Certifications in Finance
“The secret to getting ahead is getting started.”
-By Mark Twain
Certifications are often recommended to students belonging to the engineering background. Generally, students face the problem of choosing suitable certifications for themselves from a career perspective. Suppose, even if a student successfully attains it, he/she still may not possess the knowledge and the skill to leverage completed certifications to avail internships and full-time roles. In this piece of writing, I will discuss in detail about the need for completing the certifications and its various types and how it can be used to seal internship and job opportunities. I believe, after reading this blog, one can choose the appropriate certification based on the level of his/her knowledge.
WHY CERTIFICATIONS?
1. Determining Interest — I find attempting certifications the most effective way for engineers to explore their interest in Finance, as students put in more efforts while writing an exam which gives them a reason to explore their interest with more sincerity and determination. The availability of different certifications also provides an opportunity for the student to study the niches in Finance.
2. Credibility — A certification adds value to one’s repertoire, brings authenticity and provides industry recognition, which is extremely helpful for the ones considering finance as a career option. The credibility which an engineer gets after earning certifications is essential in demonstrating the financial firms his/her inclination towards Finance.
3. Internship and Job opportunity — It provides identification in the finance industry which is much needed while applying for internships and full-time roles. The process of gaining knowledge with completing certifications helps candidates to get shortlisted for the interviews and provides them with a platform to exhibit their potential with greater confidence.
WHICH ONE IS RIGHT FOR YOU?
There are several certifications and online courses available, but I will mention only the important ones which a student should consider. Also, I will lay out a roadmap for beginners which they can refer to while learning pure Finance.
Step 1 — Determine interest:
A student can study a couple of courses from the links mentioned below and can find out if they are interested in getting work experience or working on projects.
1. Finance Theory 1, by Prof. Andrew Lo
2. Understanding Financial Markets, offered by UNIVERSITÈ DE GENÈVA
3. Trading Strategies in Emerging Markets Specialization, offered by ISB
4. Zerodha Varsity, by ZERODHA
Step 2 — Seek an Internship:
After a student develops an interest in Finance and decides to give it a shot, the very next step is to earn certifications. The only way a student can determine whether to pursue a career in Finance is by doing an internship with Financial firms or working on live projects. I have mentioned some certifications below, according to their difficulty level.
Basic Certifications
NISM Certifications — The National Institute of Securities Markets (NISM) is engaged in developing certification examinations. The platform provides more than 20 certifications in various segments of the Indian Securities market. Though one can choose any module aligning with his/her area of interest, I would recommend NISM Series-XV: Research Analyst Certification Examination which provides the basic principles for micro and macro-economic analysis, and the sources of different information for the analysis.
To know about other modules -
https://www.nism.ac.in/certification/index.php/nism-certifications
NCFM Certifications — NCFM offers a comprehensive range of modules covering many different areas in finance just like NISM does. NCFM currently tests expertise in the modules, which are classified into three segments according to the difficulty level, which are
1. Foundation Modules
2. Intermediate Modules
3. Advanced Modules
Cost of NISM and NCFM certifications range between 1.5k — 6k. A student can aim at clearing one fundamental and one advanced certification before looking for internship opportunities.
Live projects — If you are looking for Corporate Training related to Financial Markets and Research Mastery Programs then ‘The Money Roller’ is one of the best options based on my experience. Their programs are based on real case studies and raw data-based learning followed by their implementation and application to solve real-time problems. Working on a live project gets one the taste of how the Finance Industry functions.
For more information — https://tmrlive.com/
After gaining the credentials offered by basic certifications, one can confidently start looking for an internship through off-campus channels. I am going to mention below the link of the blog I wrote on my summer internship experience, in which I have discussed in detail on how to get an internship in a financial firm via Linkedin.
Step 3 — Pursue a career:
Upon pursuing a couple of elementary certifications, working on a live project, and gaining an internship experience, a student becomes capable of deciding whether to choose Finance as a career choice. The need to write high-level certifications and explore niches is realized upon determining to follow a profession in Finance.
Intermediate Certifications
CFI — CFI’s Financial Modeling & Valuation Analyst Certification was created for ambitious financial analysts, who want to close the skill gap between formal education and becoming a world-class financial analyst. For more info about the program — https://corporatefinanceinstitute.com/certifications/financial-modeling-valuation-analyst-fmva-program/
Wallstreetprep — Its online courses and instructor-led boot camps teach the students about the demands of investment banking and corporate finance.
For more info about the program — https://www.wallstreetprep.com/
Though earning one of these certifications can add another feather in one’s cap and provides identification to become an expert in a particular area, most finance professionals prefer other superior certifications such as CFA and FRM over these courses. Therefore, one can skip this Intermediate Certification step.
Advanced Certifications
CFA and FRM are the most valuable and globally recognized certifications in Finance. Both certifications offer a wide range of enriching and rewarding career prospects. These are incredibly valuable, especially for the ones exploring options in full-time roles through off-campus channels. Due to the lack of Finance Culture, there is very little awareness of the significance of these exams on the campus.
Finance Club is going to launch CFA and FRM study groups very soon to provide CFA and FRM aspirants a platform where they will get to interact with other candidates, which will help them solve their doubts immediately and get answers to every query related to the exams. One separate blog on ‘Everything about CFA and FRM, and the study groups’ will be published shortly on the facebook page.
Stay tuned for further updates on the ‘CFA and FRM study groups’ initiative.
