Working as a financial analyst is one of the most promising and successful careers in the field of finance. Besides high earning potential, this career allows analysts to work in a range of industries. If you are into a business or finance major, considering a financial analyst as a career choice might be a good fit for you.
Who Is A Financial Analyst?
A financial analyst is a person who makes business recommendations based on the analysis they carry out. The analyze factors like market trends, economic status of an organization, and predicted results of a deal. Financial analysts have an academic relation to business or finance principles and consider themselves number-driven individuals. These numbers make up the data that these individuals use to interpret, analyze, and make predictions.
What Are The Key Responsibilities?
Financial analysts have a few key responsibilities that you should know before you consider your career in this field.
- They have to read publications and news to gather information regarding the current economic state.
- They have to understand and track micro and macro-economic factors.
- Creating opportunities and recommendations for investments (buy, sell, hold, etc.)
- Financial analysts have to decide investment strategies by holding meetings with executives and management teams.
- Seeking information from third parties regarding the future of investment and generate revenue by facilitating useful trades.
- Coming up with a lucrative approach to any buy or sell strategy and executing trade on behalf of the employer or client.
In terms of working with corporations or other entities, they have few added responsibilities:
- Analyzing market and business needs to maximize the cost of operations
- They have to maintain the financial database of a firm for quick visualization and interpretation.
- Identifying areas that can generate additional profit as well as seeking market trends to capitalize.
- They have to compare forecasted financial reports with actual reports for seeking any inconsistency.
Now that you know who a financial analyst is and a brief detail of their responsibilities. Let us now discuss some advantages that make this career choice a right approach.
Advantages Of Working As A Financial Analyst
Although working as a financial analyst has its share of challenges, and many people are concerned about what is the future of financial analysts? It still has numerous career opportunities and is a highly paid job.
- They play a vital role in almost any type of business, so if you have a passion for any other industry, you are sure to find the right opportunity for yourself. Financial analysts expose the real reason that drives a company’s performance, thus identifying considerable opportunities in the industry.
- Financial analyst plays a crucial role in compiling the data to make predictions and develop new strategies to maximize profits.
- Working as a financial analyst offers an opportunity to develop secure professional networks, an asset that you can nurture throughout your career.
- Financial analysts have different jobs and can establish their network by meeting executives and people of management and finance.
- They have a higher learning curve, rapid career growth, and receive higher compensation as compared to their peers.
- Financial analysts usually get higher salaries and earn up to 16% more than their colleagues make. The industry of business services offers such analyst positions with a potential six-figure income. Their job security is also very high as their job validates their competency in terms of liquidity, risk management, and capital functions. You can research about how much people in this career make so you can have a better motivation factor for consideration.
- Financial analysts tend to stand tall among other candidates in today’s tight job market; hence the career can improve marketability.
- Choosing a globally demanded financial analyst designation improves credibility, as well as the skills, knowledge, and experience you gain, enhances on-job performance.
- Another benefit is the luxury that financial analysts receive by working in climate-controlled offices and regular working hours.
- Financial analysts have access to crucial and sensitive data for interpretation and making decisions. Because of this feature, they usually are among high authority figures in the industry and gain massive respect.
The career trajectory and future of a financial analyst depends mostly on his or her ambitions. Some of them work on the same job as fund managers or trading opportunists for their entire careers. While some rise to the level of executives and chief controllers. A few of them may also manage the financials of major corporations or organizations with strategic investment decisions. Besides working as an on-desk officer, a financial analyst can also work as consultants to manage client’s funds and allow themselves to broaden their income opportunities. As a career, you have endless possibilities present to shape the future of a professional setting as well as making a name in the market.
As discussed above, taking financial analysis as a career means working with number-driven data for making sensitive decisions. They also have access to the leadership team, as well as having an opportunity to handle high priority projects. This career can make a person become an essential asset for a company or client. Along with these benefits, some other factors like administrative decision-making, providing recommendations for business improvement determine that a career is a good option for an individual able to handle both numbers and challenges. Hopefully, with the help of the above-mentioned advantages, you will be able to decide the most suitable field for your career.