How to Become a Financial Analyst

A financial analyst is a person who investigates and examines a company’s assets, debt, investment and growth potential. It may do so for the common interest of one or several shareholders, but more often, the information it gathers is used as a guideline for potential investments, mergers, or disinvestments. Individuals with this job can work as an independent consultant or for a corporation, government agency, bank, stock brokerage firm or insurance company.

Financial analysts help people decide how to invest their money. There are many other terms such as securities analyst, research analyst, equity analyst, or investment analyst that are used for a financial analyst. In addition to financial analysis, a finance analyst performs duties such as writing reports as part of a brokerage that may include fundamental analysis principles. Additionally, technical chart analysis and strategic evaluation of the market environment are also considered to be core parts of a financial analyst’s job.

Although slightly different, the job of financial analysts is similar to that of financial planners. Sometimes financial analysts work in close coordination with a financial planner to arrive at a conclusion regarding investment options. The essential part is that financial analysts have a high level of expertise in financial management and financial analysis. Giving investment suggestions to clients, evaluating the economic outlook of various sectors and industries for organizations are some of the other duties assigned to financial analysts.

How to become a financial analyst?

To become a financial analyst, a candidate must be a graduate with Mathematics as one of the subjects. Additionally, a degree in business administration, accounting, finance, or statistics is of great benefit in getting jobs in finance organizations. A strong hand in statistics, business, economics, administration and accounting enhances the growth potential within an organization. The CFA program offered by ICFAI can be done full time or part-time depending on the time and interest. There are many other avenues to become a financial analyst eg. When are you doing B.Com and M.Com, Chartered Accountant, Company Secretaryship etc.?

Students who want to pursue a career in the financial analysis should start studying commerce and finance subjects from their school level as many schools offer business management and business law at the school level. Additionally, soon after doing 10+2, candidates can apply for a CA course to become a financial analyst. An aptitude for numbers and finance helps candidates advance in a career as a financial analyst. Depending on the inclination, one can try a better career as a financial analyst known as a buy-side analyst whose job is to work for hedge funds, forex, fixed income analysis, investor relation management, etc.

Why should I become a financial analyst?

Financial analysis as a career option can be an excellent decision for those who are good at accounts and have an inclination for the finance side of any organization. Due to the attractive growth prospects, financial analysis is a popular career option where professionals use mathematical skills, logical skills, reasoning and a deep understanding of finance to arrive at a conclusion. Strong communication and presentation skills are essential for a career in financial analysis as the professional is required to make presentations and explain their findings or analysis to the decision-making members of the organization.

Cost to become a financial analyst?

MBA degree for financial analysts from top institutes can cost around Rs 2,00,000. However, Diploma in Financial Analysis can be earned by paying Rs.50,000. Although there are many institutes that claim to offer CFA courses, only the Indian Association of Investment Professionals is permitted to offer CFA degrees in India. IAIP is affiliated with the CFA institute and provides quality education to aspiring students. The fee structure keeps on changing which is updated online when there are some changes.

Prospectus of a financial analyst

Financial analysts have ample job opportunities with insurance companies, banks, securities firms, pension and mutual funds etc. The fundamental skills of financial analysts are to help clients operate independently and develop a strong client base.

Additionally, they may do accounts and prepare financial statements, conduct audits, or assess taxes. Cost accountancy is another segment where a financial analyst can excel. Some financial analysts are hired to examine and ascertain the financial position of a business house for the purpose of performing specific company functions or issuing new shares, buying or selling or financing a business, etc. Secretarial work in companies, account management and share valuation, etc. are some of the other tasks for financial analysts.

Package of a financial analyst

The salary of a financial analyst is determined on the basis of the skills and knowledge possessed by the professional. Any new financial analyst can earn any salary in the range of Rs 15,000 to Rs 40,000 per month. Financial analysts’ salary packages increase four to five times after five or more years of work experience. Qualified CFAs can earn attractive salaries in the United States or Canada. Indian financial analysts with the right exposure and sound presentation skills find employment in financial bodies including multinational hedge fund organizations and investment banks.


The demand for financial analysts is likely to exceed the average demand for all other occupations over the next few years. This mismatch will only help aspiring financial analysts to get higher remuneration. As recent years may have marked an increase in investment activity, there will be a need for qualified financial analysts to assist with investment planning. Additionally, the shortage of qualified professionals to conduct strategic financial analysis in India is expected to continue as colleges and financial management institutions are not able to meet internationally established standards for finance management. There are not many quality institutions in financial management, except in the top 20.

The market of a financial analyst

With the expansion of the financial market in India, there has been a tremendous increase in financial jobs so that effective management can be done. There are a lot of jobs for financial analysts in the financial centers of Mumbai, Ahmedabad, Kolkata, Chennai, Kanpur, Delhi, Bangalore, Pune, etc. Post-liberalisation, there has been a huge increase in employment opportunities in IPOs, FDI, FII, etc., which require specialist knowledge of finance, and consequently, there is a need for financial analysts.

The market for mutual funds is expanding and the upcoming mutual fund companies need talented and trained financial analysts to carve a niche in the finance market. In addition, investment banking is expected to expand and will certainly require the services of qualified financial analysts to generate wealth and evaluate mergers and purchases in a sophisticated manner. There will be increased demand for financial analysts to analyze sales, costs, commodity prices, tax rates, and expenses of financial firms.

International Reach

An international career is open to financial analysts, depending on ability and capabilities. World-renowned finance companies such as Citi Mortgage. Inc., Bank of America, Wells Fargo Bank, National City Bank, PNC Bank, National Association, Technology Credit Union, etc. hire candidates from different parts of the world. Additionally, exceptionally talented financial analysts can build careers in stock exchange companies such as New York Stock Exchange, Tokyo Stock Exchange, NASDAQ, London Stock Exchange, Toronto Stock Exchange, Hong Kong Stock Exchange, etc.


Financial analysis is one of the most difficult tasks because the professional is always on his toes. He needs to be well-versed in the various developments in the national and domestic financial market. Travel is another important part of a financial analyst as his analysis requires him to collect data and resources from various information centers. Hence, extensive travel can be a hassle at times. Growth prospects in the careers of financial analysts are subject to developments in the financial market and are deeply affected by recessions.

Attractive growth for exceptionally talented finance professionals attracts young people to become financial analysts. Professional development knows no bounds in business analysis; Especially investment banking organizations provide extremely high salaries to capable candidates. Some of the top financial analysts can also make a career in the media, in which they can give their views on the market situation, company stocks, impact of policy changes, etc.

Different Jobs

Technical input is an important part of a financial analyst’s job in that he or she uses various software packages created specifically for financial services. Spreadsheet, ERP, etc. Based on academic qualifications, work experience, and skills, the graduates in a finance organization are offered roles in finance. The various roles or work profiles for finance professionals working as financial analysts are as follows:

  • Accounts Trainee
  • Management Trainee – Finance
  • Junior Financial Analysts
  • Financial Analyst
  • Research Analyst – Option Strategist
  • Chartered Accountant trainee
  • Assistant Consultant – Business Analyst
  • Analyst-Back office

Top Companies to get hired by

Top organisations that hire financial analysts are

  • SBI Capital Markets Limited
  • Bajaj Capital Limited
  • DSP Merrill Lynch Limited
  • Birla Global Finance Limited
  • Housing Development Finance Corporation
  • Karvy Group
  • Centrum Finance Limited
  • L&T Finance Limited
  • PNB Gilts Limited
  • CIL Securities Limited

How to Get Hired?

Candidates must be aware of the fact that financial analysis is a career that can be considered really tough as what matters is the skills and knowledge. Starting as an apprentice with some finance organization helps the freshers to gain practical knowledge and the right exposure. The candidate can learn to use spreadsheets, databases, PowerPoint presentations, etc. which ultimately helps him in getting a job in a finance company. Additionally, learning application software like ERP can be an added advantage for job seekers as most of the MNCs use such software for optimum output and prefer candidates who have practical knowledge of these.

Since financial analysts are required to communicate and present a lot of information to clients and peers, they must develop excellent communication and presentation skills. Interpersonal skills matter a lot in the career of a financial analyst as he interacts a lot with clients, clients, media, regulatory authorities, etc. Knowledge and updated information about the current finance market will definitely help the candidates to get selected in the financial sector. helps to increase the chances of the Company as a Financial Analyst.

Top Institutions

Apart from pursuing B.Com/M.Com or CA and CFA, students can pursue MBA in Finance or Finance Analysis offered by various management institutes. Some management colleges offer diploma courses in financial management. Some of the well-known institutes offering courses in financial analysis are as follows:

  • Birla Institute of Technology and Science, Pilani.
  • Narsee Monjee Institute of Management, Mumbai.
  • International Management Institute, New Delhi,
  • SP Jain Institute of Management and Research Mumbai.
  • Xavier Institute of Management, Bhubaneshwar
  • ICFAI Business School, Ahmedabad
  • ICFAI Business School, Bangalore
  • ICFAI Business School, Chennai
  • ICFAI Business School, Mumbai
  • ICFAI Business School, Pune

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