Financial analysts generally focus on a specific domain, depending on the company they work for. Big insurance companies, IT MNCs and investment banks are some domains where financial analysts are in a major demand. They work with both junior and senior professionals within the company and also suggest a course of action, like for purchasing or selling a company's stock depending upon its current and estimated strength.
Tasks and Responsibilities
In every enterprise, financial analysts are supposed to guide in analysing investment opportunities and making investment decisions. They are often entitled as security analysts and investment analysts. Here are some major tasks:- Evaluating current and earlier data and recommending investments.
- Making spreadsheets and graphs for building financial reports.
- Studying the existent and emerging economic and business trends
- Determining investment risks.
- Doing in-depth study of a company's financial statements.
- Working collaboratively with company’s officials for having a better insight of the company’s policies and targets.
- Meeting with investors for explaining recommendations.
Eligibility
A bachelor's degree in preferably a related field (as accounting, economics, finance, or statistics) is the minimum requirement to become a certified Financial Analyst. Many positions require either a Master of Business Administration (MBA) or a master's degree in finance. The bachelor degree candidates are usually hired as junior analysts and master degree holders are often hired as senior analysts. Note: Candidates with bachelor’s degree in engineering, biology and even physics are also eligible.Skills required
When in the office, analysts learn to be proficient with spreadsheets, relational databases and statistical and graphics packages in order to develop recommendations for senior management and to develop detailed presentations and financial reports that include forecasting, cost benefit analysis, trending and results analysis. Analysts also interpret financial transactions and must verify documents for their compliance with government regulations.
- Analytical skills: Financial analysts must process a range of information in finding profitable investments. They must possess the ability to collect and analyze information. The must also have the ability to visualize and resolve potential risks and problems.
- Decision-Making skills: Financial analysts are required to give recommendations regarding major investments. Decision making skills are thus very important in making business decisions.
- Detail Oriented skills: Financial analysts must be able to look into to details when reviewing possible investments. This is because even a small chunk of information might have large implications about an investment.
- Mathematical skills: Financial analysts use mathematical skills when estimating the value of financial securities. Calculation, comparing and budgeting involve strong mathematical skills
- Technical skills: Financial analysts must have skills to work essential software for analyzing financial data, finding trends, building portfolios and making predictions.
Certification
Although it’s not a mandate, certifications add to professional value and are preferred by some potential employers. Financial analysts can become a Chartered Financial Analyst (CFA), sponsored by the CFA Institute. For this, the applicants must hold a bachelor's degree and at least four years of related work experience, and then clear three exams which might requires a great effort and hard work.Career Prospects
There is great demand for Financial Analysts in the banking sector and big enterprises. The following graph shows the estimated increase in job opportunities for Financial Analysts.
If you’re interested in building your career as a financial analyst, you can post your requirement here.
