Mayur
Member • Sep 7, 2006
Engineers! Its time to invade Financial Markets!!
Hey Guys, Check this out.
The figures might interest you.
"Hewitt Associates, a global human resource services firm, recently released their findings of their 10th annual salary survey. Their ninth survey revealed that salaried Indian employees earned salary increases ranging from 9.1% to 14.9%. The current survey which covered 2005, showed an average salary increase of between 11.4% and 15.4%. What was interesting was that in 2004, the Information Technology industry in India offered the highest average salary increase of 14.9%. This year, it was asset management companies (mutual fund houses) at 17.1%. Do note, this being the average, some may have got even higher salary hikes. In case that did not impress you, you must bear in mind the salaries in the finance sector are phenomenal. So a 17% would translate into a substantial amount.."
If this seems far less convincing to you then take a look. A senior position in a reputed financial services company could earn between Rs 60 lakh (Rs 6 million) to Rs 1 crore (Rs 10 million) per annum (both these figures are cost to company). This is what fund managers could be earning, as well as senior management in leading brokerage houses, investment banking firms and banks. At the middle-management level, annual salaries could be in the broad range of Rs 25 lakh (Rs 2.5 million) to Rs 50 lakh (Rs 5 million), again both figures are cost to company. Someone starting out could expect a cost to company pay packet in the Rs 8,00,000 to Rs 15 lakh (Rs 1.5 million) range.
With so much of money being used to lure the candidates, it is little wonder that there are umpteen college-goers who are determined to make a career in finance. So where do we engineers stand? If you look at the typical final year student in an average engineering college, you might find him preparing for an aptitude test. The reason? probably Infosys or Satyam is coming for an interview. What salary package is he expecting? Probably Rs. 2-3 lacs (about Rs. 0.2 to 0.3 million). Is it the right take away package for talented engineers? probably not, considering the slogging and stiff competition he faces when he gets into the likes of Infosys, TCS and others. Having said and done that, the percentage of engineering students taking up CAT for persuing a really big dream are often more than 50% of the total strength of the college. However most of the dreams die a premature death with an admission to some down graded US university whose probably offering a filthy scholarship. Majority of the rest of them end up on bench in the who's who companies of IT.
Does it mean we do not have engineers going strong on the financial front? Absolutely not. I know a story of one of the most successful fund managers in India who was an engineer. Cheers guys.
"When Sandip Sabharwal was studying chemical engineering in IIT-Delhi, his summer training stint was with a petrochemicals company. It left him "bored to death"; he decided this is not what he wanted to do with the rest of his life.
That took him to IIM-Bangalore for a degree in finance. A summer training stint at SBI Mutual Fund convinced him equity research was where he wanted to be. In 1995, he joined SBI Mutual Fund.
He started off as a research analyst before moving on to become a fund manager in 1999. After the phenomenal success of his funds at SBI Mutual Funds, he has now joined new fund house Lotus AMC as chief investment officer.
Passion, he says, is what you need the most if you want to become a stock analyst."The job is not just operational, in the sense you don't just follow a few sets of rules. One must be able to explore new options and spot new opportunities," he explains. That is why you need to keep a long-term perspective in mind. As an engineer, you would be more equiped to handle pressures and be easy to think long term. Sabharwal agrees: "No matter how good we are or how good we get at fund management, we can never forget that the market is bigger than all of us. In the long run, it is our analytical abilities that will propel us through the test of time."
So what next do we need? Getting the right Education! Now that we are engineers, which is a very respectable qualification in itself, a professional degree is a must; this means you need an MBA in finance from a well-known college. The reason is simple, this educational background gives you a headstart. Sabharwal explains, "You get to understand return ratios and valuation of companies to a limited extent." But, do note, to get into a leading financial firm and earn the type of money that is mentioned at the start, you must graduate from a leading business school. If you don't, you can still make a go at this career but in a smaller brokerage firm or financial outfit. Need I say, the money will be much less.
So Guys what are you waiting for? Gear up!! We are engineers, probably the most knowledgible breed on this earth. Now that we have been there, its time to "do that." Its time to invade other's territories.. and earn big bucks. I'm sure big K agrees. Can you get your answer? Why are you not a billionaire yet?
BR,
Mayur Pathak
Editor-in-Chief
CE Forum
The figures might interest you.
"Hewitt Associates, a global human resource services firm, recently released their findings of their 10th annual salary survey. Their ninth survey revealed that salaried Indian employees earned salary increases ranging from 9.1% to 14.9%. The current survey which covered 2005, showed an average salary increase of between 11.4% and 15.4%. What was interesting was that in 2004, the Information Technology industry in India offered the highest average salary increase of 14.9%. This year, it was asset management companies (mutual fund houses) at 17.1%. Do note, this being the average, some may have got even higher salary hikes. In case that did not impress you, you must bear in mind the salaries in the finance sector are phenomenal. So a 17% would translate into a substantial amount.."
If this seems far less convincing to you then take a look. A senior position in a reputed financial services company could earn between Rs 60 lakh (Rs 6 million) to Rs 1 crore (Rs 10 million) per annum (both these figures are cost to company). This is what fund managers could be earning, as well as senior management in leading brokerage houses, investment banking firms and banks. At the middle-management level, annual salaries could be in the broad range of Rs 25 lakh (Rs 2.5 million) to Rs 50 lakh (Rs 5 million), again both figures are cost to company. Someone starting out could expect a cost to company pay packet in the Rs 8,00,000 to Rs 15 lakh (Rs 1.5 million) range.
With so much of money being used to lure the candidates, it is little wonder that there are umpteen college-goers who are determined to make a career in finance. So where do we engineers stand? If you look at the typical final year student in an average engineering college, you might find him preparing for an aptitude test. The reason? probably Infosys or Satyam is coming for an interview. What salary package is he expecting? Probably Rs. 2-3 lacs (about Rs. 0.2 to 0.3 million). Is it the right take away package for talented engineers? probably not, considering the slogging and stiff competition he faces when he gets into the likes of Infosys, TCS and others. Having said and done that, the percentage of engineering students taking up CAT for persuing a really big dream are often more than 50% of the total strength of the college. However most of the dreams die a premature death with an admission to some down graded US university whose probably offering a filthy scholarship. Majority of the rest of them end up on bench in the who's who companies of IT.
Does it mean we do not have engineers going strong on the financial front? Absolutely not. I know a story of one of the most successful fund managers in India who was an engineer. Cheers guys.
"When Sandip Sabharwal was studying chemical engineering in IIT-Delhi, his summer training stint was with a petrochemicals company. It left him "bored to death"; he decided this is not what he wanted to do with the rest of his life.
That took him to IIM-Bangalore for a degree in finance. A summer training stint at SBI Mutual Fund convinced him equity research was where he wanted to be. In 1995, he joined SBI Mutual Fund.
He started off as a research analyst before moving on to become a fund manager in 1999. After the phenomenal success of his funds at SBI Mutual Funds, he has now joined new fund house Lotus AMC as chief investment officer.
Passion, he says, is what you need the most if you want to become a stock analyst."The job is not just operational, in the sense you don't just follow a few sets of rules. One must be able to explore new options and spot new opportunities," he explains. That is why you need to keep a long-term perspective in mind. As an engineer, you would be more equiped to handle pressures and be easy to think long term. Sabharwal agrees: "No matter how good we are or how good we get at fund management, we can never forget that the market is bigger than all of us. In the long run, it is our analytical abilities that will propel us through the test of time."
So what next do we need? Getting the right Education! Now that we are engineers, which is a very respectable qualification in itself, a professional degree is a must; this means you need an MBA in finance from a well-known college. The reason is simple, this educational background gives you a headstart. Sabharwal explains, "You get to understand return ratios and valuation of companies to a limited extent." But, do note, to get into a leading financial firm and earn the type of money that is mentioned at the start, you must graduate from a leading business school. If you don't, you can still make a go at this career but in a smaller brokerage firm or financial outfit. Need I say, the money will be much less.
So Guys what are you waiting for? Gear up!! We are engineers, probably the most knowledgible breed on this earth. Now that we have been there, its time to "do that." Its time to invade other's territories.. and earn big bucks. I'm sure big K agrees. Can you get your answer? Why are you not a billionaire yet?
BR,
Mayur Pathak
Editor-in-Chief
CE Forum