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Why MBA in Finance: Top 10 Reasons To Do in 2024

Choosing an MBA in finance is a smart move for those eyeing a secure and lucrative career. In the vast world of MBAs, finance stands out due to its broad appeal across business, banking, and investment sectors. The question “Why MBA in finance” resonates strongly with me and many others because it promises stability and growth. This field never goes out of demand, ensuring a steady career path for its professionals. 

In my journey, specializing in finance has drastically improved my management skills and problem-solving abilities, providing hands-on experience that solidifies my career foundation. It has deepened my understanding of the financial world, proving to be a rewarding decision. For anyone considering this path, the blend of stability, growth, and comprehensive learning it offers makes an MBA in finance a compelling choice. 

Among the most asked interview questions for those looking to pursue MBA comes that of why you choose finance in MBA interview questions. It might not always come with a direct answer following why you choose finance in MBA interview questions, but it does lead to a number of reasons as to why this domain is a much-preferred one. The domain is secure and not something that will fall off-trend in the coming years. finance is all around, and there isn’t a way that numbers or accounting would fall off the grid.

An MBA in finance imparts and improves management aptitude, inventive ability, critical thinking ability, and so forth. It offers a real-time experience that fabricates a staunch career foundation for students and working professionals. It helps them to thoroughly understand the financial sector. 

Read: Career in finance and its Scope.

Who Benefits from Doing an MBA in Finance 

Various groups of individuals may find value in pursuing an MBA in finance, depending on their unique objectives and circumstances. Here are some examples: 

   1.Professionals Seeking Career Change: 

  • Individuals from non-finance backgrounds: An MBA in finance can equip them with the necessary skills and knowledge to transition into finance-related roles such as banking or investment management. 
  • Mid-career professionals aiming for advancement: Those already in finance but seeking to move into leadership positions can benefit from the broader business perspective and refined skills offered by an MBA program. 

   2. Entrepreneurs: 

  • Aspiring business owners: Those planning to start their own ventures, particularly in finance-related fields, can gain insights into financial planning, fundraising, and capital management through an MBA. 
  • Established entrepreneurs: Current business owners can enhance their financial expertise and leadership abilities to make informed decisions and expand their enterprises. 

   3.Specialization for Finance Professionals: 

  • Investment specialists: Portfolio managers, analysts, and financial advisors can deepen their understanding of areas like risk management and portfolio optimization. 
  • Accounting and tax experts: Certified professionals can broaden their knowledge in corporate finance and valuation, enriching their range of services. 

    4. Other Beneficiaries: 

  • Individuals eyeing global career opportunities: An MBA in finance from a well-regarded institution can improve opportunities for finding employment abroad. 
  • Those prioritizing job security: The finance sector often provides stable employment and attractive compensation, making it an appealing option for many. 
  • Employers: Employers benefit from hiring MBA graduates in finance due to their specialized knowledge, strategic thinking abilities, and leadership potential. MBA alumni often bring fresh perspectives and innovative solutions to organizational challenges, contributing to business growth and success. 

Why Study MBA in Finance? 

You must have heard words like money, economy, and investment. However, whenever the word ‘finance’ is uttered, most hear that number-crunching sound in the back of their head but it is not only about the numbers. Today, MBA in finance is a globally recognized and favourable career choice for aspirants across the globe. It paves out the way towards a well-settled life.

The top why MBA in finance interview answer could be as uncomplicated as the fact that finance offers a diverse portfolio to work on while also helping you stay secure in the job.

Amid the worst conditions of the market, you stand a chance to make a career in a field that allows you to take on challenges. From crunching numbers to analysing fiscal trends, there is so much to a job in finance. Only when you look for the why MBA in finance interview answer, do you realise the immense popularity of the field among MBA aspirants or pursuant.

Who Benefits from Doing an MBA in Finance 

Various groups of individuals may find value in pursuing an MBA in finance, depending on their unique objectives and circumstances. Here are some examples: 

1. Professionals Seeking Career Change: 

  • Individuals from non-finance backgrounds: An MBA in finance can equip them with the necessary skills and knowledge to transition into finance-related roles such as banking or investment management. 
  • Mid-career professionals aiming for advancement: Those already in finance but seeking to move into leadership positions can benefit from the broader business perspective and refined skills offered by an MBA program. 

2. Entrepreneurs: 

  • Aspiring business owners: Those planning to start their own ventures, particularly in finance-related fields, can gain insights into financial planning, fundraising, and capital management through an MBA. 
  • Established entrepreneurs: Current business owners can enhance their financial expertise and leadership abilities to make informed decisions and expand their enterprises. 

3. Specialization for Finance Professionals: 

  • Investment specialists: Portfolio managers, analysts, and financial advisors can deepen their understanding of areas like risk management and portfolio optimization. 
  • Accounting and tax experts: Certified professionals can broaden their knowledge in corporate finance and valuation, enriching their range of services. 

4. Other Beneficiaries: 

  • Individuals eyeing global career opportunities: An MBA in finance from a well-regarded institution can improve opportunities for finding employment abroad. 
  • Those prioritizing job security: The finance sector often provides stable employment and attractive compensation, making it an appealing option for many. 
  • Employers: Employers benefit from hiring MBA graduates in finance due to their specialized knowledge, strategic thinking abilities, and leadership potential. MBA alumni often bring fresh perspectives and innovative solutions to organizational challenges, contributing to business growth and success. 

Top 10 reasons why MBA in finance can change your career landscape 

1. High in Demand 

Every industry, like advertising, PR, IT, teaching, consulting, and real estate, needs to record cash flow, investment details, salary payment information, etc. So, by having sound knowledge about financial management, you can clinch a job in any industry. The fact remains that finance is something that is a part of every possible field. From the most basic work to the topmost data analyst firms, there is no entity that doesn’t employ financial expertise. Finance is a highly important industry and not just so in this country but across the entire world. Therefore, when you pursue an MBA in finance, you get to be part of a niche of an industry based on which businesses, industries, as well as countries tend to depend. It is highly moderated as an industry. Therefore, finance is a domain that always gets protection; thus, your job will mostly be secure.

2. Lucrative Pay Packages 

As stated by Payscale.com, an MBA in finance degree holder gets paid inordinately more in comparison to the other MBA specializations. Finance is considered as a generously compensated division in the business. As per an article by Times of India, MBA in finance is at the top of the list of most lucrative MBA specializations. The pay increases corresponding to the degree of experience and ability in the field.

Get online MBA courses from the World’s top Universities. Earn Masters, Executive PGP, or Advanced Certificate Programs to fast-track your career.

3. Chance to Explore Various Job Roles

The domain of finance is fundamentally huge. There is a wide assortment of job roles, in both the public and private segments, to choose from your interest. Examples include investment banker, budgetary examiner, financial analyst, corporate banker, hedge fund manager, personal financial advisor, risk manager, etc.

4. Ensures Holistic Development

MBA in finance is designed in such a manner that it exposes students to simple general knowledge and advanced knowledge of finance. This is done through management stimulation, internships, and comprehensive projects. These help students in self-assessment to identify their weaknesses. It ultimately ensures all-around personality development of students.

So why MBA in finance?  The simple answer is that it teaches students to tackle corporate backlogs and complexities in the business organization. It also teaches them to combat tough competition confidently and with ease.

Learn more: 8 Ways an MBA Degree Helps Your Personal Growth

5. The Wide Curriculum 

A two-year MBA in Finance covers diverse topics that develop critical and analytical thinking, along with expanding the horizon of knowledge in marketing, statistics, and leadership skills. Usually, the curriculum includes stock exchange analysis, business finance, risk management, investment banking, and finance management. Each of these subjects tends to expand the bandwidth of knowledge.

6. Networking Resources 

It is observed that MBA in finance graduates tend to have sizable networking resources as their curriculum is more practical in nature. It involves teamwork, public interaction, and collaborative association with others. This results in burgeoning people skills, the establishment of good relationships, and building strong professional networks.

7. Evergreen Industry 

Finance is a master key for any business. Whether commencing a business, expanding the existing one, or investing in developing new product innovations, a business always needs finance. Without finance, it becomes fragile and non-operational. With such huge funds, comes cash flow, transactions, and monitoring of financial resources. From small to big businesses in every industry, finance management is needed. Thus, it is considered as the never-ending industry as no finance means no business.

8. Job Security 

The financial sector in India grows at about 8.5 percent annually.  It is expected to grow even more tremendously soon. Obtaining an MBA in finance degree offers job security because of its supreme qualification and practical knowledge. Financial management can never go out of fashion. It imparts both soft skills and hard skills.

It leaves students with a better chance to grab a stable job and the working professionals to attain better opportunities in the financial sector. Perhaps the most concerning issue looked at by the present generation is the absence of employment opportunities because of expanding financial flimsiness and the gig economy’s approaching. So, an MBA in finance helps to leverage your portfolio for a better future.

9. Start a New Venture 

Everyone has a dream of starting their own business once in a lifetime. Do you also want to start off your business in the future? By studying MBA in Finance, one learns how to manage funds constructively, which leads to the optimum utilization of financial resources. An MBA in finance graduate never faces the hurdle of gathering funds for the business.

Years of experience teach them numerous ways to generate and invest money that can yield maximum profit. So, if you have the spirit to enter the realm of entrepreneurship, an MBA in finance can make your way a lot easier.

10. Excellent Management of Personal Funds

An MBA in finance teaches you various life-saving skills like strategic thinking, financial management, creativity skills, self-discipline, time management, governance, etc. These help in the effective management of personal funds. These skills help you avoid unnecessary expenditures, explain the best way to invest money, and budget. Also, they help in tracking the flow of income that helps to escape from financial pressure easily. Learn the art of personal money management!

Yes, There Are Benefits Of MBA In Finance

You might often come across a few students who are confused about whether they must opt for an MBA in Finance or choose another traditional domain such as marketing. The answer to such confusion is that this decision must be related to the interest of the MBA pursuant. Both of these fields come with wide scope as well as opportunities that eventually allow you to set up an established career. There are immense benefits of MBA in finance.

MBA in the finance domain is for students or professionals having an interest in numbers and is mostly best for those with an eye for detail. The most common roles you could be hired for are that of-

  •         Financial Analyst
  •         Budget Expert
  •         Financial Advisor
  •         Credit Risk Analyst

Know more: MBA After B.Sc: 4 Reasons Why Should You Do it

Salary Trends for MBA Finance Professionals in India (2024) 

Investing in an MBA in Finance can unlock promising career opportunities in India’s bustling job market. Salary trends for MBA Finance professionals in India vary depending on various factors such as job role, experience, location, and employer. Here’s an overview of salary trends for some common roles: 

Investment Banker: 

Investment bankers play a crucial role in financial markets, advising clients on mergers and acquisitions, raising capital, and providing strategic financial advice. MBA Finance professionals entering this field can expect attractive compensation packages, typically comprising a combination of base salary, bonuses, and other incentives. 

Entry-level investment banking analysts in India can earn salaries ranging from ₹8 lakhs to ₹15 lakhs per annum, depending on the firm and location. With a few years of experience, this can increase to ₹15 lakhs to ₹30 lakhs per annum for associates and even higher for vice presidents and directors. 

Cost Accountant: 

Cost accountants are responsible for analyzing and managing the costs associated with producing goods or providing services. They play a critical role in budgeting, cost control, and decision-making within organizations. Salary levels for cost accountants can vary based on factors such as industry, experience, and professional qualifications. 

Entry-level cost accountants with an MBA in Finance can expect to earn salaries ranging from ₹5 lakhs to ₹10 lakhs per annum. With experience and additional certifications such as CMA (Certified Management Accountant) or CA (Chartered Accountant), salaries can increase significantly, reaching ₹15 lakhs to ₹25 lakhs per annum or more for senior roles. 

Financial Analyst: 

Financial analysts analyze financial data, evaluate investment opportunities, and provide recommendations to clients or management. They work in various industries, including banking, consulting, corporate finance, and investment management. Salaries for financial analysts in India can vary based on factors such as experience, educational background, and employer size. 

Entry-level financial analysts with an MBA in Finance typically earn salaries ranging from ₹6 lakhs to ₹12 lakhs per annum. With a few years of experience and a track record of performance, salaries can increase from ₹12 lakhs to ₹20 lakhs per annum or more for senior financial analysts or managerial positions. 

Financial Officer:  

Financial officers, such as Chief Financial Officers (CFOs) or Finance Managers, are responsible for overseeing the financial operations and strategies of organizations. They play a key role in financial planning, budgeting, and decision-making, and often report directly to top management or the board of directors. 

Salaries for financial officers can vary widely depending on factors such as company size, industry, and experience. Entry-level financial officers with an MBA in Finance can earn salaries ranging from ₹10 lakhs to ₹20 lakhs per annum. With several years of experience and proven leadership skills, salaries for CFOs or Finance Directors can exceed ₹50 lakhs per annum or more in leading organizations. 

Here’s a breakdown of average salary trends for these financial roles, based on data from various sources like PayScale, Naukri, and Glassdoor: 

Role  Entry Level  Mid-Level  Senior Level 
Investment Banker  ₹8-12 lakhs per annum  ₹18-25 lakhs per annum 

 

₹30-50 lakhs per annum 
Cost Accountant  ₹5-8 lakhs per annum  ₹10-15 lakhs per annum  ₹18-25 lakhs per annum 

 

Financial Analyst  ₹6-10 lakhs per annum  ₹12-20 lakhs per annum 

 

₹25-35 lakhs per annum 

 

Financial Officer  ₹7-12 lakhs per annum 

 

₹15-22 lakhs per annum 

 

₹28-40 lakhs per annum 

 

Overall, MBA Finance professionals in India have lucrative career opportunities across a wide range of industries, including banking, consulting, corporate finance, and investment management. Salary trends for these professionals reflect the demand for financial expertise and the value they bring to organizations in driving growth, profitability, and risk management. 

Top Recruiters for an MBA in Finance 

Here is a gist about the top recruiters in MBA in Finance. Many MNCs, like AT&T, Johnson & Johnson, Intel, Amazon, and Microsoft, recruit MBA in finance graduates. . Since MBA in finance is the perfect amalgamation of finance and management, it has the edge over other management degrees. This is the main reason which motivates students to pursue this course. The following are the names of top recruiters in an MBA in finance. The names mentioned below are evocative, not extensive –

  1. JP Morgan 
  2. Barclays 
  3. Bain and Company 
  4. Boston Consulting Group 
  5. Morgan Stanely 
  6. Goldman Sachs 
  7. KPMG
  8. Deloitte
  9. State Bank of India 
  10. HDFC

These are top prominent recruiters though the list is endless. The scope of an MBA in Finance is boundless. That is why MBA in Finance is fruitful and empowers you to land your dream company. 

Salary Trends for MBA Finance Professionals in India (2024) 

Investing in an MBA in Finance can unlock promising career opportunities in India’s bustling job market. Salary trends for MBA Finance professionals in India vary depending on various factors such as job role, experience, location, and employer. Here’s an overview of salary trends for some common roles: 

Investment Banker: 

Investment bankers play a crucial role in financial markets, advising clients on mergers and acquisitions, raising capital, and providing strategic financial advice. MBA Finance professionals entering this field can expect attractive compensation packages, typically comprising a combination of base salary, bonuses, and other incentives. 

Entry-level investment banking analysts in India can earn salaries ranging from ₹8 lakhs to ₹15 lakhs per annum, depending on the firm and location. With a few years of experience, this can increase to ₹15 lakhs to ₹30 lakhs per annum for associates and even higher for vice presidents and directors. 

Cost Accountant: 

Cost accountants are responsible for analyzing and managing the costs associated with producing goods or providing services. They play a critical role in budgeting, cost control, and decision-making within organizations. Salary levels for cost accountants can vary based on factors such as industry, experience, and professional qualifications. 

Entry-level cost accountants with an MBA in Finance can expect to earn salaries ranging from ₹5 lakhs to ₹10 lakhs per annum. With experience and additional certifications such as CMA (Certified Management Accountant) or CA (Chartered Accountant), salaries can increase significantly, reaching ₹15 lakhs to ₹25 lakhs per annum or more for senior roles. 

Financial Analyst: 

Financial analysts analyze financial data, evaluate investment opportunities, and provide recommendations to clients or management. They work in various industries, including banking, consulting, corporate finance, and investment management. Salaries for financial analysts in India can vary based on factors such as experience, educational background, and employer size. 

Entry-level financial analysts with an MBA in Finance typically earn salaries ranging from ₹6 lakhs to ₹12 lakhs per annum. With a few years of experience and a track record of performance, salaries can increase from ₹12 lakhs to ₹20 lakhs per annum or more for senior financial analysts or managerial positions. 

Financial Officer:  

Financial officers, such as Chief Financial Officers (CFOs) or Finance Managers, are responsible for overseeing the financial operations and strategies of organizations. They play a key role in financial planning, budgeting, and decision-making, and often report directly to top management or the board of directors. 

Salaries for financial officers can vary widely depending on factors such as company size, industry, and experience. Entry-level financial officers with an MBA in Finance can earn salaries ranging from ₹10 lakhs to ₹20 lakhs per annum. With several years of experience and proven leadership skills, salaries for CFOs or Finance Directors can exceed ₹50 lakhs per annum or more in leading organizations. 

Here’s a breakdown of average salary trends for these financial roles, based on data from various sources like PayScale, Naukri, and Glassdoor: 

Role  Entry Level  Mid-Level  Senior Level 
Investment Banker  ₹8-12 lakhs per annum  ₹18-25 lakhs per annum 

 

₹30-50 lakhs per annum 
Cost Accountant  ₹5-8 lakhs per annum  ₹10-15 lakhs per annum  ₹18-25 lakhs per annum 

 

Financial Analyst  ₹6-10 lakhs per annum  ₹12-20 lakhs per annum 

 

₹25-35 lakhs per annum 

 

Financial Officer  ₹7-12 lakhs per annum 

 

₹15-22 lakhs per annum 

 

₹28-40 lakhs per annum 

 

Overall, MBA Finance professionals in India have lucrative career opportunities across a wide range of industries, including banking, consulting, corporate finance, and investment management. Salary trends for these professionals reflect the demand for financial expertise and the value they bring to organizations in driving growth, profitability, and risk management. 

Why Study MBA in Finance from upGrad? 

So, the answer to the question of why to study MBA in finance is clear. Money, prestige, and stability are at the core of a career in finance. If you want to build a flourishing career on these touchstones, it is a good time to apply for an MBA in finance. It helps you get accustomed to numerous specializations. However, it is essential to understand that finance-related jobs require an exceptional thought process, tirelessness, and hard work. The inflow and outpouring of money rely upon the assigned person. 

Hopefully, it is crystal clear why MBA finance is crucial and how understanding the nuances of finance can help you have a better future. It is not easy to find individuals with such a comprehensive skill set. So, the people working in a financial institution are highly valued and highly paid.

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. 

Conclusion:

The question of “Why MBA in finance?” finds its answer in the aspirations for money, prestige, and stability that define a successful career in finance. For those aiming to anchor their professional journey on these pillars, pursuing an MBA in finance is a timely and strategic decision. This program not only introduces you to a variety of specializations but also demands a unique blend of analytical thinking, perseverance, and hard work. The management of financial flows rests on the shoulders of those equipped with such skills. 

In my experience, the significance of an MBA in finance becomes evident as it opens doors to understanding the intricate dynamics of finance, paving the way for a prosperous future. The rarity of professionals possessing a holistic understanding of finance elevates their value, making them sought-after and well-compensated in the financial sector. This clarity around the importance of specializing in finance has underscored my career path, highlighting the crucial role of finance professionals in the economic fabric.  

If you want to reap maximum benefits from an MBA in Finance, I strongly recommend applying for upGrad’s 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.   

What are the job opportunities after doing an MBA in finance?

Those who have an MBA in finance can work in the banking as well as the non-banking side. Since every industry needs professionals to balance the capital in their business, experienced finance people are an asset to any organisation. After completing an MBA in finance, candidates have a variety of job opportunities to choose from. Some of them include investment, merchant banking, international finance, commercial banking, corporate finance, public finance, and so on.

What does an investment banker do?

A career as an investment banker is considered as one of the highest paying positions in the country. The job mainly revolves around spending capital in a particular way to yield the highest returns. The career of an investment banker is quite different from regular/conventional finance jobs. The job involves deep research work in finance and economics. They generally act as intermediaries between security issuers and investors, and play a key role in helping new firms go public. To become an investment manager, you need to have chronic knowledge of statistics and analytical expertise.

What are the highlights of the MBA program from Liverpool Business School?

The MBA degree from Liverpool Business School gives students the option to choose from various specialisations including finance, HR, marketing, HR, strategy and leadership, and analytics. Students get a dual credential – MBA from LBS and PGPM from IMT Ghaziabad. Despite being an online program, it offers 1:1 mentorship from industry leaders, networking opportunities with peers at offline basecamps and a 1 week immersion program at the university campus which is optional.

What do you learn with an MBA in Finance?

In an MBA in Finance, you will learn courses like corporate investment management, hedge fund management, investments, fundraising, security analysis, disbursements, and international finance. Your coursework and projects will be based on financial modelling, stock market pitches, mergers and acquisitions, etc., and be practical enough to give you a good idea of the way the market works. Combined with an internship, the hard and soft skills you will pick up allow you to develop a broader and deeper understanding of the business world. Additionally, the core syllabus of an MBA is designed to gain you skills necessary for any industry.

What are the prerequisites to studying an MBA in Finance?

There are no prerequisites to studying MBA, in whichever specialisation you want to opt for. This is because an MBA can be useful in various disciplines and fields of work. Particularly for a finance specialisation, a background in commerce would definitely help, but it is not mandatory. A working understanding of some basic concepts can form a good foundation for your learning, and give you a head start. Apart from this, there are no limitations to which academic backgrounds you can come from to pursue an MBA in Finance.

Why is MBA Finance in demand?

The MBA in Finance is in demand because of a number of reasons. It is a highly lucrative career option, it opens you up to a good range of prominent job profiles, and lets you choose which industry you want to dive into. The corporate world and potential students, both showcase a high demand because of the two-way benefitting street - meaning that businesses make profits out of the knowledge of finance graduates, and the employees get rewarded with a decent salary. With time, you gain more and more experience, which only increases your value in the employment market. Your career graph will most likely only go upwards with a finance degree and career.

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