How to become a financial analyst is a common question for those looking to build a career in finance. With the demand for financial analysts expected to grow by 9% by 2033, there are increasing opportunities in this field. If you enjoy working with numbers, analyzing market trends, and making smart investment decisions, this could be the perfect path for you.
In this guide, we’ll show you how to become a financial analyst in 5 simple steps. Plus, we’ll also cover the key financial analyst skills you need to succeed.
What is a Financial Analyst?
A financial analyst is a professional who specializes in evaluating financial data to help businesses and individuals make informed decisions.
They typically work in –
- Banks
- Investment firms
- Corporate finance departments
- Insurance companies
- Portfolio management firms
- Government regulatory agencies
Read What is Financial Accounting
Types of Financial Analysts
There are different types of financial analysts, each specializing in a specific area of finance. They are often categorized into buy-side and sell-side analysts, depending on their role in the investment process.
- Buy-side analysts - These analysts develop investment strategies for companies that invest in securities and other assets. They work with mutual funds, insurance companies, hedge funds, and nonprofit organizations.
- Sell-side analysts - They provide guidance to financial sales professionals who deal with bonds, stocks, and other investments. Their job is to offer insights and reports that help clients make informed investment decisions.
Other Types of Financial Analysts
- Investment analysts
- Risk analysts
- Corporate financial analysts
- Portfolio managers
- Credit analysts
- Economic analysts
What Does a Financial Analyst Do?
A financial analyst examines financial data to help businesses and investors make smart financial decisions.
Financial analyst job description:
- Analyze financial data – Review company performance, market trends, and investment opportunities.
- Build financial models – Develop forecasts and business scenarios to guide decision-making.
- Monitor market trends – Track stock performance, economic shifts, and industry developments to provide context.
- Evaluate investments – Assess potential risks and returns on stocks, bonds, and other assets.
- Support budgeting – Help organizations manage their financial resources effectively.
- Prepare reports – Compile financial statements and investment recommendations.
- Advise businesses – Offer insights on cost management, growth strategies, and financial planning.
- Use financial tools – Work with Excel, financial modelling software, and data analysis tools.
Read Financial Ananlyst Job Description
How to Become a Financial Analyst
Financial analyst career = education + experience + skills
Wondering how to become a financial analyst? Follow these five steps:
Step 1: Earn a bachelor’s degree
The first and most important step is earning a bachelor’s degree in a relevant field. Most financial analysts have degrees in finance, accounting, business, economics, or statistics.
A strong foundation in these subjects helps in understanding market trends, financial modelling, and investment analysis.
Pro tips:
- A Bachelor of Science in Finance can be particularly useful if you want to specialize in financial analysis.
- Courses in financial management, risk assessment, and data analytics can strengthen your knowledge.
- Consider taking online finance courses to gain extra skills while studying.
Note: Some financial analyst roles may accept degrees in fields like marketing or mathematics, but finance-related degrees give you a competitive edge.
Step 2: Get Licensed and Certified
While you don’t need a license to start, certain certifications increase your job prospects and credibility in the field. Some financial analyst roles, especially those related to investment sales, require licensing through regulatory organizations.
Common certifications & licenses:
- FINRA license – Required if your job involves selling financial products. Most companies sponsor employees for this certification.
- Chartered Financial Analyst (CFA) certification – Highly respected and beneficial for career growth. Requires:
- A bachelor’s degree
- Four years of relevant work experience
- Passing scores on three CFA exams
- NSE Certification in Financial Market (NCFM) – Recognized in India; many companies require this certification.
Pro tips:
- If you want to work in investments, start preparing for the CFA Level 1 exam early.
- Even if certification is not mandatory, it boosts your resume and increases salary potential.
Step 3: Gain Relevant Work Experience
Work experience is key to becoming a successful financial analyst. Many employers prefer candidates with hands-on experience in finance, accounting, or banking. The best way to gain experience is through internships or entry-level roles.
Ways to gain experience:
- Internships – Many companies offer finance internships where you can learn financial modelling, risk analysis, and investment research.
- Entry-level jobs – Look for roles like:
- Junior financial analyst
- Associate financial analyst
- Financial research assistant
- Freelance projects – Work on small financial analysis projects to gain practical experience.
Pro tips:
- Apply for internships early through Naukri.com, LinkedIn, and company career pages.
- Network with professionals in the finance industry—connections can lead to job opportunities.
- Work on Excel and financial modelling skills—these are must-haves for financial analysts.
Step 4: Consider a Master’s Degree (optional but helpful)
While a bachelor’s degree is enough for entry-level roles, many financial analysts pursue a master’s degree for career advancement. An MBA (Master of Business Administration) or a Master’s in Finance can lead to higher salaries and senior roles.
Benefits of a master’s degree:
- Helps secure leadership positions in finance.
- Increases chances of getting hired by top investment banks and hedge funds.
Note: If you don’t want to commit to a full-time degree, consider finance-related professional courses instead.
Step 5: Apply for Jobs and Prepare for Interviews
Once you have the right education and experience, it is time to apply for financial analyst jobs. Here’s how you can make your job search successful:
Where to find jobs:
- Job portals – Use platforms like Naukri.com, LinkedIn, and Glassdoor.
- Company websites – Many financial firms post job openings directly on their sites.
- Networking – Connect with finance professionals on LinkedIn or attend industry events.
Read Financial Ananlyst Resume
Common Interview Questions for Financial Analysts:
- What is your experience with data analysis?
- How do you stay updated on financial markets?
- What strategies would you use to evaluate a company’s financial health?
- How would you handle an inconsistency in a financial report?
Pro tips:
- Research the company before your interview and understand its financial operations.
- Practice financial modelling and analysis as many interviews include case studies.
- Have answers ready for technical questions related to investment strategies, risk analysis, and financial forecasting.
So, these are the typical steps for becoming a financial analyst.
Hidden Tips for Success as a Financial Analyst
Now that you know how to become a financial analyst – let’s cover some additional tips to help you succeed in your career:
- Master Excel and financial modelling – Most analysts rely on Excel daily. Learn advanced functions, pivot tables, and VBA for automation.
- Develop strong financial analyst skills – Improve data interpretation, risk assessment, and decision-making to stand out in the job market.
- Follow market news daily – Stay ahead by reading Bloomberg, CNBC, and The Wall Street Journal.
- Network aggressively – Attend finance seminars, join LinkedIn groups, and connect with professionals.
- Work on your presentation skills – Analysts don’t just crunch numbers—they explain findings to executives.
- Start investing early – Manage a small portfolio to understand market fluctuations firsthand.
Financial Analyst Skills
So, what skills does a finance analyst need?
Here is a list of essential financial analyst skills to excel in the industry:
1. Technical skills
- Financial modelling
- Excel proficiency
- Data analysis
- Accounting knowledge
- Investment analysis
- Research
- Budget management
- Financial software knowledge
2. Analytical and problem-solving skills
- Critical thinking
- Risk assessment
- Attention to detail
- Trend analysis
3. Communication and presentation skills
- Report writing
- Data visualization
- Public speaking
- Collaboration
- Negotiation
- Relationship management
4. Industry knowledge & adaptability
- Market awareness
- Corporate finance knowledge
- Regulatory compliance
- Adaptability
Financial Analyst Salaries and Demand
Now, let’s take a look at financial analyst salary and job outlook in India.
So, is financial analyst high paying?
Yes, the role is well-paying compared to other finance jobs, with strong demand and growth potential.
According to Glassdoor, the average salary of a financial analyst in India is between ₹4 lakhs and ₹10 lakhs per year.
- Entry-level analysts can earn around ₹5 lakhs per year.
- Senior analysts with expertise may earn up to ₹18 lakhs annually.
Read Various Resume Format
Financial Analyst Job Growth
Financial analysis is a high-demand career in India, with job opportunities rising by 30% over the past decade.
The demand for financial analysts is projected to increase by 9% from 2023 to 2033, reflecting strong industry growth.
Additionally, an average of 30,700 new job openings for financial analysts are expected each year over the next decade, making it a promising career choice.
Note: The actual salary may differ based on factors such as location, qualifications, and work experience.
What is the Qualification for a Financial Analyst?
So, how do you qualify as a financial analyst?
- Bachelor’s degree – Necessary (Finance, Accounting, Economics, or Business)
- Master’s degree – Ideal for career growth and top positions (MBA or MS in Finance)
- Certifications – Valuable for career advancement (CFA, NCFM, FRM, CPA)
Top Financial Analyst Certifications
- Chartered Financial Analyst (CFA)
- Financial Risk Manager (FRM)
- Certified Public Accountant (CPA)
- NSE Certification in Financial Markets (NCFM)
- Certified Management Accountant (CMA)
- Chartered Alternative Investment Analyst (CAIA)
- Investment Banking Certification
Do Financial Analysts Need CFA?
No, a CFA (Chartered Financial Analyst) certification is not mandatory for financial analysts, but it is highly valued, especially for roles in investment banking, portfolio management, and equity research.
Essential tools for financial analysts
- Microsoft Excel
- Google Sheets
- NSE India & BSE India Websites
- Moneycontrol
- Bloomberg Terminal
- Tally ERP 9
- Zoho Books
- SAP Financial Management
- IBM Planning Analytics
- SAS Financial Management
- Tableau
- Power BI
- Python
How to Become a Financial Analyst with No Experience?
So, how to become a financial analyst with no experience? Here’s how:
- Earn a relevant degree – Study finance, economics, or accounting.
- Take online courses – Learn financial modelling, Excel, and investment analysis.
- Get certified – Consider CFA, NCFM, or other finance certifications.
- Intern or freelance – Gain hands-on experience through internships or financial projects.
- Build a strong resume – Highlight skills, coursework, and projects.
- Network & apply – Connect with professionals and apply for entry-level roles.
Reasons to Become a Financial Analyst
9% job growth – Faster than many careers
₹6–18 LPA salary – Competitive earnings
30,700 jobs/year – High demand
5+ career paths – Investment banking, portfolio management, and more
Wrapping up
And that’s all about how to become a financial analyst!
Quick recap:
- Start with a relevant degree
- Gain certifications
- Build practical experience
- Develop key financial analyst skills
- Apply for jobs
Ready to start your career? Find financial analyst jobs on Naukri.com today!
FAQs
What types of companies hire financial analysts?
Financial analysts work at banks, insurance companies, asset management firms, hedge funds, government agencies, management consulting firms, corporations, nonprofit organizations, universities, and more. They work in a wide variety of industries analyzing investments, budgets, strategic plans, and business opportunities.
What should I major in to become a financial analyst?
The top college majors for financial analysts include finance, accounting, economics, mathematics, statistics, and quantitative modeling, but any business-related major can provide a foundation. Taking courses in financial modeling, data analysis, statistics, forecasting, and other technical skills relevant to the role is also an asset.
Is becoming a financial analyst a good career choice?
A career as a financial analyst can be very rewarding for people with an interest and aptitude for understanding markets, crunching numbers, and analyzing financial data. It is projected to be one of the faster-growing professions over the next decade with highly competitive salaries, according to the Bureau of Labor Statistics.
What do most financial analysts do all day?
A financial analyst's daily work activities typically involve pulling raw financial data, modeling scenarios in Excel or databases, identifying trends through data analysis, preparing reports and presentations, advising business leaders, evaluating investments, and monitoring market and economic conditions.
