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

With finance and business thriving, the demand for skilled financial analysts is at an all-time high in India and across the globe. Recruiters are looking for skilled financial analysts with a 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 love to play 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 create strategies that help in shaping the success of a company. 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.

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 enroll 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 know-how 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 some roles that 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

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 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 that financial analysts should take care of. 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 have the ability to work together to contribute towards the growth of the company. 

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

Conclusion

Financial Analysts can avail of many interesting job opportunities to enjoy a rewarding career. For a successful career as a financial analyst, aspirants need a combination of a strong academic background with know-how of essential skills and experience. Here, industry-recognized 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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