Financial Aide
Manish Kumar Singal

An investment or financial analyst plays a very important role in any company. His job is to assess the economic performance of his firm and guide the board of directors about investment decisions.

Says R.D. Meherotra, a financial analyst with an MNC, "This is very responsible and hectic job. It puts one in a position to assess and opine about the financial changes in the country and industry. Every sector needs financial analysts to assess the fiscal scenario so that important decisions related to finance can be taken."

Elaborating on the career prospects of a financial analyst, he says that these professionals are also known as securities analysts or investment analysts. They are mostly employed by banks, brokers, financial institutions, insurance companies and MNCs.

The main job of a financial analyst is to keep an eye on the macro economic scenario as also individual companies and the trends in industry, he adds.

These professionals generally visit different companies, and interview top management people to gather important industry-related information.

The duties of a financial analyst also involve analysing specific equity and fixed-income securities and other investments.

Besides, he also assesses expected investment returns and risks, compares alternatives and makes investment recommendations.

Financial analysts read a company’s financial statements and analyse commodity prices, sales, costs, expenses, and tax rates in order to determine the firm’s value and project future earnings.

Besides effective interpersonal skills and good communication, a financial analyst must possess sound knowledge of financial matters. A Master’s in Finance from any reputed university or an MBA in Finance are the qualifications needed to become a financial analyst.

This profession has gained popularity during the last decade. Although there are a number of institutes offering courses for financial analysts, the main institute for training in this line is the Institute for Chartered Financial Analysts in India (ICFAI), at Mumbai.

Its CFA programme is comprehensive and gives a knowledge about micro and macro economics, quantitative methods of investment analysis and management, financial markets and instruments, and corporate finance.