MBA in Finance | Top 7 things you must know!

An MBA (Master of Business Administration) is a degree that is focused on running a business successfully. The course covers a wide range of subjects – from Administration and Marketing to HR and Product Management, but there are also many specialized courses you can do. Many institutions offer specialized MBA programs such as an MBA in Business Analytics or Finance and even Entrepreneurship. There are further variations like an MBA in Banking and Finance or MBA in Finance and Marketing.

No wonder MBA aspirants get confused. So let’s start with the basics…

What is an MBA in Finance?

An MBA in Finance deals with management and control of investments, financial resources, and cost in a business context. If you take this course, it can help you better manage any company’s finances, make financial plans and predictions, help with increasing its stock value, and more. 

You will be uniquely skilled in tackling portfolio management and risk assessment at the companies you get hired in. Your job responsibilities in a company can range from analyzing financial records to orchestrating company acquisitions. 

Now let’s see what kind of subject matter is typically covered in this course.

MBA Finance subjects

The subjects we’ve shared below will give you a general idea of what you’ll study. But your exact syllabus may vary from course to course, as well as across universities. Be sure to check the complete MBA Finance course details for your chosen program so that you have a better understanding of it. 

These are some of the more common subjects you’ll study-

1. Investment Management for Corporates. Investing company funds – from planning to execution.
2. Portfolio management. Managing the long-term goals and risks of the company’s investment portfolio.
3. Management of Hedge Funds. An overall in-depth course on hedge fund management.
4. Borrowing, Collecting and Raising Funds. Important financial tools for every company.
5. Investment and Securities Analysis. Analyzing the performance and risk of equity, debt securities, or a mix of the two.
6. SMB Finance. Understanding the economics and finances of small to medium businesses.
7. International Finance and Markets. Understanding the broader, global market, including macroeconomics and trends, volatility of the market, and more.

Other specific subjects

1. Risk Management 
2. Behavioral Finance
3. Money and Banking
4. Business Valuation
5. Modeling Finances 
6. Corporate Restructuring 
7. Strategies in Trading
8. Bank Management 

This is not an exhaustive list. Some programs will cover many of these subjects while others may focus on only a few. As we’ve said before, you syllabus will depend on the university you choose.

Another aspect of most MBA courses is the possibility of work experience. While not all MBA Finance programs will have a business internship requirement, many will encourage it. In some cases, it may even be mandatory!

Students can gain real-world experience in their fields and may earn academic credits depending on the particular program they are enrolled in. However, even without academic credits, the experience provided through a practical internship will be extremely invaluable. 

Lastly, as part of your MBA, you may need to create and present a project, usually in the form of a paper, video, or live demonstration. MBA Finance project topics can range from analyzing a company’s investment strategy to providing a case study for tax savings in salaried demographics. 

Potential MBA Finance Jobs

After you complete your MBA in Finance, you will find abundant job opportunities available across many fields. Some of these include accounting, taxation, banking, investment, management of funds, mergers, and also stock management. 

Some potential jobs you can get are-

1. Asset Manager. Analyzing, acquiring, and reporting on potential assets.
2. Financial Analyst. Analyzing investment strategies of businesses and institutions.
3. Banking. Providing financial advice to corporates as well as supporting mergers, acquisitions, and markets.
4. Credit Risk Manager. Developing and executing plans to help lower credit risk for financial institutions (banks, lenders, etc.)
5. Hedge Fund Manager. Advising or directly investing hedge funds for individuals or companies, including liquidity management.
6. Corporate Finance Manager. Smoothly running various financial aspects like mergers, monetary funds, buying or selling financial services.
7. Private Equity Manager. Responsible for raising capital or funds for a company through investment firms, banks, or high-income individuals. 

Trading in derivatives and treasury management are a couple of other common job roles in this field.  Apart from these, there are many more job roles that can be performed after an MBA in Finance.

MBA in Finance salary 

Since the expectation out of an MBA graduate is to be an asset to the company, most posts come with well-paying salaries. Even entry-level MBA Finance jobs for freshers can provide a yearly salary of $55,000. It may be a good option to choose an institution that provides job placements after course completion. 

Graduating from a top finance MBA college may get you an offer between $76,600 a year. But graduating from lower-tier institutes can also lead to good salaries along with ample growth opportunities. 

A ballpark figure to keep in mind is the average annual salary for Finance MBAs, which stands at around $96,000. 

Best MBA in Finance colleges

When choosing a university, it is important to consider not only consider its offerings but also the location, expenditures, opportunities, etc. You’ll need to find out whether a particular program aligns with your goals and what perks and benefits it provides over other programs.

Use this following list as your jumping-off point when deciding on your college-

1. Stanford Graduate School of Business, USA
2. University of Pennsylvania Wharton School, USA
3. MIT Sloan School of Management, USA
4. Harvard Business School, USA
5. HEC Paris, France
6. INSEAD, Singapore, France
7. London Business School, UK
8. Columbia Business School, USA
9. IE Business School, Spain
10. UC Berkeley Haas Business School, USA

Why MBA in Finance?

There are many reasons students consider pursuing this degree-

1. An MBA in Finance is a lucrative career. In this field, accomplishments and performance matter more than seniority.
2. Financial expertise is required across industries and sectors, so there is no shortage of demand. 
3. Markets and economies are constantly changing, as a finance manager you get to be part of this evolving sector. With an MBA in Finance, you can pick from many jobs and fields to specialize in. Or you can try out a variety of finance niches before finding your perfect fit.
4. The growth opportunities, both professionally and financially, are immense. 

What should I do now?

It’s best to learn and also gather more information about any field before investing time and money into it. You can also speak with someone who is currently doing an MBA in Finance or has good knowledge of the field. They can clear your doubts and provide you with a realistic idea of what the program is like. 

After you’ve done your research, you can make a shortlist of colleges and programs you’d like to attempt. Then it’s time to start applying and wait for your career to begin! 

FAQs

1. How much does an MBA in Finance cost?

Answer- An MBA can cost you anywhere $13,000 to $80,000. The exact amount will vary depending on the university you choose.  

2. How long does an MBA Finance course typically last?

Answer- Most programs last for 2 years, with 4 semesters in total. There are also some variants to this. 

3.  Is math an important part of studying MBA Finance?

Answer- Yes, a good grasp of numbers is required for this MBA, since it involves accounting, economics, and various calculations in subjects such as risk assessment, trading, etc.  

If you’re still unsure about which course to do and need any assistance, feel free to reach out to us. You can also comment below and share your thoughts!