Fund Accounting Basics - What is Fund Accounting?

Understanding Fund Accounting

Basics Of Fund Accounting

When we see a job-post on any job portals or company’s career website saying they want to hire for “Fund Accounting Process”, or you go to an interview, you get to hear a word from the Human Resource (HR), that, we are hiring for “Investment Banking Fund Accounting Process”. On this juncture, the freshers get confused that, what exactly is “fund accounting”? What would be the fund accounting process? They don’t have any knowledge about this word. It is a “conundrum” for them. They may answer whatever, but we would like to help all of you, who want to make career in the fund accounting profile.

The experienced ones reading this blog post about the fund accounting for investment banking profile may have full knowledge. We would like the experienced ones to share their part of knowledge with us, to improve us, to make us much better in understanding the basics of the fund accounting. (Thanks in advance!)

We would like to go step-by-step in making you understand about the modus operandi of fund accounting. Let’s walk the talk, and not talk the talk.

A graduate/bachelor’s degree in finance is required to go on the road of fund accounting. It will be “cherry on the cake”, if you have master’s degree, as it holds very relevance in this profile.

What is fund accounting?

For a novice, the fund accounting is simply means reconciliation of the funds (whether it is debt or equity). It is a backend part of the investment banking. The fund accounting is also known as FAS (Fund Accounting Services) or FASCASH profile. It comes under the umbrella of BFSI.

What is BFSI?

Banking, Financial services and Insurance (BFSI) is an industry term for companies that provide a range of such financial products/services such as universal banks. BFSI comprises commercial banks, insurance companies, non-banking financial companies, cooperatives, pensions funds, mutual funds and other smaller financial entities.

The fund accounting can be divided in to these functions:-

• Reconciliation of funds or portfolios
• Cash Breaks
• Interest Coupons
• Hedging

The above points are discussed as below:

Reconciliation:  In simpler terms, fund accounting means reconciliation of the funds (whether it is debt or equity). In professional terms, fund accounting goes for reconciliation of the mutual funds or portfolios – whether they are debt or equity – with trade settlements and updating of the margins balances (which may or may not include these margins, such as, LCH – London Clearing House, CME – Chicago Mercantile Exchange, ICE – Intercontinental Exchange), and accordingly updating the margin interest. There is also position close movement in each margin, which means buying or selling of the securities (or shares) for a specific number of lot.

The margin balances are updated according to the client’s bank statement. Numerous type of movements come into the funds, according to its nature – big sized fund, small sized fund or medium sized fund.

Cash Breaks: In simpler terms, the cash breaks are the custody movement that comes in to the fund. You will find numerous reason codes for the custody movement, which are bank loans (BL), swaps variance (SV), trade variance (TV), interest variance (IV), dividend variance (DV), futures (FV), claims, collaterals variance (CV), paydown (PV) etc.

Interest Coupons: The interest coupons are of 3 types – CME Coupons, LCH Coupons, ICE Coupons.  

We already have discussed the acronym of all the above three with you. These coupons are basically related to the interest of the fund. When these are settled, they may result in positively or negatively effect on the fund’s interest.

There may be one leg or two legs for one security which consist of fixed and float.

 Their time duration varies according to the market. They may come on daily, weekly, monthly, quarterly basis etc.

Hedging: The hedging word simply means “to protect your assets from any loss in the present or future”. So, in fund accounting, the hedging surely comes, as the investor wants to protect its fund from any type of loss – whether it is market loss or business loss, etc.

Every master fund which has hedging, always has its hedge fund. The hedging is done from master fund to hedge fund or vice-versa.

When you will go in a specific profile, you will get to learn many more things about it. The fund accounting is a profile in which you will learn new every day. We can provide you with the interview questions, which could be asked by the interview, who is hiring for the investment banking fund accounting.

If we see from a career-oriented perspective, then, fund accounting holds a pool of great knowledge. Now, we would like you to share your experience with us on the fund accounting profile.

Check our other blog links:

Read aboout Bytedance Interview Tips here.

Read aboout Infosys Gurgaon Interview Tips here.

Read aboout Ameriprise Financials Gurgaon Interview Tips here.

Read aboout Copal Amba (Moody Analytics) Gurgaon Interview Tips here.

Read aboout Accenture Noida Interview Tips here.

Read aboout Honest Reviews of Samsung SDS India, Gurgaon here.

Infosys BPO Interview Questions and Reviews for Job Seekers

HR Common Interview Questions for Finance/Accounts Fresher

Infosys BPO Question Answers for Fresher

Common Accounts/Finance Interview Questions for fresher

We have gathered a list of interview questions and reviews from Infosys BPO Ltd, Gurgaon, which are commonly asked during the Ameriprise Financials’ interview. Our database will provide you the genuine interview questions which have been asked in the Process Executive (2B Position) interview of the Ameriprise Financials. Go on then, read the interview questions and crack the interview.

Going for the Process Executive interview or in simple terms, Finance Interview to the Infosys BPO, Gurgaon as a fresher? Are you nervous that, what would they ask you? What would be their questions to you as a fresher? How will you tackle the interview questions as a fresher for accounts and finance? You must be feeling anxious and tense before appearing for the interview.

First of all, don’t be fidgety. It’s not a rocket science to crack Infosys BPO interview. We have made a list of interview questions answers asked by the company for you. Before going to the interview, read all the interview questions given below, which have been asked by the HR managers and Operations Manager to an analyst going as a fresher to Ameriprise Financials, Gurgaon.

First of all, let’s us discuss the company’s information with all of you.

Company Name: Infosys BPO

Address: 7th floor Tower A, B and C Building No. 6, DLF Cyber City Developer Limited Special Economic Zone, Sector 24 and 25, DLF Phase-3, Gurgaon, Haryana 122002

1) Interview Process of Infosys BPO is as below:

The interview at Infosys BPO at its Gurgaon branch is conducted in the following structure:

A) HR Round

B) Aptitude Test Round

C) Operations Manager round

D) HR Manager round

They are discussed as below:

A) HR round:

In the first round, at the Infosys BPO, the HR will begin the interview process with the following questions:

i) Introduce yourself

ii) What do you know about the company?

iii) Are you comfortable with the night/rotational shifts?

iv) Define investment banking.

v) What are your salary expectations from the company?

These questions are asked in the first round of the interview in Infosys BPO from a fresher to check the communication skills of the candidate, and if he/she is comfortable with the rotational shifts of the Infosys BPO. Don’t worry; there won’t be any hardcore finance or any other questions from the HR. The HR will only check your communication skills. It will be better if you are well-prepared for the interview.

  

B) Aptitude Test Round:

If in the first round, the HR is satisfied with your answers as well as communication skills, then, they will give you aptitude test to perform. The aptitude test will consist of questions from accounting, finance, maths, and in the end, there will be an essay writing, which requires you to write an essay on any topic. You can decide any topic, or it will be given by the HR himself/herself, depending upon the interview situation.

This essay writing is only to judge you on your spellings, word usage, punctuations, etc, all are correct.

You have to pass that aptitude test to go to next round of the interview at Ameriprise Financials, Gurgaon.

C) Operations Manager round

If the HR manager is satisfied with your writing skills, then, you will go through the Operations Manager round, in which, the main manager will ask you the interview questions for finance and accounts at Infosys BPO, Gurgaon branch.

i) Tell me about yourself.

ii) What are the golden rules of Accounting?

iii) What are mutual funds? What are the types of mutual funds?

iv) What is reconciliation?

v) What is Bank Reconciliation Statement?

vi) What is dividend payout ratio? Tell me it's formula. (They can ask any ratio)

vii) Do you know MS-Excel? Which functions do you know about in MS-Excel?

viii) Are you comfortable with the rotational shifts?

D) HR Manager round

This is the last round. In HR round at Infosys BPO, the salary is discussed with you by the HR manager. If you agree to all the terms of the company, then, your offer letter will be printed as soon as you say, yes. So, the choice is on you to accept or reject the job offer.

2) Interview Rating:

The interview at Infosys BPO, Gurgaon is plain-sailing. If you are well-prepared of the accounting and finance area, then, it is very easy to pass the interview of Process Executive as a fresher at Infosys BPO, Gurgaon. The company only wants a candidate, who is proficient in communication skills. The entire interview is viewed by the interviewer from the communication skills only and your knowledge in accounting and finance.

The whole interview process takes a whole day as the HR or main operation manager could be busy. Before going there for the interview, be physically and mentally prepared.

3) Salary Offered:

To the freshers, the Infosys BPO, Gurgaon development center, offers 1.5-2 lacs yearly as a salary, which comprises of base salary, dearness allowance, provident fund, medical insurance, etc. You can also negotiate with the company.

If you have any other interview questions asked by the interviewer at the Ameriprise India Pvt. Ltd, then, kindly share with us, for the benefit of ours and others. Thank You.

Interview Questions for Accounts and Finance Fresher of Xchanging Company

HR Common Interview Questions for Finance/Accounts Fresher

Xchanging Interview Question Answers for Fresher

Common Accounts/Finance Interview Questions for fresher

We have gathered a list of interview questions, which are commonly asked during the Accenture’s interview. Our database will provide you the genuine interview questions which have been asked in the accounts process interview of the Accenture. Go on then, read the interview questions and crack the interview.

Going for the Intelligence Business or in simple terms, Business Analyst Interview to the Copal Amba, Gurgaon as a fresher? Are you nervous that, what would they ask you? What would be their questions to you as a fresher? How will you tackle the interview questions as a fresher for accounts and finance? You must be feeling anxious and tense before appearing for the interview.

Don’t be fidgety. We have made a list of interview questions answers asked by the company for you. Before going to the interview, read all the interview questions given below, which have been asked by the HR managers and Operations Manager to an analyst going as a fresher to Xchanging Technologies, Gurgaon.

First of all, let’s us discuss the company’s information with all of you.

Company Name: Xchanging Technologies PLC

Address: Plot no-271, Udyog Vihar, Phase- II, Gurgaon, Haryana 122016

1) Interview Process of Xchanging Technologies PLC is as below:

The interview at Xchanging Technologies PLC at its Gurgaon location is conducted in 4 rounds:

A) HR Round

B) Aptitude Test Round

C) Operations Manager round

D) HR Manager round

They are discussed as below:

A) HR round:

In the first round at the Xchanging Technologies, the HR will initiate the interview process. They will generally ask you the simple questions, like,

i) Introduce yourself

ii) How you come to know about this interview?

iii) What do you know about the company?

iv) Have you heard the company’s name before?

v) Are you comfortable with the night/rotational shifts?

vi) What are your strengths and weaknesses?

Basically, questions like these are asked in the first round of the interview from a fresher for accounts and finance profile. Don’t worry, there won’t be any hardcore finance or any other questions from the HR.

  

B) Aptitude Test Round:

If in the first round, the HR is satisfied with your answers as well as communication skills, then, they will give you aptitude test to perform. The aptitude test is consist of general questions from English, Accounting, Maths, Passage Writing, etc.

You have to pass that test to go to next round of the interview at Xchanging Technologies, Gurgaon.

C) Operations Manager round

If the HR manager is satisfied with your writing skills, then, you will go through the Operations Manager round, in which, the main manager will ask you the interview questions for finance and accounts at Xchanging Technologies, Gurgaon branch.

i) Tell me about yourself.

ii) What are the golden rules of Accounting?

iii) We will send you to Bangalore for the training. Are you ready for that?

iv) Why have you written this passage on this topic? (I have already mentioned in Aptitude Test round that they ask you to write a passage in aptitude test.)

v) Do you know MS-Excel?

vi) Which functions do you know about in MS-Excel?

vii) Are you comfortable with the rotational shifts?

C) HR Manager round

This is the last round. In HR round at Xchanging Technologies, the salary is discussed with you by the HR manager. If you agree to all the terms of the company, then, your offer letter will be printed as soon as you say, yes. So, the choice is on you to accept or reject the job offer. Please confirm with the HR in the first place about sending you to Bangalore for the training.

2) Interview Rating:

If you are well aware of the basic accounting area, then, it is very easy to pass the interview of Accounts Executive as a fresher at Xchanging Technologies. You should familiar yourself with all the basic knowledge of accounting, like golden rules of accounting, journal entries, ledger posting etc.

The whole interview process takes a whole day as the HR or main operation manager could be busy. Before going there for the interview, be physically and mentally prepared.

3) Salary Offered:

To the freshers, the Xchanging Technologies at its Gurgoan location offers only Rs 12,000 (INR) CTC per month as a salary, which comprises of base salary, dearness allowance, provident fund, medical insurance, etc. They say that it is according to the industry standards.

If you have any other interview questions asked by the interviewer at the Xchanging Technologies, then, kindly share with us, for the benefit of ours and others. Thank You.

Accenture Reviews and Interview Questions For Accounts and Finance Freshers

HR Common Interview Questions for Accounts/Finance Fresher

Accenture Interview Question Answers for Fresher

Common Accounts and Finance Interview Questions for fresher

We have gathered a list of interview questions and reviews for you, which are commonly asked during the Accenture’s interview. Our database will provide you the genuine interview questions which have been asked in the accounts process interview of the Accenture. Go on then, read the interview questions and crack the interview.

Going for the Accounts/Finance Interview to the Accenture Noida DDC 4 as a fresher? Are you nervous that, what would they ask you? What would be their questions to you as a fresher? How will you tackle the interview questions as a fresher for accounts and finance? You must be feeling anxious and tense before appearing for the interview.

Don’t be fidgety. We have made a list of interview questions answers asked by the HR manager and operations manager at Accenture Noida DDC 4. Before going to the interview, read all the interview questions given below, which have been asked by the HR managers and Operations Manager of the Accenture Noida DDC 4 to an Accounts/Finance fresher.

First of all, let’s us discuss the company’s information with all of you.

Company Name: Accenture Noida DDC 4

Address: Building No. 3, Ground to Fourth Floor, Infospace, Plot No 20 & 21, Sea View Developer, 

Sector -135, Noida, Uttar Pradesh 201301

Rating: 4.2/5

1) Interview Process of Accenture Noida DDC 4 is as below:

The interview at Accenture Noida DDC 4 is conducted in 4 rounds:

A) HR round

B) Operations Manager round

C) Telephonic round

D) HR Manager round

They are discussed as below:

A) HR round

The first round was with the Human Resource Manager (HR) in which, he asked:

·         Tell me about yourself. (They can also ask like this: Brief me about you, Introduce yourself). For this, tell everything about you to the interview, like your name, place of residence, age, educational qualifications, college, school, and any other certifications, about your family, your skills, interests, and hobbies, etc.

·         Are you a fresher?

·         Do you have any knowledge in accounts?

·         Tell me, the 3 golden rules of accounting.

B) Aptitude Test

The second round is an aptitude test. This round is conducted to check the mental abilities of a candidate. There are simple accounts and mathematical questions in the question paper used to judge the sharpness of the candidate’s mind.

C) Operations Manager round

If you pass the aptitude test round, then, you will go through the Operations Manager round, in which, the main manager will ask you the interview questions for accounts and finance at Accenture Noida DDC 4.

•          Tell me about yourself (same as above discussed)
•          What are the golden rules of Accounting?
•          What are prepaid expenses?
•          What are preliminary expenses and where they are shown?

D) Telephonic Round

In a telephonic round, they will check your voice quality. They want to ensure that, you can communicate with the client in the future if you have to.

•         How are you?
•          Tell me about yourself.
•          What are the 3 basic rules of Accounting?
•         Are you ready for the night shift?

E) HR Manager round

This is the last round. In this, the salary discussion and about the work is discussed with you. Basically, many candidates leave, due to the night shifts. So, the choice is on you to accept or reject the job offer.

2) Interview Rating:

If you are well aware of the basic concepts of accounting (for example, 3 golden rules of accounting, prepaid expenses, journal entries, etc) then, it is facile to crack the interview of accounts fresher at Accenture Noida DDC 4.

The whole interview process takes a whole day. Before going there for the interview, be physically and mentally prepared. And best of luck to you for the interview.

3) Salary Offered:

To the freshers, the Accenture offers only Rs 12,500 (INR) as a salary, which comprises of base salary, dearness allowance, provident fund, medical insurance, etc. They say that it is according to the industry standards.

If you have any other interview questions asked by the interviewer at the Accenture Noida DDC 4, then, kindly share with us, for the benefit of ours and others. Thank You.