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How to Become a Financial Analyst – A Step-by-Step Guide

With more businesses growing and financial markets expanding, companies are looking for qualified individuals who can analyse their finances. Forbes says that the need for financial analysts is expected to be higher than the demand for many other jobs by 2026. 


If one enjoys working with numbers, solving problems, and earning a lucrative salary, the role of a financial analyst might be of interest. However, still trying to figure out how to become financial analyst? Or what exactly they do? What kind of job opportunities are there for financial analysts, etc? Let’s get a thorough detail of all these queries to make your journey of becoming a financial analyst smooth. Let’s begin with the introduction!


Table of Contents



Introduction to Financial Analyst


A Financial Analyst is a professional who assesses financial data and trends to provide insights and recommendations for effective financial decision-making within an organisation. They analyse economic factors, market trends, and financial statements to guide investment strategies, budgeting, and overall financial planning. Financial Analysts play a crucial role in helping businesses optimise their financial performance and achieve their strategic objectives.


What are the responsibilities of financial analysts?


In broad terms, financial analysts advise companies and individuals regarding the most lucrative investment opportunities. They possess the ability to analyse substantial volumes of information and present concise recommendations.


Financial analysts evaluate the investment potential of a company by thoroughly examining its financial track record. Additionally, these experts assist companies in determining strategic investments in emerging industries. The responsibilities of financial analysts include studying economic, political, and global trends to formulate insightful recommendations.


Although a comprehensive market understanding is essential for financial analysts, they are not expected to be all-knowing. Analysts typically specialise in a particular industry, region, or product, cultivating expertise in their chosen area of focus.


Essential Abilities for Financial Analysts


Financial analysts require analytical thinking and attention to detail in their investigations. They look at a lot of information about companies or individuals and then suggest the best ways to invest money. To do this, they must be good at math, use computer programs to understand trends and be careful in their work.


Imagine you have a friend who wants to start a business or invest in something. A financial analyst would be the expert friend who checks all the facts, studies trends, and then advises on the smartest choices. They focus on specific areas like technology or a certain region, becoming experts in that field. Their job is crucial because their advice can make a big difference in a business or investment’s success.


A Step-by-Step Guide to Becoming a Financial Analyst


The roadmap to becoming a financial analyst goes through various ways. It requires a blend of education, skill honing, and hands-on experience. Let’s navigate through a systematic guide that outlines the essential steps to set you on the path to becoming a successful financial analyst. 


  • Undergraduate Education: Enroll in a Bachelor of Commerce (BCom) or a related program. Focus on courses in finance, accounting, economics, and mathematics.


  • Build Academic Background: During your degree, gain practical experience through internships or part-time roles in finance-related positions.


  • Consider a Postgraduate Degree: While not mandatory, pursuing an MCom or an MBA in Finance can provide a competitive edge.


  • Networking and Internships: Connect with finance professionals, attend career events, and actively seek internships to build hands-on knowledge and industry connections.


  • Certifications: Boost your qualifications with certifications like Certificate Program in Financial Analysis, Valuation, & Risk Management, Chartered Financial Analyst (CFA) or Certified Public Accountant (CPA).


  • Job Search: Look for entry-level financial analyst positions, tailor your resume and cover letter to showcase your education and skills.


  • Interview Preparation: Familiarise yourself with common financial analyst interview questions and practice highlighting your analytical and communication skills.


Career Journey for Financial Analysts


These roles could be suitable for individuals with skill sets comparable to those required for financial analysts. It’s crucial to understand that financial analysts may progress into the following senior positions.


Attaining significant experience in finance and management is typically essential for individuals aiming to advance to executive-level roles such as director or chief financial officer. The subsequent roles of a financial analyst are outlined below in chronological order based on increasing experience:


  • Fund Managers: Fund managers primarily work with hedge funds or mutual funds, staying informed about the fund’s overarching goals and market trends to make well-informed decisions.


  • Portfolio Managers: They analyse the current market conditions and collaborate with other financial experts to identify optimal investment opportunities for a company’s business portfolio. They comprehensively understand present business trends, enabling more accurate predictions of future market developments. Utilising this knowledge, portfolio managers guide investment decisions for businesses and individuals.


  • Rating Analysts: Rating analysts evaluate the market, assess a company’s financial capabilities and strategies, and offer educated recommendations on the company’s course of action.


  • Risk Analysts: The level of risk associated with potential investment decisions is assessed by companies with the help of business and financial expertise leveraged by risk analysts.  They provide recommendations based on their analysis, contribute to minimising financial losses, and are often tasked with evaluating and reporting asset losses, staying updated on investment trends, and collecting and analysing data.


  • Senior Financial Analysts: A team of analysts and more extensive financial analysis projects may be led by senior financial analysts to support a company’s executive-level team.


  • Senior Finance Manager: These managers are accountable for a business’s financial well-being, developing plans for its long-term financial objectives.


  • Finance Director: All company financial activities are overseen by a finance director, drawing on their financial analysis experience.


  • Chief Financial Officer: The chief financial officer holds the highest executive financial position, supervising the company’s business strategy, direction, and financial activities.


How is Opting for a Career as a Financial Analyst a Wise Choice?


Choosing a career as a financial analyst promises not only financial rewards but also constant growth. Salaries in this domain surpass averages in many professions, and as one accumulates experience, the potential for increased earnings expands significantly.


  • Attractive Compensation: Opting for a career as a financial analyst can prove financially rewarding. Salaries in this field often exceed the average for many other professions. As you gain experience and expertise, the potential for increased earnings grows significantly.


  • Resilient Demand: The profession of financial analysts remains in high demand, regardless of market conditions. Businesses consistently seek knowledgeable financial guidance, ensuring a steady availability of job opportunities.


  • Industry Versatility: Financial analysts enjoy the flexibility to work across diverse industries, including investment banking, corporate finance, healthcare, and technology. This versatility allows professionals to explore fields aligned with their personal interests.


  • Stimulating Challenges: The role of a financial analyst is intellectually engaging, involving the analysis of complex data, interpretation of financial reports, and making informed decisions. Financial analysis offers a rewarding challenge for those who relish problem-solving and critical thinking.


  • Clear Career Progression: Financial analysts typically follow a well-defined career path. With experience and potential certifications like the Certificate Program in Financial Analysis, Valuation, & Risk Management, the  Chartered Financial Analyst designation, individuals can advance to roles such as portfolio manager or even chief financial officer.


  • Impactful Contribution: Financial analysts play a pivotal role in helping organisations and individuals make sound financial decisions. Professionals directly contribute to their clients’ or employers’ success and financial well-being by providing data-driven insights.


Roles in the Field of Financial Analysis


The financial analysis field encompasses various job titles and career trajectories. Analysts in this field often fall into three main categories based on their employers.


  • Buy-Side Analysts

    Financial analysts primarily operate on the buy side, aiding employers in determining fund allocation, investing in securities, or managing in-house funds. They provide insights and forecasts, influencing decision-making. Given the dynamic nature of global financial markets, the demand for skilled buy-side financial analysts is expected to rise.


  • Sell-Side Analysts

    Sell-side analysts assess and compare securities’ quality, issuing research reports with recommendations like “buy,” “sell,” or “hold.” Recommendations from sell-side analysts significantly impact the investment industry, influencing professionals at buy-side firms. Prestigious roles at major investment banks play a crucial part in pricing and selling investment products.


  • Investment Banking and Equity Analysts

    Analysts in investment banking contribute to decisions on corporate deals like IPOs and M&As, assessing corporate fundamentals. Equity analysts focus on equity markets, identifying companies with lucrative ownership prospects. Their predictions and decisions significantly impact their employer’s financial gains.




The path to becoming a financial analyst requires a strategic approach. 

Embarking on a career as a financial analyst is a journey that combines education, skill development, and hands-on experience, leading to a rewarding and impactful career.


Take charge of your finance career with Hero Vired’s Certificate Program in Financial Analysis and Valuation & Risk Management, which offers a comprehensive curriculum, interactive learning, and industry-relevant projects. Benefit from live online classes, mentor guidance, and expert masterclasses, setting the stage for a successful financial analysis, valuation, and risk management journey. Elevate your skills, build a strong network, and unlock new opportunities. Join Hero Vired now and propel your career forward!




Analysing your finances can uncover operational inefficiencies and guide data-informed choices, ultimately enhancing overall efficiency, cutting costs, and boosting profitability.
Start your journey to becoming a financial analyst by earning a degree in finance, boosting skills with online classes, obtaining certifications like the Certificate Program in Financial Analysis, gaining practical work experience through internships, and preparing for your job search by networking and tailoring your resume. This comprehensive approach will equip you for success in the financial analysis field.
Conducting financial analysis enables the evaluation of your company's financial performance, facilitates informed decision-making, identifies strengths and weaknesses, aids in future planning, enhances communication with stakeholders, and ensures regulatory compliance.

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