A career as a financial analyst requires vigorous preparation and hard work. It also has the potential to deliver not just financial rewards, but genuine satisfaction due to the flexibility when it comes to industries in which you are working. It can be any industry in which business is involved be it entertainment, technology or banking industries. If it piques your interest as a potential career, find out more about the path to a financial analyst.
A financial analyst is someone who analyses financial data, market trends and use their findings to help companies make investment decisions. Their broad role is to perform detailed financial modelling to support executive decisions, operating budgets and help in decisions around capital expenditures.
Some typical responsibilities are:
- examining possible investments
- evaluating potential investment risks
- creating financial forecasts
- comparing historical data, current data and emerging trends
- producing detailed reports based on data analysis
The two categories of financial analysts are those who work in buy-side and sell-side firms.
Buy-side analysts work for hedge funds, pension funds or insurance companies to help businesses with their investment strategies. They uncover trends and the forecasts which are invaluable in the investment decision-making process.
Sell-side analysts advise financial service sales agents who sell stocks, bonds, and other investments. They compile data on stocks, bonds, and other investments and use quantitative analysis to project how these securities will perform in the market. Based on this, they recommend to buy and sell stocks.
The most successful analysts are ones with strong quantitative skills, expert problem-solving abilities, adeptness in the use of logic, and above-average communication skills. Aspirants are advised to develop proficiency in the use of spreadsheets, databases, and PowerPoint presentations and learn other software applications. Developing interpersonal relationships with superiors and colleagues, along with hard work, can lead you to promotion.
They have to maintain a comprehensive understanding of how the ever-changing market impacts investments. Their role is dynamic, high-pressure, exciting and high-reward. So, what are the necessities to be one?
A bachelor of science in finance is the most direct route, but majors in statistics, accounting, economics or business can also provide an entry point. Those who succeed often go for particular qualifications, such as a Master of Business Administration or a Level 7 accounting and finance diploma. These are well respected in the industry and will give you the knowledge you need to thrive.
With the correct qualifications, you can work adeptly and also give your employers or clients additional peace of mind. And these courses don’t necessarily have to be done in-house at an institution; you can do online finance courses that will give you the level of expertise needed to perform the role to the highest standard.
Getting certified is a bonus
With relevant education and experience of four years and after passing a series of three exams, you can get certified as a Chartered Financial Analyst(CFA) awarded by CFA Institute. CFA is one of the most respected and recognised investment management credentials in the world. Using which you can work in any part of the world.
At Ascent School of Management London, our online finance courses allow you to study for the qualifications you need without leaving the house. For any help or support, you can contact our support team right here or by sending your queries via an email to email@example.com.