Who is Financial Analyst?
Financial analysts are responsible for assisting their employer to make financially sound decisions. They are entrusted with the financial planning activities for the company. Their primary aim is to use a data-driven approach to anticipate risks and to provide recommendations in the form of financial precautions to the same. They start by obtaining a thorough understanding of the company's objectives and its current status. By forecasting the financial future of the company's revenue and expenditure, the financial analyst shall streamline all relevant processes to improve the financial performance of the company.
They advise companies regarding potential risks and costs associated with any business decision based on detailed predictions about the outcomes of these decisions. Their work is important for a company to increase revenue by maximising upon investment opportunities, reduce costs, and manage assets. A financial analyst is crucial to the fiscal health of a company. They drive the company's present value and future performance in terms of business.
Typical day at work
What does Financial Analyst do?
Financial analysts analyse financial data and utilise their conclusions to assist businesses in making business decisions. Their analysis is frequently intended to inform companies' investment decisions. Financial analysts, in particular, do research on macroeconomic and microeconomic situations, as well as company fundamentals, in order to create predictions regarding businesses, sectors, and industries. They may also suggest a course of action, such as buying or selling a company's stock, depending on its overall performance and prognosis.
An analyst must be up to date on current advancements in their industry, as well as be capable of developing financial models to forecast future economic situations for a variety of variables. Not all financial analysts examine stock or bond markets or assist their employers in making investment decisions. Companies may also hire an analyst to examine numerical data to determine the cost-effectiveness of various marketing tactics.
Following are the duties of a financial analyst:
- Assemble, organize, and summarize financial data to examine the current financial standing in relation to the company's goals.
- Perform financial forecasts and construct financial models to predict future changes in the economy, market, and other variables.
- Analyse financial performance in comparison to the forecasts and identify trends, patterns.
- Examine the causes of the variance between the forecasts and actuals.
- Evaluate the capital expenditure and depreciation.
- Examine the current and past financial data, including business plans, patterns.
- Generate and analyze financial reports to be presented to the upper management.
- Make suggestions regarding the budgets and investment opportunities.
- Provide policy recommendations and measures to reduce costs for financial growth.
- Maintain up-to-date knowledge about the market trends, relevant software.
Abilities & aptitude needed
What are the skills, abilities & aptitude needed to become Financial Analyst?
For one to be adept at this job, strong quantitative skills are required, with excellent critical thinking skills and superior analytical abilities. Proficiency in financial modelling practices along with the advanced knowledge of relevant software packages is necessary to analyze data, monitor trends, and perform financial forecasts. Ease in interacting with the upper-level executives supplemented by the ability to report financial data and communicate findings through clear and concise written reports or presentations is another necessary factor. Interpersonal skills must be developed excellently since they shall be frequently put to use.
Additionally, knowledge of the relevant laws and regulatory practices is a must. Business acumen and expert knowledge about the industry and market trends are essential to success in this job. They should continually take measures to stay updated with the current market trends and industry updates. A keen eye for detail and meticulous organization skills shall be required to handle large amounts of data.
Which course I can pursue?
Which are the best colleges to attend to become Financial Analyst?
Presidency College, Chennai
Chennai | UGCNIRF Rank : 3
National Institute of Technology, Calicut
Kattangal, Kerala | AICTE, UGCNIRF Rank : 3
Loyola College, Chennai
Chennai, Tamil Nadu | University of Madras, ChennaiNIRF Rank : 6
Xavier Labour Relations Institute, Jamshedpur
, Jamshedpur, Jharkhand 831001 | AACSBNIRF Rank : 7
Savitribai Phule Pune University, Pune
Pune, Maharashtra | Savitribai Phule Pune University, PuneNIRF Rank : 10
St. Xavier`s College, Kolkata
Kolkata, West Bengal | UGCNIRF Rank : 10
Gargi College, Delhi
Delhi | Delhi University, UGCNIRF Rank : 12
Madras Christian College, Chennai
Chennai | University of MadrasNIRF Rank : 13
National Institute of Technology Rourkela
Rourkela, Odisha | UGCNIRF Rank : 16
S. P. Jain Institute of Management and Research, Mumbai
Mumbai | AIUNIRF Rank : 16
PSG College of Arts and Science, Coimbatore
Coimbatore, Tamil Nadu | Bharathiar University, CoimbatoreNIRF Rank : 17
Punjabi University, Patiala
Patiala, Punjab | UGC, NAAC.AIUNIRF Rank : 18
Banasthali Vidyapith, Banasthali
Jaipur, Rajasthan | UGCNIRF Rank : 19
SVKM`s Narsee Monjee Institute of Management Studies, Mumbai
Mumbai, Maharashtra | ?AACSB?, ?AMBA?, ?UGC?, ?AIUNIRF Rank : 20
Symbiosis Institute of Business Management, Pune
Lavale, Maharashtra | Symbiosis International University, PuneNIRF Rank : 20
National Institute of Technology Karnataka, Surathkal
Mangaluru, Karnataka |NIRF Rank : 21
PSGR Krishnammal College for Women, Coimbatore
Coimbatore, Tamil Nadu | Bharathiar University, CoimbatoreNIRF Rank : 22
Symbiosis International University, Pune
Lavale, Maharashtra | Symbiosis International University, PuneNIRF Rank : 22
Thapar Institute of Engineering and Technology, Patiala
Patiala, Punjab | UGCNIRF Rank : 23
Acharya Narendra Dev College, New Delhi
New Delhi | Delhi universityNIRF Rank : 24
Indian Institute of Management Shillong
Shillong, Meghalaya | AutonomousNIRF Rank : 24
Jesus & Mary College, New Delhi
Delhi | University of DelhiNIRF Rank : 25
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur
Nagpur, Maharashtra | UGC,AIUNIRF Rank : 29
Maharshi Dayanand University, Rohtak
Rohtak, Haryana | UGC, NAAC-ANIRF Rank : 32
Thiagarajar College, Madurai
Madurai, Tamil Nadu | Madurai Kamaraj University, MaduraiNIRF Rank : 34
Loyola Institute of Business Administration, Chennai
Chennai, Tamil Nadu |NIRF Rank : 36
PSG College of Technology, Coimbatore
Coimbatore, Tamil Nadu | Anna University, ChennaiNIRF Rank : 37
Banaras Hindu University, Varanasi
Varanasi | ACU AIU NAAC UGCNIRF Rank : 39
Maharishi Markandeshwar University, Mullana
Mullana, Haryana | Maharishi Markandeshwar University, MullanaNIRF Rank : 41
Alliance University, Bengaluru
Bengaluru | UCCNIRF Rank : 42
Motilal Nehru National Institute of Technology, Allahabad
Allahabad, Uttar Pradesh | Uttar Pradesh Technical University (UPTU)NIRF Rank : 42
Xavier University, Bhubaneswar
Bhubaneshwar | UGC,NBA,AIUNIRF Rank : 44
Vellore Institute of Technology, Vellore
Vellore | UGCNIRF Rank : 46
National Institute of Technology Durgapur
Durgapur, West Bengal | Deemed UniversityNIRF Rank : 46
Sri Padmavati Mahila Visvavidyalayam, Tirupathi
Tirupati, Andhra Pradesh | UGCNIRF Rank : 46
Maharaja Agrasen College, Delhi
Delhi | University of DelhiNIRF Rank : 47
Pt. Ravishankar Shukla University, Raipur
Raipur, Chhattisgarh | UGCNIRF Rank : 48
Amity University, Gautam Budh Nagar
NOIDA | UGC?, ?NAAC?, ?WASC?, ?AIU?, ?ACUNIRF Rank : 49
National Institute of Technology Silchar
Silchar, Assam | UGCNIRF Rank : 51
VELS Institute of Science Technology and Advanced Studies, Chennai
Chennai, Tamil Nadu | ?UGC NAACNIRF Rank : 52
Lovely Professional University, Phagwara
Phagwara, Punjab | UGC, AIU, PCI, NCTE, COA, ACBSP,NIRF Rank : 52
Kurukshetra University, Kurukshetra
Thanesar, Haryana | UGCNIRF Rank : 53
Sri Krishna Arts and Science College, Coimbatore
Coimbatore, Tamil Nadu | Bharathiar University, CoimbatoreNIRF Rank : 53
St. Thomas College, Thrissur
Thrissur, Kerala | Affiliated to University of CalicutNIRF Rank : 54
Shivaji College, Delhi
Delhi | Delhi UniversityNIRF Rank : 54
Sam Higginbottom Institute of Agriculture, Technology and Sciences, Allahabad
Allahabad, Uttar Pradesh | UGC, ACU AIU IAU IAUANIRF Rank : 56
Sacred Heart College, Ernakulam
Thevara, Kochi | Mahatma Gandhi University, KottayamNIRF Rank : 57
Koneru Lakshmaiah Education Foundation University(K L College of Engineering), Vaddeswaram
Guntur, Andhra Pradesh | University Grants Commission, All India Council for Technical EducationNIRF Rank : 58
National Institute of Technology Hamirpur
Ubak, Himachal Pradesh | Ministry of Human Resource DevelopmentNIRF Rank : 60
St. Teresa's College, Ernakulam
Ernakulam Kochi, Kerala | Mahatma Gandhi University, KottayamNIRF Rank : 64
Shoolini University of Biotechnology and Management Sciences, Solan
Solan, Himachal Pradesh | UGCNIRF Rank : 65
Silver Jubilee Degree College, Kurnool
Kurnool | Rayalaseema UniversityNIRF Rank : 66
Mohanlal Sukhadia University, Udaipur
Udaipur, Rajasthan | Mohanlal Sukhadia University, UdaipurNIRF Rank : 67
NSHM Knowledge Campus, Kolkata
Kolkata, West Bengal | Maulana Abul Kalam Azad University of Technology, KolkataNIRF Rank : 68
Farook College, Kozhikode
Kozhikode, Kerala | CALICUT UNIVERSITY, CALICUTNIRF Rank : 71
SRM Institute of Science and Technology, Chennai
Kattankulathur, Tamil Nadu | SRM University, ChennaiNIRF Rank : 73
Lal Bahadur Shastri Institute of Management, Delhi
New Delhi, Delhi | AICTENIRF Rank : 74
Newman College, Idukki
Thodupuzha, Kerala | MG UniversityNIRF Rank : 78
Lady Doak College, Madurai
Madurai | MKU,MaduraiNIRF Rank : 79
TKM College of Arts and Science, Kollam
Kollam | KU, ThiruvananthapuramNIRF Rank : 80
Sri Guru Gobind Singh College of Commerce, Delhi
New Delhi | University of DelhiNIRF Rank : 87
Mepco Schlenk Engineering College, Sivakasi
Melamattur, Tamil Nadu | Anna University, ChennaiNIRF Rank : 88
Sri Venkateswara University, Tirupati
Tirupati, Andhra Pradesh | UGCNIRF Rank : 89
Hindustan Institute of Technology and Science, Chennai
Chennai | NAAC; UGCNIRF Rank : 95
St. Francis College for Women, Hyderabad
Hyderabad, Telangana | Osmania University, HyderabadNIRF Rank : 95
Sri Krishna College of Engineering and Technology, Coimbatore
Coimbatore, Tamil Nadu | Anna University, ChennaiNIRF Rank : 97
Kongu Engineering College, Perundurai
Erode, Tamil Nadu | Anna University, ChennaiNIRF Rank : 99
New Horizon College of Engineering, Bengaluru
Bengaluru, Karnataka | Visvesvaraya Technological University, BelagaviNIRF Rank : 106
The Northcap University, Gurugram
Gurgaon, Haryana | BCI, NAAC, UGC, MHRD, AIUNIRF Rank : 117
Sri Sairam Engineering College, Kancheepuram
Sirukalathur, Tamil Nadu | Anna University, ChennaiNIRF Rank : 123
NMAM Institute of Technology, Nitte
Nitte, Karnataka | Visvesvaraya Technological University, BelagaviNIRF Rank : 128
NITTE Meenakshi Institute of Technology, Bengaluru
Govindapura, Karnataka | Visvesvaraya Technological University, BelagaviNIRF Rank : 142
YMCA University of Science and Technology, Faridabad
Faridabad, Haryana | UGCNIRF Rank : 144
Dr Vishwanath Karad MIT World Peace University, Pune
Pune, Maharashtra | UGCNIRF Rank : 154
Manav Rachna International Institute of Research and Studies, Faridabad
Faridabad, Haryana | Manav Rachna International University, FaridabadNIRF Rank : 164
Pimpri Chinchwad College of Engineering, Pune
Pimpri-Chinchwad, Maharashtra | Savitribai Phule Pune University, PuneNIRF Rank : 192
Which industries are open for Financial Analyst?
- Corporate Finance
- Wealth Management
- Equity Research
- Insurance Management
- Business and Financial Consulting
- Merchant Banking
- Portfolio Management
- Corporate Treasuries
- Real Estate and Commodity Markets
- Mutual Funds
- Investment Banking
- Project Appraisal
- Corporate Laws
- International Accounting
- Quantitative Techniques
- Managerial Economics
- Organizational Behavior
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Are there internships available for Financial Analyst?
What does the future look like for Financial Analyst?
Financial analysts are most commonly employed by investment banking firms, research sales and trading, commercial banks, the real estate industry, private equity firms. Among the accounting and finance workforce, these professionals are one of those in most demand. As more businesses are being established and existing ones clamour to expand, there is an increase in demand for a financial analyst to ensure the financial growth of these businesses. It is primarily a desk job with standard business hours of work. The individual shall need to stay on top of all finance related news throughout their career to ensure the reliability of their skills.
Travelling to attend conferences and business meetings can be expected for a financial analyst job. While they work independently, they are also to work collaboratively with professionals from other departments and senior management. It is common for them to become investment advisors or work independently as consultants after spending a considerable amount of time in the industry.
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