Financial Analysis

As a financial Analyst you will be playing a significant role in a highly data-driven industry, by providing decision-makers with the financial information they need to manage assets successfully and increase revenue.

What do Financial Analysts do

Financial analysts analyse and interpret financial statements, market trends, past transactions and microeconomic conditions in order to offer recommendations on potential business deals and decisions. They also make assessments of the performance of stocks, bonds, and other types of investments. They aggregate and interpret a large amount of complex financial data and create financial models that can predict the outcome of certain business decisions.

What does a typical day at work involve?

  • Checked Checking the news for any relevant releases or developments concerning the market , updating data and alerting administrators about the change
  • Checked Contacting or meeting in person with colleagues, presenting investment ideas and meeting with clients or potential clients
  • Checked Assessment and review of financial situations
  • Checked Planning projects, schedules and calendars around the ebb and flow of the market
  • Checked Analysing collected data and financial models
  • Checked Preparing written reports of the findings and analysis and presenting to government and non government officials
  • Checked Contacting investors and networking with contacts to grow the business
  • Checked Reviewing reports and releases to better plan for the next day
  • Checked Recommending financial plans to increase the profit and returns for the company

Job roles in Financial Analysis

Rating analysts conduct evaluation of the ability of companies or governments to make repayment of debts, including bonds and gives a risk rating for the company or government.
Risk analysts evaluate the risk in investment decisions and find ways to limit potential losses and manage unpredictability . They help make investment decisions regarding selection of stocks or combination of stocks, bonds, and mutual funds in a portfolio.
Portfolio managers select suitable products, industries, and regions for their company’s investment portfolio. They explain investment decisions and strategies to stakeholders and are responsible for the overall performance of the portfolio.
Fund managers deal exclusively with the management of hedge funds or mutual funds. They make buy or sell decisions, reacting promptly to changing market conditions.

How to become a financial analyst?

Step 1
Take any Stream at +2 level

Students who wish to pursue a career in financial analysis can take up any stream at plus two level, but taking Commerce or Science would give you an edge in handling numerical data, statistics and analytics in the future.

Step 2
Take any Bachelor’s degree

Having a graduate degree is essential to pursue higher studies in financial analysis. Bachelor’s degree in Economics, Commerce or Finance related subjects would be of advantage.


Note:

Take the CFA program of 4 years either after completing or during final year of bachelor’s degree. This is offered in a self study format and is divided into three levels of exams, after clearing all the levels you will get the certification from CFA institute.

Step 3
Take any an MBA/ MSc in Financial Analysis

These are 2 years programmes which may include integration with Industry to provide real life experience.

Financial Analysis Colleges

Name State District Type Website Course

Requirements for masters in financial analysis

Requirements for admission into a PG course in one of the top institutions to help you get an overall picture

India (For admission into MBA in Financial Analysis - International College of Financial Planning)

  • The candidate must possess a Bachelor’s Degree with a minimum of 45%
  • ICoFP’s entrance exam (I-NET) or qualification in CAT/ MAT
  • Group Discussion
  • Personal Interview

Foreign (For admission into Masters in Financial Analysis (MFA) London Business School, London, United Kingdom

  • A UK 2:1 undergraduate degree or its international equivalent (Approximately ) in a numerate discipline ideally.
  • GMAT/GRE equivalent score (a minimum of 690 is suggested).
  • Application essays (Describing about yourself and your interests, values and goals.)
  • English Language Requirement : An Overall score of 7.0 in IELTS
  • Based on Personal interview.

To see the entrance exams, scholarships and UG admission details, click here

Skills Required

Analytical thinking

A good financial analyst must possess analytical thinking skills . They look at a situation critically, accurately understand how it works, interpret the implication and then respond wisely.

Written and Verbal Communication

Financial analysts need to communicate clearly to give financial advice as well as inspire trust and develop a strong rapport with the clients. They must have integrity and good judgment to gain clients’ trust.

Accounting Skills

Accounting skills are highly important for financial analysts as they are required to handle recording of accounting transactions. They need to be comfortable reading and discussing financial statements and have a strong understanding of applicable accounting regulations.

Technological skills

Financial analysts need to use their excellent technological skills to find, sort, and process the information in order to make their work much easier and faster . They need to update themselves on available tools which continue to change and evolve.

Team skills

Financial analysts are mostly expected to work with a team. Many times they will mentor junior analysts and create a collaborative culture that will create successful companies.

Industries

  • Checked Banks
  • Checked Finance Consultancies
  • Checked Pension funds
  • Checked Securities firms
  • Checked Insurance companies
  • Checked Corporate businesses

Top companies

  • Checked BCG
  • Checked Travelers
  • Checked CISCO
  • Checked Goldman Sachs
  • Checked Deloitte
  • Checked Edward Jones
  • Checked HP Inc.
  • Checked Morgan Stanley