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Who is a Financial Analyst?
A financial analyst helps businesses and individuals make smart investment decisions. They study market trends, review company performance, and predict future outcomes based on data. Their insights guide clients or companies in managing money wisely. Financial analysts rely heavily on their analytical and mathematical skills. They often work with investment banks, insurance firms, mutual funds, and hedge funds. To become a financial analyst, you can pursue a degree in B.Com, BBA, or M.Com.
Financial Analyst in a Nutshell
A financial analyst studies financial data to help businesses make informed decisions on investments, budgeting, and risk management. They work across sectors like banking and corporate finance, often specialising in areas such as equity research. The role requires strong analytical skills, financial modelling expertise, and usually a degree in finance or economics, with advanced certifications like CFA adding value.
Quick Facts for Financial Analyst
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Industry
Finance
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Average Salary in India
₹50500
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Suitable for
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 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 travelling to outdoor locations with negligible fieldwork.
Table of Contents for Financial Analyst
What is the role of Financial Analyst?
A career as a financial analyst involves recommending a course of action to buy or sell a company's stock and analysing its overall performance and outlook. Financial analysis is not just related to working with stock or bond markets. A financial analyst provides financial data and analyses trends to consider clients’ financial situations and predict deal outcomes and more.
Several financial analysts stay involved in utilising 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. They may work for local and regional banks, real estate investment brokerages, and data-driven insurance companies. They can anywhere add value where it is required to make weighty decisions about investments.
A financial analyst 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 the financial performance by making comparisons and analyses 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 a comparative analysis.
He or she is responsible for identifying and driving process improvements that include the creation of ad hoc reports, tools, and excel dashboards.
Also check in details - Financial Analyst Job Description & Roles and Responsibilities
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 financial analyst or finance analyst career options.
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 a 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 be required 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 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 specialities.
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.
How to become a Financial Analyst?
Steps to become a Financial Analyst
If you are someone who is interested in financial investments, analysing and providing accurate guidance to businesses and individuals then a career as a Financial Analyst is the best option for you. If you are looking for the details on how to become a Financial Analyst then below we have provided the steps for how to become a Finance Analyst in India.
What are the skills and qualities required to become a/an Financial Analyst?
When it comes to a career as a Financial Analyst one must possess some skill sets. Here we have some of the important skills required in a financial analyst career path:
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 analysis 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. 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 current events, and interest rates.
Which certifications and internships can be helpful in becoming Financial Analyst?
You can also opt for an additional short-term certification course to gain more knowledge and enhance your skills. Pursuing a specialised certification is not mandatory but it is recommended. As CFA is the most recognised course to become a Financial Analyst, we have discussed some more courses and certifications which equip individuals with the skills required to function as a financial analyst.
Internship Availability
Internships play a crucial role in the initial level of building up a successful career as a financial analyst. Aspiring candidates enrolled in the bachelor’s degree programme can opt for internships during semester breaks. There is a lot of scope for financial analysts to find numerous internship opportunities at investment banks, mutual fund companies, and other financial institutions.
Financial Analyst Jobs and Salaries
Junior Finance Analyst
- Average Salary 23000
Job Description
The Junior Finance Analyst job description includes analysing financial data and supporting forecasting. A junior financial analyst compiles the data into reports and carries out different types of analysis based on key metrics.
Salary Description
The estimated average salary for a Junior Financial Analyst is Rs 4,81,688 per year in India. The Junior Finance Analyst salary in India may vary depending on the various job factors.
Salary Source: Glassdoor
Senior Finance Analyst
- Average Salary 78000
Job Description
Senior Finance Analyst job description includes exploring investment opportunities and setups and evaluating profit plans. The Senior Finance Analyst evaluates the current capital expenditures and depreciations and oversees financial functions.
Salary Description
The estimated average salary for a Junior Financial Analyst is Rs 1000000 per year in India. The Senior Finance Analyst salary in India may vary depending on the various job factors.
Salary Source: Glassdoor
What is the job outlook for Financial Analyst?
There is a continuously increasing demand for financial analyst jobs in India. 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. One can find numerous opportunities in IPOs, FDI, FII, and other financial establishments. Investment banking is also expanding vastly. It will further contribute to an increased financial analyst career path.
Frequently Asked Questions for Financial Analyst
Que. What are the colleges of Financial Analyst?
Ans.We have mentioned below the top colleges that offer an M.B.A degree are IIM Kozhikode, NDIM Delhi, IIM Lucknow, K.J. Somaiya Institute of Management Studies and Research, Mumbai and Symbiosis Institute of Management Studies, Pune.
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 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 analyse 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 analysing, reports, operations metrics tracking, financial data, developing financial models, and market research.
Que. What does a financial analyst do?
Ans.The financial analyst provides assistance to businesses and individuals on financial aspects. He or she oversees the functions of the finance of the business.
Que. How many hours do financial analysts work?
Ans.A financial analyst works a minimum of 40 hours a week. 3 out of 10 financial analysts work extended office hours.
Que. Is it hard to become a financial analyst?
Ans.Becoming a Financial analyst might be easier if you are interested in finance, accounting, business and hard work.
Que. What does a financial analyst do?
Ans.The financial analyst provides assistance to businesses and individuals on financial aspects. He or she oversees the functions of the finance of the business.
Que. How many hours do financial analysts work?
Ans.A financial analyst works a minimum of 40 hours a week. 3 out of 10 financial analysts work extended office hours.
Que. Is it hard to become a financial analyst?
Ans.Becoming a Financial analyst might be easier if you are interested in finance, accounting, business and hard work.
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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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Did you know?
Fact 1
Financial analysis grew post-1929 crash to rebuild investor trust.
Fact 2
The CFA charter began in 1963 and now has 190,000+ holders globally.
Fact 3
India saw a 45% rise in demand for financial analysts in 5 years.
Fact 4
Mumbai employs over 30% of India’s financial analysts.
Fact 5
Global financial analyst jobs are set to grow 8% by 2030.
