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Who is a Financial Analyst?
A career as Financial Analyst is all about providing recommendations on matters of financial investments to increase profitability. Are you passionate about businesses and mankind's investments to grow them? 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 Financial Analyst.
If you are thinking about what is Financial Analyst or Financial Analyst meaning then read further to know all the details in this article. 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 assess the performance of stocks. Students can pursue B.Com, BBA, or M.Com degrees to become Financial Analyst. We will also discuss Financial Analyst vacancy and is Financial Analyst a good career?
Financial Analyst in a Nutshell
A financial analyst job is based in the finance industry. He or she stays involved in market research to analyze the trends, and 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. Here we have discussed how to become a financial analyst in India, the financial analyst career path in India, and financial analyst qualifications.
Quick Facts for Financial Analyst
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Industry
Finance
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Suitable for
Male, Female, Others
A career as Financial Analyst is suitable for everyone regardless of their gender identity. Whether a person is male, female, or belongs to any other gender, he or she can become a financial analyst.
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Any special needs
Yes
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 traveling to outdoor locations with negligible fieldwork.
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 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 and analyzing its overall performance and outlook. Not all financial analysts work with stock or bond markets. A financial analyst provides financial data and analyzes trends to consider clients’ financial situations and predict deal outcomes and more.
Several financial analysts stay involved in utilizing marketing techniques relative to cost based on overall performance. They often find the best practices to streamline recruitment processes to save a huge sum of money. Financial analyst career path in India may often come with varying work responsibilities in financial management depending on workplaces such as investment banks, insurance companies, start-ups, or pension funds. A financial analyst may work for local and regional banks, real estate investment brokerages, and data-driven insurance companies. A financial analyst can anywhere add value where it is required to make weighty decisions about investments.
Financial forecasting
A finance 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 analyze past trends to predict the future and make recommendations for improvements. He or she works closely with the accounting team and evaluates the financial performance by making comparisons and analyses 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 a 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 the creation of ad hoc reports, tools, and excel dashboards.
Types of a Financial Analyst
Concerning the broad financial analyst career path, there are types of financial analysts with varying job titles. The financial industry employs numerous individuals based on the requirements and the size of financial institutions.
We have described three major types of a financial analysts
Buy-Side Analyst: A career as a buy-side financial analyst provides support to employers in making the right decisions to spend money. It includes making investment decisions in stocks and other securities. Whether it is about making an 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 on 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 buying or selling stocks, property, or other investments. A sell-side analyst is involved in tracking 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 a highly paid career when it comes to big investment banks.
Investment banking and Equity Analyst: Financial Analysts 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 selling decisions to determine beneficial IPO opportunities. A career as an equity analyst is considered the highest-paying profession in the field of financial analysis.
What is the workplace/work environment of Financial Analyst like?
A career in Financial analyst requires staying involved in gathering information on the macroeconomy and specific companies. He or she stays focused on the fundamentals of microeconomics on their balance sheet. A career as financial analyst goes through a lot of reading every day 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, and 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 traveling. Financial analysts are required to visit companies to get their operations reviewed. They attend conferences and discuss things with related professionals who share their specialties.
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 nowadays. 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 a contractual as well as a permanent basis.
Work Place
Office
A financial analyst career path requires one to work 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 frequent time pressure in the financial analyst job to complete tasks. They have to keep their eye on the share market and research 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.
How to become a Financial Analyst?
Steps to become a Financial Analyst
What are the skills and qualities required to become a/an Financial Analyst?
When it comes to a career as Financial Analyst one must possess some skill sets. Here we have some of the important skills required in a financial analyst career path are:
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 analyzing and reduction, managing cash flow, calculating a budget, general ledger, reconciling bank statements, and other things.
Interpersonal skills: Interpersonal skills are important for various roles as well as for financial analysts. 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, and sharing effective words with an investor in a discussion based on financial matters. He or she must also be able to utilize 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 analyze 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 financial analyst career path in India. 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.
Popular Online Finance Courses and Certifications
Which certifications and internships can be helpful in becoming Financial Analyst?
Internship Availability
Internships play a crucial role in the initial level of building up a successful career as financial analysts. Aspiring candidates enrolled in the bachelor’s degree programme can opt for internships during semester breaks. There is a lot of scope of financial analyst to 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 are 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 market research to forecast future trends, create financial reports based on analysis, and make recommendations. The job of a 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 assets. He or she implements an 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 the financial operations of a company. He or she tracks cash flow and financial planning including analyzing 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 are 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
Portfolio Manager
- Starting Salary 42390
Job Description
A senior financial analyst can progress up to the level of the 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.
Salary Description
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
Job Description
A chief financial officer is a senior-level professional 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.
Salary Description
The salary of a chief investment officer varies depending on his or her skills, experience, and the size of the organization. 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 continuously increasing demand for financial analyst jobs in India. Investment activities have also increased over time. There is a requirement for qualified analysts for investment planning. 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 analyst career path 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 of 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 an increased financial analyst career path.
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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 get 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 the top colleges that offer an M.B.A degree.
K.J. Somaiya Institute of Management Studies and Research, Mumbai
Que. What is finance analyst?
Ans.A finance analyst provides guidance to businesses and individuals to make wise investment decisions. He or she does market research to analyze trends, stocks, or any other business investment or ideas.
Que. What is the work of financial analyst?
Ans.The financial analyst is to advises individuals or business investment ideas and helps them to make correct investment decisions and improves financial performance by analyzing, reports, operations metrics tracking, financial data, developing financial models, and market research.
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Questions related to Financial Analyst
Is being a pharmaceutical financial analyst a good career option in India ? Which company can hire them?
Hello Candidate,
After the covid pandemic spread out to the world the most prominent field which has gained massive increase in its sales and has boosted its research and development unit is the Pharmaceutical sector.
Here is a list of some of the top recruiting companies for pharmaceutical industries in India- Sun pharmaceuticals, Divis Laboratories, Dr. Reddy's Lab, Cipla Ltd, Cadila Healthcare, Lupin Pharmaceuticals, Torrent Pharmaceuticals, Abbott India Limited, are some of them.
Hope you found it helpful. If you have any further queries feel free to post it here!!
Answer laterSelect your reason of reporting
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