Financial Analyst

Financial analysts assess the performance of stocks, bonds, and other types of investments and accordingly guide businesses and individuals to better investment decisions

Who's a Financial Analyst?

Are you great at managing your pocket money? Have great ideas to save money? Do your friends turn to you to help them figure out their finances? If so, consider a career in financial analysis!

As a financial analyst, you will help businesses grow by offering them sound financial advice. You will carry out research on various trends, study the financial status of the company, and accordingly come up with a plan to help them. Decisions such as buying and selling of stocks, recommending future investments, creating financial reports and others would be part of your responsibilities.

Responsibilities

What will you do?

Creating financial models.

One of your primary responsibilities would be to create financial models that help you predict the outcome of business decisions. For this, you would have to aggregate large amounts of data by taking into account different factors like the current market trends, past transactions, liabilities, number of assets, etc.

Example: For a company merger, you would have to predict the outcome of the deal by comparing and studying the financial data of both the companies and provide the decision-makers with information on the steps needed to increase revenue and manage assets successfully.

Researching current trends.

Your job would also involve researching on the current trends in the financial industry. With this, you will assist your company in buying and selling stocks. You would also be managing the company’s financial portfolio i.e. assets and investments.

Example: You would study how new regulations, political situations, economic trends in certain industry would have an impact on your investments.

Prepare financial reports.

Major financial decisions would be dependent on you. For this, you must prepare financial reports for regular leadership reviews. The company’s financial performance would be evaluated on the basis of these reports. The reports have to be prepared in coordination with the accounts team.

Example: You would create a financial statement during the year-end. This statement would include the company’s spends, earnings, profits, losses, etc.

Managing the company’s financial portfolio.

When working on the buy-side, you would help employers decide on how they should spend their money. Whereas, if you’re working on the sell-side, you would review the performance of the existing investments of a company and determine if they should continue with those investments or not.

Example: You would help a company in investing stocks and securities, house funds, buying real estate or allocating marketing capital.

Present your findings and offer advice.

You will be in contact with the management quite often to understand their views on the financial reports and current financial trends. You will have to present your report to them along with your research and other findings to help them take appropriate financial decisions.

Example: If the company is looking to invest in another, you will have to study financial reports of both the companies, present the pros and cons in terms of finances and its impact on the business.

Take the Mentoria career assessment test, to find out how well-suited you are as a Financial Analyst.

Workplace

Where will you work?

Corporates/Startups

Financial analysts typically work in an office set up with other employees and the management. They often work with the accounts and sales team.

Agencies

Many financial analysts work or freelance for agencies that consult several companies. When working or freelancing for an agency, you would be required to visit the client’s office on a weekly or monthly basis to understand the existing financial stand of the company, evaluate its past performance and perform financial forecasting, reporting and operational metrics tracking.

Client Visits

You will spend a considerable amount of time visiting a client’s office for briefings and presenting your report. 

Education

How do you get there?

STEP 1: Class XI-XII/Junior College

While commerce should be your ideal choice for a career in finance, you can choose arts in junior college.

STEP 2: Graduation

Pursue a three-year Bachelor of Management Studies or a three-year Bachelor of Finance and Accounting from colleges like NMIMS University (Mumbai), St. Xavier’s College (Kolkata), Narsee Monjee College of Commerce and Economics, (Mumbai), etc. The eligibility for these courses is a minimum of 60% marks in Class 12.

STEP 3: Internship

You can join an accounting firm or a management firm as an intern to gain hands-on knowledge. Here, you would be required to assist with keeping records and processing invoices. While at the job, try developing your skills about how departmental costing works.

STEP 4: Land a Job

Now that you have your qualifications as well as good internship experience, you are ready to apply for a job! Your first job may require you to do tasks like keeping a track of billing activities or handling cash accounts for the organisation.

Congratulations, you are now officially a Financial Analyst!

STEP 5: Professional/ Postgraduate Degree

You can pursue professional degrees along with your graduation. You could pursue Chartered Accountancy (C.A.) or become a Chartered Financial Analyst (C.F.A.). Alternatively, you could also opt for a postgraduate degree. You could pursue a two-year MBA in Financial Management. This will help you gain an understanding of managing finances. Or pursue a two-year Master of Commerce in Accounting and Finance. You would need a minimum of 50% marks in your graduate degree to be eligible for these courses.

Thinking of a career as a Financial Analyst? Take the Mentoria assessment test & talk to our career counsellors to get personalized step-by-step guidance for your future career path.

STEP 1: Class XI-XII/Junior College

Commerce is the ideal path as it introduces you to subjects like finance and accounting early on. Remember to focus on subjects like maths and accounting. If your college offers them, take on additional accounting subjects to strengthen your foundation.

STEP 2: Graduation

Pursue a three-year Bachelor of Commerce in Accounting and Finance from colleges like

Narsee Monjee College of Commerce and Economics, (Mumbai), Shri Ram College of Commerce (Delhi), etc.  Alternatively, pursue a three-year Bachelor of Management Studies or a three-year Bachelor of Finance and Accounting from colleges like NMIMS University (Mumbai), St. Xavier’s College (Kolkata), Narsee Monjee College of Commerce and Economics, (Mumbai), etc. The eligibility for these courses is a minimum of 60% marks in Class 12.

STEP 3: Internship

You can join an accounting firm or a management firm as an intern to gain hands-on knowledge. Here, you would be required to assist with keeping records and processing invoices. While at the job, try developing your skills about how departmental costing works.

STEP 4: Land a Job

Now that you have your qualifications as well as good internship experience, you are ready to apply for a job! Your first job may require you to do tasks like keeping a track of billing activities or handling cash accounts for the organisation.

Congratulations, you are now officially a Financial Analyst!

STEP 5: Professional/ Postgraduate Degree

You can pursue professional degrees along with your graduation. You could pursue Chartered Accountancy (C.A.) or become a Chartered Financial Analyst (C.F.A.). Alternatively, you could also opt for a postgraduate degree. You could pursue a two-year MBA in Financial Management. This will help you gain an understanding of managing finances. Or pursue a two-year Master of Commerce in Accounting and Finance. You would need a minimum of 50% marks in your graduate degree to be eligible for these courses.

Thinking of a career as a Financial Analyst? Take the Mentoria assessment test & talk to our career counsellors to get personalized step-by-step guidance for your future career path.

STEP 1: Class XI-XII/Junior College

While commerce should be your ideal choice for a career in finance, you can choose science in junior college.

STEP 2: Graduation

Pursue a three-year Bachelor of Management Studies or a three-year Bachelor of Finance and Accounting from colleges like NMIMS University (Mumbai), St. Xavier’s College (Kolkata), Narsee Monjee College of Commerce and Economics, (Mumbai), etc. The eligibility for these courses is a minimum of 60% marks in Class 12.

STEP 3: Internship

You can join an accounting firm or a management firm as an intern to gain hands-on knowledge. Here, you would be required to assist with keeping records and processing invoices. While at the job, try developing your skills about how departmental costing works.

STEP 4: Land a Job

Now that you have your qualifications as well as good internship experience, you are ready to apply for a job! Your first job may require you to do tasks like keeping a track of billing activities or handling cash accounts for the organisation.

Congratulations, you are now officially a Financial Analyst!

STEP 5: Professional/ Postgraduate Degree

You can pursue professional degrees along with your graduation. You could pursue Chartered Accountancy (C.A.) or become a Chartered Financial Analyst (C.F.A.). Alternatively, you could also opt for a postgraduate degree. You could pursue a two-year MBA in Financial Management. This will help you gain an understanding of managing finances. Or pursue a two-year Master of Commerce in Accounting and Finance. You would need a minimum of 50% marks in your graduate degree to be eligible for these courses.

 

Thinking of a career as a Financial Analyst? Take the Mentoria assessment test & talk to our career counsellors to get personalized step-by-step guidance for your future career path.

What skills would you need?

Analytical and Data Skills

Analytical and Data Skills

Analytical and data skills involve the ability to evaluate information, interpret data, and draw insights to solve problems or make informed decisions. These skills require critical thinking, logical reasoning, and proficiency in working with data sets, often using tools like Excel, SQL, or statistical software. This skill set helps you break down complex problems, identify patterns, and make data-driven decisions. In the workplace, strong analytical and data skills allow you to provide insights that guide strategies, optimise processes, and drive innovation. They are essential for roles involving research, business analysis, marketing, finance, and operations. build this skill
Attention to Detail

Attention to Detail

Attention to detail means being careful and noticing small things that others might miss. It involves checking your work carefully for mistakes, following instructions exactly, and making sure everything is done correctly. This skill helps you do accurate work and avoid errors. In jobs, attention to detail is important for tasks like writing reports, managing data, or following safety rules.     build this skill
Time Management

Time Management

Time management refers to the ability to plan and organise how much time you spend on specific activities. Good time management enables individuals to work smarter rather than harder, helping them prioritise tasks, set goals, and allocate time efficiently. It includes skills such as prioritisation, scheduling, and setting deadlines, allowing individuals to maximise productivity and reduce stress. This skill is especially valuable in fast-paced environments, where the ability to adapt and adjust priorities can significantly impact performance.
Adaptability

Adaptability

If you have adaptability as a skill, you can easily adjust to new situations, roles, or challenges without losing focus or productivity. You’re able to embrace change, whether it’s a new technology, a shift in team dynamics, or a sudden project requirement. This skill allows you to remain composed during transitions, learn quickly in evolving environments, and stay effective when facing unexpected problems or shifting priorities.
Communication Skills

Communication Skills

Communication skills are the ability to clearly express ideas, information, and feelings, both verbally and in writing, so others can easily understand. This includes listening effectively, using the right tone, and being aware of non-verbal cues like body language. These skills help you explain your thoughts clearly, build relationships, and work better in teams. Good communication is important in almost every job, from customer service to leadership roles, because it ensures that tasks are understood and done correctly, and it helps prevent misunderstandings. build this skill
Promotion levels

How do you make it to the top ranks?

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Junior Analyst

You can start your career in financial analysis with a major in any finance-related subject. At this stage, you will be carrying out various accounting and other financial tasks under the guidance of a senior analyst. Your duties may include gathering and analysing market data as well as drafting financial reports.

Senior Analyst

You can either go from junior to senior or complete your Master’s degree and get appointed directly as a senior-level analyst. Your main tasks would include managing the junior analysts in your team, assessing the performance of the different types of investments of your clients, and providing them with financial guidance.

Finance Manager

By this stage, you have moved into a more supervisory position. You will be overseeing a team of analysts and be a part of all the major financial decisions of the company. Depending on your organisation, you can also be the head of the entire finance department, responsible for all types of financial planning and modelling.

Chartered Financial Analyst (CFA)

The CFA is the most prestigious credential in your field and if you make it to this stage, you will be internationally recognised as an expert financial analyst. At this stage, you will be directly working with the biggest clients in the business, advising both businesses and individuals in investment decisions.

Scope

Pursuing your career locally VS abroad

In order to pursue a career in financial analytics, students must complete their graduation with mathematics as a subject. After acquiring a bachelor’s degree, there are various options to choose from. Students can opt for a two-year post-graduate degree in MCom, where the average tuition fees range from INR 10,000 to 1.5 lakhs, or Master of Finance and Control (MFC) where the fees range from INR 5000 to 5 lakhs. Students can also go for Chartered Accountancy, which is relatively less expensive at INR 4,000 to 1 lakh for a two-year course. The most expensive option is an MBA, where the fees range from INR 2 to 20 lakhs for a two-year course. Some of the best colleges in India for finance are BITS Pilani (Mumbai), International Management Institute (Delhi), Narsee Monjee Institute of Management Studies (Mumbai), SP Jain Institute of Management and Research (Mumbai), and Xavier Institute of Management (Bhubaneswar). Later in their careers, financial analysts can also opt for the CFA course affiliated to the Indian Association of Investment Professionals.

Financial analysts from India have tremendous scope internationally as global finance companies such as Bank Of America, Wells Fargo Bank, PNC Bank, National Association and others hire candidates from all over the world. There is also scope for a successful career in stock exchange companies for talented financial analysts whose expertise lies in stocks. Chances are higher if students earn a degree from reputed international institutes like Columbia University (New York), Florida International University (Miami), Johnson Graduate School of Management (New York), University of California (Oakland), or University of Texas (Austin). Students with an undergraduate degree in finance, economics, statistics, business administration, and management as well as some internship experience can qualify for entry-level jobs in financial analytics. For more lucrative jobs, students need an additional degree in Chartered Investment Manager, Chartered Financial Analyst, Certified Management Accountant, Certified General Accountant, or Masters of Business Administration.

Payscale

How much would you get paid?

Your exact earnings would depend entirely on your education, skill-set, experience, and the organisation you’re working for. We can, however, give you a fair idea of how much you would earn as a financial analyst. 


Specialisations

What are your career options?

Budget Analytics

Budget analysts are also known as accountants or financial controllers. You will evaluate the operating costs of a company and its departments and thereby prepare a budget report. In a non-profit or non-governmental organisation, you will find the best ways to distribute funds and other resources among different departments and projects.

Credit Analytics

Credit analysts examine credit data and other financial information to analyse risks in lending money or extending credit to individuals, companies or securities. You will determine whether borrowers can repay their financial loans by analysing their financial health and other economic conditions that can impact the mode of repayment.

Investment Analytics

Investment analysts look at investment data and advise individuals or businesses on the investments that would be most profitable to them. You will also create your own investment strategies, provide your clients with the pros and cons of each investment option available to them.

Private Equity Analytics

These professionals work for private equity firms, guiding them on the equity of the private companies in which they invest. For this, you will conduct research and analysis on private companies, determine the pros and cons of investing in their stocks, and provide their firms with the best investment options.

Merger & Acquisition Analytics

Analysts in mergers and acquisitions are involved in the primary legwork of potential deals. As a company goes through restructuring or complete turnover, you will evaluate financial reports, examine operations, and determine how the company can fit within another business or as a part of a larger portfolio.

Fund Manager

Fund managers oversee hedge funds or mutual funds. You will research and determine the best stocks, bonds, or other securities for your clients and are responsible for implementing the fund’s investment strategy and managing its portfolio trading activities. You would also lead a team of investment analysts.

Risk Analytics

Every investment involves a certain degree of risk. Professionals in risk analytics evaluate the risks of investments and help mitigate them. You will examine and analyse many factors that could impact investments and define certain preventive measures that can reduce the possibility of any kind of risk involved with the investment.

Tax Analytics

Tax analysts mainly help companies, as well as individuals, file their tax returns. You will conduct thorough research of their clients’ tax data, review their returns, and ensure that all records are in compliance with local, state, and federal laws.

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