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Roles, Responsibilities and Opportunities for a Financial Analyst in India

Roles, Responsibilities and Opportunities for a Financial Analyst in India

India is a growing economy and over the last few we have seen a massive growth in business and entrepreneurship across sectors. Businesses, whether small, medium, or large are in growth and expansion mode, building on the country’s vast talent pool, huge consumer base and cost competitive rates. At any stage of business, from startup, to growth, in order to sustain, build and expand, the finance function and job of a financial analyst play a critical role as a foundational pillar of a successful business. 

The need for finance specialists is well understood, with many choosing this line as a career path. India is the third-largest hotspot for Chartered Financial Analyst (CFA), placed after China and the US. The number of people applying for CFA has seen an impressive surge of 30% in the last seven years. The employment rate of financial analysts is likely to grow 5% between 2019 to 2029, faster than the overall average of other sectors. (Financial Analyst Salary in India in 2022 [Average to Highest ] | upGrad blogcom))

These numbers should give you a quick picture of the rising demand for financial analysts in India and how this profession is quickly rising in popularity.

Financial analysts are amongst the topmost paid finance professionals in India. Financial analysts draw salaries that are staggering, as this role requires skills that are above and beyond the average skill sets. They require specialized and in-depth knowledge of not only all things financial, but the macro and microenvironment they work in, the specifics of the business domain, and must be well versed with the forces influencing economy of the country and the world.

What does a financial analyst do?

A financial analyst is a finance professional who is tasked with building financial models so that companies can make informed business decisions, based on factors like market trends, financial performance, and predicted outcomes of transactions. They also construct financial models to predict the likely outcomes of business. In order to do this, they need to have data and insight of where the company is, where it wants to go and how they want to reach there.

Financial analysts investigate both microeconomic and macroeconomic conditions to understand the influences of the market, economic sectors, and industries. They also make suggestions about the course of action companies may take to reach a particular goal or outcome. 

As a financial analyst, you will have your task cut out for you and rely on many sources of information to do your job. You will likely work on following actions:

  • Consultation with management and executives to gain better understanding into an organization’s prospects.
  • Reviewing a company’s financial statements to determine its value
  • Scrutinizing past results, identifying trends, and making recommendations for improvements and changes to optimally utilize resources.
  • Reporting on financial performance and creating financial models, based on the companies needs and customizing them to suit the business.
  • Appraising an organization’s financial performance by comparing actual results with plans and forecasts, this is an ongoing activity to ensure the company is on then right path and any deviations are rectified before it’s too late.
  • Recommending investments and amendments to client portfolios
  • Carrying out market research, data mining, estimations, and risk calculations.
  • Designing forecasts and models to maintain a financial analysis foundation that can be applied to a variety of scenarios.

Financial Analyst – Related Roles and Career Progression 

Let’s now look at what are the job profiles and the different kinds of roles that come under the purview of a financial analyst and what their package and salary look like.

  • Senior Financial Analyst

A senior financial analyst provides support and direction by analyzing different financial metrics. Their work is important in all areas of the company because they assist in planning and decision-making related to finances for products, sales, marketing.

This requires them to be able to quickly adapt and learn as the different areas of the company demand their attention. Senior Financial Analysts must analyze and provide the necessary information to the various stakeholders in the business effectually and timely. They prepare and present reports to management, reflect various product lines and business lines, and draw insights and conclusions, which is why excellent communication skills is a must.

To become a qualified Senior Financial Analyst, one must possess a degree of Master of Business Administration (M.B.A.), Certified Public Accountant (C.P.A.), and/or Certified Management Accountant (C.M.A.) Designation. Adding to these, one must have a strong command of finance and accounting, strong attention to detail, and phenomenal analysis skills.

An Average Senior Analyst salary in India is about ₹572000 per annum. A beginner level senior analyst, with less than a year of experience can earn up to an average total compensation of ₹411,427. A slightly established early career in Senior Analyst, Finance with 1-4 years of experience earns an average total compensation of ₹489,852.

  • Finance Manager

The main role of a finance manager is to monitor the budgets of the departments. They help the business lines and product teams to make accurate forecasts and changes as and when they feel is appropriate and work with other departments and to ensure they are on track with budgets. Finance managers make financial forecasts for their company and work alongside other managers and their staff to establish the company’s future budgets.

The finance manager’s department keeps track of constant expenses to ensure that they are not going over the budget. They are responsible for investigating and finding answers from the respective managers of different departments for when their departmental costs have surpassed the determined budget.

They have several responsibilities such as finance-related reporting, taking ownership of various projects, delegating them to their staff, and following up with their staff regarding the project progress. It is their job to ensure that all project deadlines are met. 

The qualifications required to secure a job as a finance manager, are a bachelor’s degree in finance, accounting, or business administration. CPA certifications are a benefit, and an MBA will also show potential. 

The average finance manager’s salary in India is around ₹991000 per annum. Someone starting out as a finance manager can look forward to earning an average total compensation of ₹518,021. A finance professional with between one and four years of experience could earn a compensation of around ₹729,127.

A finance manager with 5-9 years of experience makes an average total salary of ₹1,078,115. An experienced finance manager with between 10-19 years of experience could earn an average total salary of ₹1,199,548. 

  • Operations Manager

Operations managers are in charge for supervision of the organization’s production of goods and/or services, especially around maintaining the expectations of the forecast and budgets. They ensure that the company’s products meet or surpass the expectations of the clients or customers. They ensure that the company’s operations run effortlessly and excellently and oversee budgets. 

Operations managers with less than a year of experience can earn an average total salary (inclusive of tips, bonus, and overtime pay) of ₹362,490. Operations managers with 1-4 years of experience can earn an average total salary of ₹436,921. An operations manager with 5-9 years of experience can earn an average total salary of ₹695,338. An operations manager with 10-19 years of experience and an established career can earn an average total salary of ₹997,805.

  • Management Consultant

Financial analysts can change over into the role of a management consultant after acquiring a certain amount of industry experience.  They help firms in solving financial issues, refining business, and increasing growth and in making critical financial decisions. They advise their clients on the best approach and strategy and what could be optimal investment opportunities. Management consultants in India earn an average salary of INR 1,164,644 per year.

  • Trading/Stock Broking

Stockbrokers buy and sell stocks for clients. They monitor the stock market and macroeconomic factors to guide their clients on what is the right action to take at the right time – such as the right time to buy or sell stocks. They also trade bonds, metals, and other financial instruments. Stockbrokers or traders in India earn an average base salary of INR 891,125 per year.

  • Accountant

Accounting is a core function of every business, whether small or large. It is a financially profitable path for a financial graduate. Accountants help companies or clients with taxation, profit & loss analysis, budgeting, and investigating financial frauds. The average pay of an accountant in a city like Mumbai is INR 838,305 per year. 

Portfolio Manager

The job of a portfolio manager is to provide the clients with lucrative investment ideas. They are required to understand the client’s financial and investment goals, conduct extensive research on investment options and advise clients on the best way forward. They present to their clients the merits and demerits of all the possible investment options. In India, a portfolio manager could earn an average basic pay of INR 10,56,450 annually.

Top cities for Financial Analysts to Find the Best Salaries

Here is a roundup of the average salary offered to the financial analysts in some of the top cities 

Noida: INR 6,34,768 per year

Delhi: INR 5,39,288 per year

Hyderabad: INR 4,94,596 per year

Mumbai: INR 4.81,834 per year

Chennai: INR 4,56,197 per year

Other Skills that a Financial Analyst Could Find Useful

Financial analysts are expected to master a lot of skills to contribute efficiently to their employers. Apart from the qualifications mentioned earlier, a financial analyst should have the following skills

Research skill: 

The most crucial skill for financial analysis. It is particularly vital for mining pertinent and useful data from an ocean of data. The data is then analyzed to forecast and predict the outcomes of a financial issue. 

Analytical skills: 

Analytical skills help a person to look at a situation from all the different perspectives and use a logical reasoning to come up with a solution. One can master this skill through industry experience.

Technological proficiency: 

Today any function involves the use of technology, so a financial analyst should invest in keeping up with the digital tools that are being used. These could be basic software skills like Structured Query Language (SQL), Python, SAS, and R or data visualization or finance management tools. 

Communication and Writing Skills: 

To persuade clients and stakeholders about their insights from financial analysis, professionals need to have strong presentation, interpersonal and writing skills.

Mathematical skills:

Finance is all about numbers and figures, and it is a requisite for an analyst to be a master of them. This skill is particularly important for analysts in the equity research department and fixed-income analysts who analyze the value of a company and its complex assets. 

In Conclusion 

The demand for Financial Analysts isn’t waning anytime soon. So, if you are interested in finance, it is highly recommended that you capitalize on this expanding market and gain the requisite skills. It is a given that to land a job in the finance sector, you must own both general and niche skills. The most competent way to develop all these skills is through taking a finance course. Online courses are detailed, well rounded and you always utilize our courses to pick and choose courses that would suit you and benefits you.

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