How to Become a Financial Analyst: Career Guide, Courses, Jobs, Scope, Salary

How to Become a Financial Analyst: Quick Facts

What does a Financial Analyst do

Financial analysts are responsible for tracking a company's financial performance against a thought, analyzing business performance and market conditions to make forecasts, and serving to senior management create strategic choices by providing periodic reports. 

• They provide analytical, foretelling, reporting, and project support to senior management and produce monthly reports, that includes key metrics, financial results, and variance reportage.
• Financial Analysts determine cost of operations by establishing standard costs; collecting operational data and Identifies financial status by comparing and analyzing actual results with plans and forecasts.
• They provide trends and forecasts, explaining processes and techniques and provide their guidance in cost analysis processes by establishing and enforcing policies and procedures; recommending actions and Improves financial status by analyzing results; monitoring identifying trends; recommending actions to management.
• Financial Analysts play an important role in increasing productivity by developing automated accounting applications; coordinating information requirements and protecting operations by keeping financial information confidential.

Types of Financial Analysts

There are a variety of job roles of financial analysts with varied titles. The financial business employs various people to support the needs and size of financial establishments. 

Buy-Side Analyst

A career as buy-side analyst provides support to employers in creating right selections to pay cash. It includes creating investment selections in stocks and different securities. They work with fund managers in hedge funds, trusts, and proprietary traders, mutual fund companies, financial advisory firms. The average salary of a Buy-Side Analyst is around 3 LPA to INR 7.5 LPA

Sell-Side Analyst

A sell-side analyst is responsible for evaluating and scrutinizing the standard of securities of several businesses or sectors. Their duty is to collect and analyze financial information for stocks and use this data to build financial models to explore future scenarios of the stocks on a company and wider macroeconomic level. He or she creates a hunt report that supports the market analyses to suggest either to shop for or sell stocks, property or different investments. The average salary of such a professional ranges from INR 5 LAP to INR 8 LPA.

Security Analyst

Securities analysts used in investment banking corporations are called investment banking analysts. He or she plays a vital role in deciding if a particular deal is possible or not. Such deals could embrace initial public offerings, mergers and acquisitions. These analysts are responsible for assessing current financial conditions and believe heavily on statement and modelling to form recommendations.

Equity Analyst

Equity Analysts are those who give support to banks in creating sell selections to work out useful initial offering opportunities. A career as equity analyst is taken into account because it is the highest paying profession within the field of financial analysis. The average salary of such a professional ranges from INR 4 LPA to INR 8 LPA

Treasury Analyst

Treasury analysts evaluate, manage and analyze company financial activity. They review money transactions, examine income, assess and liabilities, prepare treasury reports, and build finance forecasts and management ways. They make sure that a corporation is financially economical and operationally profitable. The average salary for such a professional ranges from INR 4 LPA to INR 8 LPA.

How to become a financial Analyst in India

A financial analyst profession is responsible for providing correct guidance to businesses and people to form investment choices and assessing the performance of stocks.

School Level Preparations: Successful completion of 10+2 in commerce stream with mathematics is needed but not compulsory. Subjects like accounts and social science are crucial if you're determined to determine a career as a financial analyst. If a student decides to pursue a career as a financial analyst ,then at the highschool level they will opt for any subject. It is not necessary to pick out arithmetic Or Accounts for the entrance examination. however if you choose arithmetic and Accounts it'll be easier for you to clear your test and your CFA course because it is hard and needs a lot of skills and observation. Students having interest in pursuing undergraduate degree in finance related fields should start their preparation after 10th.

How to become a Financial Analyst after 12th

After completion of 10+2, candidates have to clear the entrance to get admission in colleges and complete a 3-4 years undergraduate course. 

UG Preparation: After completion of 10+2, you're required to get admission in a bachelor’s degree programme. There are various universities and faculties that give admission on the basis of 10+2 passing merit. Many universities give direct admission on a benefit basis of 10+2. We've mentioned the major entrance examinations.

PG Preparation: After completion of the undergraduate course, candidates will do an internship for a year and then can pursue further higher education like MBA/ MCom to enhance their salary package. Students have 2 choices once completion of a bachelor’s degree programme. 

• Option 1: prefer any studies post bachelor in connected specialisations with none gap in year.
• Option 2: Begin working in a different finance industry at an entry level position, acquire expertise of a few years and any prefer a master’s degree in relevant specialisation for a career as a financial analyst. 

Financial Analysis Courses

There are details of some of the courses are given below to become a financial Analyst-

CFA Course

• Chartered Financial Analyst course, could be a globally recognized certificate course offered by the CFA Institute, USA. It is one of the most respected degrees in finance services and management and therefore the pinnacle in investment management and analysis.
• The CFA curriculum has ten core subjects that are educated across 3 levels. There are 3 CFA Levels; CFA Level one, CFA Level 2 and CFA Level three. 
• CFA certification is one among the most tough exams to pass. The common passing rate varies between 42%- 54% across the 3 levels. However, candidates after completion of CFA certification can land into prestigious jobs like investment managers, portfolio managers, risk managers or perhaps chief finance officers. 

Admission Process

• The CFA certification course needs no entrance exam for the admission method. 
• The candidates have to register themselves with CFA institute so as to start out their course. 
• The admission to the CFA course is provided on merit basis.
• The CFA institute considers the work experience with graduation marks as the basis of the factors for the admission.
• The candidates have to produce their account on the CFA web site before they'll enrol for the examination. 

Eligibility Criteria

• The candidates should pass their bachelor or equivalent programs from any stream from recognised universities or schools.
• Candidates who are in the final year program may register for the CFA course. However, candidates should complete their Bachelor course before the date of registering for CFA level two communication.
• One of the vital CFA demands is that the candidates should be fluent in english because of the study material. Moreover, the exams would be conducted in English.

BSc Finance

• BSc Finance is a 3 year full-time classroom oriented undergraduate program that deals with the sector of occupation, money Management, Consulting, Investment Banking or any connected field within the finance sector.
• The average program fee to pursue this course in India is around 2,00,000 to 3,00,000 every year, depending on the institute providing the course. 
• Some of the common subjects within the BSc Finance course include Business Accounting, economics, economic science, Banking and Insurance, Debt Markets, Investment Analysis, etc. 
• The average annual fees offered to BSc Finance graduates in India ranges between 3,00,000 and 14,00,000, depending on the candidate's experience in the field .

Admission Process: Most of the institutes associated with universities in India follow an entrance-based admission method for admission to BSc Finance program.BSc Finance faculties like NMIMS city, Anil Surendra Modi college of Commerce, Mumbai etc. provide admission to the program through entrance like NPAT. 

Eligibility Criteria: The minimum eligibility criteria for BSc Finance course are given below: 

• The candidates should have passed 10+2 or the other equivalent examination from a recognized board with a minimum aggregate marks. 
• Aspirants should have studied arithmetic or Statistics as a required subject in 10+2.
• Candidate’s age should be below twenty five years. 
• Candidates World Health Organization have completed their 10+2 from Distance Learning are eligible to use the present program provided they need to study beneath an associate institute recognized by NIOS. 

BBA Finance

BBA in Finance is a 3-year UG level program that teaches candidates concerning predictions in insurance and investment. The minimum eligibility required to pursue the course is passing 10+2 with minimum aggregate 50% marks from a recognised board.

Admission Process

• Students 10+2 passed with minimum 50% aggregate marks are required for taking admission in BBA Finance. Required percentage for the admission may vary from one university to another.
• Some universities give admission on the basis of merit of 10+2 marks but some universities take the joint entrance test for the admission in BBA in Finance.

Eligibility Criteria

• Exam Qualification: Candidates should have passed their 10+2 or equivalent level examination in 2023.
• Marks Qualification (General): a minimum of 60% marks at school 10/ SSC normal yet as in 12/ HSC is required.
• Marks Qualification (SC/ST/PwD): Reserved candidates are given a relaxation of fifty. a minimum of 50% marks at school 10/ SSC normal yet as in 12/ HSC is required.
• Foreign Candidates: those that have completed their 10 or 10+2 level from international boards like IGCSE also are eligible.

MBA Finance

MBA Finance is a 2-year PG level program that deals with managing the accounts and finances of companies for them to attain certain finance goals. This course equips the students about the management of the financial resources of a company, rethinking of the investment strategies, management of financial risk and many more. 

Admission Process

• MBA Finance Admission is on the basis of entrance exams like CAT, MAT, SNAP, CMAT etc or on the basis of merit.
• Faculties prepare a shortlisted list of students on the basis of scores obtained within the entrance exams. 
• Final Admission Round: Faculties conduct these rounds to check a candidate’s ability and skills through give-and-take (GD), Written Ability check (WAT) and private Interview (PI).

Eligibility Criteria

• Candidates who have an undergraduate degree with minimum 50 percent aggregate or equivalent CGPA from a recognised board or university.
• Candidates who are in the final year of bachelor's degree/equivalent qualification or waiting for the result of the final year are also eligible to apply for the exam.

How to become a Financial Analyst Abroad

Pursuing management courses from abroad is one of the most sought after professions, one does not have to worry much about the future if they become Financial Analyst. Countries which are best to pursue finance courses abroad are Canada, USA, UK and Australia.

UK 

• UK, offers a range of Master programmes like MSc, MS, M.A. and doctoral programs like M.phil in Finance related fields with a variety of specialisations available.
• It is generally longer than other masters degrees in all countries including the UK, Most masters programmes in UK universities are of two years duration.
• Educational Requirements:Bachelor's degree in finance, accounts, commerce or relevant field.Basic knowledge of mathematics, further as calculus and statistics.
• Language entrance scores requirements: Scorecard for English tests like TOEFL, IELTS, PTE, and GMAT/ GRE.
• Masters in finance and related fields in the UK can be completed at over 100 universities in the country. The total fees for the masters program at top universities range from 23.72 Lacs -. 47 Lacs.
• While applying for the masters program in an institute of the UK, there are various types of expenses that should be taken care of like the pre-arrival cost, tuition cost, living cost, etc.
• The average salary of the candidates having masters in accounting and finance sector from the UK is INR 1.03 crore per year.
• Candidates get hired in different companies such as-Goldman Sachs, JP Morgan, Google, Morgan Stanley, BlackRock, HSBC, UBS, Barclays, Citi, Bank of America Merrill Lynch etc. after completing their masters from UK top Universities.

Top Colleges

USA

• The USA is the world’s preferred destination for international students.Candidates can pursue bachelor, masters, doctoral level degree in finance related field from the US Universities.
• Educational Requirements: Have a bachelor's degree in relevant field from a recognized university with 80% and higher marks, Provide scores of GRE or GMAT
• Language Requirements: Provide proof of english proficiency through IELTS, TOEFL or equivalent exam.
• According to QS Top Universities, there are 66 universities in the USA offering a Masters in Finance related field and the average program fees for masters in Finance in the USA ranges from 44.83 Lacs- 90 Lacs.
• According to the US Bureau of Labor Statistics, the median annual salary for financial occupation was INR 46 Lacs in 2018. This was higher than the median annual salary for other occupations of INR 28.90 Lacs. 
• It is quite difficult for most international students to sustain a livelihood in the USA because of high costs.
• Students can stay either inside or outside the campus premises while pursuing Masters in Finance in the USA. The cost of living in the USA majorly depends on the type of student housing chosen, city of residence, etc. 

Top University

Canada

• Canada offers various bachelor, diploma and masters courses for finance and accountancy degree courses in canadian countries generally 2-2.5years. The program is mostly a regular residential (on-campus) course. 
• Required Academic Qualification:

Prospective candidates should have completed their undergraduate degree from a recognised university/ in required categories like business statistics, business finance,accounts etc.

• English Proficiency Requirements: Non-native English speakers required to prove their proficiency. International students can submit the assorted tests similar to the International English language checking System (IELTS) or check of English as a foreign Language (TOEFL) for identical.
• The average cost of studying a Masters in Finance or related specialisations in Canada is approximately INR 26.18 Lacs per year.
• Students After completing their graduate degrees in finance from Canada Universities pursue careers like financial analysts, investment bankers, tax advisers, financial managers, and others.
• The average salary of an entry-level financial analyst working in both banking and non-banking domains is INR 44.48 Lacs per year.
• According to the Bureau of Labor Statistics (BLS), the demand for personal financial advisors will increase by up to 7% between 2018 and 2028. 

Top Universities

Australia

• Australia is one of the most demanded places by students to take admission in various masters courses as degree courses in accountancy and finance.Masters in finance in Australia are offered as Masters of finance, Master of Business degree, Master of Commerce (M.Com).
• As per data analysis more than 390,630 students pursued postgraduate management and commerce programs at Australian universities in 2018, which is 0.3% more than last year. 
• Education Required:Undergraduate Degree: Bachelors in business, commerce or equivalent discipline is required to urge admission to the master of finance and accounts in Australia. 
• The tuition fee of popular Australian universities offering masters in finance is around INR 33.63 Lacs- 50.86 Lacs.
• Graduates after course completion can earn an average salary of INR 44.48 Lacs per year.
• International students who belong to the country where English is not the first language are required to prove proficiency in English by submitting IELTS or TOEFL test scores. 
• After completion of a masters in finance or related field from Australia, students can go for jobs in the sectors:Banks and Insurance Companies,Corporate Management, Brokerage Firms, Financial Planning for Individuals and Organizations, International Financial Management, Investment Services.

Top Universities

Benefits of Becoming a Financial Analyst

The benefits of a career as a Financial Analyst is relatively higher than any other profession. One gets the opportunity for job security, competitive salary in the market, and will grow in depth knowledge about finance. 

• Competitive Salary: Salary of a Financial Analyst varies from the years of experience candidates have.An entry-level financial analyst with one year expertise will expect to earn a total compensation (includes tips, bonus, and overtime pay) of INR 340,155 per annum. An early career financial analyst with 1-4 years of expertise earns a mean total compensation of INR 391,044 per annum. A mid-career financial analyst with 5-9 years of expertise earns a mean total compensation of INR 593,016. An old analyst with 10-19 years of expertise earns a mean total compensation of INR 857,831 .
• Job Security: The financial analyst job is taken into account among the most rewardable career opportunities. The remuneration offered to a financial analyst is sometimes on top of what alternative professionals would possibly get at constant level. In addition to the fixed remuneration, financial analysts are entitled to a good bonus and commission. Given the nature of the job of financial analysts, job security is an additional advantage. Financial analysts are highly skilled professionals who have access to crucial company info. 
• Positive impact of Financial Analyst: One of the best things regarding being a financial analyst is the work-life balance that they just get. Individuals in the finance industry typically complain regarding the absence of work-life balance. Investment bankers earn a lot, however at a much higher personal value, they work on least 70-80 hours per week. However, the role of a financial analyst solely demands normal business hours.
• Unique Experience: Working as a financial analyst for a corporation has varied benefits. From work-life balance to crucial company info it has a lot to offer that others jobs ordinarily don't. It's also among the most rewarding career opportunities. Every time you're employed as a financial analyst, you'll be able to gain a great experience; it is a continuous learning process; anytime you learn a technique, a replacement technique, a replacement methodology, you'll be able to gain a great deal of information.

Skills Required to become a Financial Analyst

Some of te crucial skills that are required to become a Financial Analyst are tabulated below for your reference, 

Salary of Financial Analyst in India

Salary of different job roles of a financial analyst vary as per their experiences and the level of seniority. A comparison between salary of different categories of financial analyst are given below in table-

Average Annual Salary

Specialisation Wise Salary

Gender Wise Salary

Experience Wise