and verbal communication for various purposes. No matter which department you are leading, skills like logical and analytical thinking, writing, presenting, etc. come handy while managing people and workflows.  Firstly, you have to be well-versed with the factors that influence the choice of a communication style under specific situations. Secondly, you should build your personal brand in accordance with the requirements of the job. Thirdly, you must know how to combine these two things to deliver high-impact interactions with internal (subordinates and coworkers) and external (customers, creditors) stakeholders.  With this view, the MBA finance syllabus entails lectures, cases, and assignments that develop effective business communication skills. 5. Marketing Management  MBA programs are designed to give students an overview of general management principles that they would need to apply upon entering the world of work. So, subjects like Marketing Management are a mainstay in business schools.  Marketing is concerned with the promotion of distribution of goods and services using multiple channels. It covers activities like analyzing the business environment, undertaking market research, and generating ideas for communicating value in a range of contexts and settings. Even if these tasks are not directly related to your job responsibilities, recognizing the fundamental concepts and thinking critically about them are integral for decision-making.  6. Decision Sciences With the advent of Big Data, modern MBA programs have incorporated ‘decision science’ and ‘business analytics’ into the curriculum to facilitate data-driven actions. This means that management graduates are taught to guide corporate strategy by performing EDA sampling, Hypothesis, Testing, Regression Analysis, Forecasting, etc.  Nowadays, managers are expected to know how to conduct empirical studies, apply statistical techniques, and draw inferences. The next step is to suggest solutions for improving organizational productivity, advertising initiatives, digital strategies, among other day-to-day business functions.  7. Operations Management This area of management is concerned with streamlining activities related to production, manufacturing, and supply chain. In other words, it allows managers to analyze the inputs and outputs in everyday business operations and come up with innovative ways to organize them optimally.  The standard MBA curriculum has Operations Management as a subject to impart knowledge about quality control, demand forecasting, performance measures, etc. This way, graduates can identify inefficiencies and propose effective changes and redesigns for the existing practices and processes.  Apart from the subjects mentioned above, MBA finance syllabus may also include specific modules on Research Methodology and Business Strategy. These courses can help you understand data collection and report writing while giving you a strategic perspective of the business functions. Tips to Cover Your Entire MBA Finance Syllabus for Exam Preparation Is the vast MBA finance syllabus making you nervous? You might be worried whether you will be able to cover the entire syllabus and prepare well for your semester. Check out some valuable tips for completing your entire syllabus before the exam. Concentrate on the Core Topics In your MBA syllabus, you will come across several core and elaborative topics. The core topics include key theorems, formulas, principles, infographics, and charts. A majority of the questions in your exam can be expected from the core topics. Therefore, you will be more prepared when you focus on the key topics.  Revise As Many Times As Possible If you want to perform incredibly in exams, the key is to revise your MBA financial management syllabus as many times as possible. When your exam is around the corner, it’s recommended not to begin with any new topic at that time. Instead, you should focus on revising what you have already studied and practiced.  Check Out the Questions of Previous Years If you want a solid grasp of your MBA syllabus, it’s crucial for you to check question papers from previous years. They will provide you with a distinct idea of the category of questions you can expect. Knowing the question pattern and the important topics will help you have a more targeted preparation before the exam.  Solve Sample Papers Practice is crucial if you want to do well in your exam. Solving sample papers is an efficient method to put your knowledge into practice. It delivers self-evaluation regarding where you stand in terms of your exam preparations.  It will help you assess which topics you need to concentrate on more and which areas you are excelling at. Additionally, time yourself while solving the sample papers. It will equip you with beneficial time management skills to complete your exam on time.  Create a Timetable Making a timetable will help you complete your MBA banking and finance syllabus more easily. Check out the different topics in your syllabus and allocate time to prepare them according to their weightage in the exam. It will ensure that the different topics in your syllabus get evenly spread.   Take Breaks Between Your Study Sessions Learners often have a tendency to cover a huge part of their syllabus at a stretch. Instead, it is optimal to divide the syllabus into smaller chunks. Rushing through a lot of topics at once won’t help your mind retain much.  That’s why it’s recommended to take strategic breaks between your study hours. Ideally, you should take a break of 30 minutes after studying at a stretch for two to three hours.  Get Enough Sleep The stress of a vast syllabus might make you compromise sleep. However, sleeping is crucial for boosting your long-term memory., When you get sufficient sleep every night, the brain finds it easy to retain all the information you gain throughout the day. Therefore, prioritize sleep even when your MBA exam is knocking at the door.  Conclusion MBA in Digital Finance and Banking: Suitable for candidates who are interested in managing Fintech ecosystems or job-market aspirants who are looking to transition into ‘jobs of the future’ like AI and Blockchain While choosing your desired learning track, you must evaluate the alternatives in terms of the benefits they will bring to your profile and experience. We recommend opting for an accredited program that offers hands-on learning opportunities (assignments, projects, etc.) along with flexibility and career support. Compare the takeaways of the MBA degree with the cost and time commitment and choose the option that fits your requirements. With this, we have broken down the MBA finance syllabus for you. Hope you use the above information to select a program that takes you closer to your personal and career goals! 

In any job search, you have to sift through several postings and identify the roles that match your profile and aspirations. When you are interested in entering a specific field, you may want to know about the lucrative career opportunities in that particular domain. In this article, we would cover the highest paying finance jobs in India.  A specialization in financial management can get you some of the highest salary finance jobs in India entail. Here are the broad categories where you can find employment: Accounting Investment Lending Fintech Advisory services Corporate finance  With this perspective, let us look at some well-paid job titles and understand their work requirements. We have also provided a ballpark figure of the annual compensation associated with every role, as reported by Payscale.  Read: Career scope in finance Highest paying finance jobs in India 1. Financial Analyst Job responsibilities: Financial analysts look after company finances, poring over data, and supporting financial management decisions. They also evaluate the possible outcomes of business and investment recommendations. Typically, they are hired in junior and senior capacities in banks, insurance companies, funds, and other financial institutions. Apart from basic financial literacy and accounting skills, these practitioners must possess critical thinking and communication skills. Average salary: INR 4,09,903 p.a. Skills required for Financial Analyst Accounting Interpersonal  Problem-solving Financial literacy Problem-solving A career in finance in india as a Financial Analyst is promising as the individual gets 4.6 lakhs per annum as they get more skilled and experienced. 2. Compliance Officer Job responsibilities: Compliance officers or analysts work in public or private companies, and sometimes in established nonprofit organizations, to ensure that all activities are carried out as per the guidelines set by the governance agencies. Since the long-term financial growth depends upon the established standards and regulations, these professionals play a crucial role in the finance industry. Their work involves aspects of data analysis and reviewing processes and related infrastructure to achieve compliance.  Average salary: INR 5,39,500 p.a. It is one of the highest-paying finance jobs in India. Skills required for Compliance Officer Law Data handling Entrepreneurial Find Best MBA Programs from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. 3. Financial Advisor Job responsibilities: These professionals identify short-term and long-term financial goals for their clients and recommend the most suitable products and services to achieve them. For example, the primary duty of an insurance advisor is to research and suggest insurance offerings and interact with underwritings and risk managers for implementing their various job-related tasks. They are also responsible for providing direction to individual customers regarding the purchase of appropriate life, automobile, housing, and other insurance types.  Average salary: INR 6,00,000 p.a. This is one of the highest-paying finance jobs. Skills required Client relationship management Business development Research Wealth Management Analytical  Detail orientation 4. Senior Accountant Job responsibilities: Like any accounting job, this role involves recording entries related to assets, liabilities, revenue, and expenditure of a firm. Senior accountants are at the top of the rung, overseeing and analyzing the financial information and statements, maintaining balances, and resolving discrepancies.  Average salary: INR 4,12,977 p.a. Skills required Detail orientation Organisational Financial literacy Collaborative Self-starter 5. Loan Officer Job responsibilities: Loan officers approve, authorize, and process applications for real estate, business, or credit loans. They assess candidates’ financial status or creditworthiness and subsequently interview them. Setting up plans for debt payment and evaluating applicable metrics and ratios are some of their other duties. You can work as a loan officer in a mortgage company, a commercial bank, or a credit union.  Average salary: INR 4,60,000 p.a. (starting). It is one of the high-paying finance jobs where the salary keeps increasing with time and experience. Skills required Experience in the field of loans Financial understanding Understanding of direct and indirect lending Customer satisfaction 6. Information Technology Auditor Job responsibilities: IT auditors work in government departments or private companies to attain synchrony between the technology infrastructure and enterprise needs. They also look after IT compliance and digital security to enable smooth functioning of all organizational processes. So, the audit review procedures can extend to software programs, computer networks, communication systems, and security setup. This job necessitates an adequate understanding of physical IT controls within the company and requires knowledge about the business operations and financial practices.  Average salary: INR 10,74,419 p.a. It is one of the highest-paid finance jobs in India.  Skills required Knowledge of technical applications System Security Knowledge Knowledge of auditing 7. Financial Software Developer Job responsibilities: As the finance industry embraces technology and the internet, the demand for software developers has experienced a sharp rise. These employees design, develop, test, and maintain software and other programs that align with the company and end-users’ needs. Fintech is an emerging space for software developers as it envisions efficient delivery of financial services and associated activities. Some examples include mobile payments, stock trading applications, budgeting apps, and cryptocurrencies.  Average salary: INR 7,06,919 p.a. It is one of the in-demand finance careers in India. Skills required Computer skills  Programming languages Self-development skills 8. Investment Banker Job responsibilities: As an investment banker, you are responsible for managing an investing entity’s investment portfolio. In other words, you keep track of the money invested by your client in different businesses to optimize the return and achieve the predetermined financial goals.  Investment bankers handle stock and bond issues and also arrange for debt financing. Additionally, they are well-versed in managing merger and acquisition deals that bring in the most financial gains for investment banks. Investment banking is among the highest paying finance jobs in India, where candidates with significant experience can earn a total remuneration of Rs 16.5 lakh a year.  Average  investment banker salary: INR 8,71,972 p.a. Skills required  Communication Self-starter Research and analysis  Presentation skills Securities Mergers and acquisitions 9. Hedge Fund Manager Job responsibilities: High net worth individuals who are enthusiastic about investing often hire hedge fund managers to monitor markets and maximize their earnings. The job functions are similar to that of investment banking, except for the higher risk-reward portfolios of hedge fund managers. Investors pool their capital to make investments, and the fund manager protects them. Due to the intense working hours and technical nature, this career comes with a high entry-level salary of Rs 7.5 lakh a year.  Average salary: INR 24,00,000 p.a. It is one of the highest-paying jobs in finance in India.  Skills required Investment knowledge Finance understanding Financial Modelling  Quantitative Legal  10. Private Equity Associate Job responsibilities: Private equity and venture capital funds provide finance to early-stage ventures and growing businesses. This funding comes in exchange for profit participation or equity stake in the investee company. Like hedge fund managers, private equity associates liaise with the investor firms/individuals and apply their capital to business ventures having growth potential.  Average salary: Rs 32,38,889 p.a. It is one of the high-paying finance jobs salaries in India. Skills required Financial Modelling LBO Modelling M&A Modelling Financial Analysis  11. Chief Financial Officer Job responsibilities: The Chief Financial Officer or CFO has the duties of managing a company’s capital structure and cash flow and planning for its future growth. Therefore, the CFO must have in-depth knowledge of accounting and financial modeling, among other skill sets. These executives also oversee the work of analysts, manage financial teams, and make decisions related to costing and technology infrastructure. The CFO title is particularly prominent in the retail and commercial banking sector in India. Average salary: INR 1,550,480 (mid-career); INR 37,03,135 (senior). It is one of the highest finance jobs salaries. Skills required  Deep financial understanding Problem- solving skills Decision-making People Management 12. Chief Compliance Officer Job responsibilities: As the title suggests, this job is a top-notch role in compliance monitoring and policy management. CCOs apply their education and experience to eliminate non-compliance fees for the firms. Before landing this coveted spot, they may work as analysts, managing directors, and other positions to master the ropes and legal standards.  Average salary: INR 15,75,000 p.a. Skills required  Understanding of law Entrepreneurial  Analytical Data handling Communication  13. Chief Risk Officer Job responsibilities: Chief Risk Officers or CROs work in financial firms, looking out for any events that may threaten the company’s profitability or financial solvency. They monitor investments, interact with the CCO, and assess risks by applying their superior analytical and problem-solving skills. This is one of the best paying jobs in finance in India. Average salary: INR 13,00,000 (mid-senior); INR 50,86,824 (senior) Skills required Leadership  Relationship building Risk Managemen 14. Management Analyst Job responsibilities: Management consultants and analysts work to improve business performance. They examine specific issues and develop solutions to boost efficiency. To work as a management analyst, you should be able to interpret data and information and use your findings to create proposals for the company. Professional certification in business analytics can help you become more job-ready for management analyst positions. Alternatively, you can consider applying for a specialized MBA program. Average salary: INR 4,66,853 p.a. (entry level) Skills required Analyst skills Communication Time Management Problem-solving Interpersonal Also Read: MBA in Finance Future Scope 15. Personal Finance Advisor Job responsibilities: Personal financial advisors provide their services in diverse areas, ranging from life insurance, estate planning, investments, taxes, retirement planning to personal budgeting assistance. You can also start a practice or consulting firm for this purpose. It would be ideal to have a background in accounting or finance, followed by an MBA or MSc. in Finance.  Average salary: INR 4,90,565 p.a. Skills required Excellent communication skills Financial literacy Ability to explain articulately Research Analytical Must Read: Top 10 Highest Paying Jobs in India Highest Paying Banking Jobs in India Jobs in finance sector in India can be very well paid. There are many jobs that you can consider with the correct qualifications. Here is the list of best paying jobs in finance – Personal Banker – They assist clients and customers in every detail related to their bank accounts, like opening and managing their accounts and safe deposit boxes. Average salary – INR 3,84,000 p.a. 2. Bank Auditor – They review all the financial statements of the client. They can check if the risk management procedures of the bank are effective. They can assist in investigations the report the faults to higher authorities. Average salary – INR 5,04,000 p.a. 3. Credit Analyst – Whenever an individual or business seeks credit from a bank, a credit analyst analyzes their financial information. They are responsible for checking whether the client is creditworthy or not. Average salary – INR 6,18,000 p.a. 4. Fund Manager – The role of a fund manager is one of the highest paying banking jobs in India. This job involves extensive research, planning, and implementation of various financial strategies. They are also responsible for buying and selling the best stocks and bonds as well. Average salary – INR 15,00,000 p.a. 5. Finance Manager – They manage different types of financial tasks and projects. They can prepare financial statements, estimates, budget plans, and risks. Average salary – INR 10,05,108 p.a. The Future of Finance in India It seems like digital is catching the attention of finance leadership every day; use cases for digital are constantly evolving. As digitization transforms how we work, live, and relax, the stimulus often comes from the front end of the business. With the younger generation becoming more active, there is an increasing demand to make the financial sector more agile, friendly, and straightforward, extending diverse jobs in finance sector in India. Digital finance is the main requirement for the future. Digital revolutions and innovations are what the financial sector has been witnessing for the last couple of years since finance is the fastest growing sector in all aspects of the economy. In a concise period of time, fintech has totally transformed the way people make monetary transactions. In the world of digitization, India is bringing the format of ‘cashless’ alive. Business owners in India are bringing in customers from all across the world based on this digitization. Finance Minister of India, Nirmala Sitaraman, stated in an interview that the finance industry of India will surge from $50-60 billion in 2020 to $150 billion in 2025. All the latest financial models for the country include the latest technologies like Artificial Intelligence (AI), Internet of Things (IoT), Cloud Computing, and Machine Learning (ML). This has also managed to gain the customers’ trust and has the potential to transform and develop new financial services in India. Fintech has been gaining popularity worldwide because of its integration of technology and financial services and has attracted a considerable amount of investment from different verticals of business, resulting in better business performance and greater research and innovation collaboration. Here is how the different technologies have helped the industry evolve – Machine Learning and Artificial Intelligence – AI and machine learning solutions can transform regulatory compliance, financial fraud, and cybercrime. The fintech industry can also tailor products and services to the needs of each consumer by utilizing customer data as a means of personalization. Internet of Things – With IoT, finance companies can gather and transfer data more efficiently, saving them time and money. Information is collected and processed efficiently, allowing core processes to be automated. Financial institutions can also benefit significantly from IoT by improving customer service. Cloud Computing – Online resources, applications, or storage are provided through cloud computing as an on-demand service. As opposed to storing and processing data locally, financial institutions can store and process data remotely. Blockchain – Digital lending is now safer, thanks to blockchain technology. As a distributed, public, decentralized ledger, transactions are recorded across many computers to prevent tampering. Fintech institutions will significantly improve their operational efficiency through blockchain as the focus shifts from payments to securities and trade finance. The Way Forward In a growing economy like India, BFSI (Banking, Financial Services, and Insurance) is a critical section contributing close to 6 percent of the annual GDP. By 2022, the BFSI sector would require an additional 1.6 million skilled workforce, as estimated by the National Skill Development Corporation (NSDC). If you are looking to upskill, you can consider taking up an advanced certification course or a PG diploma that meets your learning goals. It would be best to select a program after going through its syllabus, duration, financial commitment, and accreditation status.  You can go for education programs like upGrad’s MBA – Finance (Liverpool Business School). It aims to familiarize you with the fundamentals of Accounting Statements, Risk Management, Working Capital Management, Marketing, HR, Economics, Project Evaluation, etc. Besides the in-class content, entrepreneurs and mid-stage career professionals can also gain from industry projects and mentorship sessions. Moreover, you can enroll while working, devoting about 10-12 hours per week for 20 months. Upon completing the program, you would earn dual credentials from LBS and IMT Ghaziabad.  Future-oriented online courses like MBA in Digital Finance and Banking can help make your candidature more attractive for existing and new job positions in the BFSI sector. The curriculum aims to equip you with the knowledge of fintech ecosystems, applications of AI in business, blockchain and cryptocurrencies, financial valuation, data visualization, fraud and risk analytics, and business leadership.  This course is available on upGrad’s platform and accredited by the Jindal Global Business School. JGBS alumni have been employed in companies like Amazon, Deloitte, Barclays, ICICI Bank, Yes Bank, Philips, GSK, ITC, Dabur, and many other corporate giants.  This brings us to the end of this article on the highest paying finance jobs in India. We identified specific positions, described their job specifications, and also detailed the highest salary finance jobs in India can get you. The current landscape of the Indian financial sector is highly competitive. This information would not only guide you while job-hunting but also streamline your preparation in reaching your desired career path.

Do you have a knack for finance and like to help out others? If so, then becoming a financial advisor might be the perfect choice for you. However, before you pick a career, you might wonder if it’s worth pursuing it. That’s why we have prepared this article highlighting a Financial Advisor’s salary in India.  This article will discuss the average financial advisor salary in India, what factors affect it and how you can get the top pay in this field to help you understand the worth and scope of finance careers.  What is the Average Financial Advisor Salary in India? The average financial advisor salary in India is INR 3.72 lakh per annum. Pay in this field ranges from INR 1.79 lakh per year and goes up to INR 20 lakh per year depending on several factors, including your skills and experience.  You can expect bonuses in this role from INR 10,000 to INR 2 lakhs, while shared profits range from INR 1,000 to INR 4.64 lakh. Similarly, commissions for financial advisors range from INR 2,000 to INR 6 lakh.  The scope for financial advisory services is very bright in India. That’s because the primary clientele of financial advisors is ultra-high net worth individuals (UHNWIs) whose population is expected to grow 63% over the coming five years. Even at present, India houses nearly 6,900 ultra-high net worth individuals and 113 billionaires. The number of billionaires in India is expected to increase by 43% and rise to 162 by 2025.  India fares better than its Asian peers, whose average is 38% for this period. The global average for churning out billionaires would be 24% for this duration, which is significantly lower than India’s expected growth rate. As the number of wealthy individuals increases, the demand for skilled and competent financial advisors will rise accordingly. People would require their services to help them make smarter financial decisions and achieve their goals.  In the past few years, India has also seen the rise of family offices. They have transformed the wealth management industry of this country entirely and have increased the already steep entry barriers for this field. Apart from wealthy individuals, the general populace would also want to make better financial decisions. Many people hire financial advisors to help them achieve specific financial goals, such as saving up retirement funds or having funds for a child’s education. While financial literacy is low in India, it is expected to grow as information becomes more accessible and people become aware of the different financial instruments available to them. Due to all of these reasons, the average financial advisor salary in India is significantly high and will increase over time.  Learn MBA Courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. What Does a Financial Advisor Do? A financial advisor usually works with a financial organisation such as insurance companies, mutual fund companies or banks and provides services to companies or individual clients. As a financial advisor, you would use your expertise to help your clients achieve their financial goals by selecting the correct investments (real estate, bonds, money market, stocks, ETFs, etc.).  Financial advisors also explain the tax laws related to investment so the client can make an informed decision. They also assist their clients with choosing the right insurance.  As a financial advisor, you’d help your clients plan for both short-term and long-term goals, depending on their requirements and aspirations.  For example, you might help them with estate planning, where you help your clients decide what would happen to their assets after they pass away. Similarly, you might help your clients budget their income and expenses to reach a specific financial goal, such as buying a new home or saving up for a kid’s college funds. Some other areas you might help your clients with are: Investments – where your clients invest their money. Tax planning – how taxes will affect your client’s funds and what they can do about it.  Inheritance – if a client expects to receive an inheritance, what they should know and how should they plan their finances.  Debt management – how to get out of debt as efficiently as possible.  Due to the unique nature of their role, financial advisors must be experts in different avenues of finance. They should be well-acquainted with the government’s rules and regulations while staying up to date with the financial industry’s latest news. You might have to travel a little in this role to visit clients and institutions. The position might also require you to train junior financial advisors.  Factors Affecting the Average Financial Advisor Salary in India You must have noticed that there’s a vast spectrum of financial advisor salary in India. That is so because your pay in this field depends on multiple factors. If you know how these factors affect your salary, you can plan your career more effectively and bag the highest pay quickly. Primarily, your pay as a financial advisor depends on the following four factors: Your location Your skills Your experience Your employer The following points will throw light on exactly how each one of these factors affects your financial advisor salary in India:  Location One of the most important factors determining your financial advisor salary in India is the city you work in. Different cities offer different salaries to financial advisors because the cost of living varies from city to city. Moreover, how many clients your organisation has will also depend on the city. Due to these reasons, pay for financial advisors varies greatly according to their location. Some cities offer above-average pay to financial advisors, which include Bangalore (57% more than the average), New Delhi (61% more than the average), and Kolkata (28.7% more than the average).    Conversely, some cities offer below-average pay for this role, such as Mumbai (3% lower than the average), Hyderabad (9% lower than the average), and Indore (23% lower than the market average).  Skills Your skills would play an essential role in determining how much you earn as a financial advisor. It’s a specialised field, and recruiters look for skilled professionals with expertise in various subjects. If you have the in-demand skills for this role, you can get lucrative jobs in this industry.  The most popular skills among financial advisors are Sales, Customer Relationship Management (CRM), and Investment Planning.  Like most professions, having particular skills helps you in getting high-paying roles. The most beneficial skill to have as a financial advisor is Portfolio Management, as financial advisors with this skill earn 101% more than the average. Other prominent skills that above-average pay in this industry is: Financial Analysis (64% more than the average) Investment Planning (31% more than the average) Client Interaction (2% more than the average) By developing these skills, you can certainly enhance your career prospects substantially.  Experience How much professional experience you have will have a significant impact on your earnings as a financial advisor. There are many reasons for it. However, primarily it’s because financial advisors with a lot of experience have a rapport with numerous clients and have a strong reputation in the industry. The more experience you gain in this profession, the more you earn.  Entry-level financial advisors earn 21% less than the average, and early-career ones make 14% less than the average. On the other hand, late-career financial advisors earn 171% more than the average and highly experienced financial advisors earn 369% more than the average.  To be more specific, financial advisors with less than a year’s experience earn INR 2.93 lakh per year on average. Similarly, a financial advisor with one to four years of experience earns INR 3.2 lakh per year, while one with five to nine years of experience earns INR 5.38 lakh per annum.  Those with 10 to 19 years of experience in this field make INR 10.11 lakh per year on average. Finally, a financial advisor with 20+ years of experience makes around INR 20 lakh per year.  Employer Another vital factor to consider while determining your pay in this field is which organisation you work for. However, you shouldn’t solely choose an employer based on the paycheck they offer. You should also consider the additional benefits, work environment, and similar factors while picking the right employer. Different companies offer different salaries for this role. For example, the average salary of a financial advisor at Deloitte is INR 9 lakh per year. On the other hand, the average salary of financial advisors at Edelweiss is INR 4.6 lakh per year. Financial advisors also work in the tech industry. For example, Dell Technologies pays an average salary of INR 16.9 lakh per annum to financial advisors. Their pay ranges from INR 6.46 lakh per annum and goes up to INR 2.18 crores per annum.  Another notable company that offers lucrative pay for this role is ICICI Securities, whose average pay is INR 7.5 lakh per annum for financial advisors. It can go up to INR 10 crores per annum.  How to Get the Top Financial Advisor Salary in India We discussed in the previous section that your pay in this field depends on multiple factors. However, out of all of them, the one you have the most control over is your skillset. By developing the right skills and expertise, you can easily bag high-paying roles in this industry.  Having the most in-demand skills will help you stand out among your peers and make it easier for you to advance your career.  The best way to learn the latest skills in this field is through taking a professional course. Not only will a program help you in learning skills efficiently, but it will also certify you as an expert and help recruiters realise that you are a skilled professional. At upGrad, we offer an MBA in finance program, perfect for aspirants who wish to become financial advisors. If you’re interested in a career in financial advisory, do check out the course.  Conclusion A career in financial advisory can be very fulfilling. You’d be helping your clients plan their future, make smarter decisions, and make financial progress.  What are your thoughts on the average financial advisor salary in India? Which aspect of this field intrigues you the most? Let us know in the comments.  If you want to reap maximum benefits from an MBA in Finance, apply for upGrad’s MBA programs. We provide MBA in Finance from Liverpool Business School. All the subjects are carefully crafted, keeping into consideration the current world scenario and competition in the market. Plus, the courses are taught by eminent industry leaders and experienced management faculty.

Summary In this article, you will learn about the 17 Most Asked Finance Interview Questions & Answers. Take a glimpse. Beginner-Level Finance Interview Questions How can a Company Show Positive Net Income but go Bankrupt? What does Working Capital Mean? Why do Capital Expenditures Increase Assets When other Cash Outflows don’t and Instead Create Expenses? Explain a Cash Flow Statement. Can a Company Show Positive Cash Flows While Facing Financial Problems? What do you mean by Preference Capital? What do you mean by Hedging? Intermediate-Level Finance Interview Questions What is RAROC? What do you mean by Fair Value? What do you mean by the Secondary Market? What is the Difference Between Cost Accounting and Costing? and so on… Read the full article to know more in detail on Beginner, Intermediate and advanced level Finance Interview Questions and answers. If you were wondering how to prepare for a finance interview, look no further because this article will cover the most commonly asked finance interview questions. We have covered all levels of finance interview questions – beginner, intermediate, and advanced – to offer you a comprehensive idea of the finance domain. By going through all these questions, you’ll have a better sense of what to expect from the interviewer in a finance interview.  You can also check out our free courses offered by upGrad in Management, Data Science, Machine Learning, Digital Marketing, and Technology.  Below are some of the most asked finance questions categorized into three difficulty levels. You can take note of these questions and curate your very own finance question and answer pdf. Doing so will give you your personalized and unique MBA finance interview question and answer pdf.  To better your knowledge and improve your personal notes with finance question and answer pdf, you can also check out excellent finance programmes launched by upGrad. Beginner-Level Finance Interview Questions  1. How can a Company Show Positive Net Income but go Bankrupt? Ans: A company can show positive net income while facing bankruptcy by deteriorating working capital (by enhancing accounts receivable and reducing accounts payable) and financial tactics. 2. What does Working Capital Mean? Ans: Working capital is the amount you get after deducting current liabilities from current assets. It tells you how much cash is tied up in the business through inventories and receivable and how much cash you need to pay off the business’s short term obligations (in the coming 12 months).  Also Check, Management Essentials Bootcamp from upGrad 3. Why do Capital Expenditures Increase Assets When other Cash Outflows don’t and Instead Create Expenses?  Ans: Capital expenditures are capitalized because they give benefits to the firm for a substantial amount of time. For example, a new branch would make a lot of money for the firm for a long while but an employee’s work will only benefit until the time of paying the wages and that’s why they create an expense. This is the primary difference between an asset and an expense.  4. Explain a Cash Flow Statement. Ans: First we start with net income, proceed line by line while making adjustments to arrive at cash flows from operations. Now, you will have to mention capital expenditures, purchase of intangible assets, purchase or sale of investment securities, and asset sales to arrive at cash flow from investments. After getting the cash flow from investments, you’ll need to mention issuance or repurchase of equity and debt and paying out dividends to arrive at finances. Then, you need to add cash flows from investments, operations, and financing to get the total change in cash. Finally, the cash balance at the beginning of the period and the change in cash lets you arrive at the cash balance of the period’s end. This is essentially what a cash flow statement looks like.  Learn Online MBA Courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. 5. Can a Company Show Positive Cash Flows While Facing Financial Problems? Ans: Yes, a company can show positive cash flows even while facing financial trouble through impractical enhancements in working capital (delaying payables and selling inventory) or by not letting revenue go forward in the pipeline. 6. What do you Mean by Preference Capital? Ans: In simple words, preference capital refers to the amount raised by issuing preference shares. This is a hybrid method of financing the firm as it offers some features of debentures and some features of equity. It is the capital that has preference over equity capital at the time of dividend payment. 7. What do you Mean by Hedging? Ans: Hedging is a risk management strategy we implement to offset losses in investments. We do so by taking an opposite position in a related asset. However, the amount of risk hedging reduces results in a similar reduction in the potential profit. You can say that hedging is similar to having insurance where you pay a certain premium and get assured compensation. With hedging, if the asset in question causes you a loss, the opposite position in the related asset will make up for this loss. This is why a hedger is quite different from speculators as a hedger doesn’t focus on maximizing profits but on minimizing risks. Also, Check out online degree programs at upGrad. Intermediate-Level Finance Interview Questions  1. What is RAROC? Ans: RAROC stands for Risk-Adjusted Return On Capital and is a risk-based profitability measurement framework we use to analyze risk-adjusted financial performance. It gives a proper view of profitability across organizations. It is one of the best tools to measure a bank’s profitability. By combining it with the risk exposure and the ascertained economic capital, you can calculate the expected returns more accurately with RAROC.  2. What do you Mean by Fair Value? Ans: Fair value refers to the unbiased and rational estimate of the potential market price of an asset, good, or service. The fair value of an asset is the amount at which you can buy or sell the asset in a current transaction between willing parties other than a liquidation. Similarly, the fair value of liability refers to the amount at which you can incur or settle in a current transaction between two willing parties other than a liquidation.  3.What do you Mean by the Secondary Market? Ans: Secondary market is where people trade securities that have been offered to the public in the primary market beforehand and are listed on the stock exchange. The secondary market is also known as the aftermarket and some of the prominent examples of them include NASDAQ, Bombay Stock Exchange (BSE), and New York Stock Exchange (NYSE).  4. What is the Difference Between Cost Accounting and Costing? Ans: Costing is the process of identifying a product’s or service’s cost while cost accounting is the mechanism of analyzing a business’s expenditure. Cost accounting is a branch of accounting that determines the expenses incurred from a venture through examining, analyzing, and predicting the cost data. On the other hand, costing is the process of asserting the costs and prices of products. Costing is a technique while cost accounting is a branch of accountancy. The former has very little impact on a business’s decision-making while the latter is crucial for informed decision-making. 5. What do you Mean by Cost Accountancy? Do you Know the Objectives of Cost Accountancy? Ans: Cost accountancy is the combination of costing and cost accounting where you classify, record, and allocate expenditure to determine a product’s or service’s cost. It records and analyses the related data and presents them appropriately to help in guiding the decision-making process. Following are the objectives of cost accountancy: To get correct analysis of cost (by process and different elements of cost). To ascertain the cost per unit of various products. To ascertain the profitability of every product. To advise the management on how they can maximize their profits. To disclose the sources of wastage (time, resources, or money). So far these are the questions you must include in your finance interview question and answer pdf. However, don’t forget to read your curated MBA finance interview question and answer pdf to conduct last minute preparations for interview sessions. Checkout: MBA Finance Salary in India Advanced-Level Finance Interview Questions 1. What do you Mean by Adjustment Entries? Why do We Pass Them? Ans: The entries we pass at the end of every accounting period to the nominal and related accounts so we can indicate the correct profit and loss in the profits and loss accounts and keep the balance sheet accurate, are called adjustment entries. It is crucial to passing adjustment before we prepare the final financial statements as in their absence the final statements would reflect incorrect information resulting in error and confusion. Moreover, the balance sheet wouldn’t show the accurate position of the business if we don’t pass the adjustment entries.  2. What do you Mean by the Put Option? Ans: Put option is a financial market derivative instrument that allows the holder to sell an asset at a specific price by a specific date to the writer of the put. The purchase of a put option sends a negative message about the future of the stock in question.  3. What do you Mean by Deferred Tax Liability? Ans: Deferred tax liability is the amount the company hasn’t paid yet to the tax department but is expecting to pay it in the future. It happens when a company’s tax expenses are lesser than the amount they reflect in their tax reports or financial statement.  4. What is Goodwill? Ans: Goodwill is an asset that contains the excess of the purchase price over the fair market value of an acquired business.  5. What is the Difference Between a Journal Entry and a Ledger? Ans: The journal is the book of prime entry and all the transactions are recorded in it to show which account got debited and which one got credited. However, the ledger is the book for keeping separate accounts. You’d have to classify the recorded transactions in a journal and add them to the dedicated accounts present in the ledger. The ledger is also known as the book of final entry. Also Read: Future Scope of MBA in Finance A finance interview won’t be complete without technical questions. Here are some common yet important finance technical questions to look into.  These are major concept-based finance technical questions, so you can easily find answers to these in your books. This will not only help improve your concepts but will also make your finance question and answer pdf unpredictable. So, brainstorm these finance technical questions and higher your chances of cracking your dream interview.  On that note, there will be some hints to guide and direct you toward the answers.  1. Explain, that capital expenditures help increase assets, yet other cash flows like taxes and paying salary do not do so but create an instant expense on the income statement, which then negatively impacts equity through retained earnings.  Hint: Go through the definition of capital expenditure and determine its main variables.  2. Given an example of a situation where a company is showing positive cash flow but is in grave trouble.  Hint: Look into the concepts of unsustainable improvements in working capital and pipeline getting slow.  3. Is it possible for a company to show positive net income but still go bankrupt? Give justification for your answer. Hint: look for financial shenanigans and what happens when accounts receivables increase and payables get reduced.  4. Explain why the increases in accounts are receivable and a cash reduction on a cash flow statement. Hint: Remember how a cash flow statement begins and what measures are taken to adjust the net income reflected.  5. Tell the relationship between the income statement and the balance sheet. Hint: Think about net income and retained earnings and their relationship.  6. How can one create deferred tax liability? Hint: Look into the definition of tax liability, GAAP, and IRS. After that, revise different relations between GAAP and IRS and see what happens when the difference between the two increases.  7. How can one create deferred tax assets? Hint: What happens if a company pays more tax than they need to do? Look into revenue recognition, expense recognition, and NOLs (net operating losses) concepts and think about their relationship.  8. How will the three financial statements be impacted when I buy anything? Hint: Determine whether or not the thing is a depreciating asset. The answer will majorly depend on that. Then understand the three financial elements.  How to Prepare Finance Interview Questions and Answers Preparing all of these questions and answers can be quite daunting. You can streamline the learning process and get dedicated support by taking an MBA in Finance course. It would teach you all the necessary skills and you’ll get upGrad’s exclusive recruitment support such as mock tests, interview preparation, resume building, and career support. Throughout the course, you’ll get plenty of opportunities to learn from industry experts and engage in peer-to-peer networking which makes the learning process much more exciting and fun. Our Top Management Programs & Articles Product Management Certification Program from Duke CE Leadership and Management in New-Age Business from Wharton Online Top 4 Functions of Management Process Explained Leadership and Management in New-Age Business from Wharton PG Program in Management from IMT 5 Key Skills Required for Successful Management Career & How To Achieve Those Skills? 8 Crucial Business Management Skills Every Manager Should Have Why Should You Consider Product Management as a Career Option? Top 7 Career Options in Management To Choose [For Freshers & Experienced] Conclusion While it’s great to equip yourself with all the theoretical and practical knowledge before appearing for an interview, make sure that you focus on soft skills along with the technical topics we have covered in these questions. Recruiters are always on the lookout for candidates that possess strong technical and soft skills.  With upGrad, aspirants can choose to pursue MBA in Finance specialization from Liverpool Business School or MBA in Digital Finance and Banking from O.P. Jindal Global University. Ranked among the top B-schools of the UK, Liverpool Business School provides a 20-month MBA Finance course online, including a one-week immersion program at the university campus. The course comprises simulations and case studies from Harvard Business Publishing. During this program, the students get a chance to be mentored one-on-one by the industry leaders.

Last month, in November 2020, an RBI committee recommended the allowance of commercial banking licenses to large and established companies as well as Non-Banking Financial Companies (NBFCs). Well, the proposal is still being brainstormed, but it is good news for you. Wondering why? The creation of more job opportunities, obviously! Jobs in the banking and insurance sector have always been in demand among freshers. Moreover, these segments also rank top when it comes to generating employment opportunities. In the financial year 2017, banks recorded the highest number of employment, generating about 21% of the whole employment opportunities in the economy. If the latest recommendations come to pass, imagine the employment opportunities that you would get! Read more about the urgent need for talent in BFSI. BFSI sector is booming and the demand for the professionals are exceeding with time. The market is expected to grow and reach  US$ 89.1 Billion by 2027 (Source). As a fresher, straight out of college, you look for opportunities to jump-start your career. If you are from a commerce background, banking and insurance are the hottest sectors for job opportunities. And as the numbers mentioned above say, this sector also promises the easiest employment opportunities for freshers, making it a hotbed for job applications. If you are looking for banking jobs or insurance sector jobs as a fresher, have a look at the following available opportunities – Learn Online MBA Programs from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. Top Career Options For Freshers in BFSI 1. Telecaller Remember the calls you get about loans, credit cards and even new insurance policies offered by companies? Well, it can become your job too. Banks and insurance companies are constantly on the look-out for freshers to work in their call-centres and sell their products through telesales. The telecallers are required to sell the products or services. They directly call the potential customers and inform them about the products or services. Depending on the customer’s interest, the call goes forward or ends there. They are required to sell on the call only. In order to grab the attention of the customers, they ar erequierd to be fully aware of their product. In case the customer has any query, the telecallers should be able to address that.   There are various skill sets which a telecaller must possess in order to make the most out of the opportunity. Some of those skills are mentioned below- Communication Knowledge of products or services Adaptability Persuasiveness Patience Rapport building Selling techniques Active listening It is one of the most sought- after job role for the freshers. They do not need any professional qualification rather good communication skills to begin their career. It is a good way to earn experience and good compensation along with bonuses that comes with good performance.  Insurance companies also use telecaller agents to sell the services, along with that the agents are also required to address the grievances and provide suggestions. It is considered as one of the easy BFSI jobs to begin the career in the industry. Along with that, sought- after jobs in insurance sector for a fresher. The eligibility criteria are simple – you just have to be a graduate with good communication skills, and you are set to go. Besides a fixed monthly income, you can also earn commissions on the sales you generate. Simple and well-paying, isn’t it? 2. Bank Probationary Officers (PO) The bank PO job is highly sought after because it allows you a chance to grow your career in banking. For this job, however, you need to pass an exam conducted by the Institute of Banking Personnel Selection (IBPS) if you want placement in a public-sector bank. For private sector banks, the exam is not a criterion, but you might need other qualifications. As a PO, you get a fixed monthly income and a chance at promotion. A bank probationary officer is given the responsibility of performing transactions of the customers. They are responsible for performing tasks related to banking, finance, etc. They are also given the responsibility to issue checkbooks, cash management, etc.  Career in banking as a probationary officer is considered a good career. There are various skills that are required from the PO professionals such as customer service, people management, cash handling, verification, communication, numerical literacy, etc. It is considered as a high paying job. The SBI probationary officer procures the salary of  ₹ 8,09,257 (Source). There are various advantages for pursuing banking career such as stability, flexibility, good pay, etc. It is a good career option to go after for a fresher, they are required to sit in the competitive exam after finishing their formal education.  3. Sales Representatives or Relationship Managers The job of sales representatives, relationship managers or sales managers is also available for first time job seekers in banks and insurance companies. Needless to say, this is a sales-oriented position wherein you need to sell the products of the bank or insurance company. There might be a monthly target, and this position is open for graduates fresh out of universities. A sales representative is required to represent the products or services to the company to the potential customers. They are required to probe and profile the customers, understand their concerns and priorities and accordingly suggest the right product or services to them.   BFSI jobs for freshers are a good option to begin the career. It does not require specific education rather skill sets. Moreover, the sales representatives who are freshers can garner experience, high compensation and good industry exposure.  Some of the skills required from a sales professional are active listening, good knowledge of product or services, people management, quick thinking, persuasive skills, collaboration, communication, written skills, empathy, etc. Related read: Future of BFSI Industry 4. Tellers and/or Cashiers Banks need tellers, individuals who sit at the ‘‘deposit’’ and ‘‘withdrawal’’ windows at the branch. Freshers can apply to these positions and get placements. Along with the tasks, the cashier or tellers are also responsible for providing a positive experience to the customers and resolve their queries they may be having. Some of the skills required from a cashier includes positive energy, numerical literacy, problem-solving, communication skills, people management, etc. 5. Insurance Agents Another lucrative avenue is becoming an insurance agent. You can become an agent straight after 10+2 and start your own business of selling insurance. The beauty of an insurance agency is that it allows you to work full-time in another job and sell insurance policies on a part-time basis for additional income. The insurance agents are responsible to actively listen to the customers and understad their needs and goals and then intelligently give the appropriate suggestions. They are also required to have strong follow ups with their leads and have strong time management.  The insurance agents are required to have strong communication skills, knowledge of the services, active listening skills, written communication, empathy, etc. The Qualification Required Under most of the jobs, you need a graduate degree. Moreover, for the telecaller or sales position, you don’t even need specialisation in commerce. The job is yours even if you are an arts or science graduate. All you need to do is learn sales skills which can be done through a hands-on experience on the job or through online courses before getting the job. The professionals are suggested to invest their time in upskilling themselves before or after getting a job. As the relevant  skill sets is a good way to open doors for better opportunities. The Expected Pay As a fresher, you might not have sky-high expectations when it comes to the salary package. However, knowing the pay package ball-park is important. What if you get a chance of negotiating your CTC? The pay package actually depends on the position you get placed in. Telecallers can earn around Rs. 15,000 to 20,000 per month (excluding incentives) while POs and sales reps can have a salary starting from Rs. 25,000. Tellers and cashiers might earn somewhere between Rs. 20,000 to 30,000 while in an insurance agency, there is no fixed payment. As an agent, your income depends on the number of policies that you sell and the premium that you collect. The Growth Curve Everybody wants to grow their careers with experience, why shouldn’t you? Experience is an important qualification, and as you gain experience, you can grow your insurance and banking career too. Banks and insurance companies look at internal promotions to fill their vacancies. It saves them the cost and time of hiring someone from the outside. So, even when you are a fresher, if you work passionately and prove your mettle, promotion would just be an appraisal away. You can become a manager and reach the top management levels with your performance and experience. Adding to Your Qualifications Though freshers are welcomed in insurance and banking sector jobs, additional courses help in honing your skills. The job world is competitive, and the fittest ones survive. To stand out of the crowd, you need an extra feather in your cap. And how do you get that extra feather? Through online courses, simple! upGrad’s MBA in Digital Finance and Banking provides extensive training on different aspects of banking and digital finance. The course offers a blend of fundamental subjects related to finance, accounting, and economics and new-age subjects such as managing fintech ecosystems, data protection, financial criminology, etc. The focus on constantly updating the curriculum to match the demands of the industry has made upGrad a preferred choice of BFSI to find new talent.  

Preparing for a life insurance interview can be quite challenging. Insurance is a broad field covering many diverse topics and concepts. Anyone working in this sector must be a subject matter expert who is well-versed with the nitty-gritty of life insurance.  We’ve created a detailed list of some of the most common life insurance interview questions that will not only help you understand the fundamental concepts of the field but also give you a glimpse of what to expect during a life insurance interview.  Even if your native language is Hindi or something else, at the time of the interview, chances are that you will be questioned in English. However, you can translate these insurance interview questions in Hindi if you wish to prepare for the interview in your native language and make your very own insurance interview questions pdf in Hindi.  If you have an interview lined up, make sure to give this article a good read to enhance your chances of bagging the role! Easy Life Insurance Interview Questions 1. What is “Insurance Coverage?” Ans: Insurance coverage is the amount of liability covered for an entity or an individual through insurance services, Insurance coverage such as life insurance or auto insurance is issued by the insurer in case of unforeseen incidents.  2. What are the Various Kinds of Insurance Coverage? Ans: Insurance policies are of two kinds:  General or non-life insurance Life insurance 3. What is Meant by Beneficiary? Ans: The beneficiary is the person who gets nominated for the insured amount in case the policyholder dies.  4. What do you Mean by ‘Insured’ and ‘Insurer’? Ans: The insurer is the party in the insurance contract undertaking to pay compensation. The insured is the one who holds the policy and the insurer covers the same.  5. What is the Difference Between ‘Irrevocable Beneficiary’ and ‘Revocable Beneficiary’? Ans: ‘Irrevocable beneficiary’ is a designation in which the policyholder must take the beneficiary’s consent before changing the beneficiary’s name. On the other hand, a revocable beneficiary allows the policyholder to change the beneficiary name without getting the named beneficiary’s consent.  6. What do you Mean by the Contestable Period in an Insurance Policy? Ans: Contestable period refers to the duration in which the insurance company holds all the right to investigate the required policy and determine whether they should pay or not pay the insured. This period usually lasts for a year or two.  These were some very easy yet common questions you will find in any HDFC life insurance questions and answer pdf. However, when it is your first attempt, and your anxiety levels are high, you might also give wrong answers to these. So try to keep your calm during the interview and boost your confidence beforehand with consistent practice.  To add to that, you might also like to practice some HDFC life insurance interview questions that are a level or two more complicated than the previous ones and challenge your critical thinking as well as the knowledge quotient. Below are some of such HDFC life insurance interview questions that will definitely prepare you to excel! Challenging Life Insurance Interview Questions 7. What is a ‘Deductible’? Ans: Deductible is among the clauses an insurance company uses as a threshold for the policy payment for travel or health insurance. It is a decided amount that you must pay from your pocket when you claim the insurance. For example, if the deductible is INR 25,000 and you have insurance coverage of INR 1,00,000, you would have to pay INR 25,000 out of your pocket and the insurance company will cover the rest of the INR 75,000.  8. What is a No-Claim Bonus? Ans: No-claim bonus refers to a benefit insurance companies offer to those who haven’t claimed insurance during the preceding year of cover. It lowers the premium for the following year.  9. What do you Mean by Co-Insurance? Ans: Co-insurance is a policy usually offered by health insurance companies. In this policy, you share the coverage with the insurance policy in a percentage of the policy value after the deductible. Usually, the split is 80%/20% where the policyholder has to pay 20% while the insurance company pays the 80% of the covered amount. Suppose you have claimed health insurance for INR 20,000 and it requires a deductible of INR 10,000. After paying the deduction, the remaining amount is INR 10,000 and the co-insurance is 80/20. Now you’d have to pay INR 2,000 out of your pocket and insurance will pay INR 8,000.  10. What is a Loss Payee? Ans: Loss payee is an institution or person that receives the insurance payment for the loss of a vehicle or property you own. In the event of payment being made under the policy in relation to the insured, it would go to the third party rather than to the beneficiary of the same. For example, if you had auto insurance of a car you bought on loan and the car crashed within the loan’s payment duration, the money would go to the lender rather than you.  11. What do you Mean by Surrender Value? Ans: Surrender value, also known as cash value or cash surrender value is the monetary amount the policyholder gets from the life insurance company if they decide to exit the same before it reaches the maturity date. A common premium policy would acquire surrender value if the policyholder has paid its premium for three years continually. The policy ceases as soon as the policyholder withdraws the amount and they might lose all the returns on the policy.  12. How do you Claim an Insurance Policy? Ans: To claim an insurance policy, you first have to fill up the claim form and contact the financial advisor from whom you purchased the policy. After completing these steps, you have to provide the required documents such as the payment receipt. When everything is verified and deemed fine, you would get your insurance claim within seven days of your claiming date.  Also Read: Banking Job in India  13. What do you Mean by Paid Value? Ans: The paid value is the reduced assured amount the insurance company pays if the policyholder stops paying premiums after a specific duration. In simple terms, when a person stops paying premiums after a specific duration, the policy remains but with a lower assured amount, this low amount is called paid value or paid-up value. The amount the insurance company assures to pay reduces if the person claims the paid-up value. The reduction depends on how soon before the maturity period has the person requested the paid value.  14. What Happens If a Person Doesn’t Pay Premium Payments? Ans: In normal cases, if a person stops paying premiums, the insurance company gives them 10-15 days as a grace period after the due date. However, if the person doesn’t pay even in the grace period, their policy lapses. After that duration, the person would have to pay the due premium along with interest charged on the premium since the due date to revive the policy.  On the other hand, if the person paid premium payments for a substantial duration (2-3 years minimum) and then they stop paying the premium, the Insurance company will deduct the premium from the accumulated sum. This is particularly common with permanent life insurance policies. It continues until the accumulated funds deplete after which the company terminates the policy.  If you have already added these in your HDFC life insurance interview questions pdf and did not find anything that has troubled you, then you are off to a great start. However, it is also true that no matter how much you prepare well for an interview, if the interviewer is in a mood to test your depths they will keep on asking more and more tricky questions. So for those situations also you need to be prepared. For that, you need to make an advanced level HDFC life insurance interview questions and answers pdf, for which you can take reference from below.  Advanced Life Insurance Interview Questions 15. Can you Differentiate Between a Participating Policy and a Non-Participating Policy? Ans: In a participating policy, the insurance company shares its generating profit with the policyholder and gives them dividends while in a non-participating policy, the company doesn’t give any profits to the policyholder.  16. Can a Beneficiary Claim the Policy if the Policyholder has been Missing for Multiple Years? Ans: Yes, a beneficiary can claim the policy but there are a few conditions they must meet. First, they must have a court declaration stating that the policyholder has been missing or announced legally dead. Second, the person must have been missing for more than seven years.  17. Can a Person Limit the Premium Payments for a Smaller Amount of Years than the Policy’s Duration?  Ans: Some insurance companies offer the option where the person has to pay premium payments in three, five, seven, or ten years according to their income and receive the whole coverage they would have received with the usual duration.  18. Can a Person Pay the Premium Through an Insurance Agent? If so, is it Safe to do So?  Ans: Yes, a person can pay the premium through their agent if they make the payment through cheques to their Insurance company and receive all the receipts for such payments.  19. What is a General Insurance Policy and What Does it Cover?  Ans: General insurance policies are also known as non-life insurance policies and offer payments based on the loss from a specific financial event. They are generally defined as any insurance that is not a life insurance policy. Some of the things it covers are legal liabilities, travel, personal property (house or car), accident, health, machinery breakdown, theft, etc.  20. Can a Person Take Two Life Insurance Policies and Claim For Both? Ans: Yes, a person can take two life insurance policies and claim for both of them.  How to Prepare Life Insurance Interview Questions and Answers The best way to prepare life insurance interview questions and answers would be through learning about the field. With a deep understanding of the various sections of life insurance, you can easily bag a lucrative role in this sector.  However, here are some tips you can follow to make your preparation more structured and efficient after following HDFC life insurance interview questions and answers pdf. Significant knowledge about the industry When going for an interview, you must have sound knowledge of the company, including its market positions, its organisational values and most importantly, its market competition.  You might get asked questions from any of such topics, hence have your base cleared about the insurance industry, how it works, and who are the leaders in the industry.  This will grant the interviewer a detailed insight into your knowledge and skill set. It also portrays that you have devoted individual time learning about the company, which means you are serious about the job.  Prepare about the role that you are applying for Not knowing what you are applying for can be a big turndown.  When the interviewer asks whether or not you are aware of the responsibilities you will be taking, you need to have some answers.  Therefore, search online and learn about the job role you are applying for. Plenty of websites are filled with details on roles and responsibilities associated with a certain job role. Hence, look through them and get a rough idea of the responsibilities you might be taking once you get the job.  Prepare to present your strengths and weaknesses  ‘Why should we hire you?’ is a very common question in most of the personal interview rounds. Your answers can not be like, “because I need a job, I think you should hire me”. Or you should not come across as very superficial by saying, “I am the best, and that’s why you should hire me”. Try and be honest and humble. So, prepare a speech where you beautifully portray your strengths and weaknesses.  4. Make up a mindset for facing tough questions Oftentimes, even after knowing the answer, anxiety can ruin your chances of fluently answering tricky questions. Try your best to handle the situation and if you do not know the answer to any of the questions, then be honest and tell them that you don’t know. That is far better than giving a wrong answer! Prepare questions that you would want to ask when given the opportunity The interview is a two-way process. Hence, prepare a few relevant and genuine questions to ask them. Often time candidates hesitate to ask any questions when given the opportunity. Refrain from doing so. You can ask the interviewer about the training and progression opportunities in the company, the vision of the company for the next few years if overtime is expected, how they would describe a typical work day or what are the biggest challenges of this role.  Not having any questions might make you appear unprepared or disinterested.  Prepare yourself for salary negotiation If it is your first job, you must strengthen your negotiation skills. You might get under-compensated if you are unaware of the industry standards. Therefore, do your research on the pay scale of the job you are applying for and try and use that information when asked about your expectations.  While negotiating, do not forget to mention why you feel you are worth getting the amount, otherwise, the interviewer might think you are quoting any random number that you saw on the internet.  Gain knowledge about non-monetary compensations  If you are not satisfied with the monetary compensation that they are offering, do not back off immediately. Ask them about the other types of compensation they offer apart from the base pay and then make a decision considering all the pros and cons. Whether preparing insurance interview questions in Hindi or English, your attitude and confidence are among other aspects which are deeply gauged. Make sure to work on them.  If you’re interested in learning more about this field, we recommend taking a life insurance course. It would teach you the necessary skills required to become a life insurance professional through exclusive training and mentorship.  At upGrad, we offer the following three courses: Job Guaranteed PG Program in Life Insurance with HDFC Life Job Guaranteed PG Program in Life Insurance with Tata AIA Life Post Graduate Program in Life Insurance with PNB MetLife You can pick any one of these courses and kick start your insurance career.  Conclusion We hope that you found our article on life insurance interview questions and answers useful.  We know how challenging it can be to prepare for an interview, however, remember that it’s not a herculean task. Stay confident and give direct answers to any questions. Although many people get nervous during interviews, remember that it’s very common and recruiters know that.  Let us know what you thought of this article by dropping a comment. 

Wondering how many jobs are available in finance? Do you think you have what it takes to become a part of this fast-paced industry?  The role of finance is central to carrying out the development and growth activities of an economy. We have compiled a list of career options after finance degree to help you understand the industry requirements and how you can navigate diverse career paths in finance to find the best for yourself! You would need to earn a bachelor’s degree and understand the fundamentals of financial management. It is ideal to have some background in economics, management, mathematics, accounting, and auditing. You can also work for a few years and specialize in a particular field which can significantly give an edge to careers in finance. Study programs in finance usually include project work and internships as part of the curriculum. These avenues can provide a significant head start, presenting several opportunities for learning and networking.  Senior-level finance jobs would require you to combine your professional insight with technical expertise and managerial skills. MBA (Finance) and MS (Finance) are two of the most sought-after courses for aspirants in this domain. Moreover, there are several certifications for those who want to uphold a standard of practice in their professional career. Learn more about MBA in finance and career options. These include Chartered Financial Analyst (CFA), Chartered Public Accountant (CPA), Certified Financial Planner (CFP), Financial Risk Manager (FRM) certification, and others.  When you decide to tap careers in finance, specializing in finance, or make a finance career in financial professional jobs, you might need to understand how to grow better at finance careers and different finance jobs. With this perspective on how many jobs are available in finance, let us move on to some distinguished career options after a finance degree and delve into the job specifications, required qualifications, desired skill sets. Of course, you must explore the skills and benefits of a job in the finance domain. Here’s the list of careers in finance and their related benefits. Benefits of Having A Career In Finance Careers in finance offer a plethora of benefits. Here are some of them: Good Money And Growth – It goes without stating that once you are settled in a career in the finance domain, you have the potential to earn high. Even several entry-level positions are lucrative in terms of payments in the fields of finance. Moreover, there is scope to work up the career ladder quickly with the right set of skills and abilities. Balanced Lifestyle – Jobs across the financial sector let you have a balanced lifestyle since you are better off in terms of work schedules. Of course, there are stressful days, but overall, the job domain offers better balance. Job security: A career in finance bestows you with the option to settle for a job that offers maximum financial protection. An all-rounded security feature is beneficial in any field. It allows you to relax in any place without giving the move a second thought.  Diversity: One of the most noticeable features of a career in finance is that it offers a range of posts that cater to the field of finance. There are many specializations that one can choose from in the financial sector. Scope for growth: Finance firms always look for new talent to upscale their establishment. It makes it easier for people looking to move up the career ladder. At the same time, career paths in finance offer an easy option to relocate since it isn’t always location-specific.  Top Career Options in Finance There are a number of options among careers in finance you can pursue if you want to be specializing in finance, or make a finance career in financial professional jobs. Take a look at the most popular finance careers or finance jobs. 1. Public Accounting Accounting is an extensive field of study and practice, comprising a variety of financial services. Broadly, it is concerned with recording and maintaining the flow of money for a public entity or private company. Public accountants also give suggestions and deliver reports to cut down expenses, boost revenue, and improve financial health.  As an accountant, you can work in-house to help organizations get their finances in order, understand the soundness of their investments, and make projections to achieve long-term goals. Employment opportunities may arise in the commercial or private sector as well as in select accounting firms. The Big Four firms across the fields of finance, namely Deloitte, EY, KPMG, and PwC, collectively offer the largest share of professional services in public accounting. They provide assistance in auditing and attestation, tax consulting, business advisory, internal control, and governance to their corporate and government partners globally.  Graduates in Commerce and Business Administration can consider a CPA qualification to become an internationally licensed accountant. Degrees like Master of Commerce (M.Com.) and MBA (Finance) are also recognized as a testament to candidates’ academic knowledge in the area. When you are going for coveted job positions, higher education can help you differentiate your profile from the competition.  Learn Top MBA Courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career. 2. Corporate Finance Corporate finance is a sub-division of finance that provides funds for business activities. It deals with funding sources, investment decisions, and capital restructuring. The critical job functions in this profession include: Balancing risk and profitability Analyzing and forecasting economic trends Reviewing company reports and suggesting improvement measures Maximizes value of stock Managing funds and selecting investment portfolios Performing tasks related to financial risk management Corporate finance professionals are hired in junior and senior capacities depending on their educational qualifications, acquired skills, and interests. You would be expected to have a knack for numbers and apply the same for managing money, maximizing return on investment, introducing smart solutions for budgeting, etc. Also, leading corporate advisory firms recruit finance graduates to expedite mergers and acquisitions of businesses. Large organizations prefer to hire MBA talent for mid-senior level positions and above. Hence, a finance career path would be the best fit for finance enthusiasts. Read: Career in finance and its Scope. 3. Investment Banking Investment banking finds a place among the most prestigious career options in finance. It is also a lucrative path in terms of professional growth and salary package. Investment bankers are responsible for tasks related to financial remodeling. Their work involves working with data and numbers and introducing decisions that improve business operations. These practitioners must have an interest and insightful knowledge of financial markets and economic trends.  Other job profiles can range from trading and stockbroking to asset management to equity research. Stockbrokers are professional traders or registered representatives who buy and sell shares on behalf of their clients. Asset managers determine what investments should be made with the view of growing their clients’ portfolios over time and mitigating risk. Careers in equity research involve ascertaining certain investments’ value to help individuals and institutional investors make investment decisions. Investment banks generally hire interns and prospective associates from top-tier educational institutions. An MBA (Finance), and sometimes a Law degree, can be beneficial in entering this field. If you are looking to pursue a specific career path such as stockbroking, you can opt for short courses or diplomas in stock analysis or stock market research. The National Stock Exchange (NSE) also offers such formal credentials. 4. Portfolio Management Portfolio management is a fusion of commerce and science as it requires knowledge of business, mathematics, and analytics. As a portfolio manager, you do not pore over individual investments but look at the overall investment mix of your clients, who may be institutions or individuals. Also, it would be your job to guide organizational policies on investments and decisions regarding asset allocation. It is crucial in portfolio management that employed professionals work to maximize profits at a negotiated risk. This would require conducting a SWOT (Strength, Weakness, Opportunity, Threat) analysis in the domestic and international markets across areas like growth vs. safety, debt vs. security, and so on.  Education in Economics, Business Administration, or Accounting is ideal for these types of careers to get started with finance careers. It is also recommended to get training in statistics and refine your mathematical skills to pursue portfolio management jobs. Demonstrated experience in financial asset management or working with investment institutions can be work to your advantage. Besides, you would need excellent communication and interpersonal skills to handle requests from clients and customers.  You can also check out our free courses offered by upGrad in Management, Data Science, Machine Learning, Digital Marketing, and Technology. All of these courses have top-notch learning resources, weekly live lectures, industry assignments, and a certificate of course completion – all free of cost! 4. Risk Management Risk management professionals are competent in identifying market risks and recognizing poor investment outcomes. Their primary duty is to maximize returns and minimize risks strategically. For this purpose, they apply their mathematical prowess and analytical reasoning skills and advise their clients on various business matters. The job roles can be divided into: Financial Risk Manager Enterprise Risk Manager Supply Chain Risk Manager Operational Risk Manager Digital Risk Manager Risk management is an in-demand profession in India with companies like SBI Life Insurance, LIC, Bajaj Allianz, and PolicyBazaar recruiting for various positions, including analysts, managers, consultants, and advisors. It is a sought-after finance career path globally. If you are seeking work in risk management, you should consider completing an advanced degree like an MBA or PG Diploma in Risk Management. Also, check out the certificate courses offered by the Risk Management Association of India (RMAI).  5. Financial Planning Individuals and companies require the services of financial planners to secure their current and future financial stability. A career in financial planning would entail reviewing financial statements and cash flows and creating methods for saving and investing in matching the clients’ needs. You can choose to concentrate in a specific area, viz. wealth management, tax planning, estate planning, retirement planning, investment growth, etc. Here are a few places that employ financial planners in India: Wealth management and financial services firms Knowledge Processing Organizations (KPOs) Non-Banking Financial Companies (NBFCs) Asset Management Companies (AMCs) Finance Journalism Self-employment  A postgraduate degree such as MBA (Finance), MS (Finance), or MA (Economics) is preferable for obtaining employment as financial planners in established organizations. 6. Commercial Banking Commercial banks provide a host of services to individuals and businesses. The offerings range from savings and current account facilities to debit and credit cards to personal, home, education, and other loans. Commercial banking also includes analysis of financial statements, competitive positions, and industries. There are several types of roles, each one requiring different skill sets in the banking sectors. The most popular posts include credit analyst, banking associate, account manager, trust officer, bank teller, mortgage banker, and branch manager.  The primary duty of bank personnel is to maintain relationships with the bank’s existing customers and find new clients to keep the business running. For this, they need to deliver effective and customer-friendly services and remain proactive in improving the bank’s day-to-day functioning.  Commercial banking is considered an attractive career choice for many aspirants due to the decent pay packages and working hours. An undergraduate degree in Business and Commerce can qualify you for an entry-level position like a credit analyst. Many BFSI sector recruiters also hire data science professionals for analyst jobs. You can build your profile with an MBA degree and advance to business development and client-facing roles like account management.  Moreover, financial services are rapidly evolving in the current technology-led world. So, your career choices need to be future-oriented. Let us look at some latest innovations in the Fintech space.  Payment banks are fostering financial inclusion and digital payments Artificial intelligence and cognitive analytics are powering data-driven decisions Blockchain implementations are set to transform banking and financial markets Robotic process automation or RPA has the potential to address case backlogs The need for cybersecurity solutions to eliminate intrusions and attacks has multiplied With big players like ICICI and Axis Bank exploring opportunities in emerging tech, it would be wise to take up a course that empowers you with the current developments in fintech and teaches you the roles in finance. Here, an MBA in Digital Finance and Banking could prove useful for you. Fintech has also opened up new jobs in software development. Learn how MBA in digital finance and banking helps your career.  7. Compliance and Internal Control Compliance services engage managers and administrative officials to ensure that all procedures and activities adhere to applicable laws, ethical practices, and standards. Companies want to avoid any harm to their reputation and finances on account of regulatory non-compliance. Therefore, the job of compliance officers is critical to support effective business performance. They can be employed in diverse environments as international University offices to look after components like grants, gifts, and contracts. As for financial compliance departments in corporate firms, these professionals protect investors and maintain transparency. Their job functions directly contribute to the reduction of financial fraud and system risk.   Typically, accounting and law graduates opt for a career in financial compliance services. Getting an advanced finance degree like a specialized MBA can improve your chances of landing attractive internships and placements.  Must Read: Top 15 Highest Paying Finance Jobs in India Top Skills To Make It Big In Finance For 2022 Here are the top financial skills you will need for finance careers. Education – To begin with, you must have the right degree and training to kickstart your finance career. Experience at work matters undoubtedly, but having the right certifications and education helps you kick start the career right. Interpersonal Skills – Finance careers aren’t about crunching numbers in a nook. At least- not anymore. You must be able to deal with clients, communicate clearly, and build relationships. Such skills matter as much as your knowledge in the discipline does. Financial Reporting Aptitude – Looking to make it big in finance? You do need to have proficiency in financial reporting. Analytical Skills- If you can analyze a scenario to deduce relevant conclusions, then a career in finance is a good pick. Skills such as strategic thinking and leadership are much needed in the field of finance too. Financial modeling – It is the representation of a financial situation using abstract methods. You get to design a model that portrays the financial performance of a portfolio or asset. Business intelligence – To make a well-informed business decision, one must know the present and future data regarding sales, inventory, and other fields. Business Intelligence experts use software like Tableau to gain insight into the financial area. Accounting skills – Accounting skills assist you in keeping track, recording, and managing financial transactions without facing any errors. Furthermore, accounting skills are highly sought in financial analysis, data management, financial reporting, and financial modeling. Cash flow management – Cash flow management analyzes, optimizes, and monitors the cash flow in receipts. Businesses use this technique to manage finances.  Mathematical skills – A set of solid mathematical skills can take you anywhere. Robust knowledge of mathematics can put you into roles in finance, like financial analysis, data management, and predictive analysis, among other profiles. It is also the case with professionals working in the financial field. Data management – It is the process of gathering, managing, storing, and maintenance of data acquired from an organization. It is vital while performing data analysis. Financial data management also allows you to comply with the latest laws and regulations. Takeaways Before you opt for a postgraduate degree or certifications like CFA or FRM, it would be best to evaluate your options and chalk out a strategic plan to realize your personal and professional objectives. If you feel that you need to work on your analytical and business intelligence skills, accredited programs in Data Science or Business Analytics could work for you. A budding professional in finance must understand the relationship and the fiscal behavior of a company with the marketplace demand. You must demonstrate an understanding of how the business world works while keeping abreast of the latest trends. Finance or accounting might sound like domains that are strict on routine and system. However, this never means that there is no room for innovation. Many new trends are shaping the industry, and you must also work on developing better IT-related skills to survive and thrive in the same. However, if you intend to qualify for a job promotion or develop your leadership skills, you may go for a Global MBA and select your desired specialization. You can complement your degree or diploma with other relevant credentials and licenses.  With this list of careers in finance, we have explained different career options in finance and detailed the ‘hows’ of attaining job-ready skills. Use this information to restructure your plan and move ahead with a willingness to learn and grow!