Financial analysts are responsible for assisting their employer to make financially sound decisions. They are entrusted with the financial planning activities for the company. Their primary aim is to use a data-driven approach to anticipate risks and to provide recommendations in the form of financial precautions to the same. They start by obtaining a thorough understanding of the company's objectives and its current status. By forecasting the financial future of the company's revenue and expenditure, the financial analyst shall streamline all relevant processes to improve the financial performance of the company.
They advise companies regarding potential risks and costs associated with any business decision based on detailed predictions about the outcomes of these decisions. Their work is important for a company to increase revenue by maximising upon investment opportunities, reduce costs, and manage assets. A financial analyst is crucial to the fiscal health of a company. They drive the company's present value and future performance in terms of business.
Typical day at work
Following are the duties of a financial analyst:
Abilities and Aptitude needed
For one to be adept at this job, strong quantitative skills are required, with excellent critical thinking skills and superior analytical abilities. Proficiency in financial modelling practices along with the advanced knowledge of relevant software packages is necessary to analyze data, monitor trends, and perform financial forecasts. Ease in interacting with the upper-level executives supplemented by the ability to report financial data and communicate findings through clear and concise written reports or presentations is another necessary factor. Interpersonal skills must be developed excellently since they shall be frequently put to use.
Additionally, knowledge of the relevant laws and regulatory practices is a must. Business acumen and expert knowledge about the industry and market trends are essential to success in this job. They should continually take measures to stay updated with the current market trends and industry updates. A keen eye for detail and meticulous organization skills shall be required to handle large amounts of data.
Salary information for Financial Analysts in India:
Take the world’s best assessment test !Take a Test
If you survive the first couple of years and are passionate about what you are doing, then, by all means, dream big. But these dreams come at a stiff price, in this case, more hard work in the form of certification. Now, certification is not a must but it will instantly boost your career prospects. you can obtain certification from the Telangana-based Institute of Chartered Financial Analysts of India.
List of common places where you might find internships for Financial Analyst roles are as follows :
Financial analysts are most commonly employed by investment banking firms, research sales and trading, commercial banks, the real estate industry, private equity firms. Among the accounting and finance workforce, these professionals are one of those in most demand. As more businesses are being established and existing ones clamour to expand, there is an increase in demand for a financial analyst to ensure the financial growth of these businesses. It is primarily a desk job with standard business hours of work. The individual shall need to stay on top of all finance related news throughout their career to ensure the reliability of their skills.
Travelling to attend conferences and business meetings can be expected for a financial analyst job. While they work independently, they are also to work collaboratively with professionals from other departments and senior management. It is common for them to become investment advisors or work independently as consultants after spending a considerable amount of time in the industry.
1. What is the qualification for a financial analyst?
Answer: The typical qualification for a financial analyst includes a Bachelor's degree in a relevant field such as Finance, Accounting, Economics, Business Administration, or Mathematics. Many financial analysts also pursue advanced degrees like a Master's in finance or an MBA to enhance their knowledge and competitiveness in the job market.
2. Is it hard to become a financial analyst?
Answer: Becoming a financial analyst can be challenging, as it requires a strong understanding of financial concepts, analytical skills, and the ability to interpret complex data. The educational requirements and competition in the job market can add to the challenge. However, dedication, continuous learning, and practical experience make it attainable for those with a genuine interest in finance.
3. Do financial analysts need CFA?
Answer: While it's not mandatory, obtaining the Chartered Financial Analyst (CFA) designation can significantly enhance a financial analyst's career prospects. The CFA designation is a globally recognized certification demonstrating expertise in investment analysis, portfolio management, and ethical standards. Many employers value and prefer candidates with a CFA designation, especially for asset management, investment banking, and portfolio analysis roles.
4. How do I start a financial analyst job?
Answer: To start a career as a financial analyst, follow these steps:
5. Can I become a financial analyst without an MBA?
Answer: Yes, you can become a financial analyst without an MBA. While having an MBA can benefit career advancement and open doors to certain positions, it is not a strict requirement for entry-level financial analyst roles. A Bachelor's degree in a relevant field and relevant work experience can be sufficient to start a career as a financial analyst. However, pursuing an MBA later in your career may be advantageous for reaching higher-level positions and increasing your earning potential.