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Tag: financial analyst training

Everything you need to know about financial analyst training

Posted on by Imarticus Learning

Financial analyst training help individuals gain the skills and knowledge they need to make sound decisions in economics, investing, and finance. This type of training can be beneficial for those who want to enter into a career as a financial analyst or for those looking to enhance their current knowledge base.

The topics covered in financial analyst training will vary depending on the program but typically include topics such as accounting, economics, basic finance and investment principles, financial modeling and forecasting techniques, qualitative and quantitative analysis tools, communication skills, and report writing. 

Financial analyst training can also allow students to learn more about market trends and current issues in the financial industry.

This post will briefly explain the various components of financial analyst training and what to expect. It will also discuss the different paths one can take to become a successful financial analyst. Finally, it will provide some tips for those interested in pursuing this career path.

The Various components of financial analyst training

 

Financial analyst training generally includes both theoretical and practical components. On the academic side, students will learn about economics, finance, accounting principles, financial modeling techniques, market analysis processes, and risk management strategies. They may also get instructed in qualitative analysis tools such as industry research, forecasting methods, and capital budgeting techniques.

On the practical side, students will apply their knowledge in several ways. This can include building financial models, developing and testing investment strategies, conducting market research, and writing reports.

Paths to Becoming a Financial Analyst:

To become a successful financial analyst, it is crucial to have a solid foundation in finance and economics. Depending on the type of job one is looking for, you can take different paths.

  • Education:

Financial analyst positions typically require at least a bachelor’s degree in either finance or economics. Students can also benefit from taking additional courses such as accounting, business law, and statistics.

  • Certifications:

There are several certifications that one can obtain to become a financial analyst. These certifications can demonstrate one’s commitment to the field and are often preferred by employers.

  • Internships:

Internship programs provide students with valuable hands-on experience in a financial analyst role. This can also be a great way to gain exposure to the industry, make connections and learn more about the different finance roles.

  • Job Experience:

Job experience is perhaps the most crucial factor in becoming a successful financial analyst. Many employers prefer those with previous experience in similar roles, such as investment banking or financial planning.

Tips for Becoming a Financial Analyst

To become a successful financial analyst, it is vital to stay up to date with the latest trends in the industry. 

Here are some tips for those interested in pursuing this career path:

  • Networking is key

    Connect with other professionals in the field and stay informed of the latest developments in finance.

  • Take advantage of online resources

    Several online courses, websites, and forums can help you understand financial concepts and stay up to date with industry trends.

  • Develop strong analytical skills

    Analytical thinking is essential for success in this field. Practice problem-solving and develop your ability to interpret data and draw conclusions.

  • Develop effective communication skills

    The ability to communicate your ideas verbally and in writing is essential.

  • Remain organized

    Being organized helps you stay on top of tasks, understand complex concepts and prioritize responsibilities.

Advance Your Career as Financial Analyst with Imarticus Learning

With financial analysis training, you can sharpen your skillset by diving into real-world valuation procedures and learning how to analyze financial statements. Plus, you master modeling methodologies, so you’re ready to get out there – cashing in on all of that knowledge!

 Course Benefits For Learners:

  • Students will also learn financial analysis skills to give themselves a competitive edge in the job hunt for positions within the finance industry.
  • Once you’ve become a financial modeling expert, you can impress potential employers and showcase your skills.
  • Through online financial analysis training, learners can obtain the knowledge and skills necessary to become financial analysts.

Visit our training centers in Mumbai, Thane, Pune, Chennai, Bengaluru, Delhi, Gurgaon, or Ahmedabad, or get in touch via a chat support system.

A Quick FAQ to the CFA Charter

Posted on by Imarticus Learning

No doubt you have heard of the Fun Facts You Didn’t Know about the CFA Exam Chartered Financial Analyst Program (CFA), the most globally recognized and respected investment management credential in the world. In this blog we answer some questions regarding what it costs, if you’re eligible, and how much time you need to put aside to give it a good shot.
What is the CFA?

The CFA is a credential as well as a passport to the largest club of investment professionals in the world. Being a charter member means many regulatory agencies will offer waiver from licensing exams, graduate programs give you a waiver of the GMAT and many financial and investment-related certification organizations grant waivers from qualifying exams or continuing education requirements.
Because the CFA curriculum is incorporated into more than 300 business schools around the world, you are essentially learning what is taught in some of the best schools in the world. And the charter is often a prerequisite to many prestigious jobs in Investment Management.
How does one become a CFA Charter Holder?
Here’s the thing. It’s not just the passing of an exam. You cannot actually call yourself a CFA without being a CFA Charter Holder. The CFA requires you to do 4 things before you can become a CFA charter holder.

  • You need to agree to follow the CFA Institute Code of Ethics and Standards of Professional Conduct. This is why Ethics and Professional Standards comprise 15 percent of the Level 1 exam.
  • Pass the CFA Program exams for Levels I, II, and III. Watch this space for in depth posts on Level 1, Level 2 and Level 3 exams.
  • Have four years of qualified work experience in investment decision-making. This means having 48 months of experience in Investment Management that can be accrued either before, during or after the exam. The work experience is not a pre-requisite for the exam itself.
  • Become a regular member of CFA Institute and apply for membership in a CFA member society. Watch this space on a dedicated post to becoming a member of the CFA Institute.

What Jobs does it prepare you for?
Where do people land up after they do the CFA? Well here’s the break up. A majority of them go into Investment Management, which is what the course is geared towards. 23 percent become portfolio managers, 16 percent become Research Analysts, while the rest are distributed almost equally across Risk Management, C level positions, consultants, corporate financial analysts and financial advisory.
How many levels do I need to pass to get the CFA?
There are three levels and exams are held annually, biannual for Level 1.

  • Level I tests your knowledge of the ethical and professional standards and the exams consists of basic knowledge and comprehension questions focused on investment tools; some questions will require analysis.
  • Level II tests how you apply those standards to situations analysts face and emphasizes more complex analysis, along with a focus on valuing assets.
  • Level III tests how you apply the standards in a portfolio management and compliance context and require synthesis of all the concepts and analytical methods in a variety of applications for effective portfolio management and wealth planning.

All exams are in English and are held in June. Level 1 is also held in December. Check the CFA website for exact dates.
How much does it cost?
There is a one-time enrollment fee of $450 with a two-day refund policy.
If you want to register for the December Level 1 exam, you will pay a standard fee of $860 dollars if you register by 17th August and $1260 if you register by 14th September. If you plan to do it next year, then you can pay $650 if you register early.
In total, the three levels including one-time enrollment fee works out to $2400 if you register early every time, $3030 if you register normally.
Post passing all three levels, becoming a member of the CFA charter (required for you to actually use the CFA designation) will require you to pay $275 annually to the CFA institute and your local charter.

Do financial analysts use Python? In what ways?

Posted on by Imarticus Learning

Finance professionals have long relied on the trawling through spreadsheets which makes their exercise an extremely arduous task. However, over the years they have had access to VBA( Visual Basic Applications) in Excel to customize functionality and automate worksheets.
Google sheets have also proved to be a great contender for managing data on spreadsheets with Google Apps Script being a great addition to the option available. However, the Python programming language is now gaining a lot of popularity in the field with several financial giants like Citigroup offering Python certification and coding classes for their trainee financial analysts, traders and banking professionals.
Python has become one of the most popular programming languages in financial organizations owing to its simplicity, robust modeling capabilities and research ability for analysts, traders and researches. Python has inbuilt applications for every aspect in finance ranging from risk management to cryptocurrencies. A great addition to the financial toolbox of finance professionals, Python certification can be gained by professionals who have enrolled in a Financial Analyst course to enhance their skills and expertise at work.
Financial Analyst course
What makes Python such a great technology especially for finance professionals?
Several traits of Python make is a great choice for financial professionals. Although, here is a list of the most important ones:

  1. Simple and flexible

Easy to write and implement, it is a perfect choice for handling financial services applications that are complex. The syntax is simple and enhances the speed of helping organizations to build software to integrate with their products. It also reduces the rate of errors when developing products in the finance sector that fall under high regulations.

  1. Develops Minimal Viable Product (MVP) faster

The financial services sector needs to be agile and responsive to its customers. Using Python in combination with frameworks like Django, developers can get hold of MVP of products and services to create flawless products

  1. Bridges the gap between data science and economics

Python simplifies calculations for a finance professional with its simplicity and practicality in creating formulas and algorithms to integrate the work of economists in the Python platform.

  1. Source of libraries and tools

Python lets developers build tools from at any stage saving a lot of time and money. Python libraries help in integration of products giving organizations a competitive advantage.
How do finance companies and analysts use Python?
It is already known that Python comes in handy for finance professionals in a broad range of applications. The most popular use of language is as follows:

  1. Banking software

Venmo, Stripe, Zopa, etc are some great banking platforms that finance organizations and banks have built for payment solutions and online banking services with Python. The simplicity and flexibility of Python help banks to develop software for ATM machines to enhance payment processes.

  1. Analytics tools

Python is a great tool for processing and analyzing large sets of data. Libraries such as Pandas help to simplify the data visualization process and carry sophisticated calculations to reveal a deep picture. Scikit or PyBrain are other libraries that have powerful machine learning algorithms to help in predictive analytics for financial analysts.

  1. Cryptocurrency

Businesses that sell cryptocurrency need a tool to conduct a market analysis to predict trends and patterns. Python has a data science ecosystem called Anaconda that helps developers to carry out cryptocurrency pricing and analyze the trends. Most web applications that deal with cryptocurrency use Python to build their products.

  1. Trading

Stock markets create large amounts of data that requires analysis again to get generate reports on the economic scenario. Developers use Python to create solutions that nail down the best strategies to offer the best solutions to trade.
Python is a clear programming language with a simple syntax and a good ecosystem that helps the development process of any financial activity. So those with a Financial Analyst Certification could benefit from the knowledge of Python as they will be able to integrate their knowledge to develop and work on Python-based tools in their job.

Also Read: Does Financial Analyst Need SQL

How do Financial Analysts perform research?

Posted on by Imarticus Learning

How do Financial Analysts perform research?

The research analysts cull data from financial statements of the company and PIB/ public information documents to value and estimate forward the companies’ growth and financial indices. They also manage investments, portfolios, funds and provide risk estimates.
Research methodology:
Investment Banking:
All data for financial analysis of public companies can be found in their filings and PIB documents.
A. Firstly the list of documents is created. They include:

  • General information like data available from  Bloomberg, Capital IQ,  FactSet, and others.
  • Annual report.
  • The Prospectus.
  • Form 10-Q.
  • Proxy company shareholders and shares statement.
  • Form 10-K.
  • Equity research sell-side reports.
  • Structure of ownership.
  • Company News over 6 months from PIB or website.

B. The next step is to create the profile including company overview, financial overview, market statistics, statements, projections, the performance of stock price, leadership and ownership details, products, and more to give a fair understanding of the company, its segment, performance over the year, important events, etc.
C. Specific information analysis is then conducted.
Ex: For acquisition analysis

  • Fit determination for industry, size, technology, etc.
  • Potential like personnel talent, growth prospects and so on.
  • Financial parameters like leverage, share dilution/accretion, market views, etc.
  • Legal constraints involved etc.

Once the idea has been vetted the availability of the target is considered.
Availability signs are

  • Owners looking to sell.
  • Under-performance.
  • Large capital needs.
  • Discontent among shareholders.
  • Lack of Management talent.

Lack of availability signs are

  • Insider control.
  • No liquidity needs.
  • Succession strategy being family or clear.
  • Majority share owner being a company benefited by holding.
  • Excellent financial parameters and performance.
  • The parent company is the best choice.

D. The last step is to create the financial models for the merger, LBO, DCF, prior records of transactions, comparable companies and such to suggest and explain a strategic purchase price.
Hedge Funds:
Here quantitative analyses are not very cumbersome and are mainly to determine the risk assessment and justify current market and stock prices.
Ex: While looking to value-invest in a company trading at six times the earnings P/E prices involves a lot of reading and inferences drawn from such reading of PIB. Based on such inferences one will justify not investing if reasons presented in the dissertation are

  • Options of restructuring are too late.
  • The rate of decline in costs is lower than the falling rate of revenues.
  • Insider shareholders selling.
  • Single-party control.
  • Decline in earnings
  • Negative perceptions in the market.
  • Reliance on revenue from governmental earnings.

The models required would be transactional and competitive and DCF if applicable.
Private-equity:
This is very similar to investment banking research process with the exception of financial indices of PE like yield from FCF and leverage.
On a concluding note, one can do financial analyst courses from a reputed institution like Imarticus which provides for a financial analyst certification readily acceptable in the market for jobs and as a career choice par excellence.

Does Financial Analyst need SQL?

Posted on by Imarticus Learning

Does the Financial Analyst need SQL?

SQL, which stands for a structured query language, is the way most data analysts define, manipulate and control large amounts of data. It allows the questions in our minds to be translated into queries that elicit quick and concise responses from the data. 

It is no secret that data has become a prerequisite for analysis, as the digitized world has enabled our every movement to be translated into data points captured by various technologies. The unstoppable and ever-growing expansion of the data universe, coupled with an increasing appreciation of the capabilities of sophisticated data analysis, has made the data analyst the magician of our time. A good data analyst, or a good data-analysis solution, is one that bridges the gap between data and the way the human mind works.

Though sceptics claim SQL has nothing to do with finance, the technological world is fast evolving and inter-departmental boundaries are fast disappearing. Most teams are now cross-functional, and the emphasis for operational efficiency is on being Agile and applying Scrum principles. Even data has moved to cloud storage. That’s obviously why financial analysts need knowledge in Python and SQL.

It is no secret that data has become a prerequisite for analysis, as the digitized world has enabled our every movement to be translated into data points captured by various technologies. The unstoppable and ever-growing expansion of the data universe, coupled with an increasing appreciation of the capabilities of sophisticated data analysis, has made data analysts the magician of our time. A good data analyst, or a good data-analysis solution, bridges the gap between data and the way the human mind works.

SQL and Finance:

Data and financial records form the very backbone of all financial analysis. SQL is a great programming language for financial applications. Couple that with cloud storage, cross-functional teams, and the never-ending need for differentiating and cutting-edge live databases and it is easy to infer that at least the fundamental techniques of SQL are of paramount importance to the newbie financial analyst. Most people shy away from SQL which appears to be hard to learn and full of math.

However, SQL is the easiest way to store, move data locations, analyze your data across various internal and external sources, retrieve data at will, make data analytics-based decisions, add the script to edited data, and find a particular date’s stock prices and endlessly explore databases. Especially in financial analysis, there is no replacement of data to justify or argue a decision! SQL is truly awesome with queries, not so great at organizing data, has an awe-inspiring backend, works with very few filters, and is declarative.

Python and Finance:

Having stressed the need for SQL, add the most happening financial language of Python to the list of requirements for financial analysts. Python tools take care of math and programming difficulties.

Here are some reasons to adapt to Python:

  • Financial modelling tools like VBA Macros and Excel are for beginners. Python can do all this and more with minimum code and not being limited to on-screen data interpolation
  • Testing strategies and trades are possible with simple Python code and algorithms in comparison to the C-based coding for financial algorithms
  • Data Analysis is simplified by importing queries in SQL and producing a more complex inferential analysis
  • Its libraries are vast and open source

If you have to learn a few programming languages, then do so at the very beginning of your career to ensure a happier more successful tomorrow. The older generation finds adapting to SQL, Python, etc. hard and you will have an unbeatable edge. Do give programming languages like the evolving Lisp, Haskell, and R a fair chance too. You never know what software your future companies depend on or adapt to. In parting, assimilation of skills is the first hard step in your successful career.

There are many skills both technical and non-transferable that contribute to making a successful financial analyst immaterial of which area you work in. Doing the financial analyst course at the renowned Imarticus Learning Academy will ensure you get a coveted financial analyst certification while the course comprehensively provides you with the easiest skill-enhancing route.

Also Read: – Do Financial Analysts Use Python 

How Do You Perform A Financial Analysis

What Are The Benefits Of Being A Financial Analyst?

How The Rupee Became The Best Performing Currency in Asia?

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The Rupee was declared the best performing currency in Asia in March 2019! Financial trends and analytics are at the core of predicting the value of the currency in the international stock markets. So, when the findings revealed that the rupee had suddenly in little over a month everyone was curious as to the factors that led up to this change in fortunes.
Factors fuelling the recovery:
The 2019 midterm polls: The very announcement of the polling schedule impacted the rupee positively. It is normal that new brooms bring in new changes. And the stocks responded positively to this factor by seeing a sudden pick up in values against the Euros, Yen, and US dollar as comparative currencies.
The present PM could win the next term: If you believe the trends reported by analytics of data on the pre-poll sentiments the present PM has a very good chance at repeating his last performance and becoming a second-term PM. He does have to his credit the much-debated demonetization and flushing off illegitimate funds from the system to account for. Besides, the thrust area of turning India into a digital economy saw the great implementation of such practices which have been generally speaking quite successful. A second term will push the rupee values up further according to some experts in poll-analytics.
Escalated Indo-Pak tensions: India sent out a firm message after tensions sprung up post the Pulwama attacks and India’s retaliatory measures at ending terrorism in J and K. The world finally recognized the dangers breeding there and this caused a spurt in values for the Indian rupee. This also contributed hugely to an improvement in the PM’s ratings as a potential second-term candidate.
Huge positive sentiments in buying of shares: This type of investment by foreign stakeholders went ballistic in mid-March and raised bond values to a high within a short period of one month.
Borrowings in US dollars: This factor aided by buying of assets strengthened the rupee values further and helped arrest the downslide against the US dollar.
US and Europe positive sentiments: Though the US has been speaking tough, there has been perceptible bettering of relations with both big players and their stock markets and financial institutions in the global economy, and this in conjunction with other factors caused the rise in values according to a segment of Bloomberg experts.
The robust recovery in cash-flows to portfolio management: This came about with the bettering of the BJP a political party that appears to be set to win the on-going seven-phased polls.
Anticipated volatility fell: A decrease in the 3-month period of the anticipated figures for price-volatility and movement of monies fell to reasonable limits recently which spurred the recovery and price-improvements seen by the Indian rupee versus the US dollar.
What does this mean?
The results of the polls which is due to complete in mid-May could be the crucial factor for the resilience in the rupee values. Should BJP manage a clear win the prices will stabilize as versus the dollar and this augurs well for the Indian economy. Going from the worst performing to the best in its class is an unexplained trend at the moment mainly due to the ambiguity of the poll results being an important factor. However, other indices and factors like good money-flows, carrying-over of trade prices of the rupee, increased chances for the PM and BJP to win the polls and stabilization of conflicts along with better relationships globally have also contributed to this success story.
How you can get a better understanding:
In parting, financial degrees do not teach you the best technological tools to understand trends, forecasts, and predictions. All is not lost! Do a financial degree course with Imarticus Learning to inculcate the best-practices and tools for efficiency in using analytics.
On a concluding note, it is interesting to study the various factors that contributed to the rupee emerging as Asia’s best currency. To make a financial career and qualify for certification you need a reputed institute like Imarticus who have wide acceptance across all verticals. The Financial Analyst certification adds value to your resume, is almost a mandatory requirement and opens the doorways to a satisfying career with extremely handsome salaries. Why tarry? Enroll and reap the benefits of Imarticus courses today.

CFA Certification Provides A Gateway To Million Possibilities

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In the world of Finance, the CFA certification or the Chartered Financial Analyst certification is a very well-known and prestigious certificate to hold. Those who are able to crack these exams, are popularly known as Charter Holders and become a part of the exclusive organizations and are able to get entry, without any prior entrance examinations. Apart from the exemplary job opportunities, there are amazing salaries that are offered to the professionals, who crack all three levels of this examination. Due to the fact that even a working professional can attempt to give this examination, as well as the considerable affordability of it, have resulted into a lot of people opting to attempt the same.
Through a CFA certification, a candidate can find a means to not only boost their management skills, but also ace investment analysis. This examination usually helps a candidate, cover industry practices, which include both ethical as well as professional standards in addition to academic theories. Anyone who is looking to take a shot at cracking the three levels of this examination has to well versed with a number of concepts like, Quantitative methods, Economics, Financial Analysis, Portfolio Management, Equity, Fixed Income, Derivatives, Alternate Investments and so on. The three levels of this examination, are devised in such a way as to inculcate the aforementioned concepts, in a better way. For a CFA holder, the gates in terms of job opportunities are wide open, for they can choose from a number of fields like research, analysis, accountancy, corporate finance, consultancy and relationship management; as the field of their expertise.

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Apart from the rewarding job prospective, this exam ensures that a charter holder is able to cultivate broad knowledge in terms of investment skills as well as decision-making tendencies, up to the quality of the global financial industry. As the program and the examination, both are entirely based on finance, they encourage a candidate to shine really well through a career in Investment Banking. If and when a candidate chooses a program, to help and assist them in cracking this prestigious exam, these programs are generally dependent on extensive global practice analysis processes, which are basically dependent upon inputs, discussions, surveys as well as reviews, which are all curated from esteemed CFA charter holders.
The CFA program has already been at the receiving end of a number of accolades, including that of the best course, which goes on to provide a great amount of quality, in a profession like Investment Banking. Being a charter holder, not only opens up a million, lucrative possibilities but also ensures that the recipients are well equipped to be on a sub-par level when it comes to skills required for Investment Analysis worldwide.

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5 Must Know Things about CFA

Posted on by Imarticus Learning

CFA or Chartered Financial Analyst is a designation, which figures as one of the most prestigious credentials in the world. Essentially divided into three levels, this exam is conducted by the CFA Institute, annually or biannually based on the level of the exam. There are a lot of candidates who strive to achieve this position every year. Here’s a list of 5 things that you must know before you sit for the exam.
What Works For One Doesn’t For the Other 
This holds true especially for the CFA exams, as there are a lot of people attempting them together. It is a practice in a lot of firms of asking their employees to register for the same immediately after they join in. As there are a lot of people attempting the exam, there is a lot of discussion as well. As is common, strategies and study plans are shared and sometimes the same plan is followed by two people. This is something that should be avoided, as a plan might work for one, but wouldn’t for the other. There are many reasons for it, some of which may be that some candidates might have already studied some concepts, study styles would be different and so on.
Only First Time Is the Charm
The exam is divided into three levels and all three of them differ in the level of difficulty. So that means if the first level of the exam might go a little easy, probably because of the candidate probably study more than what is required. This also doesn’t mean that if a person passes the first level with last minute studying, it won’t be the case with level 2. The toughest exam among the three levels is considered to be the level 2 exam by a lot of people. Giving a 100% each time and being consistent about it is what counts more.
Do Not Under/Over-Estimate the CFA Institute
Although it is the CFA institute which conducts the exam, it doesn’t necessarily mean that one must follow each and every word there. It does not bode well to draw theories about the particular concepts posted on their website. So if there have been a lot of postings about a certain topic, it does not necessarily mean that the topic will be tested. At the same time, it is also not right to never consider CFA institute or the study material available there.
Only One Type of Study Format Works
People are different thus different things work for different people. Similarly, different methods of study work for different people. Thus, even when it comes to study formats, some work for a certain person, while the others don’t work at all. It thus becomes very wrong to think that, only paper and pen are the two things that would work for someone. Various study formats exist, conventional like those of pen and paper and non-conventional like audio-visuals, flash-cards, anagrams, mnemonics etc. One must make use of every type of study format.
Revision Is the Key to Success
Cramming till the very last minute has never been able to help anyone. It is very important, especially when it comes to CFA exams, to keep aside a certain amount of time for reviewing and polishing oneself. It is very important to solve the previous year’s papers, which are easily available. It is also important to make sure that you solve as many problems as possible. Apart from that, mock tests are also required.
Imarticus Learning is a leading education institute, provides valuable training to aspiring candidates, who wish to crack the CFA exams.