One of the most coveted careers in the financial services industry is that of an analyst. The role of a financial analyst is to identify opportunities, evaluate financial growth outcomes for the business and give recommendations for investment. A financial analyst’s job can be both at junior as well as a senior levels. Most junior financial analysts look after the maintenance of spreadsheets, gathering information as well as financial modeling. The senior analysts, on the other hand, work closely with the company’s management and other team and develop an investment thesis for the financial betterment of the firm.
The financial service industry is known to be a competitive one and to make a career as a financial analyst in this industry, one must prepare well for the job.
Who is a financial analyst?
A financial analyst is someone who gives recommendations to businesses based on the analysis carried out with respect to factors like market trends, financial status and the predicted outcomes of some deals carried out. With their findings, they help companies in making financial decisions for their businesses, especially investing decisions. The basic job responsibilities of a financial analyst are:
Study of financial data
Investment recommendations
Analyze business and economic trends
Put together written reports and organize financial information
Determine a company’s value by examining financial statements
Understand the company’s prospects and gain better insight by meeting the company’s officials
A financial analyst evaluates investment opportunities for the company. They are also called security analysts or investment analysts and work primarily in banks, insurance companies, mutual funds, securities funds, and other businesses.
Skills required to be a financial analyst
Analytical approach- Financial analysts coordinate a myriad of information while finding out a profitable investment for the company.
Decision-making skill- Buying, selling, or holding of a security is an example of a decision-making skill required in a financial analyst.
Mathematical thinking- Estimation of financial security requires the analyst to be mathematically skilled.
Computer savvy person- Dealing in financial analysis requires using a lot of software for analyzing and forecasting data.
Communication- Explaining the investment options in the written and verbal form of presentations to the company officials is an important part of the job. Thus, a financial analyst must have a good command of communication skills too.
These skills are helpful for becoming a professional financial analyst.
Educational Requirements
In order to pursue a career as a chartered financial analyst, one must have fulfilled the following educational requirements.
Step 1: Earn a Bachelor’s degree
The most important step towards achieving the goal of becoming a financial analyst is first and foremost earning a bachelor’s degree. General courses in economics, statistics, and other related fields are relevant to financial analytics but a more targeted degree is ideal for a professional. A degree such as BFIA (Bachelors in Financial and Investment Analysis) is recommended. The other undergraduate degrees one can pursue are B.com (Finance), BBA (Finance), or BEco. The other route is by pursuing CA (Chattered accountants).
Step 2: Earn a Master’s Degree
A bachelor’s degree may be enough to get started the financial analyst career but a master’s degree takes it to a whole new level. Analysts who want to enjoy better opportunities in terms of job positions and salaries could consider pursuing a Master’s degree in finance or a Master’s of Business Administration (MBA) or M.com (Finance).
Step 3: Attaining certifications
Many companies search for financial analysts who have the required skills and educational qualifications along with certification as CFA (Chartered Financial Analyst). A certified Chartered Financial Analyst can find attractive salary packages with even international employment. The CFA Institute in India offers a three-level course in CFA- Level Ⅰ, Level Ⅱ, and Level Ⅲ. A student must clear all three levels to be a certified financial analyst.
Pursuing CFA after completing a master’s degree is advisable because:
The curriculum prepares the financial experts for a wider range of job roles and responsibilities
Greater career advancement
Boost credibility of profile
People who can register for the CFA program are- current MBA students/ MBA graduates, B.Com/M.Com students, CA aspirants, or IT professionals.
There are several firms recruiting CFAs. A person with this certification can be hired by-
Portfolio management firms
Investment banking
Equity research
Wealth management firms
Corporate financial divisions
Private equity
Credit analysis
Financial analysis as a career has much to offer to job seekers. The file is expanding with the increase in hiring demand. Also, increased educational opportunities and skillsets have opened up gates for more people to enter. Along with having a relevant bachelor’s and master’s degree for pursuing a financial analysis career, training is of utmost importance too. For individuals considering this career path, the online certification program for financial analysis of the India Center for Global Excellence may fit very well into the busy work and personal schedule. Learn about it today and start on the path of the career of your dreams.
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