Introduction of Financial Analyst
The individual who does financial analysis for external or internal clients is known as financial analyst. Financial analysts help the public decide how to invest their money. There are various other factors such as research analyst, securities analyst, equity analyst or investment analyst which are utilized for financial analyst. Besides financial analysis, a finance analyst show duties like writing reports as a part of brokerage which may include fundamental analysis principles. Additionally, technical chart analysis and politic evaluation of the market environment too are considered basic part of a financial analyst’s employment.
Though slightly different, financial analysts’ work is same as one of financial planners. At times financial analysts employ in close co-ordination with financial planner to reach out to some final decision related to investment options. The main part is that financial analysts possess greater level of expertise over financial analysis and finance management. Offering investment suggestions to customer, evaluation of the economic outlook of various sectors and industries for organizations are some other roles bestowed on financial analysts.
Various Roles, various Names
Technological input is tough part of financial analyst’s job wherein he uses different software packages specifically build for financial services e.g.ERP, spreadsheets, etc. Depending upon the academic eligibility, work experience and talents, the role is given to finance graduates in a finance organization. Different roles or work profiles are as follows for finance professionals employing as financial analyst:
| Chartered Accountant trainee | Financial Analyst |
| Junior Financial Analysts | Analyst-Back office |
| Management Trainee – Finance | Research Analyst – Option Strategist |
| Accounts Trainee | Assistant Consultant – Business Analyst |
Market Watch
With development in the financial market in India there has been majestic growth in financial jobs so that powerful management can be done. The financial centers of Mumbai, Kolkata, Ahmedabad, Chennai, Kanpur, Delhi, Pune, Bangalore, etc have the lot of jobs for financial analysts. Post-liberalisation, there has been boundless growth in job opportunities in IPOs, FII, FDI, etc which need expert knowledge of finance and in impact the financial analysts.
The market for mutual funds is developing and upcoming mutual fund firms need talented and trained financial analysts so that they can describe a niche in finance market. Moreover, investment banking is expected to develop and it would definitely need the services of eligible financial analysts so that funds can be constructed and assessment for mergers and buyouts can be done in the civil manner. There would be raised demand for financial analysts to do analysis of sales, commodity prices, costs, tax rates and expenses of financial company.
International Focus
Based upon the caliber and capabilities, international career for financial analysts is start. World-famous finance firms such as CitiMartgage. Inc, Wells Fargo Bank, Bank of America, PNC Bank, National Association, National City Bank, Technology Credit Union, etc hire students from different parts of the world. Additionally, extra-ordinary skill of a financial analyst can create career in stock market firms like Tokyo Stock market, London Stock market, NASDAQ, Toronto Stock market, Hong Kong Stock market, New York Stock market, etc.
Positives/Negatives
Financial analysis is one of the risk jobs for the reason that the professional is always on his toe the line. He is needed to be well-informed about various occurrence in national and private finance market. Travelling is another tough part of a financial analyst as for his analysis he wants to collect data and resources from different information centers. Therefore, extensive travelling can be a stress at times. Growth opportunities in career of financial analysts are subject to the enhance of finance market and recessions affect difficult.
Attractive growth for extra-ordinarily talented finance professionals fetch youngsters to become a financial analyst. There is no bound for professional enhance in business analysis; particularly investment banking organizations offer stupendously high salaries to be able students. Some popular notch financial analysts can even create a career in media wherein they can apply their views on the state of market, effects of policy changes, company shares, etc.
Step-by-Step
In order to become a financial analyst a student should have done graduation with mathematics as one subject. Additionally, a degree in accounting, business administration, finance or statistics benefits a lot in earning a job in finance organizations. A strong hand in statistics, economics, business, administration and accounting improve the growth potential within an organization. The CFA program given by ICFAI can be done either in full time or part-time based upon the time and interest. There are different other routes for becoming a financial analyst e.g. doing B.com and M.Com, Company Secretaryship, Chartered Accountant, etc.
Start Early
Candidates who wish to create a career in financial analysis must start studying finance and commerce subjects from their school level as several schools offer mercantile law and business management at the time of school level. Along with that, soon after doing 10+2, students can solicit for CA course to become a financial analyst. An aptitude to numbers and finance helps students grow further in career as a financial analyst. Based upon the inclination, one can try for better career as financial analyst known as buy-side analyst whose job is to employ for hedge funds, FOREX, investor relations management, fixed income analysis, etc.
Is it the Right Career ?
Financial analysis as a career choice can be a wonderful decision for those who are best at accounts and have inclination for finance accepts of any organization. Owing to attractive growth opportunities, financial analysis is a top career option where professional uses logical talents, mathematical talents, reasoning and deep knowing of finance to reach onto some final decision. Strong communication and presentation talents are mandatory for a career in financial analysis as the professional is needed to give presentations and demonstrate the decision-making members of the organization about his conclusion or analysis.
Pay Packet
The determination of salary package of financial analyst is done on the basis of talents and knowledge the professional possess. Any beginner financial analyst can get any salary in the range of Rs 15,000- Rs40,000 per each month. After 5 or more years of work experience there is 4 to 5 times growth in the salary package of financial analysts. Eligible CFA can get attractive salaries in the Canada or USA. Indian financial analysts with good exposure and sound presentation talents get employment in multinational hedge fund organizations and financial bodies containing investment banks.
What would it Cost ?
An MBA degree for Financial Analyst may charge around Rs 2,00,000 from popular notch institutes. However, a diploma in financial analysis can be gained paying for Rs 50,000. Though there are several institutes which claim to provide CFA course but only the Indian Association of Investment Professionals has authorized permission to give CFA degree in India. IAIP is affiliated with CFA Institute and provide quality education to interested candidates. Fee package keeps varied which is updated online anytime some changes take place.
Job Prospects
Financial analysts have a lot of job opportunities with insurance firms, banks, securities companies, pension and mutual funds, etc. As the basic skill of financial analysts is to help customers in the investment process, they have their own office and perform independently and expand a sound customer base.
Additionally, they can be done accounts and prepare financial statements, can be done auditing, or assess taxes. Cost accountancy is another section where a financial analyst can excel. Some financial analysts are hired to do special firm work or investigate and assess the financial position of business home for the purpose of problem of new shares, sale or purchase or financing of business, etc. Secretarial job in companies, share valuation and account management, etc are some other duties for financial analysts.
Demand and Supply
The demand for financial analysts will same as the outstrip average demand for all other jobs in coming couple of years. This dissonance will only help aspirant financial analysts in getting hire commission. As a raise in investment activities can be credible in recent years, eligible financial analysts would be needed to help investment planning. Along with that, scarcity of qualified professionals to do prominent financial analysis in India is hope to continue as colleges and financial management collages are not able to meet with internationally established authorized for finance management. Except popular 20 institutes in financial management there are not multi quality institutes.
Tips for Getting Hired
Students should be aware of the factor that financial analysis is career which can fairly be considered tough as what affairs all is the skills and sense. Beginning as an intern with some finance organization helps freshers earn practical knowledge and good exposure. The students can study how to use spreadsheets, PowerPoint presentations, databases, etc which in the end assist him get a job in finance firm. Along with that, studying application software such as ERP can have additional benefit for students when looking for a job as most of the MNCs use such software for optimum output and prefer students who have practical knowledge of these.
As financial analysts need communicating and presenting much information to customer and peers, they must inculcate wonderful communication and presentation talents. Interpersonal talents matters a lot in the career of financial analyst as he communicates a lot with customers, media, regulating authorities, customers, etc. Knowledge and updated information about present finance market definitely helps students boost their scope of getting selected at financial firms as financial analyst.
Top Institutes
Besides doing BCom/MCom or CA and CFA candidates can be done MBA in finance or finance analysis given by different management institutes. Some management institutes provide diploma courses in financial management.Some famous institutes offering courses in financial analysis are mentioned as follows:
| Xavier Institute of Management, Bhubaneshwar | International Management Institute, New Delhi |
| Narsee Monjee Institute of Management, Mumbai | ICFAI Business School, Bangalore |
| ICFAI Business School, Mumbai | ICFAI Business School, Pune |
| SP Jain Institute of Management and Research, Mumba | ICFAI Business School, Chennai |
| ICFAI Business School, Ahmedabad | Birla Institute of Technology and Science, Pilani |
Top Companies
Popular organizations that hire financial analysts are listed below:
| Birla Global Finance Limited | Bajaj Capital Limited |
| Karvy Group | PNB Gilts Limited |
| SBI Capital Markets Limited | L& T Finance Limited |
| Centrum Finance Limited | Housing Development Finance Corporation |
| DSP Merrill Lynch Limited | CIL Securities Limited |
