Financial Analyst

Introduction

 

The person who does financial analysis for external or internal clients is called financial analyst. Financial analysts help people decide how to invest their money. There are various other terms such as securities analyst, research analyst, equity analyst or investment analyst which are used for financial analyst. Besides financial analysis, a finance analyst performs duties such as writing reports as a part of brokerage which may contain fundamental analysis principles. Additionally, technical chart analysis and tactical evaluation of the market environment too are considered cardinal part of a financial analyst’s job.

Though slightly different, financial analysts' job is like one of financial planners. At times financial analysts work in close coordination with financial planner to reach out to some conclusion related to investment choices. The essential part is that financial analysts possess higher level of expertise over finance management and financial analysis. Offering investment suggestions to clients, evaluation of the economic outlook of different sectors and industries for organizations are some other duties bestowed on financial analysts.

Step-by-Step

In order to become a financial analyst a candidate must have done graduation with mathematics as one subject. Additionally, a degree in business administration, accounting, finance or statistics benefits a lot in getting a job in finance organisations. A strong hand in statistics, business, economics, administration and accounting enhances the growth potential within an organisation. The CFA program offered by ICFAI can be done either full time or part time depending upon the time and interest. There are various other routes for becoming a financial analyst e.g. doing B.com and M.Com, Chartered Accountant, Company Secretaryship, etc.

Is it the Right Career for Me?

Financial analysis as a career option can be an excellent decision for those who are good at accounts and have inclination for finance side of any organisation. Owing to attractive growth prospects, financial analysis is a popular career choice where professional uses mathematical skills, logical skills, reasoning and deep understanding of finance to reach onto some conclusion. Strong communication and presentation skills are mandatory for a career in financial analysis as the professional is required to give presentations and convince the decision making members of the organisation about his conclusion or analysis

Job Prospects

Financial analysts have ample job opportunities with insurance companies, banks, securities firms, pension and mutual funds, etc. As the fundamental skill of financial analysts is to assist customers in the investment process, they can even have their own office and operate independently and develop a sound customer base.
Additionally, they can do accounts and prepare financial statements, do auditing, or assess taxes. Cost accountancy is another segment where a financial analyst can excel. Some financial analysts are hired to do special company work or investigate and ascertain the financial position of business house for the purpose of issue of new shares, purchase or sale or financing of business, etc. Secretarial work in companies, account management and share valuation, are some other works for financial analysts.

Positives/Negatives

Financial analysis is one of the toughest jobs for the reason  that the professional is always on his toes. He is required to be well informed about various happenings in national and domestic finance market. Travelling is another crucial part of a financial analyst as for his analysis he requires to collect data and resources from various information centres. Therefore, extensive travelling can be a trouble at times. Growth prospects in career of financial analysts are subject to the growth of finance market and recessions affect hard.
Attractive growth for extraordinarily talented finance professionals attracts youngsters to become a financial analyst. There is no limit for professional growth in business analysis; particularly investment banking organisations offer stupendously high salaries to able candidates. Some top notch financial analysts can even make a career in media wherein they can put their views on the state of market, company shares, effects of policy changes

Tips for Getting Hired

Candidates should be aware of the fact that financial analysis is career which can truly be considered tough as what matters all is the skills and wisdom. Starting as an intern with some finance organisation helps freshers get practical knowledge and right exposure. The candidate can learn how to use spreadsheets, databases, power point presentations, etc which in the end helps him get a job in finance company. Additionally, learning application software such as ERP can have additional benefit for candidates when searching for a job as most of the MNCs use such software for optimum output and prefer candidates who have practical knowledge of these.

As financial analysts require communicating and presenting a lot of information to clients and peers, they should inculcate excellent communication and presentation skills. Interpersonal skills matters a lot in the career of financial analyst as he interacts a lot with clients, customers, media, regulating authorities, etc.  Knowledge and updated information about current finance market definitely helps candidates boost their chances of getting selected at financial company as financial analyst.
 

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