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Scope of Financial modeling in preset time

Financeon June 23rd, 2009No Comments
Scope of Financial Modeling:career scope|course|financial modeling pune

Career Scope – Financial Modeling

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Thus,23 June 2009 13:02:50

Understanding Financial Sector Jobs

Investment Banking

Investment Bankers helps companies raise funds in the capital markets, help build and execute merger and acquisition plans and advise companies on various financial / capital structuring issues. Investment Banking firms often have smaller groups focused on specialized areas such as private equity funding, IPOs, Derivatives, Mergers and Acquisitions and Advisory Services.

Financial KPOs: Knowledge Process Outsourcing (KPO) has emerged as a new fast growing business sector. Lot of finance companies currently outsource research and financial analysis functions to KPOs because it is cost effective for them. When outsourcing of financial research started a few years back it was considered as low complexity back room information support for Investment Analysts from buy side and sell side firms. This activity has now moved up the value chain considerably and the world of outsourced research has evolved significantly for many reasons. Among them some of the prominent reasons are:

Regulatory changes that are pushing for transparency Investment Banks doing research were not considered being completely unbiased.

Need for Investment Banks to remain profitable Research expertise was earlier used as marketing and promotional tool by Investment banks to attract clients. Research was basically a cost center activity. With most investment banks under profit pressure, and research no longer a marketing tool, investment banks have started strategic initiatives to outsource research to independent research institutions who are capable of doing at a fraction of the cost.

The above trend has led to the growth of the outsourced research activity; many of these firms are located in India. Some of the well known firms in this field who established their presence are: Adventity, Gridstone Research, AMBA Research, Evalueserve, Copal Partners, Irevna, Capital IQ, DE Shaw, Aranca, Netscribes, ICRA, CMIE, Capital Markets, Dwan A Day Analytics, Care Ratings, Value Notes, Viteos Capital Markets. Research work carried out by these firms includes:

Equity Research:  Detailed research to recommend buy/sell price on companies under coverage. There are over 90,000 listed stocks on global exchanges and each one have to be valued on a regular basis. Financial Modeling & Valuation: Create Excel based models to get the understanding of business drivers, incorporate assumptions, risk factors and possible valuation of company. Forensic Analysis: In-depth scrutiny and analysis of Company cash flows and financial statement to verify the authenticity of disclosures, to prevent malpractices like Enron, Worldcom and Satyam. IPO Analysis: Analyze the attractiveness of IPO. Sector Research: Complete macro understanding of the sectors to identify investment opportunities. The sectors covered are typically Financial Services, Retail, Information Technology & Telecommunication, Business Services, Oil & Gas, Metals & Mining, Energy, Utilities. Screening & Profiling: Identifying Target companies for mergers , acquisitions or sell out Competitive Mapping & Analysis: Analysis to benchmark performance with peers in the sectors Market Activity Research: Carry out research on various stock exchanges, commodity exchanges on the movements and predict future trends. Mergers & Acquisitions Transaction Analysis: Research and Valuation Models to arrive at transaction valuation for companies preparing to merge or acquire. Data Collection and Aggregation Services: Information gathering from various sources, organizing the data collected, validating the data and providing the data to analysts.

Project Finance: In simple words Project Finance is financing of long-term infrastructure and industrial projects. It involves assessing the financial viability of a project and creating a funding plan through debt and equity components. Apart from people who have in-depth understanding of the specific project and business, it requires people who can create a financial model and help build the financial plan for the project.

Financial Analysts in Corporations: Companies need to analyze their own finances, build financial models for their own projects and hence often employ analysts within the company. There are also financial advisory companies who provide these services to corporations as an outsourced model.

Most fresh graduates in these firms start as research assistants and assist senior analysts in creating reports. As a research assistant one has to collect, and normalize data, build the financial model, make the report and track the announcements / developments on the company.

These firms need candidates who have strong analytical skills and specific domains knowledge in financial analysis and modeling.

Who should do this Program?

MBAs/CAs who would like to add hands on / practical skills that they would need in any of the jobs in the Financial Sector.

KPO employees who would like to enhance their skills and move into more analytical jobs with better compensation potential.

Graduates who are not working in KPO’s but interested in working for KPO.

Economics Graduates & Post Graduates who like to work with data and have good analytical skills and would like to build a career in finance.

About IMS Proschool

At IMS, our goal for the past 33 years has been simple – Build a long term successful career for our students. IMS Proschool is an extension of the same mission although the route is different.

Economic growth over the past decade has created new opportunities for students and IMS Proschool is helping students tap these opportunities. IMS Proschool’s goal is to provide these industry relevant skills to its students in the shortest possible time, get them quality jobs that give them quality experience and create a long term career for them. In the process, we will also help the industry solve its manpower issues.

IMS Proschool Success

Created over 1000 Associate Financial Planner’s Created over 100 CFP’s in short span of 24 months Trained over 5000 candidates on Financial Planning and Wealth Management More than 2000 CFP enrollments in last two years.

IMS Proschool Programs

NCFM Certification in Financial Modeling CFPCM PDP- Retail Store Operations Management

What makes IMS Proschool Programs unique?

Focused, practical and relevant programs. Programs are for short duration. Range of options to choose from Course Content developed with inputs and feedback from industry. Programs are delivered by industry practitioners. Programs are available across the country.

Trainer to the Industry

State Owned Banks – SBI, BOI, SBBJ Foreign Banks – CITI, Deutsche Security Houses –Kotak Securities, ICICI Direct, Motilal Oswal, Tata Securities Mutual Fund Companies – Sundaram BNP Paribas, Optimix. Insurance Companies – ICICI Prudential

Institutional Tie- ups

Partner of NISM, an initiative of SEBI (Security Exchange Board of India), to create Financial Planning proficiency among students across India. NSE India for Financial Modeling Certificate program

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Learn Technical Analysis – How Can Expectancy Increase Profits?

Financeon March 15th, 2009No Comments
When it comes to explaining expectancy in the market, you must first look at financial analysis as well as technical analysis. These two types of analysis are usually combined together to gain information on future trades. The first one is related to supply and demand, while the second is related to the more specific aspects of the market.

Both of these, while related to expectancy, can only be used with some degree of certainty. This degree of certainty is in fact not very big. This is all based on probability. There is a main variable on both of these. This variable can be used in some instances as a tool on the trading market. In fact this technical analysis is a very powerful tool. A lot of people just starting out are afraid to use expectancy, but it is actually quite easy to understand. Expectancy is basically an equation; where expectancy equals the probability of a win or average win minus probability of a loss or average loss.

This is basically the profit that will be expected. For example if your probability of win is around a thousand dollars and your loss is expected to be three hundred dollars, your expectancy will be seven hundred dollars. This means that the seven hundred dollars is basically your profit.

The main goal to using expectancy is of course trying to figure out how to gain the most profits. Instead of focusing just on the profitability of a trade, you see more of a general overview. Expectancy is tools that will help you see the net profits for a certain amount of time. If you use expectancy correctly over time you will minimize your risks. Although not all risks can be avoided when it comes to trading, you can greatly lessen the risk you are taking. That is part of the reason why understanding expectancy can be a great benefit to you and your trades. You will be able to better see your profits over the long term, especially when it comes to future trades.

As you can see this type of commodity is actually quite easy to understand. When it comes to figuring it out, it can be done with relative ease. In fact figuring out expectancy is the easiest part. Once you figure it out, it is just a matter of applying expectancy to the given situation. Though expectancy will not totally eliminate the risk factors, it can greatly help you minimize them.



By: Mike Singh

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