QnA
What is finance?
Abhisumat Barthwal: Finance is a very broad term. It broadly deals with the lending of credit, buying, the flow of money. There is banking involved. There are other big players and markets, managers (like moneyfund manager), equity market moneymaking handling, banking, mutual funds, equity derivatives markets, etc. Finance is of two types. Firstly, "sell", that involves the bank. Secondly, "buy", that involves venture capitalist, hedge fund and equity.
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How can one explore the finance sector?
Tathagat Saxena: Books are a good way to start exploring finance. Here are a few that I suggest: 1. 5 Rules of Successful Stock investing- Pat Dorsey 2. The little book that builds wealth-Pat Dorsey Warren Buffett and Financial statements- Marie Buffett 3. Investment psychology explained- Martin Pring 4. Intelligent Investor- Ben Graham Further, from the coding perspective, learn the basics of financial risk management, prediction of the stock market using AI, etc through online courses or projects.
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Does CG play the main/eliminating role?
Tathagat Saxena: CGPA is important for Practice School 2 but not an important factor from the industry perspective. Moreover, in investment banking, they want MBAs who have work experience and have closed deals in the past.
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Is it possible to get a job in the finance sector off campus? What problems can one face while doing so?
Tathagat Saxena: During PS2, companies that come for investment banking seek only B3 students. So, if you are not in economics, tap into some contacts or alumni. People in corporations are really excited about BITSIANS. So, this job seeking in investment banking can be less tiresome due to the BITS tag. A problem that I faced on entering this sector right after my undergrad degree, was that all my peers in the firm were either MBAs or had great work experience, which is the usual way to get into the sector. So, it was a little daunting to be amongst the more experienced people, but with time, I became acquainted with the culture
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Are CFA or FRM level exams suggested for people going to pursue Investment Banking?
Tathagat Saxena: You can give it for the first time in your 4th year. Also, 50-60% of people in IB are CFA charterholders, so, it's suggested, but not necessary. People from IIMs don't do CFA or FRM as they already have an MBA degree to back up their finance knowledge. The more important thing is your work experience and the deals you closed, at the end of the day, than your marks in the examinations.
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Could you comment on the possible career options under finance?
Tathagat Saxena: 1. Quant Roles 2. Private Equity 3.... read more
Tathagat Saxena: 1. Quant Roles 2. Private Equity 3. Investment Banking 4. Equity Research 5. Trading Roles
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Abhisumat Barthwal: Finance is of two types.... read more
Abhisumat Barthwal: Finance is of two types. Firstly, there are sell side jobs that involve the bank. Secondly, there are buy side jobs- venture capitalist, hedge fund, equity sector. For an engineer, going into venture capitalist and hedge fund is pretty difficult as they require MBA as traditionally driven roles. Try for a venture capitalist and equity sector internships because then you have a chance of entering into these sectors. Otherwise these roles can only be secured post MBA.
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Could you comment on the growth opportunities in finance?
Tathagat Saxena: A general corporate ladder for an investment banker generally looks like: Analyst after MBA → Associate after 2-3 years → Associate Vice President→ Vice President→ Director → MD You can also pursue your career in private equity which is quite popular these days. Or you can go towards a slightly different path like working in a startup.
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What advice would you give to students aiming to venture in this field?
Abhisumat Barthwal: Develop and improve your coding skills for finance controls help, explore a lot during college, don't care about what others say and do what you wanna do, start investing now and learn how to lose money , increase your risk appetite, learn about personal finance and start managing your income as soon as you start earning.
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How did you choose colleges while applying for Masters?
Tathagat Saxena: For financial engineering, I used ‘QuantNet’ for profiles and rankings of/for different colleges. Also I’d suggest being active in the BITSMS2PhD group on Facebook and comparing your profiles with other people. Talk to your seniors and be aware of different opportunities that are being offered at different colleges.
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