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Finance includes a branch of economics concerned with resource distribution, its management, its possession and investment. In simple terms, finance deals with matters related to money and the markets
Banks are the major facilitators of
finance as they provide revenue in the form of loans, interest,
credit, etc.
Success means different to different people. You are believed to be
successful if you achieve your desires and have all the important
things in your life. A person can never feel contented and secured a
life if he is unable to manage his finance. Earning handsome amount
of money can be difficult, but managing it can be equally difficult.
Proper fiscal decisions ensure safe and enjoyable life even after
retirement.
A survey of thousands of successful and unsuccessful individuals
revealed that all of them had a different financial philosophy. The
difference is ofcourse due to the work they do or because of the
particular investment decision they make. It is our personal
decision on how we intend to use our finance that makes us feel
good. An efficient manager of finance is able to raise finance by
implementing strategic advises provided by financial advisors.
Personal Finance:
A perfect financial planning will help you in controlling all kinds
of financial risks. A careful concentration on financial planning
will help bring your assets up to the mark. Through personal
financial planning you can gain control over your financial
problems. The questions like- How much money will you need to meet
your future expenses? Or Where will the money come from? - will
easily be answered by taking effective fiscal decisions. Individual
financial decisions may include your savings for meeting the future
expenses like your child's education, buying insurance and property,
buying a house, etc.
Company finance:
Finance is the life blood for every organization. The entire
management of a company continuously strives to provide finance for
their business activities. Every small or large organization
requires finance to run their business smoothly. Financial
management generally involves balancing risk and profitability,
while endeavoring to increase an entity's wealth and its market
value. A balance between short-term funds and long-term funds firms
are company’s capital structure. The company’s finance can also be
raised through borrowings. The financial accounting department is
responsible for reporting the financial information and financial
status of the firm.
Finance, as a career:
Finance is a vast area and is another world in itself. Financial
planning and management has given birth to a number of job options
right from strategic planning to sales. The qualification required
for careers in finance depends upon the career option you choose.
Minimum qualification required is a graduation in any field. Added
qualifications like MBA or PG in finance, chartered accountant, CFA
can be useful to have a successful career in finance. Besides, in
order to be good finance personnel you need to have superior
analytical skills, proper understanding of the markets and
attraction towards numbers. You can work as an insurance agent,
commercial banker, financial planner, real estate broker or advisor,
a merchant banker on an investment analyst..
Finance in India
Finance in India is the backbone of Indian economy. Since years from
now the world has been wondering about the economic transformation
of India through creativity, hard work and commitment through market
modification. Trade and commerce, imports and exports are the major
sources for the inflow of finance in India. The financial condition
of India is changing and hundreds of millions of people today are
enjoying a better quality of life.
Finance in India is governed by the Ministry of Finance. The Finance
Minister of India is the highest authority in the Ministry of
Finance. By the end of November 2008, Finance Minister of India was
Mr. Manmohan Singh, who is responsible for the regulated taxation,
capital markets, financial legislation, centre and state finances
and the union budget. The Ministry of Finance in India comprises of
five departments mainly; Department of economic affairs, Department
of expenditure, Department of revenue, Department of financial
services and Department of disinvestments. All these departments are
conferred upon the task of balancing the inflow and outflow of
finance in India. The finance ministry holds an economic survey
every year just before the union financial plan in order to know the
yearly economic progress of the country.
The Finance Minister of India along with his Ministry of Finance
also governs institutions like Banking, insurance and various other
financial associations who jointly work towards the growth of
financial revenues in India. The central and commercial banks in
India help every individual to regularise their finances; without
going beyond the rules and regulations set by the government of
India. The insurance companies issue policies relating to the Life
insurance and General insurance in the country, thus following the
Insurance and Regulatory Authority of India (IDRA), which falls
within the domain of this division. Various other financial
institutions such as EXIM bank, NABARD, SIDBI, Securities and
Exchange Board of India (SEBI), credit rating agencies like CRISIL
and ICRA play an important role in developing the country's
financial position.
India is also recognised as the financial hub for the global
investors. The foreign investors are very much interested in the
Indian economy as they feel that India has the potential to grow
further. Indian markets have seen a huge foreign investment since
past few years as a result of the growing economy of the country.
The global recognition of India is viewed as a competitive advantage
by many business analysts and financial advisors.
Despite of all the regulatory bodies and institutions managing the
finance in India, the country is still daunting with the problem of
poverty and financial inequality. India is still seen as a Third
World country. The rich is getting richer and the poor is getting
poorer. This phenomenon is not at all a healthy sign for the Indian
economy. The pace of growth of finance in India can be faster by
attracting investments and improving governance. India has a strong
commitment towards economic growth, like many other developing
nations, so as to strengthen trade and finance.
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