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!
In this Career Outline
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.
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:
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.
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:
Helps clients achieve financial goals, such as buying a home or funding education. Provides investment advice and develops strategies to meet clients' needs.
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.
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.
Evaluates businesses and markets to recommend buy or sell actions based on financial performance and market trends.
Uses data to set competitive pricing strategies, working across industries to optimize sales and market share.
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!
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