Each day, countless bits and bytes of financial information
are gathered, monitored and crunched to keep markets – and companies – in the
green.
While computers do a lot
of the work for us, at some point human beings have to check out the data and
make decisions based on what it says.
They don’t
make all the big decisions, but Financial Analysts play a key role in that
process. It’s one of the most common entry level jobs in finance, so we’ve
compiled everything you need to know about being – and becoming – a Financial
Analyst right here!
What
does a Financial Analyst do?
Well, the job
title itself is actually pretty self explanatory. In simple terms, you collect
and analyze financial information, and then make recommendations to your
company, customers or clients based on your analysis. Especially early on,
you’ll spend a lot of time working on spreadsheets, creating reports and giving
presentations.
However, there are many
different types of Financial Analysts, such as Securities Analysts, Investment
Analysts or Ratings Analysts, and they can work for a number of different types
of organizations, including insurance companies, investment banks, mutual
funds, pension funds, hedge funds and securities firms, as well as companies
that operate in any industry in Canada! Each type of analyst will perform
different functions and have different responsibilities on a day-to-day basis.
Buy
side vs. sell side
Most commonly,
Financial Analysts are broken up into two distinct groups: those who work on
the “buy side” and those who work on the “sell side.”
Buy side: Analysts on the buy side work for
organizations that have money to invest (also known as institutional
investors). Institutional investors can be funds, insurance
companies, hospitals, colleges and universities – basically anyone who has
money and needs help developing investment strategies.
Sell side: These are the “sexy” analyst jobs that
many students dream of, with investment banks and securities firms. Analysts on
the sell side help these companies price and sell their products.
Outside of
this structure, Financial Analysts may also evaluate organizations’ abilities
to repay their debts or be responsible for performing budget and cost analyses.
Educational
requirements
Typically, an
undergraduate degree in accounting, business administration, economics,
finance, management or statistics is required for entry level Financial Analyst jobs.
Some Financial
Analysts choose to complete MBAs, and obtain a variety of accounting- and finance-related
certifications and designations, such as the Chartered Financial
Analyst (CFA), Chartered Investment Manager (CIM), Certified Management
Accountant (CMA) or Certified General Accountant (CGA) designations.
In-demand
skills:
There’s
nothing ‘soft’ about soft skills
These roles
require candidates who are self starters and have excellent interpersonal,
communication and conflict resolution skills. Be sure to highlight these on
your resume and point out specific examples in your interview!
Tech
it up
General
computer proficiency (typing skills, Internet literacy, ability to use
Microsoft programs) is essential. Beyond that, the ability to navigate various
finance-related software programs will make you a much stronger candidate. Find
out what software a company uses before interviewing with them and know a
little bit about how it works.
Set
yourself apart
Whether you
want to work as a Financial Analyst on the buy side or the sell side – or
somewhere else altogether – getting a job is going to be competitive. There
are, however, a few ways you can stand out:
i) Get experience
working in a financial services environment while you’re still a student
ii) Keep your grades up
– there are a lot of business students out there and employers only want the
best-of-the-best analytical minds
iii) Get involved in –
or start – a finance- or investing-related student group on your campus – many
employers work with and recruit directly from these groups
Bibliography:
ü Talentengg
ü Google
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