Being a financial analyst is perhaps one of the most demanding yet rewarding career options. There are many hats that a financial analyst wears, the roles and responsibilities vary from across industries, banking sectors. How the role shapes up also depends on the level of experience a person gets to the table, if they are a junior or a senior analyst.
A junior analyst would generally have an experience of about 3-4 years while a senior analyst is someone with more than 4 years of experience. Junior analyst’s roles and responsibilities would include, gathering data, financial modelling, maintaining spreadsheets etc…, while a senior financial analyst would use most of their time making investment plans, closely liaising with the management team and investors, maybe at times also involved in marketing ideas especially if they are on the sell side.
There are different areas the financial analyst can work in. Majorly it is in investment banking, however many financial analysts can also work in different businesses and corporate set ups. Their basic responsibility is to manage finances and portfolios as advisors. They would be responsible for managing budgets, also bringing the attention of the organisation to potential investment or expansion opportunities. Thus they become an invaluable asset to the business they are associated with.
Although a financial analysts job is all about number crunching, they do a lot more. They get the information to the management about trends that might not have been spotted yet. Hence they become a vital part of the ecosystem.
A day in the life of a financial analyst would be very different from a sell side perspective, then the buy side. The basic difference is, on the buy side, they create interesting investment strategies for companies that are looking to invest, mainly insurance companies. And on the sell side, it is an advisory role for financial agents who sell investments.
Portfolio Managers, Fund Managers, Rating Analyst, Risk Analyst are different profiles or roles of a financial analyst.
Some Key Responsibilities of a Financial Analyst would be –
- Researching the past and current trends
- Evaluating financial statements to draw the value of the organisation
- Advising companies on investment or portfolios
- Understanding and explaining business trends, which might have an impact on the company’s investment
- Managing budgets to analyse the company’s standing
- Making smart annual financial plans, quarterly budgets, and forecasts
- Reconcile transactions by comparing and correcting data
- Building financial models for performing valuation analysis
To become an effective financial analyst, one needs specific skill sets, not only mathematical skills but fluency in Problem Solving, Persuasion, Decision Making and Negotiation, an added advantage is the efficacy in System Analysis, the knowledge of how the system works and how can it be changed to get better results.
To get an in-depth understanding of what a financial analyst does, the team at Imarticus is conducting a live webinar on ‘A day in the life of a financial analyst’. The speakers on this topic, come with great years of relevant experience, Azmeen Peerbhai, from the valuation and business modelling team at EY in India and, Jasjeet Kaur, the executive director at Imarticus with cross functional experience in financial services.
Together they will give a pragmatic understanding of the key responsibilities of a financial analyst. Their role in the ecosystem, the way they manage daily activities, conduct meetings, and most importantly how do they contribute, learn and enjoy their jobs.
The webinar is on the 7th of July 2017, Register Now to gain insight that will help you to shape up your career in time!