- Financial Analyst
Who is a Financial Analyst?
Are you passionate about businesses and mankind investments to grow it? Are you curious about the bear and bull of the stock market? You might not own a business. But, you can make a career in which you can provide the best ideas to individuals and businesses to grow their net worth by making accurate investments. Yes, you are right we are talking about a career as a financial analyst. Financial Analyst Definition: A financial analyst can be defined as a professional responsible for providing accurate guidance to businesses and individuals to make investment decisions and assessing the performance of stocks. A financial analyst stays involved in aggregating financial data and analysing trends to consider clients’ financial situation and predict deal outcomes and more.
Financial Analyst in a Nutshell
A financial analyst job is based on the finance industry. He or she stays involved in market research to analyse the trends, history of companies to forecast future investments. A financial analyst is a desk based profession. He or she is often required to travel to meet clients and visit companies. A financial analyst is responsible for providing recommendations on the matters of financial investments to increase profitability.
Quick Facts for Financial Analyst
Male, Female, Others
A career as a Financial Analyst is suitable for everyone regardless of their gender identity. Whether a person is male, female or belong to any other gender, he or she can become a financial analyst.
Any special needs
Candidates with special needs can also opt for a career as a financial analyst. It is more of a desk-based job that requires minimal travelling to outdoor locations with negligible field work.
Table of Contents for Financial Analyst
What is the role of 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.
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.
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.
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.
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.
Types of a Financial Analyst
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.
What is the workplace/work environment of Financial Analyst like?
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?
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.
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.
A financial analyst may find employment opportunities on contractual as well as permanent basis.
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
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.
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.
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.
How to become a Financial Analyst?
What are the skills and qualities required to become a/an Financial Analyst?
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.
Which certifications and internships can be helpful in becoming Financial Analyst?
Internships play a crucial role in the initial level of building up a successful career as a financial analyst. Aspiring candidates enroled in the bachelor’s degree programme can opt for internships during semester breaks. They can find numerous internship opportunities at investment banks, mutual fund companies and other financial institutions. A two to sixth month duration of internship and completion of a bachelor’s degree programme is sufficient to get a full-time job role.
Career Path Progression for Financial Analyst
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.
Financial Analyst Jobs and Salaries
- Starting Salary 42390
A senior financial analyst can progress up to the level of portfolio manager. A portfolio manager is responsible for making investment decisions. He or she works with individuals and businesses to manage a group of assets and investments.
The portfolio manager salary varies depending on his or her skills and experience. An entry-level portfolio manager could earn more than Rs. 500,000 per annum. While a senior-level portfolio manager earns more than Rs. 2,000,000 per annum.
Chief Investment Officer
- Starting Salary 250000
A chief financial officer is a senior-level profession in the industry of finance. He or she is responsible for raising capital and negotiating investment deals. A chief financial officer holds the responsibility of managing fund portfolios to increase profitability. He or she does market research on investment options and researching companies.
The salary of chief investment officer varies depending on his or her skills, experience and size of the organisation. An entry-level chief investment officer could earn more than Rs. 3 million per annum. A mid-level chief financial officer could earn more than Rs. 10 million per annum. A senior-level chief financial officer could earn more than Rs. 12 million per annum.
What is the job outlook for Financial Analyst?
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.
Frequently Asked Questions for Financial Analyst
Que. What is the average salary of a Financial Analyst?Ans.
A financial analyst salary is one of the alluring salaries as compared to other professions. A financial analyst with an entry-level experience can earn anywhere between Rs. 15,000 to Rs.40,000 per annum.
Que. What is the required certification to work as a Financial Analyst?Ans.
Individuals with Certified Financial Analyst certification gets alluring opportunities and higher pay packages.
Que. What are the related degrees to establish a career as a Financial Analyst?Ans.
An M.B.A. in finance is the most relatable degree to establish a career as a financial analyst.
Que. What are the locations that ensure promising career opportunities?Ans.
The top cities that provide promising career opportunities are Hyderabad, Kanpur, Kolkata, Pune, Mumbai and New Delhi.
Que. What are the colleges of Financial Analyst?Ans.
We have mentioned below top colleges that offer an M.B.A degree.
You might also be interested in
Career in Defence after Engineering - Check out all the ways through which the aspirant...
Career in Information Technology - Find the best IT career for you. Know what is Inform...
Career after ITI - Check out career options after engineering and non engineering ITI c...
Career after Polytechnic - Get complete details about career options after polytechnic...
Career options after B. Tech ECE - Check here the career and job opportunities that you...
Career options after B.Tech CSE - Check here the career and job opportunities that you ...
Career options after B.Tech - Know all about career, scope, jobs, salary and exams aft...
Select your reason of reporting