How do I become a Financial Analyst?

A career as a financial analyst is an excellent option if you are interested in helping firms and individual clients make sound investment decisions. Financial analysts gather information through analyzing market trends such as the performance of stocks and bonds.

As a financial analyst, you can choose to be a buy-side analyst and develop investment strategies for hedge funds and insurance companies. On the other hand, sell-side analysts work with financial service sale agents.

If you want to start your career as a financial analyst, you can begin your journey by following simple steps.

Earn an undergraduate degree and or a master’s degree

The first step towards becoming a financial analyst is to earn a bachelor’s degree and major in finance, economics, accounting, and business administration. As a result, you will have a solid background for starting your career as a financial analyst. However, if you choose a major that is not business or finance-related, you can still stand if you can justify your choice and how the skills you learned will be applicable in a financial position.

Additionally, attaining a master’s in finance or MBA early in your career will get you closer to obtaining a senior financial analyst position and advancing your career. Although you require several years of work experience to qualify for a master’s program, it would be a good idea to come up with a timeline to help you take the admission tests and obtain the required materials.

Financial internship

If you are building a career in finance, it is critical to complete a finance internship. Although it is not a mandatory requirement, an internship has benefits for your entire career. It will help you build your resume and prepare for job interviews in the future.

A financial internship will give you real-world experience in the finance industry and help you explore potential roles in the future. Additionally, you will form professional networks and develop relationships with employers and colleagues who can mentor you or act as your referees.

In addition, having completed a financial internship will make it easier to find employment after completing your studies because it demonstrates that you are interested in financial analysis. You can research companies in your area that offer financial internships and apply.

Get an entry-level position as a financial analyst

Start by applying for entry-level financial analyst jobs and stand out as an exceptional employee. Ensure that your resume sets you apart and indicates the qualities and skills you will bring to the table. Highlight your experience as an intern and any other experiences that showcase your unique skills and adequately prepare for your interview.

Keep in mind that to be promoted, you should be an exceptional employee to work hard each day and make the most of each opportunity. Additionally, observe the work in your company and identify the kind of fund that appeals to you. You can choose from various funds such as large-cap funds, balanced funds, pure equity funds, small-cap funds and study everything about them.

As a result of having this management knowledge, you will have an edge over other candidates when applying for managerial positions. Secondly, having technical information and experience will give you confidence in your career.

Attain a CFA certification

The CFA Institute offers chartered financial analyst (CFA) accreditation which employers internationally recognized as the gold standard for finance and investment professionals

If your goal is to advance your career in finance or investment, earning a CFA designation is an excellent investment. Since it is recognized internationally as the gold standard for investment and finance professionals, you enjoy global career mobility. The charter is for investment and financial professionals, and its curriculum covers topics in investment and finance.

CFA level I curriculum is broad and covers all relevant areas in finance. As the candidates progress to level II, the curriculum is more specialized and in-depth. Finally, Level III requires candidates to combine topic areas and have the skills to apply this knowledge to real-life situations. For example, the curriculum covers portfolio management, financial analysis, derivatives, stocks, bonds, and ethics. Additionally, the CFA Institute regularly updates the learning material to ensure that it remains relevant. Consequently, having a CFA designation indicates that you have the in-depth financial knowledge and technical skills that potential employers look for.

The CFA Institute offers the program globally, and as a result, there are more than 164,000 CFA charter holders from164 countries. In addition, CFA societies present a unique opportunity for you to network with other CFA charter holders.

Additionally, CFA charter holders enjoy higher salary increments compared to non-holders. Having an internationally recognized designation also gives you a better chance of working for global firms with better pay.

Start your journey to becoming a CFA charter holder with Analystprep.com. Enroll in our CFA study packages to access a vast library of study materials to help you prepare for your exams. In addition, our online study notes and video lessons will help you assimilate the most complex concepts.