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What is Career Path, Qualifications Required To Become Financial Analyst?

Posted on by Imarticus Learning
Reading Time: 3 minutes

A Financial Analyst is a professional that undertakes the task of providing insights related to decision making by several companies through rigorous study of the financial data followed by reports generated.

Responsible for researching both macro and micro economic situation, the analyst collects relevant information considering the policy of the company and then recommend or suggest the company to engage in decision making.

Roles and Responsibilities

There are several kinds of job an analyst performs. Depending on the type of company he/she is employed in, the functions, as well as the responsibilities, vary drastically.

Also Read : Importance of Financial Analyst in a Company

Generalizing, a financial analyst would analyze the economic prospects of the company to draft financial plans, strategies, in the way of predicting information related to a business or industry.

A financial analyst is responsible for predicting data that has an impact on the investment programs. It is imperative that companies stay at par with the policies or regulations that otherwise might affect economy investments.

A financial analyst is expected to draft action plans that would be involved in a decision about the investment that needs to be done. The analyst needs to show reports based on the recent trends and then give a recommendation for indulging in expenditure. It is deemed as one of the most important jobs as the concerned person is responsible for taking an immense decision on behalf of the company.

Educational Qualifications or Skill Set

To enter the industry as an analyst, you must have a bachelor’s degree. However, a masters degree would be a plus. For the job role of a junior analyst, you must be graduated with a bachelor’s degree and have excellent communication skills along with expertise in decision-making skills.

Myriads of subjects are given preference for selection at the post of a financial analyst. Marketing fields include accounting, economics and finance whereas for an advanced level of recruitment employers with the skill set in subjects such as mathematics, statistics, physics and engineering are also considered suitable for the role of financial analyst.

For the senior post of business analyst, it is imperative to have a degree in MBA with expertise in a specific subject. Companies nowadays prefer employees with considerable knowledge of statistical packages as well as a spreadsheet.
Several specialization courses enable aspirants to opt for the role of a financial analyst.

One of the most prestigious certification for the post of a business analyst is CFA – Chartered Financial Analyst with international recognition.

Career Path of Financial Analyst

Any fresher Irrespective of its qualifications would start working under the guidance of a senior financial analyst. An employer with a bachelor’s degree may see the need to revisit school after several tests of experience as the junior analyst to be suitable for the post of a senior analyst.

Junior analysts need to have additional degrees to receive benefits and promotions. On the other hand, a person with the higher skill set instead of masters degree would rapidly progress to a better post. The post is working as a senior analyst; the employer can then rise to the job of a supervisor. A junior analyst ks not deterred from promotion yet it is desirable that experts have additional degrees.

Any senior analyst that works in industries related to the security service would rise to the post of a fund manager or the manager of the portfolio and then would guide a team of senior analyst. There also lies a possibility that the analyst moves to the role of senior management. It is acceptable to have analysts overseeing a team of experts and also to supervise them.

Finally, the analyst with outstanding performance is entitled to the post of CFO, Chief Financial Officer who is responsible for performing all the financial tasks of the company.

Related Article : What are the Top Skills Required for a Financial Analyst?

5 Most Trending Career Profiles in Finance

Posted on by Imarticus Learning
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Numbers related to the income statement, balance sheets, investment, etc. Analysing the statistical data of a company’s growth and assessing its value. Finance is an exciting place to be. It’s one of the fastest growing sectors in India with more and people entering it for the dynamic work environment and high-pay scale. Earlier when it came to the finance sector, people only related it to the safe and secure government banking jobs or an MBA graduate getting placed in an MNC.
But there is much more to it. It is providing an energetic and vigorous environment to work in with new avenues opening up. It’s offering a broad scope to individuals along with a handsome pay.
Let’s take a look at some of the trending career profiles in finance.
1)    Financial Analyst- An exciting job profile which requires you to examine economic data and help you to take better decisions. These people thoroughly analyse every factor such as macroeconomic and microeconomic stages of the economy to chalk out the trend in the industry.
These analysts are often placed in consultancy firms advising their clients which consist of big corporate houses or wealthy individuals. They tell them about how to take care of their finances. They analyse their client’s goal and help them build a financial set-up on those lines to give them smart saving and investment decisions to achieve their goal.

To become a Financial Analyst, the primary requirement is to hold a graduate degree in business administration, finance, accounting or statistics. The pay scale of these analyst ranges from 4-5 lakh p.a. in the initial stages. However, doing additional courses on SAAS, Financial Modelling, etc. will increase your value in the industry.
2)    Investment Banking Analyst- The most productive and exciting job profile when it comes to the finance industry. A highly demanding and strenuous task where you have to be on your toes every time. This segment of banking comes under the cap of investment and securities wherein these analyst act as a bridge between an investor and a securities issuer.
An analyst is also responsible for the merger and acquisitions of firms.
It’s a high-pressure highly-competitive work environment. Getting new clients, preparing your sales pitch, analysing the markets and taking correct investment decisions. It’s a strenuous job. You got to hold a bachelor’s degree for entering into this profession with an initial pay scale as high as 8 lakh p.a. Courses such as the CFA charter and other diploma courses in investment banking if done will boost up your career.
3)    Chartered Accountants – Undoubtedly the most respected positions in the finance industry. These people are at the helm of any organisation with their strategic plans, financial models, financial budget, etc. They also indulge in audit and also act as a tax and business consultant by setting up their firms.
To become a chartered accountant, you have to pass the chartered accountancy exams which are divided into 2 phases which are sub-divided into two groups. It’s one of the harshest reviews in the world with an initial pay scale as high as 8-9 lakhs p.a.
4)    Financial Services Sales Representative – It’s an exciting job profile wherein you have to provide financial advice according to customer goals and needs. You got to monitor market trends, identify and pursue potential customer leads, and meet sales goals for the various financial services.
These people have mostly placed banks or credit unions. They are sometimes placed in insurance companies and other institutions. They hold a customer-facing and should be well-versed in the various financial services which the company has got to offer. The pay scale starts with an initial offering of 8-9 lakhs. This job requires you to have excellent communication skills as you are the face of your company.
5)    Tax Consultants- This is an exciting job profile in which you have to educate your clients on the various tax provisions and laws in the country. Commonly known as tax advisors or tax consultants. These people are well-versed in the different tax law, compliance, and planning. They help their clients to prepare tax returns and consult businesses and individuals with tax law strategies and its understandings.
A bachelor degree is a must to enter into this profession. People holding a Master’s Degree or a professional degree like CA etc. can also step into this. It attracts a minimum pay scale of around 4-5 lakhs p.a. Doing specialisation courses in taxation can undoubtedly help you in this field.
So, here we saw the many lucrative career options in the field of finance. So go for anyone and make a mark in this fast-growing vertical of the industrial world.

How Do I Get A Job in Financial Analysis?

Posted on by Imarticus Learning
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So you’ve watched Wall Street a few times and read Barbarians at the Gate cover to cover. You were stunned at the incredible impact the Global Financial Crisis in 2008 had on the world and your brother is the fund manager at one of the top funds in the country and he’s raking it in. You know it in your bones – you want to be an analyst and you want to be in the markets.

So you start typing in words like – How to be a financial analyst? What do financial analysts do? How do I get a job in Financial Analysis? But the problem begins when you say you want to be a financial analyst, and I ask you where? You’re lost. You say – what do you mean? You see Financial Analysis is more of a skill than a job. It’s an exceptionally critical skill when you work in the financial services industry, and that’s where the good news begins. Because Financial Analysis cuts across roles, types of financial institutions and even industry, being a financial analyst means you have a large number of potential careers to choose from. But how do you get the job as a financial analyst?

Develop your analytical skills

A good Financial Analyst studies and interprets data, both qualitative and quantitative, to help both individual clients and companies make a better investment or divestment decisions. A good financial analyst, therefore, needs to have a keen understanding of how the numbers work in the context of the environment.
Quantitative analytical skills required to be a financial analyst include understanding how financial statements interact with each other, calculating and interpreting accounting ratios, understanding the trends they imply, forecasting and valuing cash flows at the bare minimum. Qualitative skills required to be a financial analyst would include understanding both the macroeconomic and microeconomic conditions surrounding the industry along with company/individual/instrument fundamentals to make predictions about businesses, financial commodity markets and industries.

Education Qualifications

Unlike being a doctor or an engineer, there’s no set education requirement to become a good financial analyst or to get a job in the sector, and therein often lies the problem. History majors can become Investment Bankers, and doctors can become Equity Research Analysts. However employers do look for a keen appreciation of numbers, so a specialisation at undergraduate in finance (if you are a business major) is very helpful. Engineers often make great Financial Analysts because they are good at interpreting numbers and are not intimidated by them. An MBA is very well received as well because most MBA’s include financial analysis and corporate finance and accounting as part of their curriculum. But because the MBA has become such a ubiquitous degree, bulge bracket investment banks will often restrict recruitment from tier one firms or look for additional evidence of affinity towards analysis and analytical skills.
Another way to prepare for a role as a financial analyst is to do a professional qualification like the Chartered Financial Analyst or a short-term course at an institution that will introduce you to the required skills and help you navigate both the career path as well as the role, like the Imarticus Learning EY FAP program. These programs are technical in nature and require a certain amount of study.
However education aside, strong quantitative and problem-solving skills, logical thinking, and good communication are critical in terms of preparing you for financial analyst interviews.

Where do I apply?

As we said before, financial analysts work across industries and roles. But we can break the three main areas down to Corporate Finance on the buy side and financial services on the sell side.
Financial Analyst roles on the buy side include working for a company both as a CFO and as part of the finance function where you handle the investment decisions of a company both with respect to organic and inorganic growth, as well as treasury requirements including any private equity or public market funding they might require.
The Buy-Side is when someone conducts financial analysis on behalf of themselves or their company. So a financial analyst in a private equity firm would be analysing investment opportunities on behalf of the fund. You can also be a financial analyst and work in the mutual fund industry and work your way up to becoming a fund manager.
Financial Analyst roles on the Sell Side include Investment Banking  (M&A and Corporate funding advisory), Equity Capital Markets and equity research where you analyse companies and give buy, hold and sell recommendations. Financial analysis roles are not restricted to equity. You can be a Bond Analyst, an Options and Futures Analyst, a gold analyst, a real estate analyst…the options are endless.

Also Read: Future of Financial Analyst in India

What are the Top Skills Required for a Financial Analyst?

Posted on by Imarticus Learning
Reading Time: 3 minutes

What are the Top Skills Required for a Financial Analyst?

It goes without saying that analytical skills are important when you’re a financial analyst but there is a whole host of other attributes employers look for when they hire financial analysts.

Here are the ten most important financial analyst skills we have identified.

  • Research Skills

Research is by far the most important part of an Analysts job because, without the data mined from research, there can be no analysis. Research involves spending time understanding the problem/scenario, plotting out the questions and knowing where to look for the answers.
This means you need to be resourceful and aware of your environment. What makes one financial analyst better than the other is knowing where to find the best quality data.

  • Detail Orientated

A depreciation number of 454 will lead to a very different answer than a depreciation number of 545. One percent here or there on a DCF can completely alter the valuation of a company. The devil really does lie in the details of a financial analyst job and you need to be able to catch the changes, both mistakes, and trends, to be able to arrive at insightful conclusions.

  • Analytical Skills

A lot has been said about analytical skills, so much so, people don’t really know what it entails. The analysis in Finance involves pulling apart the threads of a problem, perhaps a balance sheet, asking the right questions of your data, and bringing all your answers together in a coherent form to present to your client or your team.

  • Organization Skills

Being able to compile data, compile research findings, compile analysis in an organized manner that can save time efficiently is a skill many people do not appreciate enough.

  • Mathematical Skills

A financial analyst cannot be intimidated by numbers. The level of numerical complexity is dependent on the job. An investment banking analyst will perhaps only ever have to add/subtract/divide and multiply but a fixed income analyst or a portfolio analyst will have complex equations to calculate. Options and futures are often known as ‘quant’ jobs and mathematical skills have to be very sound to do well in these jobs.

  • Decision-making Skills

The global financial services terrain is ever changing and a good financial analyst has to be able to make spot decisions based not the data he/she has so that a client can always be certain they are ahead of the curve.

  • Excel and PowerPoint Skills

Excel and PowerPoint are to the Financial Analyst like a measuring tape and a drill machine to a carpenter. There is no career without it and mastering both software will ensure you are efficient and quick at your job.

  • Communication and Writing Skills

Being able to listen, speak and write well is critical because you have to be able to wean out information, and communicate everything you analyze efficiently and effectively. You will often be put on the spot in front of clients or asked to write reports with tight deadlines and being confident about your speaking and writing skills goes a long way in your career.

  • Marketing Skills

The ability to persuade is important for an analyst. We are persuading investors to listen to our stock recommendations, convincing clients we are the bankers for the job, and getting clients to sign on. All of this requires the ability to sell a story in a convincing manner which goes back to not only communication skills but the ability to use the written analysis to sell the situation.

  • Relationship Skills

Analysts need to main relationships across stakeholders be it companies, clients, colleagues, your own leadership team, to ensure they get access to information, create effective solutions, work well in a team, and build your career. Financial analysis is as much a people job as anything else and building and keeps relationships will help in both doing your job and advancing your career.

  • Leadership Skills

All analysts will eventually lead teams of analysts and this requires a show of leadership. To not just be able to lead a team, but mentor junior analysts and create a collaborative culture that will create successful companies.

What is Financial Analysis? And What is the Role of Financial Analyst?

Posted on by Imarticus Learning
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What is Financial Analysis? And What is the Role of a Financial Analyst?

It’s healthy to take stock of your business from time to time, and evaluating the allocation of resources from a business perspective is non-negotiable.

Financial analysis can be elaborately defined as an assessment on, how effective are the investments or funds engaged by the organization or business, to check the efficiency of funds used for operations, and lastly to secure debtors and claims against the business’s assets.

Financial analysis is used by a business to evaluate if a unit is steady, solvent, or lucrative enough to go ahead with a financial investment. Financial analysis is also applied to set the financial policies, study economic trends, and eventually build long-term targets and action plans for the business so that it can invest in projects or companies that will get better returns.

All this evaluation is done on the basis of a combination of financial numbers and data, like income statement, balance sheet, and cash flow statement etc…,

One of the most used and trusted methods to analyse financial analysis is by calculating ratios from data, the ratios can be compared against the company’s past performance or against those of different companies. A common ratio is ‘Return on Assets’, which is used to analyse how effective a business is at utilizing its assets as a measure of cost-effectiveness.

Financial analysis can be applied in a Corporate or Investment set up like said earlier in Corporate Finance a company’s own past performance, and profit margin, are evaluated with the help of ratios like ‘Net Present Value’ and ‘Internal Rate of Return’. This activity allows forecast in financial budgets and makes the future prediction based on past trends.

In Investment Finance it is an external financial analyst who studies the health by conducting financial analysis specifically for investment purposes. The financial analysis here is done either on a top-down approach or a bottom-up approach, to identify high-performing sectors, where past performances are analysed to calculate future performance indicators on investments.

A Financial Analyst can perform two types of financial analysis,
Technical Analysis, where quantitative charts are looked upon, like ‘Moving Averages’
Fundamental Analysis, here Ratios are analysed, like ‘Company’s Earnings Per Share (EPS)

Financial Analyst is a board term, as they play different roles within different companies and sectors. However, one thing is established, that the role of a Financial Analyst within the financial sector, is the most coveted and revered role. To put it in a nutshell, a financial analyst researches the company fundamentals on a macroeconomic and microeconomic level to give industry recommendations.

They advise and assist in decision-making on charting the path ahead, such as to buy or sell the company stocks based on its past, current and future strength.

Hence needless to say the financial analyst should be well updated on business trends and current developments in the relevant industry. They should also be experts in formulating financial models, which on a number of variables can predict future economic climate.

There are various types of financial analyst positions available in the financial sectors. Financial analysts are sought after by investment banks, and insurance companies, on the buy or the sell-side. Besides these verticals, financial analysts also work in subspecialties, like analysts that specialise in equities, or in fixed income instruments, or maybe they can also specialise in energy or technology.

A career as a financial analyst is very rewarding on the personal and professional front, it needs a lot of preparation and hard work. A financial analyst’s contribution is an integral part of any business landscape.

Cities to Consider for A Career in Finance

Posted on by Imarticus Learning
Reading Time: 3 minutes

The global demand for professionals in finance is on the rise. Specifically, as the global economy is rising from the downtime. As it continues to recover, there are gaps being discovered by the human resource development teams, in skills requirements and expertise. Now there are finance jobs that can be found in most cities around the world, but there is a huge difference in the skill set and sector where the opportunity arises. A career in finances in most cases is considered very lucrative. A move to a new city will only be worthwhile for a financial professional if the place they plan to shift to has good opportunities, and to simply put it, you are able to increase your take-home considerably after paying off all the taxes and housing expenses.
London, Germany, Canada, Hong Kong, Japan are the most competitive countries, ideal if you are looking for a stable career in finance. The financial sectors in these cities are best, where plenty of jobs exist in the financial sector almost across all levels. For example, London has the largest financial sector in the world, Germany represents the economy in the Eurozone, as a result, it has the financial sector to set policy for the massive union of economic interest. Canada is a viable option because of the geographical advantage it presents, by being closest to the world’s largest economy. Hong Kong hires the highest number of financial professionals because of the central position in the Asian financial sector. Also, Japan’s stock market and financial sector offer a significant area of employment. The US is also the most sought-after destination for financial professionals.
For professionals, seeking a job overseas, in the financial sector, Dubai is turning out to be a lucrative option offering similar career opportunities like in the countries mentioned above. It gets you the feel of working in a truly cosmopolitan environment, with job opportunities that pay well for experienced and fresher’s equally. In Dubai’s International Financial Centre, one will find the best financial and banking services jobs.
Some common titles sought after in Dubai are Account Manager, Finance Associate, Finance Officer, Financial Analyst, Research Analyst, Relationship Manager, Financial Advisor and so on. The financial sector in Dubai will also see a rise, because of the introduction of a VAT. And the availability of employment is across verticals in the financial sector, from Asset Management, Treasury Sales, Transaction Services, Loans and so on.
Imarticus Learning in association with EY, a global leader in advisory and consultancy have together designed a comprehensive course, which is industry-aligned, called ‘The Financial Analysis Prodegree’
With EY as its knowledge provider, the course offers an online training mode, using a practical hands-on training methodology. The Financial Analysis Prodegree covers a wide range of Financial Accounting and Statement Analysis, Financial Modelling and Valuation, Equity Research in Corporate Finance Strategy and Transaction Execution. The program also focuses on building technical and soft skills expertise in Microsoft Office, Aptitude Training, Resume Building and Interview Preparation, making an applicant Job Ready at the end of completion.
The program equips you with skills and knowledge essential for a successful career in Investment Banking, Equity Research, Corporate Finance and in Consulting and overall Financial Management.
The course is designed to match the growing demand in the Global Markets. So if you are interested in building your career overseas, specifically in Dubai, and are interested in learning Accounting, Financial Modelling, Valuation or/and Equity Research, enquire now with Imarticus Learning and build your skill set.
We also offer online Data Science Prodegree courses in Sharjah and Abu Dhabi

Knowledge Series: What is Asset Management? And How Does Mutual Fund Structure Work in Asset Management?

Posted on by Imarticus Learning
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Asset management as the name suggests, is a process of managing funds, either for individuals or for companies. In asset management, the investor’s capital is invested in diverse reserves like Bonds, Real Estate, Private Equity, etc…, these asset management firms manage plenty of funds for either corporates or individual clients, within the lines of a particular mandate.

Asset management companies (AMC) could take care of these large funds either independently or by investing them in a fund run by them. Asset management companies run many funds which function with the objective of taking advantage of opportunities in a particular field or product or region, or in a certain kind of company/industry, where they are sure about growth and expansion.
Asset management companies usually work with many investors and hence are able to diversify their client’s portfolios.

This is a good thing as having a diverse pool of clients gives them greater value options, which in turn assures better capital appreciation opportunities, and thus mitigates the risks to an extent.
Financial firms differ from others in the sector, as they can be divided into two categories, the one on the ‘Buy’ side and the ones on the ‘Sell’ side.

An asset management training objective is that they strive to build the clients portfolio by making wise investment/purchasing decisions, which on a whole will build the capital value for their clients. This is different from others in the sector like insurance, mergers and acquisitions, and stock purchases.

Financial Analyst course

One will find many asset management companies working with ‘High Net Worth’ individuals, who give them Unlimited Discretionary power or fiduciary powers in decision making.
Along with individual wealthy clients, asset management companies also have many corporate clients that they manage, these would essentially be Insurance Companies, Retail Banks, Pension Funds, who invest a large pool of individual savings to them, entrusting them to make investment decisions, for overall profits.

Asset Management firms stay profitable by charging a fee for managing their corporate or private clients, this is their method of earning revenue as unlike investment banks, asset management firms do not trade for profit.

Since asset management firms, manage funds of retail banks, and pension funds in some sense they help us protect our money, and in turn provide a vital flow of capital to us, and the economy on a whole.

Asset Management Companies are considered as one of the layers in the Mutual Funds Structure.

In the mutual fund structure, the asset management firm acts as the fund manager or as an investment manager to the overall trust. They take the fee to manage the funds and conduct all related activities, like initiating and launching the scheme, besides managing the funds, an asset management firm is also responsible for providing services to the unitholders or the investors. For example, an asset manager will liaise with elements like the broker, banker, auditor,
lawyers, etc…,

An asset management company has an assembly of individuals who engage and manage the business on behalf of the new clients. Some specific titles would be, Financial Analyst, Economist, Asset Managers, etc…, Asset management has a wider scope for business and offers great appeal and opportunity for fresh graduates and experienced candidates both.

Tips for Choosing the Right Technology for Financial Services

Posted on by Imarticus Learning
Reading Time: 2 minutes

Digital technology is driving the ever changing market, in an exponential manner. To transform the way, you are doing business is a non-negotiable. Technology is taking centre space as far as the financial services is concerned.
It is not new that technology is holding hands with the financial sector, in fact financial services has been the biggest spender on IT. However, the role that IT played in the financial services is soon changing. Earlier it was largely an enabler, taking care of automating and managing the back end processing, increasing the efficiency of the staff, it did not have a customer interface.
Digitization has changed that, today IT is being looked upon as an integral part of financial business. Technology is being considered as a channel to drive profitability and growth to the business. The right technology will offer new avenues for banks by opening revenue channels, by enabling the banks to serve more customers with diverse requirements in a cost effective manner.
Mobile banking can assist banks to reach to customers and target population in areas they could not find a cost effective way to build branches.
Cognitive computing allows banks to serve customers who require personalised financial advice but don’t have the turnout of funds like high end clients, who can afford private banking.
Digital interfaces can also better engage customers, and are also offering new services, both financial and non-financial.
Special mobile apps can help in better upsell of financial products like home loans to insurances to its existing and new customers.
And lastly by digitizing their operation processes, from manual and paper work to digital platforms, banks can further enjoy not only cost reductions and better customer services experience.
The current technology and innovation model in the financial sector is basically designed for returns in the near future. However, for long term benefits investors and financial services will need to think differently. Financial technology is a commodity, and they need to think on those lines.
While still in infancy, Distributed Ledger, Blockchain, is being coined as the future of transaction processing and settlement. And in many aspects there are financial technology firms that are challenging the very foundation on which the financial firms are pinned.
A tip is for the traditional companies is to avoid the ‘Kodak’ moment and have a foresight of the disruptive technologies, and to embrace and integrate the technology in new ways of doing business.
A financial institutions core objective, while adapting the technology should be very clear, especially at the board level. Basically any enterprise effort should meet one of the following objectives.

  • Improved operations and increase efficiency
  • Cost reduction
  • Exploring new avenues
  • Enhancing customer experience
  • Mitigating risk factors

Modernisation should not be a full scale replacement of technology, as a financial services provider, it is advisable that they adapt different segmented approaches, with the effort to preserve core models, and then integrating them with the modern systems.
As difficult as it may seem, the task can be addressed with innovative approaches along with modular thinking. And most firms with clear objective have already initiated the development of these strategies and executing the implementation plans.