Financial Analyst is a professional who performs the function of financially analyzing various firms and suggesting where and how to invest money to get better returns. Financial analyst are required in banks, insurance company, investments firms, mutual funds, pension funds, hedge funds, investment banks, other business etc.

Job Description

A Financial Analyst basically does research and evaluates various financial situation of a company and prepare financial plan, forecasting reports etc in order to help the company or the client to know the financial status and future of the company. In order to get accurate information for analyzing, the financial analyst has to attend conference calls to interact with the management of the company or even visit the company in person and meet the senior authority.

Skill Requirements

A financial analyst is a person who has high knowledge of understanding and analyzing financial data, has a strong mathematical intelligence and takes keen interest in problems solving and decision making. Others skills required are as follows:

  • Financial modeling skill helps to analyze and evaluate financial data.
  • People skills and organization skills in order to talk to senior management efficiently with appropriate documents.
  • Technical skills in order to use spread sheets and various financial tools to get required outcome.
  • Statistical skills that helps in evaluating raw data and generating some useful facts.
  • Strategic and financial planning skills.
  • Communication skills to explain complex financial ideas
  • Marketing skills helps in giving a more impactful meaning to the financial details of a firm to a prospective client.

Job Duties

The main role that every financial analyst performs is to use various software, spreadsheets and financial tools to spot trends and to develop forecasting reports and hence giving recommendations to buy or sell a particular share or security. The duties of a financial analyst varies from the kinds of organization they are working in which are highlighted as below:

Major duties:

  • In an investment bank a financial analyst helps in studying a company who wants to sell their shares in the market for the first time.
  • Financial analyst help in making merger and acquisition decisions by doing cost benefit analysis of a firm.
  • Financial analysts also help in credit rating a company to know if the company is worth repaying its debts.
  • In a stock broking firm, an analyst researches about the value and future earnings of a company which can benefit its clients to earn higher returns.

Supportive duties:

  • Determine and generate various financial reports and make the management aware about the financial liquidity of the firm.
  • Give proper information to the management on how to improvise the financial efficiency of the firm.
  • Participating in various seminars and conferences, reading financial journals, building contacts and there-by update their knowledge.

Work Conditions

Financial analysts work independently in an office during business working hours. They sometimes need to manage hectic schedule due to work load by working overtime and sometimes working over the weekends too. Their complete day is spend in generating reports and interacting with people on calls or by fixing a meeting.

Educational Requirements

Financial analyst need to possess a degree in finance, business or accounting. A master’s degree in management (MBA) is preferable. To have an edge over others a person aspiring to be a financial analyst must have a Chartered Financial Analyst (CFA) designation offered by the CFA institute which can be possessed only after have a Bachelor’s degrees and 3 years of working experience in the finance industry.

Financial analyst need to have handful amount of knowledge in the field of financial management, international business, corporate finance, investment analysis, management studies, business law, direct and indirect taxation and management accounting.

Tips for the Job

  • Follow the news- local and around the world.
  • While making reports, put in more than expected.
  • Let the clients review their portfolio and if they seem confused explain concepts to them.

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