“Finance is not merely about making money. It’s about achieving our deep goals and protecting the fruits of our hard work.”
– Robert J. Shiller
Finance is one of the most competitive and the most rewarding industry of the world. It can be tough to enter the industry without the proper knowledge and skills, needed to excel here. One of the best ways to begin a career in finance is to aim for one which includes multiple disciplines at the same time. Maths, analytics, accountancy, economics etc,. – give you the ability to get a holistic view of the industry and your organization. This also gives you a better scope to earn better. Being a financial analyst is one of the most desired job profile for many youngsters. Financial analysts can work in both junior and senior capacities within a particular organization. An analyst’s role is quite indispensable in an organization.
Who is a Financial Analyst?
A financial analyst is a person who analyses all major financial statements at a micro or macro level to understand the financial health of a company and offer suitable suggestions. The major functions performed by a financial analyst include fundamental analysis, ratio analysis, financial modeling and valuation of a particular company. A financial analyst is also called an investment analyst/ an equity analyst/ a research analyst or a security analyst.
A financial analyst must always be aware of the current developments of the industry in which he/ she is specializing in. This helps in preparing financial models keeping historical data in mind, which is important while trying to predict the future economic conditions for any number of variables.
Employment wise, the outlook for the field of financial analyst is very good.
It has been predicted by the Bureau of Labor Statistics of the USA (BLS), that the financial analysts job vacancies are expected to grow by 15.5 percent between 2012 to 2022.
A financial analyst performs many roles and executes various responsibilities. Some specializations are credit analysts, investment analysts, budget analysts, rating analysts, security analysts, tax analysts, Wall Street analysts and mergers and acquisition specialists.
Financial Analyst jobs
- Buy-side firms:
A majority of financial analysts work on buy-side firms. These firms are basically corporate or individual investors who invest in future returns. The risks are quite high and the investment decisions are only made by the final investors.
- Sell-side firms:
A sell-side firm consists of corporates and individuals who are involved as facilitators for Buy-side entities. The risk is quite less and the corporates/ investors help each other in decision making.
- Investment Banks:
These are some of the most well paid jobs of the World. The main objective of investment banks is to raise capital by issuing securities or underwriting them. They assess the current financial conditions and rely heavily on modeling and forecasting to make recommendations to investors. It is the duty of these analysts to advise their clients if a certain merger, acquisition or investment makes financial sense.
Salary of a Financial Analyst
The median salary of a financial analyst across all experience levels as of May 2017 was $ 84,300. In India, the average pay scale average is Rs. 353,991 annually, but it increases up to Rs.9 lakh per annum depending on the position and experience of the analyst.
In London, one can earn up to GBP 20,000 – 50,000 annually and in the US for the same profile, one can earn in a range of $ 35,000 to $ 80,000 annually.
Becoming a Financial Analyst
Just like anything else, it helps if you begin early, in order to build a lucrative career as a financial analyst. BSE Institute Limited, a 100% subsidiary of BSE India, helps you learn and excel in the subjects, needed to be a great Financial Analyst. With proper case studies, industry interactions, classroom trainings and the right corporate exporsure, one can easily begin their career as a Financial Analysts. Our 4-month GFMP program is perfect for all students who wish to begin their careers as financial analysts. One of the highlights of the course is the industry internships and placement assistance that is provided to help students begin their careers.