Are you a fresh graduate or a young professional looking for a lucrative career option in India? Have you considered becoming a financial analyst? In today's fast-paced and dynamic business world, there is an ever-increasing need for individuals who can analyse financial data to help make informed decisions. And that's where financial analysts come in!
As you may already know, financial analysts provide critical insights on investments, stocks, bonds, and other financial matters that help businesses and individuals make informed financial decisions. With the Indian economy growing at a steady pace, the demand for financial analysts has been increasing steadily over the years.
In this article, we will guide you on the path to becoming a financial analyst and explore the various education and certification options available to get there.
Who are Financial Analysts?
Financial analysts are professionals who help companies or individuals make informed financial decisions. They analyse financial data, create financial models, and conduct research to determine market trends.
As a financial analyst, you would be responsible for providing recommendations for investments, conducting risk analyses, and monitoring financial performance.
Job roles
In India, there are various types of financial analysts, such as:
- Investment banking analysts typically work with companies to identify potential investment opportunities.
- Equity research analysts conduct market analysis on stocks and make recommendations for investors.
- Credit analysts assess the creditworthiness of clients applying for loans.
Having a solid understanding of finance is crucial for becoming a successful financial analyst. You should have strong analytical and decision-making skills along with excellent communication skills to explain complex financial concepts to non-finance stakeholders.
Job Opportunities and Career Paths for Financial Analysts
Financial analysts are highly valuable professionals in the finance industry, making them sought-after by companies across different sectors.
Some of the top companies hiring financial analysts in India include Goldman Sachs, JPMorgan Chase, Morgan Stanley, Credit Suisse, and Citigroup. Specialisations within finance that are hiring include investment banking, equity research, credit analysis, risk management, and financial planning.
As a financial analyst, your career path can vary depending on your interests and skills. Some popular career paths include:
- Investment banker
- Portfolio manager
- Hedge fund manager
With experience and additional qualifications such as an MBA or a professional certification like Chartered Financial Analyst (CFA), you can move up to senior-level positions such as Chief Financial Officer (CFO).
Salaries of Financial Analysts
As a financial analyst, you can expect to be paid well for the work you do. The industry pays its employees based on several factors, such as experience, education, and the size of the company you’re employed with.
On average, entry-level financial analysts in India earn around ₹3-5 lakhs per annum. Mid-level financial analysts earn between ₹6-12 lakhs per annum, and senior-level financial analysts can expect to earn upwards of ₹18 lakhs per annum.
A few factors that affect salaries include the location of the job, company size, and years of experience.
Education and Certification Options to Become a Financial Analyst
To become a financial analyst in India, you will need at least an undergraduate degree in finance or business-related fields. Beyond that, professional certifications can help enhance your credibility as a financial analyst.
- Undergraduate degrees in finance include B.Com (Bachelor of Commerce), BBA (Bachelor of Business Administration), BFM (Bachelor's Degree in Financial Markets), and BA Economics (Honours).
- Among these degrees, the most popular one is the bachelor's degree in commerce with a specialisation in accounts or finance.
If you already have a degree but want to increase your chances of securing a good position or are looking to change careers into finance, then there are several certifications available to help you out.
Some popular programmes include:
- Chartered Financial Analyst (CFA): The CFA is widely regarded as one of the most prestigious certifications in the finance industry. It covers topics such as asset valuation and portfolio management.
- Financial Risk Manager (FRM): The FRM programme focuses on risk management techniques used by banks and other financial institutions.
- Certified Public Accountant (CPA): The CPA certification is geared towards public accountants who want to work with clients on financial planning and management.
- Certified Financial Planner (CFP): The CFP programme focuses on financial planning and helps you develop skills that are required for investment planning, tax planning, retirement planning, and estate planning.
Apart from these programmes, there are several short-term courses available, such as a course in investment banking or equity research, that can help enhance your skills and increase your chances of getting hired.
Upskilling Opportunities for Existing Financial Analysts
Upskilling is essential for financial analysts to stay up-to-date with the latest industry trends and technologies. It can help you gain new skills, enhance your existing knowledge, and improve your employability.
Some popular upskilling courses for financial analysts include courses in data analysis, machine learning, and programming languages such as Python and R. These courses can provide you with a deeper understanding of financial models and help you make better decisions based on data-driven insights.
Industry Growth and Emerging Trends
The Indian financial market has shown steady growth over the past few years, thanks to various government initiatives aimed at creating a more conducive environment for businesses in the country. Technology has also played a key role in driving innovation within the finance sector.
Emerging trends such as blockchain technology, artificial intelligence, and big data analytics are expected to shape the future of finance in India. Financial analysts who have expertise in these areas will be highly valued by companies looking to leverage these technologies to gain a competitive edge.
Kickstart your career as a financial analyst
Becoming a financial analyst in India requires a specialised degree, upskilling through certification courses, and relevant work experience. With the current growth of the Indian financial market, career opportunities for financial analysts are abundant and lucrative. It is important for aspiring financial analysts like you to stay informed about upskilling and emerging industry trends so you can enhance your career prospects.
Remember, WIZR offers personalised career guidance and financing options for young professionals looking to upskill. With WIZR's support, you can build a successful career as a financial analyst.
FAQs
1. Are Indian financial analysts in huge demand abroad?
Indian financial analysts are highly sought-after by international firms due to their strong educational background and analytical skills. Financial analysts with advanced qualifications like CFA have good opportunities globally but may need additional certifications depending on the country.
2. Do financial analysts work long hours?
Yes, financial analysts often work long hours during peak periods, such as at the end of the fiscal year, or when there are volatile market conditions.
3. Do we need a licence to work as a financial analyst?
No specific licence is required, but obtaining relevant certifications like CFA or FRM would increase one's credibility and chances of being hired by reputed firms.
4. Do I need to have Commerce with Math in 12th grade to pursue a degree in Finance?
While Commerce with Math can give you an edge while pursuing finance degrees, it's not mandatory, as many universities offer foundation courses that cover basic math concepts.
5. Who earns more: a financial analyst or a financial advisor?
Financial analysts usually earn more than financial advisors due to the technical skills and advanced knowledge required for financial analysis. However, experience and specific industries may vary these earnings.
