Last updated on July 26th, 2024 at 12:10 pm
The role of a financial analyst is one of the most sought-after positions in the financial services industry. This is due to the fact that analysts have a scope to work in a range of industries together with high earning potential. An analyst plays a critical role in any business that he or she is representing on behalf of their firm.
In general, financial analysts work for KPOs, banks, investment firms, investment banks, insurance companies and even individual companies. A good analyst should be able to evaluate the company’s overall position in the industry in terms of its strengths, performance, prospects compared to its competitors. This involves an in-depth understanding of the company’s investments, finances, growth plans, etc.
Educational Qualification Required
To fit into the role of a financial analyst should have at least a bachelor's degree, preferably with any of the finance subjects like accounting, economics or statistics as the major. In case the analysts want to equip themselves for better job opportunities and salaries they might consider pursuing a master's degree in finance or a Master's of Business Administration (MBA). Any kind of advanced education increases the value of these professionals in the eyes of their potential employers.
In some cases, it has been noticed that employers prefer hiring only those financial analysts who have done their certifications from the Chartered Financial Analyst Institute. They can also enrol into several programs designed to prepare these financial analysts for the challenges they might face in the workplace.
Skills Required for the Role
Some of the specific skills required for this position are:
• Excellent analytical skills
• Good mental judgement
• Sound knowledge
• A good team player
Role and Responsibilities of Financial Analyst
A financial analyst’s role usually differs depending on company to company. These analysts usually focus on a specific region, sector or type of product.
• They determine the cost of operations by gathering the operational data
• Comes up with a financial status by comparing and analysing the actual results with the forecasts
• Guides the process of cost analysis by creating and enforcing policies and procedures, explaining the process and techniques and recommending actions to the management
• Improves the financial status by identifying trends, monitoring variances and reconciling the transactions by correcting the data
• Increases the company’s productivity by developing automated accounting applications
• Maintains the company’s database
• Attends educational workshops to upgrade themselves
• Protects the operations by keeping financial information confidential
The Future of Financial Analysts in India
Today, the role of a financial analyst is considered one of the premier careers even in India. Reports says, there are over 7,000 financial analysts’ jobs available only in India. Once they attain the desired qualification they have the scope to work with financial institutions, multinational banks, Reserve Bank of India, Industrial & Development Bank of India, Unit Trust of India, finance and leasing companies, stockbroking firms, insurance companies, public sector organizations e.g. Railways, corporate sector and consultancies.
The Average Salary of a Financial Analyst in India
In India, at the entry-level financial analysts having less than a year’s experience can expect to earn an average salary of ₹313,149 per annum. With 5 to 9 years of experience, the compensation can go up to ₹574,432 per annum. With 10 to19 years of experience, one can expect around ₹981,857 per annum.
In the later part of the career, with 20 years of experience and more, employees can earn an average compensation of ₹1,502,000 per annum. For more details, one can check the website www.payscale.com.
Conclusion
A career as a financial analyst not only offers financial security but also gives an exciting opportunity to be a part of the country’s finance industry. Considering the rising scope of this career in India, one can obtain the essential education required and gear up for a lucrative job opportunity
Also Read: What is Financial Analyst Course
