Key Subjects in MBA Finance: What Will You Study?

Finance: What Makes it so Interesting?

Remember the popular web series Scam 1992 and Money Heist? What is shared between the two? The common link between these two series is the role of money. Money is powerful in the social context where we live. If you understand your finances, you are a mighty man/woman. Today, planning finances is as tricky as predicting the next plot twist in Scam 1992—you never know when the market would rise or fall! This is perhaps why finance has become one of the top specialisations often chosen by many MBA aspirants.

The big deal is that the finance market in India is projected to reach a whopping $19.55 billion by 2027. As far as the Indian fintech market is concerned, it is expected to expand from US$106.2 billion in 2024 to US$769.5 billion by the end of 2031. These figures are essential to justify that our nation is ready to witness the sector’s ultimate growth shortly. This growth assures us that the job prospects in the field of finance may continue to grow in their significance and contribution to this industry.

Understanding finance has become a necessity. As technology like artificial intelligence and fintech redefine the future of finance, pursuing an MBA in finance equips you with the skills to lead this transformation, making it one of the most sought-after specialisations. Now let us understand what precisely this specialisation has in store for you.

Also Read: 21 Latest MBA Finance Project Ideas to Impress, Stand Out & Succeed

Unfolding the Subjects in Finance: The Core of Money

While an MBA in Finance covers many important subjects, here are the top five subjects you study as a part of your MBA degree in Finance:

A. International Finance

Have you ever exchanged your Indian currency for a foreign one while travelling and had difficulty calculating? This is a crucial aspect of international finance.

International finance is one of the most exciting subjects in MBA finance. It focuses on the financial management of the multinational corporations. As a part of this subject, you can get an insight into the financial transactions that occur over international borders.

Some of the key topics that this subject covers are:

• Exchange Rate Mechanisms

• International Investment Strategies

• Risk Management

• Impact of Global Markets on Financial Decisions

You can explore foreign exchange markets, international financial regulations, and capital budgeting through this subject. Why are these takeaways important? In the future, awareness of your country’s economic decisions concerning other nations can become very important. This can help you understand how these decisions significantly impact your work and performance. You are wrong if you think these decisions have minimal impact on your job.

The recession is a financial situation that profoundly impacts the job market across different industries. Some are hit worse than others, but every job is affected. Therefore, knowing these key aspects can help you plan your future more carefully.

B. Investment Banking

Investment Banking as a subject focuses on the financial services sector. This sector assists individuals, corporations, and governments in raising capital. Investment Banking as a career is also quite lucrative. The essential aspects of this subject include

• Mergers and Acquisitions

• Underwriting

• Advisory Subjects

Through this course, you can learn more about

• Financial Modelling

• Valuation Techniques

• Market Analysis

All these critical skills are essential in helping you learn more about how to make intelligent investments. This knowledge helps the big players raise their capital. Many job roles are open to you after this subject. You can work in

• Banks

• Hedge Funds

• Corporate Finance Departments

Finance is quite complex. Finding a good job opportunity in this field can be very tricky; therefore, you must develop essential skills such as analytical skills, critical thinking, and swift calculations.

C. Managerial Economics

Economics is a core subject of finance. It is primarily bifurcated into microeconomics and macroeconomics. These categories teach you how economics works on a country’s micro- and macro-industrial levels. How does the interplay between these impact your decisions? As far as managerial economics is concerned, it covers concepts such as:

• Demand Analysis

• Production and Cost Functions

• Market Structure

• Pricing Strategies

• Risk Analysis

Economics is one such subject where practical and theoretical aspects run parallel. It also involves a combination of mathematics and calculative risks, making it perfect for those planning to pursue a finance career.

D. Mergers and Acquisitions

Did you know that PVR Inox is now the biggest multiplex chain in India? However, these two brands were never together until they announced their merger. There are many more such companies that have either announced their merger or have bought other companies. For example, Aditya Birla Fashion and Retail Limited (ABFRL) acquired a 51% stake in the Sabyasachi designer brand in January 2021. These are popularly regarded as mergers. Often, these are done to create a win-win situation for both stakeholders. Mergers are a way of expanding one’s business.

As far as the subject is concerned, mergers and acquisitions are vital in MBA finance. It focuses mainly on how different companies or businesses purchase each other or come together. There are specific key topics included in this subject, such as:

• Legal Regulations

• Negotiation in deals

• How to value companies

It is not if you think it is simply about ensuring that two or more companies should smoothly come together or get acquired. Indeed, this is a tough nut to crack, even for the biggest multi-millionaires. The tricky aspect is to ensure that the different company cultures come together with minimum hassle and smooth coordination, as the end user, that is, the consumer, does not care much about these deals; for them, it is the service or the product that matters. Therefore, companies must conduct this process with optimum strategic planning.

You can develop some of the most essential skills through his subject, such as

• Strategic thinking behind these business decisions

• Financial planning with minimum risks

• Risk management and mitigation

• Dealing with potential losses

• Management of the money that goes into the deal

E. Corporate Finance

What do you think is the dream of a start-up in the field of transforming into a business? It’s financial resources! It is the ultimate treasure box to boost a company or a business and help it grow and expand.  Corporate finance is another vital subject in MBA finance. It focuses on how companies or businesses manage their financial resources. The key topics covered by the subject are:

• Capital Budgeting

• Examination of Firms’ financial operations

• Capital Management

• Ebsuring Liquidity for daily operations

• Analysis of financial statements

In addition, you can learn how to make more informed financial decisions to grow your business, including optimising stakeholder value. This subject is important for financial management, investment banking, and consulting careers.

Also Read:  MBA in Finance Jobs

Beyond IIMs: Top MBA Finance Colleges

Apart from the IIMs, here are the top colleges in India that offer an MBA in finance.

1. XLRI-Xavier School of Management, Jamshedpur

2. SPJIMR—SP Jain Institute of Management and Research, Mumbai

3. FMS- Faculty of Management Studies, Delhi University

4. NMIMS—Narsee Monjee Institute of Management Studies, Mumbai

5. ISB—Indian School of Business, Hyderabad & Mohali

Also Read:  MBA in Finance and Accounting – Complete Guide

Top Job Roles to Aim For: Reaching the Stars

Here are the top job roles after an MBA Finance graduate. The salary mentioned is a general range. It may differ depending on your qualifications, skills, job role, and responsibilities. The time and place of recruitment also determine the salary.

*Please note that the salary may vary based on qualifications, skills, etc

Source:- Ambition Box

Also Read:  Finance Manager: Definition, Courses, Job Roles, Skills, Salary

Aim Higher: Top Recruiters

Here are the top recruiters in the financial sector. The salary figures mentioned are just a range. Please note that they may vary depending on different factors.

Source:-  Ambition Box

Conclusion: In a Nutshell

Finance is a gratifying career. A subject that can be tricky. However, it is also among the most interesting if you learn to crack the concepts. The core of finance lies in detailed analysis and critical thinking. Part of your journey in this field involves analytical thinking and informed decision-making. These two skills can significantly contribute to your overall performance.

Additionally, you can expect steady growth in this industry shortly. There are emerging job opportunities and opportunities for you to build your own business. Therefore, you can expect a lot more to come, and entering the field of finance is undoubtedly a great decision. All the best!

Frequently Asked Questions

Q.1 What are the top skills every finance graduate must have?

Here are the top skills every finance graduate must have:

1. Financial Analysis

2. Risk Management

3. Accounting Expertise

4. Data Interpretation

5. Problem-Solving Skills

Q.2 What are the most challenging subjects in MBA finance?

Here are the most challenging subjects of an MBA in Finance:

1. Financial Management

2. Corporate Finance

3. Investment Analysis and Portfolio Management

4. Derivatives and Risk Management

5. International Finance

Q.3 Which are the most rewarding career options after an MBA in finance?

Here are the most rewarding career options after an MBA in finance:

1. Investment Banker

2. Financial Analyst

3. Portfolio Manager

4. Risk Manager

5. Corporate Finance Manager

Q.4 Which are the top IIMs to consider for an MBA in finance?

Here are the top IIMs you can consider:

1. IIM Ahmedabad

2. IIM Bangalore

3. IIM Calcutta

4. IIM Lucknow

5. IIM Kozhikode

Q.5 Which is better an MBA in Finance and an MBA in Marketing?

The choice can be very subjective. You must note down your interests and what career prospects each of these subjects has in store for you. Based on that, you can align your preferences, skills, knowledge, and interests. Then, you can decide which specialisation is better. It is important to note that both specialisations are widely chosen as both are considered equally good in terms of the return on investment.

Resources: 

Finance – India | Statista Market Forecast

India Fintech Market Outlook