If you’ve ever asked yourself, “How to become a financial analyst?” — you’re already on the right track. Financial analysts are the backbone of smart business decisions, helping companies make sense of market trends, investments, and long-term financial planning. Whether you’re a student, a career switcher, or someone passionate about finance, this guide will walk you through everything you need to know about starting a career as a financial analyst.
Table of Contents
What Does a Financial Analyst Do?
Financial analysts evaluate financial data to help businesses make well-informed decisions. They assess market trends, create forecasts, and recommend investments or cost-saving strategies. Analysts may work in banks, investment firms, insurance companies, corporate finance departments, or government agencies.
There are generally two categories:
- Buy-side analysts – help their firms invest wisely.
- Sell-side analysts – provide research and recommendations to external clients.
Why Choose a Career as a Financial Analyst?
| Aspect | Details |
|---|---|
| Average Starting Salary | ₹4–7 LPA (India); $60,000+ (USA) |
| Top Hiring Sectors | Banking, Investment, IT, Manufacturing, Consulting |
| Job Growth | 9% projected growth globally by 2032 |
| Remote Work Possibility | Moderate to high in corporate/consulting roles |
| Work-Life Balance | Generally good, but varies in investment banking and consulting sectors |
How to Become a Financial Analyst: Step-by-Step Guide
Step 1: Get the Right Education
A bachelor’s degree is the minimum requirement. Most financial analysts have a background in:
- Finance
- Economics
- Accounting
- Business Administration
- Mathematics or Statistics
Recommended UG Degrees in India:
- B.Com (Hons)
- BBA in Finance
- BA in Economics
- BSc in Mathematics or Statistics
Pursuing a postgraduate degree like an MBA in Finance or M.Com further boosts employability, especially for senior roles.
Step 2: Develop Key Financial Skills
A successful financial analyst needs strong analytical, technical, and soft skills.
| Skill Area | Examples |
| Technical Skills | MS Excel, PowerPoint, SQL, Bloomberg Terminal |
| Financial Skills | Ratio analysis, forecasting, valuation, budgeting |
| Analytical Skills | Critical thinking, problem-solving, market trend analysis |
| Soft Skills | Communication, presentation, report writing, teamwork |
Step 3: Learn Financial Tools and Software
Familiarity with tools can set you apart in job interviews and the workplace.
| Tool/Software | Purpose |
|---|---|
| Excel (Advanced) | Modeling, forecasting, dashboards |
| Power BI / Tableau | Data visualization |
| SAP / Oracle | Enterprise resource planning |
| Bloomberg Terminal | Financial market analysis |
| Python/R | Data-driven analysis (optional but powerful) |
Step 4: Get Relevant Certifications
While not mandatory, certifications enhance credibility and career advancement.
| Certification | Details |
|---|---|
| CFA (Chartered Financial Analyst) | Global gold standard, 3 levels, high ROI |
| FRM (Financial Risk Manager) | Ideal for risk and investment profiles |
| CPA (Certified Public Accountant) | Relevant for those leaning towards accounting |
| NSE/BSE Certifications | Great for Indian markets (NISM, NCFM, etc.) |
Tip: Start CFA Level 1 preparation during or after your graduation if you’re serious about investment banking or equity research.
Step 5: Gain Practical Experience (Internships or Freelance)
Internships are crucial to understanding real-world finance. Apply for roles like:
- Finance Intern
- Equity Research Intern
- Business Analyst Trainee
- Accounts Assistant
Participate in mock stock trading platforms or create your own investment portfolio using apps like Zerodha Varsity or Groww to practice real skills.
Step 6: Apply for Entry-Level Jobs
With education, skills, and an internship in your arsenal, begin applying for entry-level jobs such as:
- Junior Financial Analyst
- Investment Analyst
- Risk Analyst
- Credit Analyst
- Budget Analyst
Use platforms like LinkedIn, Naukri, Indeed, and Internshala. Tailor your resume and cover letter to highlight financial projects and tools you’ve mastered.
Career Paths and Specializations in Financial Analysis
| Specialization | Description |
|---|---|
| Equity Research Analyst | Analyze stocks and publish research reports |
| Investment Banking Analyst | Assist with IPOs, mergers, and acquisitions |
| Corporate Finance Analyst | Manage internal budgeting, forecasting, and cost controls |
| Credit Analyst | Assess creditworthiness of individuals or firms |
| Risk Analyst | Identify and mitigate potential financial losses |
| Portfolio Manager | Manage investment portfolios for clients or institutions |
Financial Analyst Salary in India (2025 Estimates)
| Experience Level | Average Annual Salary |
|---|---|
| Entry-Level (0–2 yrs) | ₹4–7 LPA |
| Mid-Level (3–5 yrs) | ₹8–12 LPA |
| Senior Level (5–10 yrs) | ₹15–25 LPA |
| Top Tier (10+ yrs) | ₹30 LPA+ or more |
Note: Salaries vary based on city, company size, sector, and qualifications like CFA/MBA.
Challenges in the Career
While the rewards are high, financial analysis isn’t free from challenges:
- High pressure to deliver accurate forecasts
- Tight deadlines in investment and banking sectors
- Long hours especially in M&A or hedge fund roles
- Continuous learning required to stay updated with market trends
However, if you love numbers, logic, and strategy, the career will be deeply fulfilling.
Tips for Aspiring Financial Analysts
- Start reading financial news daily (Economic Times, Moneycontrol, Bloomberg)
- Join LinkedIn groups like “Finance Club India” or “CFA Prep”
- Attend finance webinars or virtual stock market games
- Practice case studies and financial modeling on YouTube or Udemy
Conclusion
So, how to become a financial analyst? The roadmap is clear: focus on the right education, master financial skills and tools, earn relevant certifications, and gain hands-on experience. Financial analysis offers long-term career growth, cross-industry mobility, and lucrative salary potential. Whether you aim to work in corporate finance or dream of Wall Street, now is the perfect time to begin your journey.
FAQs: How to Become a Financial Analyst
1. Can I become a financial analyst without a finance degree?
Yes, if you have strong math skills and complete certifications like CFA or NSE courses.
2. Is CFA mandatory to become a financial analyst?
Not mandatory but highly recommended for high-paying roles in investment or portfolio management.
3. Is MBA necessary to become a financial analyst?
An MBA is not essential, but it gives a competitive edge, especially for leadership roles.
4. Can I become a financial analyst after B.Com?
Absolutely. With B.Com and the right certifications or a master’s degree, you can apply for analyst roles.
5. Which is better – CFA or FRM?
CFA is broader and focused on investment analysis. FRM is specialized in risk management. Choose based on interest.
