What Do You Need to Become a Financial Analyst?

One of the most coveted jobs that companies look for is financial analysts. They are sometimes misconstrued as working with bond or stock markets to help their higher employers make certain investments. A company can hire analysts for numerical data so that they can suggest better marketing techniques.

Businesses which utilize a franchise model employ financial analysts to track and tackle franchises within a particular region.

It is the job of the analyst to understand what the strengths and weaknesses are and through it, make forecasts from a monetary perspective. If you’re someone looking to become a financial analyst, here are some of the necessary skills and education you need:

Education and Skills To Become Financial Analyst

Financial analysts need to have a structured qualification and there aren’t any minimums for the career-wise education. A Bachelor’s degree in statistics, economics or finance is a compulsory requirement and other majors that are favorable include math and accounting.

Engineers too are preferred given their analytical way of thinking, which is a necessity in the world of financial analysis. If you’re smart enough to get a degree from a good Undergraduate college, you will have opportunities for great jobs right off college.

Getting an MBA degree is also an added advantage and these graduates are generally hired to work as senior analysts right after they’re done with college. A good career as a financial analyst requires you to have robust quantitative skills, logical skill in different situations, good problem-solving ability and communication skills that are above average.

There is a lot of number crunching that needs to be done if you’re a financial analyst, as analysts have to report to their superiors and help them understand the data in a concise manner.

Different types of analysts:

There are many types of analysts in the world of finance and it is important that you understand the sector you wish to join. There are generally three categories within the field of analysts, including:

  • Seller side
  • Investment banks
  • Buyer side

Analysts also work for regional and local banks, real estate brokers, insurance companies in addition to companies that depend on data. Data is one of the most important drivers of any company’s business and having good financial analysts helps them understand the business much better. A good financial analyst will predict risks well in advance and help companies save their money by preventing them from making rash financial decisions.

The different types of analysts required in the world of finance make this a lucrative option as it is a job that will never go out of fashion. Ensure you get a good qualification as this acts as a good marker regarding your ability as an analyst.

Overall, financial analysts are promised a life of security and comfort in addition to working with some of the biggest companies in the world if they are extremely good at what they do. Imarticus allows you to get a strong financial analyst course and receive the financial analyst certification, so start right away!

Which Are Some of The Good Books On Financial Analysis For The Purpose Of Equity Valuation?

Pursuing a financial analysis course, currently working in the finance team of a firm or looking to make a career in the finance domain- it is important to gain complete knowledge of valuation and finance before working in the market. There are undoubtedly many sources to learn about valuation, however, if you prefer reading a book rather than attending a seminar or webinar, then here is a list of top books on valuation.

1. The Intelligent Investor by Benjamin Graham
Long considered as one of the most important books written on investing and valuation, the book has great quotes from the author that motivate you into a career in finance. If you have enrolled in a Financial Analyst Certification course, then this book is a must read to enlighten you about the strategies that will help you reach your goals.

The concepts of value investing are explained in detail and most aspects of technical trading have been covered in the book. The book is the Bible of Finance and must adorn your bookshelf if you are thorough finance professional.

2. Theory of Investment Value by John Burr Williams
The book first printed in 1938, revolves around the idea that stocks are worth the present value of the dividends that are paid perpetually. The book highlights the investment value of a stock as the net present value of the future dividends it will reap. It features the highly popular, Discounted Cash Flow technique, which is the edifice of business valuation whilst making investment decisions. Warren Buffet, the reputed investor was highly impressed by the book and the book features two major principles- the intrinsic value of a business can be taken out of discounted value during the course of its lifetime and a business that can afford to invest it’s earning at a higher rate than the applied discounted rate if it can afford to.
3. Measuring and Managing the Value of Companies by McKinsey & Company Inc
One of the best guides for corporate valuation, the book has been co-authored by Tim Koller, Marc Goedhart and David Wessels. The book solidifies the proven principles of value creation by negating the myths that prevail in the financial world.

The book equips executives to make a value-creating decision with case studies that analyze the historical performance of a company and then redrafting it to take a closer look at the performance. The book covers the topics of linking a company’s valuation multiples and estimating the cost of capital with practical tips. A must-have for investment bankers and investors to make pragmatic decisions.
4. Damodaran on Valuation: Security Analysis for Investment and Corporate Finance by Aswath Damodaran
A gifted professor and an authority on valuation, Aswath Damodaran delves deeply into three basic approaches to valuation which are discounted cash flow valuation, relative valuation, and contingent claim valuation. The book is filled with real-time examples of many international firms that deepen your understanding of the advantages and disadvantages of every model to help reader’s judge complex valuation scenarios.

5. Equity Asset Valuation by John Stowe
The book is a good read because of its coverage of finance and accounting concepts with every topic treated in detail for the benefit of the reader. It is good for students who want to strengthen their concepts of valuation before stepping into the finance domain. Most examples used to make it useful for finance students to learn the concept of implementing intrinsic stock valuation.

How Do You Become a Financial Controller?

Are you great with number crunching and have excellent organizational skills, then this job should be what you are aiming at! A financial controller makes the most important decisions in the business with regard to the finances of the company. A trustworthy job as you will be handed the financial reins of the control of inflow and outflow of cash, you will definitely see the positive impact that your hard work will make on the company’s turnover and growth.
Some previous experience as an accountant or in a similar role of managing finance is a prerequisite to be considered for the job of a financial controller. The job demands a high level of knowledge, skill, dexterity, confidence, responsibility, and accountability. If this sounds like the path, you want to take read on to find out more about the roles and responsibilities, prerequisites, salary, hours of work and more.
What does a Financial Controller’s job entail? Are you cut out to embark on a career in that domain. Well as a financial controller you will be responsible for the accounting operations of the company and reporting to the Finance Director. Preparing financial reports, documenting accounts, corporate accounting, budgeting, forecasting- you will be involved in every aspect of the organization that remotely requires money. You will be managing the financial transactions of a company right from accounts payable to payroll. Irrespective of which industry you work in- every company needs a Mathematics wizard to manage their finances and with an interest and a financial analyst course you could be on the right path to becoming a Financial Controller.
You could complete a finance or accounting degree for e.g., Bachelors in Commerce or Bachelors in Business Management with a specialization in finance which would take you about years. You could also earn a Master’s degree to have an added advantage. If you do not want to take the university route, you can learn by enrolling in a Financial Analyst certification course offered online. Your employer may fund this for you while you train to become an accountant, and then you can work your way up the ladder. Financial Analysis courses in Hyderabad offer great study options for those who want to move progressively towards becoming a Financial Controller.
There is good news for those aiming to be Financial Controllers- it is a typical 9-5 job with weekends and bank holidays to yourself depending on the organization. Qualified financial controllers can earn anywhere between Rs 15,00,000 – Rs 35,00,000. The range could be higher depending on the size of the company and the experience of the candidate.
Once you gain a degree or even experience in accounting or a financial position, it is important to leverage your expertise and build your supervisory skills to become a Financial Controller. Being in control of finance means solving complex issues, dealing with pressurizing situations with an analytical mind. It is important to be exceptionally organised to meet deadlines and comply with regulations. Your primary responsibility will be to see the “bigger picture” and the financial health of the organization rather than just day-to-day numbers.
If you have your sights set on this role, then just get yourself a role in accounting or finance, get certified with a qualification, work hard and learn the ropes to prove yourself worthy of single-handedly managing the funds of a company.

What Are Good Topics For Thesis In Bachelor Of Finance-course

One of the essential to earning your degree in finance is that you have to submit your dissertation on a financial analysis topic that has to be eye-catching and demonstrate your ability to defend the topic. Financial Analysis being an ocean of streams and topics it is wise to choose a topic based on your area of interest.

How to write your thesis:

For information on the title page, format to be used, font size, sections, headers etc. use the guidelines laid out in the assignment brief. The thesis layout and writing should include the following for easy understanding of your research and study, great presentation and academic requirements of writing.
A Foreword: A Foreword thanking people who contributed, explaining your thesis briefly and serving as a personal note.
A chapter on Introduction: The introduction chapter is where your research goals, topics of study and the background of your methodology is a must.
The Methodology used: Here you will lay out every step of action taken during your research, analysis and inferences making the process of your study.
Presentation of Data: This chapter should be devoted to outcome presentation, how this helps development and the value of your inferences.

EFFECTIVE STRATEGIES TO RIDE THE EDTECH WAVE
Any additional chapters required.
Bibliography and sources review: In this chapter go about explaining your consultative sources referred to for study. Also, provide a list of literary references that can be looked to for authentication of information and data used.
The Concluding note: Use this chapter to reinforce the main topics and inferences of your thesis while providing constructive ways of furthering studies on the topic and its development.

Interesting Financial Analysis Topics:

Depending on your field of interest (Marketing, taxes, Corporate Governance, etc.) use the following topics to quick-start the thinking process and narrow down your topics.

  • The features of China’s financial markets
  • Fraud and its impact in financial markets
  • Economics of Financial markets
  • The risk analysis of financial markets
  • Impact of governmental decisions on the financial markets
  • The Wall Street Financial markets assessment
  • The financial markets effects caused by the high-frequency trading system
  • Why financial markets flourish in a strong economy
  • The investor benefits in stock markets Government and its impact on capital markets
  • How money markets affect the financial system
  • Spot markets and their effects
  • The features of the Bond Market
  • The spot market features
  • Private investing and the derivatives market
  • Secondary Vs Primary market
  • The impact of the interbank market on foreign exchange
  • Over-the-counter markets roles and impact
  • Third and fourth markets impact
  • IMF and emerging markets
  • The impact of the Greek economy on the European markets
  • Valuations and a bullish market

A good financial analysis course/ financial analyst certification from a reputed company like  Imarticus will boost your career chances and are particularly advantageous to you because of the global robust curriculum, hands-on practice on popular tools, an industry-relevant project involving real-time live data, and excellent mentorship provided which makes you industry-ready from day one. There are very many opportunities, and the payouts are great as witnessed on most job portals.