MBA Finance Interview Q&A

Q: Can you walk us through your journey so far and explain why you’ve consistently

chosen finance at every stage of your education?

A: From the beginning of Class 11, I was introduced to financial markets as part of my

curriculum. I found the subject fascinating — especially how markets function, how

companies raise capital, and the psychology behind investor behavior. This initial spark

led me to specialize in Finance in my BBA program as well. At every stage, my curiosity

for understanding money, investment strategies, and corporate finance deepened,

reaffirming that finance is the right path for me.

Q: What specifically attracted you to finance in Class 11, and how has your interest

evolved since then?

A: In Class 11, I found the concept of stock markets, IPOs, and trading extremely

intriguing. Initially, it was the idea of wealth creation and the complexity of the markets

that drew me in. Over time, my interest matured — now I look at finance not just as a

way to earn money but as a powerful tool for economic development and strategic

business decision-making.

Q: Why do you want to pursue an MBA in finance now, rather than gaining some work

experience first?

A: I believe an MBA will give me a strong academic and practical foundation before I

step into the corporate world. While work experience is valuable, I want to first sharpen

my financial and analytical skills, understand global financial systems better, and gain

exposure to internships and live projects that top MBA programs offer.

Q: Who has influenced your decision to pursue finance the most, and why?

A: My biggest influence has been my elder cousin, who works in investment banking.

The way he explained real-world finance problems — like mergers, valuations, and

fundraising — made me see how dynamic and impactful the finance world is. He also
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guided me early on with reading habits like following business news and analyzing

markets.

Q: Can you explain the difference between fundamental analysis and technical

analysis?

A: Fundamental analysis focuses on evaluating a company’s financial health, industry

conditions, and economic indicators to determine its intrinsic value. Technical analysis,

on the other hand, uses charts and historical price patterns to predict future price

movements based on market behavior. In simple terms, one is based on “what the

company is worth” and the other on “how the stock behaves.”

Q: What are derivatives, and how are they used in financial markets?

A: Derivatives are financial instruments whose value is derived from an underlying

asset like stocks, bonds, or commodities. Common types include futures, options, and

swaps. They are used for hedging risk, speculation, or arbitrage. For example, a

company might use currency derivatives to hedge against foreign exchange risk.

Q: How does a company decide its capital structure? Can you explain the concept of

debt vs equity financing?

A: A company decides its capital structure based on factors like cost of capital, financial

flexibility, risk appetite, and market conditions. Debt financing involves borrowing

funds, usually through loans or bonds, and requires interest payments. Equity financing

involves raising capital by issuing shares. While debt is cheaper due to tax shields,

equity does not involve repayment and avoids the risk of default.

Q: What do you understand by the term 'Time Value of Money'? Can you give a simple

example?

A: Time Value of Money (TVM) means that money today is worth more than the same

amount in the future due to its potential earning capacity. For example, ₹1,000 today
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can be invested to earn interest, so it's worth more than ₹1,000 received a year from

now.

Q: Suppose you're managing a portfolio; what factors will you consider while allocating

assets?

A: I’d consider the investor’s risk profile, time horizon, financial goals, current market

trends, and diversification. For example, a young investor may be allocated more into

equities for growth, while a retired person may prefer bonds for safety and income.

Q: What is your opinion on the recent interest rate policies by the RBI? How do they

impact the common man and the stock market?

A: RBI’s interest rate decisions aim to control inflation and ensure economic stability.

When rates are high, borrowing becomes costlier, which slows down consumer

spending and business expansion — this can affect stock markets negatively. For the

common man, EMIs become expensive, but savings earn more interest. Conversely,

lower rates encourage borrowing and investment.

Q: What do you think about the increasing trend of fintech startups in India? Is it a

threat to traditional banking?

A: Fintech startups are revolutionizing finance by making it more accessible,

user-friendly, and data-driven. While they pose challenges to traditional banks,

especially in areas like payments and lending, I see it more as an opportunity for

collaboration. Traditional banks are adapting by investing in digital infrastructure and

partnering with fintechs.

Q: Do you track any stock or mutual fund? If yes, how do you analyze it?

A: Yes, I track HDFC Bank and the Nifty 50 Index Fund. I analyze HDFC Bank based on

its quarterly earnings, NPA levels, CASA ratio, and price-to-book ratio. For the index

fund, I evaluate its past performance, expense ratio, and tracking error.
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Q: Where do you see yourself in five years after completing your MBA?

A: I see myself working in a reputed financial services firm, possibly in investment

banking or corporate finance. I want to gain in-depth exposure to deal structuring,

valuations, and strategic financial planning. Eventually, I aim to become a financial

advisor or portfolio manager handling high-net-worth clients.

Q: What kind of company or role are you aiming for post-MBA — investment banking,

corporate finance, fintech, or something else?

A: I’m primarily interested in investment banking or corporate finance roles. I enjoy

working with numbers and strategy, and these roles allow me to contribute directly to

major financial decisions and deals. However, I’m also open to fintech if the role is

analytical and data-driven.

Q: Can you tell me about a time when you handled a financial decision or project, either

in college or personally?

A: In college, I led a virtual stock trading competition during a finance fest. I managed a

mock portfolio using real-time data and applied both technical and fundamental

analysis to pick stocks. My team secured 2nd position, and it taught me about risk

management, volatility, and the importance of staying updated with news.