Career as Financial Analyst

Are you searching for how to become a financial analyst? What are the educational qualifications of a financial analyst? We will resolve your each query here. Keep reading and scrolling down to get all answers. A career as a financial analyst involves recommending a course of action to buy or sell a company's stock analysing its overall performance and outlook. Not all financial analysts work with stock or bond markets. Several financial analysts stay involved in utilising marketing techniques relative to cost based on its overall performance. They often find the best practices to streamline recruitment processes to save a huge sum of money.  A career as financial analyst may often come with varying work responsibilities of financial management depending on workplace such as investment bank, insurance company, start up or pension fund. 

A financial analyst may work for local and regional banks, real estate investment brokerages, data-driven and insurance companies. A financial analyst can anywhere add its value where it is required to make weighty decisions of investments. 

Financial forecasting

A financial analyst stays involved in reporting, operations metrics tracking, analysis of financial data and creation of financial models to provide support to recommendations of financial decisions made by him or her.

Variance Analysis

A financial analyst has to analyse past trends to predict the future and make recommendations for improvements. He or she works closely with the accounting team and evaluates financial performance by making comparisons and analysis of final results.

Recommendations

The final output of a financial analyst is recommendations on the matters of finances based on analysis and interpretations of data by making comparative analysis. A financial analyst is responsible for increasing productivity with the use of forecasting tools.

Market Research

A financial analyst stays involved in market research through data mining, business intelligence and other valuation comps. He or she is responsible for identifying and driving process improvements that include creation of ad hoc reports, tools and excel dashboards.

Concerning the broad field of financial analysis, there are types of financial analysts with varying job titles. The financial industry employs numerous individuals based on requirements and size of financial institutions. 

We have described three major type of financial analysts

Buy-Side Analyst: A career as buy-side financial analyst provides support to employers in making right decisions to spend money. It includes making investment decisions in stocks and other securities. Whether it is about making investment in stocks or in-house fund securities, an income based property, a financial analyst provides its best recommendations based on market analysis. A buy-side analyst is not directly responsible for each final decision taken by the employer or client. The final say is of the employer or client whether he or she wants to proceed with the financial analyst’s recommendations. 

Sell-Side Analyst: A sell-side analyst is responsible for evaluating and comparing the quality of securities of the respective industry or sector. He or she creates a research report that is based on the market analyses to recommend either to buy or sell stocks, property or other investments. A sell-side analyst is involved in tracking of stocks in a fund’s portfolio to determine the position of the fund and when a fund should be sold. A sell-side analyst is the highly paid career when it comes to big investment banks. 

Investment banking and Equity Analyst: Financial Analyst employed in investment banking firms are known as investment banking analysts. He or she plays a crucial role in determining if a certain deal is feasible or not. Such deals may include initial public offerings, mergers and acquisitions. These analysts are responsible for assessing current financial conditions and rely heavily on forecasting and modelling to make recommendations. There are also equity analysts who provide support to banks in making buying and sell decisions to determine beneficial IPO opportunities. A career as equity analyst is considered as the highest paying profession in the field of financial analysis.

A career as a financial analyst requires me to stay involved in gathering information on macroeconomy and specific companies. They stay focused on the fundamentals of microeconomics on their balance sheet. Analysts go through a lot of reading everyday to keep themselves on top of financial news. The major publications they read are The Wall Street Journal, The Financial Times and The Economist. A financial analyst may often require to work beyond office hours. During office hours, financial analysts are involved in working with spreadsheets, crushing numbers into databases. They are responsible for crafting detailed presentations and reports.

Does Financial Analyst require travelling?

Likely

A career as a financial analyst often involves travelling. Financial analysts are required to visit companies to get their operations reviewed. They attend conferences and discuss things with related professionals who share their specialty.

Employment Shifts

Full Time, On Call

Financial analysts are employed on a full-time basis. They also offer their services on call. Due to COVID-19 spread, financial analysts are working from home now-a-days. A financial analyst  may work on rotational shifts. He or she may work from early morning to evening, after noon to midnight and midnight to early morning.

Employment Nature

Contractual, Permanent

A financial analyst may find employment opportunities on contractual as well as permanent basis.

Work Place

Office

A financial analyst works in an office environment. It is a desk based job. He or she is often required to travel to meet clients or visit companies.

Presence in Geographical Area

Semi-urban, Urban

A career as financial analyst is a booming career with alluring opportunities in urban locations. The major locations that provide a promising career as financial analyst are Hyderabad, Mumbai, Pune, Kolkata, Kanpur and New Delhi.

Time Pressure

Likely

Yes, there is a frequent time pressure in the financial analyst job to complete tasks. They have to keep their eye on the share market and research on market trends to make future predictions.

Overtime Details

Financial Analysts are often required to work extended office hours. 

Weekly Hours of Work

Min 40 Hours

A financial analyst works a minimum of 40 hours a week. 3 out of 10 financial analysts work extended office hours.

Accounting proficiency: Aspiring individuals must possess accounting skills as it is crucial to work effectively in the financial industry. He or she must understand accounting principles, standards and techniques, cost analysing and reduction, managing cash flow, calculating budget, general ledger, reconciling bank statements and other things. 

Interpersonal skills: Interpersonal skills are important for various roles as well as financial analyst. It is crucial to interact effectively with investors and colleagues also. Financial analysts are often required to collaborate with teammates while performing analytical tasks. 

Communication skills: A financial analyst must possess written as well as verbal communication skills. It includes writing emails, leaving phone messages, sharing effective words with an investor in a discussion based on financial matters. He or she must also be able to utilise nonverbal communication.

Problem Solving Ability: A financial analyst plays the role of problem-solver in matters of finance. He or she must be able to analyse the problem and resolve it. A financial analyst is somehow responsible for the outcome of gaining investors as they possess the ability to handle financial issues with creative solutions. 

Financial Knowledge: Financial Literacy is an important aspect of the career as a financial analyst. He or she must be able to decipher the financial situations on the basis of analysis of the current investment market, financial currents events and interest rates. 

Financial Analyst: A financial analyst is a professional employed in the finance-based industry. He or she stays involved in the market research to forecast future trends,  creating financial reports based on analysis and making recommendations. The job of financial analyst may vary depending on the workplace. 

Portfolio Manager: A portfolio manager is a mid-level finance-based career. He or she works with a group of people to make recommendations for investment in mutual, exchange-traded or closed-end fund’s assets. He or she implements investment strategy to manage day-to-day portfolio trading. 

Chief Financial Officer: A chief financial officer is a senior-level professional who is responsible for overseeing financial operations of a company. He or she tracks cash flow and financial planning including analysing the financial strength of the company. 

Chief Investment Officer: A chief investment officer is a senior-level financial career. He or she is responsible for overseeing a team of professionals who is involved in the management and monitoring of investment activities. It includes pension funds, investor relations and working with external analysts. 

There is a continuous increasing demand for financial analysts. Investment activities have also increased by time. There is a requirement for qualified analysts for investment planning. The employment opportunities are going to grow as the need for qualified professionals for financial analysis is expected to grow. 

There is a steady expansion in the financial market in India. Therefore, it has resulted in the rise of numerous jobs in the financial sector. The financial centres of India are concentrated in Pune,  Bengaluru, Chennai, Kanpur, Ahmedabad, Mumbai and Kolkata. One can find numerous opportunities in IPOs, FDI, FII and other financial establishments.  Nowadays, people are more aware about making investments in the financial sector. This fact is giving rise to numerous mutual fund companies. These companies require skilled financial analysts. Investment banking is also expanding vastly. It will further contribute to increased employment opportunities for financial analysts.