The person who performs a financial analysis for external or internal clients of the organisation is called a financial analyst.
When you hear of it, you wonder if the job is actually as tough as it sounds. The person who performs a financial analysis for external or internal clients of the organisation is called a financial analyst. A financial analyst is responsible for researching and analyzing financial information in order to make well informed decisions about the future investments of a company or an individual.
Quite a number of terms are used for a financial analyst, for example: securities analyst, research analyst, investment analyst etc. People holding each of these profession titles, focus and specialize in the respective fields. They need to be constantly updated on macroeconomic information about the organisation’s balance sheets and other relevant documents.
Difference between a financial analyst and financial planner
The work of a financial analyst is like that of a financial planner, with a slight difference. At times,analysts work in close coordination with planners to reach out to some conclusion related to investment choices. The major difference between a financial analyst and planner is that financial analysts possess higher level of expertise over finance management and financial analysis as compared to financial planners. Offering investment suggestions to clients, assessment of the economic outlook of different sectors and industries for organizations are some other duties bestowed on financial analysts.
As a career option
Financial analysis as a career option is suitable for those who are good at calculations, accounts and have inclination for finance side of any organisation. Owing to attractive growth prospects, it is a popular career choice that makes use of your mathematical, logical skills, reasoning and deep understanding of finance to reach onto some conclusion.
Eligibility
To become a financial analyst you must have mathematics as a major during your graduation.According to the recruiters, many of the analysts hired, have an engineering or scientific background, while the MBAs are sought for senior analyst positions. Strong communication and presentation skills are mandatory for a career in financial analysis, as you need to give presentations and convince the decision making members of the organisation about his conclusion or analysis.
Getting hired
To secure your job as a financial analyst you need to be aware about few important things. Firstly, financial analysis is a career which can truly be considered tough as what matters all is the skills and wisdom. Interning with a finance organisation helps freshers get experience, practical knowledge and right exposure. You also need to focus on improving your skills when it comes to managing databases and spreadsheets. Other competencies for this position include…
– Technical and functional knowledge
– Understanding the business of the organisation along with the respective department
– Teamwork
– Interpersonal and Communication skills
– Leadership and personal effectiveness
Financial analysis is considered as one of the toughest jobs. The market for mutual funds is expanding and upcoming mutual fund companies require talented and trained financial analysts so that they can create a niche in finance market. Hence, the demand for analysts are always on a high in the job market.
