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How to Become a Financial Analyst?

Explore the essential steps to become a Financial Analyst, including eligibility criteria, key skills, and top colleges offering relevant courses. Your journey to a fulfilling career begins here!

Published By Team SetMyCareer
Last Updated: 10 August 2024
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In this Career Outline


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Introduction to Financial Analyst

“A financial analyst must have the ability to interpret data in a way that tells a compelling story about where a company is headed.” — Warren Buffett

Financial analysts assess a company's condition, analyze economic trends and market conditions to make predictions, and provide monthly reports to executives for decision-making. They may not always work in banking; for instance, they might evaluate the cost-effectiveness of marketing initiatives. These professionals use their expertise in statistics and finance to provide business recommendations based on market analysis and economic conditions. Financial analysts develop models to forecast the impact of business actions, gathering extensive financial data and considering market trends and past performance.


Steps to Become a Financial Analyst:

Step-1

Begin with a degree in finance, accounting, economics, or a similar field.

Step-2

Internships or entry-level positions in finance or accounting can provide hands-on experience.

Step-3

A Master’s in Finance or an MBA can enhance your career prospects.

Step-4

Consider certifications like CFA (Chartered Financial Analyst) for advanced credibility.

Step-5

Proficiency in financial modeling, Excel, and statistical analysis is crucial.

Step-6

Follow market news, economic reports, and financial trends regularly.

Step-7

Connect with industry professionals and join finance-related groups or organizations.

Eligibility Criteria

Eligibility Criteria Description
Eligibility Must possess at least 50% aggregate from a recognized institution (PUC/CBSE/ICSE/ISC, etc.)
Educational Background High school diploma or equivalent.
Undergraduate Degree B.A, B.Com, BBA, or a relevant diploma in a related area.
Postgraduate Degree MBA in Finance for advanced learning and career opportunities.
Entrance Exams Valid score in CAT, MAT, CMAT, or equivalent; or institution/state-specific exams.

  • Must have at least 50% in 12th grade from any recognized board. Cut-off percentages vary by college.
  • Must achieve a valid score in Entrance exams after 12th like CAT, MAT, or CMAT. Some colleges have their own exams.
  • A B.A/B.Com/BBA degree or Diploma is required to become a Financial Analyst.
  • An MBA in Finance can enhance career opportunities and knowledge.

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Not eligible to pursue this career?


Find out different career options based on your current academic accomplishments. Enquire with our career experts and build a roadmap to your career success!

Tasks to perform as a Financial Analyst:

To find answers to financial problems or to analyze the financial or capital effect of transactions, use financial models.

Analyze financial data to anticipate organizational, industrial, or financial circumstances to help you make better investment strategies.

Analyze statistics from financial magazines and companies, investments banking companies, government entities, trade journals, corporate resources, or individual interactions to keep track of basic macroeconomic, technological, and organisational changes.

Comment on broad economic trends, particular businesses, and whole industries orally or in writing.

Propose investments and scheduling to businesses, investment company employees, or the general public.

Knowledge & Skills Required

Financial Analysts must possess a wide array of skills to succeed in their careers. Here are the key knowledge areas and skills needed to excel in this field:

Knowledge Required
Knowledge of balance sheets, income statements, and cash flow statements. Methods for preparing and analyzing budgets and forecasts.
Knowledge of capital structure, financing, and investment decisions. Understanding of accounting standards and practices.
Skills in creating financial models for forecasting and valuation. Knowledge of global accounting standards.
Skills Required
Mathematical Proficiency Industry Knowledge
Technical Skills Time Management
Communication Problem-Solving

Understanding What are soft skills? and why is it important,as they complement technical abilities and enhance overall performance in the field of Financial Analyst.

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The Knowlegde and Skills don't intrigue you?


The reason is that your interests don't align with this career. Identify your interests and match them with careers that require those skills. This alignment will help you grow and succeed in your career faster than you might expect!

Job roles offered for a Financial Analyst:

After becoming a Financial Analyst, you can explore several career paths:

Financial Advisor:

Helps clients achieve financial goals, such as buying a home or funding education. Provides investment advice and develops strategies to meet clients' needs.

Chief Investment Officer (CIO):

Manages a company's investment strategies, makes recommendations, and oversees a team to maximize shareholder returns. CIOs work with boards and may need to travel for meetings.

Corporate Treasurer:

Manages financial risks, develops guidelines to protect corporate assets, and interacts with various financial specialists. This role has evolved from finance departments to a standalone function.

Securities Analyst:

Evaluates businesses and markets to recommend buy or sell actions based on financial performance and market trends.

Pricing Analyst:

Uses data to set competitive pricing strategies, working across industries to optimize sales and market share.

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Not sure where you fit in?


With the wide variety of careers and job roles available, pinpointing the best option for you can be challenging. Thorough analysis and dedicated sessions can provide clarity on what to study, which industry and role to pursue, and the most suitable career path to follow.

Career Opportunities for a Financial Analyst:

Financial Analysts can opt for various fields of work in the companies listed below:

Amazon Oracle NatWest Group
IBM Red Hat Western Digital
Accenture Deutsche Bank Medline India
American Express

Colleges offering courses for Financial Analyst:

Here is the list of colleges offering the Best courses after 12th:

St. Xaviers College, Ranchi KJ Somaiya College of Science and Commerce, Mumbai
PSGR Krishnammal College for Women, Coimbatore Sri Krishna Arts and Science College, Coimbatore
JBIMS Mumbai - Jamnalal Bajaj Institute of Management Studies BJB Autonomous College, Bhubaneswar
Karmaveer Bhaurao Patil College, Vashi Samrat Prithviraj Chauhan Government College, Ajmer
Serampore College, Serampore School of Distance Education, Andhra University, Visakhapatnam

End Note

Becoming a Financial Analyst can open doors to numerous opportunities in the finance world. By following these steps and acquiring the necessary skills, you’ll be well on your way to success. Need more Career counselling after graduation and guidance? Reach out to SetMyCareer and let us help you navigate your career path!