Finance for IITians
Question to answer: Why do lots of IITians move towards finance?
1) Money: Finance companies pay way more than other companies. The average pay of a finance company is 1.5-2 times that of an average CS tech firm and 2-2.5 times an average non-CS tech firm. This probably is the single most important reason. More importantly the prospects of hefy bonuses which can surpass any salary in any industry. People flock to finance because of the riches/lores of traders/i-bankers who have earned a software engineer's lifetime salary in a few years.
2) No interest in Tech: Since most of us have the feeling that "acads to nahin hi hoga" or I am not born for tech, we have anyways narrowed down our choices to a few out of which most are financial services firms.
3) Analytical skills required: This is perhaps the only field where they require analytical skills but do not pay much importance to your CPI. Proving that you are smart is more important than getting a hi-fi CPI. :) The skills required are basic mathematics which all the engineers are good at. Students might find problems with partial differential equations and eigen values but not with basic statistics and probability.
4) Glamor attached: We have seen our MI CGs and Techfest managers and GSs going to financial services. Those were people whom we looked up to. We feel safe if we are walking on paths of those "studs". Investment Bankers hog a lot of limelight in the corporate world, rubbing shoulders with CEOs and giving media briefings. The pin striped suits, and luxury hotels and business class travel build an aura around the investment banker.
1) Money: Finance companies pay way more than other companies. The average pay of a finance company is 1.5-2 times that of an average CS tech firm and 2-2.5 times an average non-CS tech firm. This probably is the single most important reason. More importantly the prospects of hefy bonuses which can surpass any salary in any industry. People flock to finance because of the riches/lores of traders/i-bankers who have earned a software engineer's lifetime salary in a few years.
2) No interest in Tech: Since most of us have the feeling that "acads to nahin hi hoga" or I am not born for tech, we have anyways narrowed down our choices to a few out of which most are financial services firms.
3) Analytical skills required: This is perhaps the only field where they require analytical skills but do not pay much importance to your CPI. Proving that you are smart is more important than getting a hi-fi CPI. :) The skills required are basic mathematics which all the engineers are good at. Students might find problems with partial differential equations and eigen values but not with basic statistics and probability.
4) Glamor attached: We have seen our MI CGs and Techfest managers and GSs going to financial services. Those were people whom we looked up to. We feel safe if we are walking on paths of those "studs". Investment Bankers hog a lot of limelight in the corporate world, rubbing shoulders with CEOs and giving media briefings. The pin striped suits, and luxury hotels and business class travel build an aura around the investment banker.
Disclaimer: The views expressed here are personal and are not intended to hurt the feelings of any community. They do not refer to any legal entity, living or dead. I should not be held accountable for any brain drain from engineering to finance and vice-versa or any losses(sanity, monetary) incurred after reading this article.
What certifications can we get in finance field during our stay at IIT?
Now this is a tricky question. To find an answer, I contacted Pristine Careers (www.pristinecareers.com) - A finance training institute founded by Pawan, Paramdeep and Atul, alumni of IIT Bombay, Delhi and Kharagpur. They stressed the need for getting international certifications instead of domestic. The following certificates are internationally recognized and should give you an interview if not a job in finance.
CFA: http://www.cfainstitute.org/
FRM : http://www.garp.com/
PRM: http://www.prmia.com
Best of Luck!!
CFA: http://www.cfainstitute.org/
FRM : http://www.garp.com/
PRM: http://www.prmia.com
Best of Luck!!
Comments
Can you please suggest me the books for learning finance for an entry level job as an Analyst or a similar positions.
I wouldnt go for any certifications at such an intital stage but ofcourse later. Please also suggest me as to which positions one should apply and on which websites too.
I'll eagerly wait for your reply. Thank you in anticipation!