How to Become a Financial Analyst: A Step-by-Step Guide

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Summary

This blog outlines the key steps to become a financial analyst, from choosing the right education to acquiring essential skills and certifications. Ideal for students and career switchers, it explains how to enter the finance industry, what to study, and how to build a successful, high-paying career in financial analysis.

Introduction

With finance and business thriving, demand for skilled financial analysts is at an all-time high in India and around the world. Recruiters are looking for skilled financial analysts with the talent to interpret numbers and help companies make strategic decisions. Further, the demand for professionals is likely to surge in the coming years, which makes financial analysis as a career all the more interesting and rewarding for aspiring candidates. 

If you prefer to work with numbers and have problem-solving abilities, a career as a financial analyst is just the right job for you. Financial analysts forecast business trends, evaluate investment options, and develop strategies that help shape a company's success. They earn lucrative salaries and ample growth opportunities while gaining experience and expertise. 

In this post, let’s discuss how to become a financial analyst, educational qualifications, skills required, and employment opportunities.

What Does a Financial Analyst Do?

A financial analyst is a finance professional who studies financial data and uses it to guide business decisions, investment strategies, and organisational planning. The financial analyst job description changes depending on the industry and the seniority of the role, but most analysts are expected to handle the following:

• Reading and interpreting financial statements, including balance sheets, income statements, and cash flow reports
• Building financial models to project how revenue, costs, and profits may move over time
• Reviewing investment opportunities and identifying the risks attached to each
• Preparing written reports and presentations for senior management or external clients
• Tracking market trends and economic data to keep forecasts current
• Working with accounting, operations, and strategy teams during financial planning cycles

Financial analysts work in either buy-side roles for institutions that purchase securities such as mutual funds or pension funds, or sell-side roles for entities that sell securities such as brokerages and investment banks. The work differs between the two tracks, but both call for sharp analytical thinking and a solid grounding in finance.

Also Read: How to Become a Financial Analyst in India 

Step-by-Step Guide: How to Become a Financial Analyst in India after 12th

Becoming a financial analyst requires the right mix of education, technical skills, practical experience, and industry knowledge. Follow these step-by-step guidelines to build a strong foundation and prepare for a successful career in finance.

Step 1: Build a Strong Foundation in Class 12 

Class 12 is when this career path starts to take shape. Commerce students with Accountancy, Economics, and Mathematics have a natural head start. Science students with Mathematics can also transition to finance at the undergraduate level. Scoring well in Class 12 matters because many good BCom and BBA programmes have merit-based admissions.

Also Read: Top 12 Career-Boosting Courses After B.Com in 2026 

Step 2: Earn a Relevant Financial Analyst Degree

Whether you are figuring out how to become a financial analyst after BCom or are just starting out after Class 12, the degree you pick will shape the kind of roles you qualify for. BCom and BBA are the two most common starting points:

• Bachelor of Commerce (BCom): Covers finance, accounting, economics, and taxation with a focus on financial analysis fundamentals.
• Bachelor of Business Administration (BBA): Covers management, investments, and core finance concepts from a business perspective.

Step 3: Learn Core Financial Analysis Skills

A degree alone will not be enough. Many financial analyst courses in India teach Excel-based financial modelling, Python for data work, and valuation methods like DCF and ratio analysis. Taking one or two of these while completing your degree will make you far more job-ready than candidates who rely only on classroom theory.

Step 4: Gain Practical Experience Through Internships

Classroom learning and real work are two different things. A 3-month internship at a bank, NBFC, accounting firm, or corporate finance department gives you exposure to how financial decisions actually get made. Recruiters notice candidates who have worked with real data and met actual deadlines, so you must target roles that involve financial reporting, data analysis, or investment research.

Step 5: Earn a Financial Analyst Certification

A financial analyst certification signals to employers that you have gone beyond the basics. The CFA (Chartered Financial Analyst), FRM (Financial Risk Manager), and CFP (Certified Financial Planner) carry the most weight in the industry. Starting one of these while you are still studying or early in your first job gives you a useful edge over other candidates.

Step 6: Build a Financial Analysis Portfolio

A portfolio gives employers something concrete to evaluate beyond your resume. Put together projects such as a stock valuation report, a budget forecasting model, or a brief sector analysis. Sharing these on LinkedIn or GitHub puts you in front of recruiters who are actively looking to fill their vacant roles for financial analyst jobs.

Step 7: Apply for Financial Analyst Roles

With a degree, some internship experience, and at least one financial analyst certification course underway, you are in a good position to apply. Look for roles like Research Associate, Junior Analyst, or Financial Analyst across banks, corporate finance teams, and investment firms. Write your resume to show the tools you know, the projects you have worked on, and any numbers that prove your impact.

Also Read: Financial Analyst Salary in India 2026 Guide

Financial Analyst Eligibility: Criteria and Requirements

The financial analyst education requirements vary depending on the employer and the level of the role, but most hiring in India follows a fairly consistent pattern:

• Financial analyst course eligibility at the entry level typically calls for a bachelor's degree in Commerce, Finance, Economics, or Business Administration.
• A postgraduate degree, such as an MBA Course, is a stronger financial analyst qualification for senior and specialised positions.
• Professional certifications such as CFA, FRM, or CFP are often preferred or mandatory for roles in investment banking, risk management, and financial planning.
• Some employers in corporate finance also consider candidates with CA (Chartered Accountancy) qualifications.

How to Become a Financial Analyst in India: Education Qualification 

If you are looking for information on how to be a financial analyst, below are some of the UG and PG degrees that aspirants can pursue to become Financial Analysts:

1. Undergraduate (UG) Degree: As a first step, candidates can enrol in a UG course to gain a fundamental understanding of general business and financial operations. The most relevant courses that can allow them access to such knowledge are Bachelor of Commerce (BCom) and Bachelor of Business Administration (BBA), among others.

• Bachelor of Commerce (BCom) - BCom equips students with good knowledge of subjects like finance, economics, taxation, and accounting, along with teaching candidates the fundamentals of financial analysis. 
   
• Bachelor of Business Administration (BBA) - BBA, on the other hand, focuses on management procedures as well as concepts of finance and investments.     

2. Postgraduate (PG) Degree: After completing their bachelor's, enrolling in master's degrees helps students to polish their skills and knowledge acquired in the UG courses. They also help candidates to progress in their chosen professional paths. Some relevant PG courses are:

• MBA Finance: An MBA in Finance is an apt course to enhance your financial skills and enter the rewarding field of banking, stock analysis, and so on. Senior analysts, portfolio managers, and financial consultants are among the roles these professionals can perform. 
• MBA in Business Analytics and Data Science: This is another lucrative PG program that allows candidates to delve into the field of financial services and investment banking.    

Further, several professional certification courses can be pursued to upskill your knowledge to become a financial analyst, such as:

• The Charter of the Financial Analyst (CFA)
• Certified Financial Planner (CFP)
• Financial Risk Manager (FRM)

Click here to read this blog:- Benefits of Pursuing a BCom Degree

CFA vs FRM vs CFP: Which Financial Analyst Certification Is Right for You?

The right financial analyst certification depends on where you want to take your career. The table below breaks down the key differences:

If investment analysis and portfolio management are your goals, CFA is the most globally recognised option. FRM works better for professionals who want to work in risk management within banks or insurance companies. CFP suits those who plan to advise individual clients on wealth management and financial planning.

Also Read: FRM vs CFA – Best Finance Certification

Essential Skills Required to Become a Financial Analyst

Along with the relevant education, candidates must also possess the required skills to gain prominence in this field. Here are some skills required for a financial analyst:

1. Good Knowledge of Accounting: Good knowledge of accounting for maintaining balance sheets, cash flow, and income statements is an important skill for financial analysts. 
2. Statistics and Data Analysis: Candidates also need proficiency in SQL, Python, Excel, etc., along with an understanding of the basics of finance and accounting, to become experts in their jobs.
3. Communication Skills: Financial analysts must be good at translating technical financial terms into easy-to-comprehend reports. They should observe raw financial trends and make reports that are easy for top management to understand.
4. Attention to Detail: Precision when preparing models and reports is essential. Hence, attention to detail is an important consideration for financial analysts. Even a minute mistake can result in huge financial losses.
5. Collaboration and Teamwork: Collaboration with colleagues like economists, accountants, and business managers is important for financial analysts based on their specific job requirements. They must be able to work together to contribute to the company's growth. 

Tools Used by Financial Analysts

Most job postings for financial analyst jobs list specific tools as requirements, not preferences. Getting comfortable with these before you start applying will save you time and make interviews easier:

While technical tools are essential, employers also value analysts who can interpret data, communicate insights clearly, and support strategic business decisions. Building proficiency in these tools alongside strong analytical and problem-solving skills will help you stand out in today's competitive financial analyst job market.

Also Read: Financial Analyst Interview Questions to Prepare 

Financial Analyst Salary in India

The financial analyst salary in India depends on experience, industry, location, and qualifications. Below is what professionals at different stages of their career typically earn:

The exact salary ranges depend on the employer and the skills you have. Cities like Mumbai, Bengaluru, Delhi NCR, and Hyderabad pay 20 to 30 per cent more than smaller cities. Roles in investment banking and asset management also tend to pay more than equivalent roles in corporate finance or insurance.

Also Read: Financial Analyst Salary in India 2026 Guide 

Financial Analyst Roadmap: Career Growth at Every Stage

Financial analysis has a fairly predictable career path. Most people can move at the right pace in this industry, and knowing the financial analyst roadmap ahead of time helps you plan certifications and skill-building at the right stages:

Professionals who complete CFA or MBA in Finance while working typically move up faster than those who do not. Focusing on a specific area, such as private equity, risk management, or ESG investing, also opens up more senior roles earlier.

Industries Hiring Financial Analysts

Financial analysts are hired across many industries, not just banking. Knowing where the demand is helps you pick the right financial analyst qualifications and certifications for the sector you want to work in:

• Banking and Financial Services: Commercial banks, NBFCs, and investment banks are among the largest employers of financial analysts.
• Insurance: Risk assessment, claims valuation, and actuarial support roles require strong financial analysis skills.
• Asset Management and Mutual Funds: Portfolio managers and research analysts evaluate security aspects on a daily basis.
• Corporate Finance (All Sectors): Every large organisation, from technology to manufacturing, employs financial analysts to plan and budget.
• Consulting Firms: Strategy and financial consulting firms hire analysts for due diligence and financial advisory work.
• Government and Public Sector: Budget planning, treasury, and economic analysis roles exist across central and state government bodies.

Job/Career Opportunities in the Field of Financial Analytics

Here are some job roles that financial analysts can apply and work for:

1. Equity Analyst
2. Portfolio Manager
3. Financial Analyst
4. Financial Consultant
5. Credit Analyst
6. Risk Analyst
7. Financial Planner
8. Investment Banking Analyst
9. Corporate Finance Manager
10. Income Auditor

Also Read: Top 15 Finance Jobs in India: 2026 Edition 

Conclusion

Financial Analysts can start their profession with many interesting job opportunities and enjoy a rewarding career. For a successful career as a financial analyst, aspirants need a combination of a strong academic background, knowledge of essential skills and experience. Here, industry-recognised certifications like CFA, CPA, and ACCA help candidates to a great extent. At Amity University Online, you can pursue these certifications online to boost your career in the field of finance as a financial analyst.

To learn more about these certifications and other online courses related to finance and other disciplines, visit the Amity Online portal.

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