Become a financial analyst from scratch!

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. 

Power of Thoughts

As trainers, coaches, catalysts and change agents, we find ourselves motivating our participants on this powerful quote quite often:

"Sow a thought and you reap an action,

 Sow an action and you reap a habit,

 Sow a habit and you reap a character,

 Sow a character and you reap a destiny."
As we pause, reflect and truly comprehend this causal relationship, the profundity of this quote truly sinks in.

That thought is a powerful seed that germinates into one's attitude, choice of words and action is itself a powerful thought! Let me elaborate…

How many times are we prepared to dig deep in the iceberg beyond the visible tip of an individual's observed behaviour, habits and accompanying results? Amidst the frenetic pace of today's existence, there is an inordinate focus on dissecting one's behaviour - what wrong did he do? what did he say? what is the pattern of results? You get the drift....

As trainers, we strive to accomplish change of behaviour of the participants. We find ourselves investing huge energy in not only training (hopefully, with engaging activities in the classroom or otherwise!) but also motivating them to surpass benchmarks and at times, do what perhaps, nobody has achieved. Motivational speakers seem to flirt with this tip of the iceberg in ample measure and leave their audience spell bound, seemingly ready for some dramatic action. Alas, this excitement is short lived with no tangible action or a behaviour change seeing the light of the day - in the long term. Memories of a 'feel good' experience are carried forward by the participants as a saving grace.

Let us shift our attention to the 90% of the iceberg that is hidden. Therein lies the proverbial mass that comprises thoughts and feelings, beliefs and values and even underlying needs of the individual. How can we understand these? The challenge lies in the complexity of this mass with a multiplier effect due to variations on account of different individuals. One of the ways is to trigger their thought processes by asking questions that encourage learners to dig deep within and look for affinity and congruence to their feelings, set of values they hold dear, their belief system, and the needs they feel will be met.

Therefore, some essential questions to consider can be:

• what would you gain in this learning engagement?
• how will you overcome the odds to keep yourself motivated during the training?
• how would the learning help you back on the job?
• what changes can you visualize for the better?
• how does it relate to what is dear to you?
• how do you see yourself progressing hereafter?
• what will you lose if you were to miss out on this experience? Etc.

 Time and effort need to be invested in these questions by the trainer both at the pre-training stage and prior to the start of actual training session as a minimum. These should be reiterated later during the training sessions and also at the conclusion to trigger the chain of thoughts of the participants. What would appeal to an individual is after all difficult to predict.

My belief is that these questions check on and build the willingness of the learner towards the learning journey that lies ahead. This mental priming is essential and should not be missed or neglected. As the learners find their own answers, clarity of thought emerges clearing the cobwebs in the learners' minds. The learners then, are prepared to acquire new knowledge and skills and are ready to even slog it out. This is evidenced through the change in their body language, vocabulary and of course, 'willing' action - all to the delight of the trainer. The learner is now ready to take the plunge - with both his heart and mind in complete sync - into the realms of learning and emerge strongly influenced and motivated to ‘change’.

We get credible evidence of this in sports and military training. In both, the trainer and the coach highlight the importance of winning the mind game to outwit the opponent or the enemy. The presumption is that winning thoughts clearly precede and determine the action on the ground. At the thinking and willingness level, enough lessons and time is invested so that the learner focuses on the action (to be performed and perfected) with an uncluttered mind. An adversary who hasn't prepared at commensurate levels of priming and preparing the 'thoughts' is clearly at a disadvantage!

Be a willing and ‘thinking’ learner yourself and create tribes of learners who are harnessed on the power of clear thoughts!!

Source - Rajneesh Mathur