What does it mean to be a Financial
The job title itself is actually self-explanatory.
In basic terms, Financial
Analyst collect and analyze financial information, and then make
recommendations to companies, customers or clients based on the research
they’ve done. They focus on a particular sector based on the company they work
for. Some of them include; investment banks, corporate, pension funds, mutual
funds, securities firms, insurance companies, and other businesses. They are
also called securities analysts and investment analysts. Where analysts would
research stocks, write reports and monitor financial movements to essentially
determine whether or not a specific deal is realistic based on the fundamentals
of the companies involved.
At the job, financial analysts would need
to be constantly updated on both international-economic issues and information
about particular companies’ balance-sheets.
This would involve keeping up to date with financial news, along with managing
statistical data. There’s also a strong focus on recommending individual on
investments and collections of investments, which are known as portfolios
and preparing written reports.
Financial analysts can be divided into two
Buy-side analysts develop investment strategies for companies that have a large
number of money to invest. These companies, called institutional investors,
include mutual funds, hedge funds, insurance companies, independent money
managers, and nonprofit organizations with large endowments, such as some
Sell-side analysts advise financial services sales agents who sell stocks, bonds, and
Financial analysts generally focus on
trends affecting a specific industry, geographical region, or type of product.
For example, an analyst may focus on a subject division such as the engineering
industry or the foreign exchange market. They must understand how new
regulations, policies, and political and economic trends may affect investments.
Investing is becoming more global, and some
financial analysts specialize in a particular country or region. Companies want
their financial analysts to understand the language, culture, business
environment, and political conditions in the country or region that they cover.
The following are examples of the types
of financial analysts:
Portfolio managers play a key role in deciding the best
investment plan for an individual or company according to the income and
ability to undertake risks.
managers work exclusively with hedge funds or mutual funds. This extensive
experience often includes activities in different aspects of fund management as
a fledgling fund manager learns about accounting, balancing portfolios,
responding to market shifts, and financial ethics. Both fund and portfolio
managers frequently make split-second buy or sell decisions in reaction to
quickly changing market conditions.
Investment analysts determine the value of the current
investment, create advice reports, and research new investments.
analysts analyze companies or industries and make investment recommendations
based on their findings. These recommendations include buy, hold and sell
recommendations on financial instruments that include equity or debt
investments such as stocks or bonds.
analysts evaluate the risk in investment decisions and determine how to manage
changeability and limit potential losses. This job is carried out by making
investment decisions such as selecting contradictory stocks or having a
combination of stocks, bonds, and mutual funds in a portfolio.
Planning to become a Financial Analyst?
Financial analysts typically start by specializing in a specific investment
field. As they gain experience, they can become portfolio managers, who manage
a team of analysts and select the sort of investments for the company’s
portfolio. They can also become fund managers, who manage large investment
portfolios for individual investors. A master’s degree in finance or business
administration can improve an analyst’s chances of advancing to one of these
positions. Important qualities to have are; analytical skills, communication
skills, computer skills, decision making skills, detail oriented and math
successful, financial analysts must be motivated to seek out blurred
information that may be important to the investment. Many work independently
and must have self-assurance in the decisions they make.
services industry is competitive and it can be tough to break into the analyst
field. If you're interested in the next step in your career as a financial
analyst or any other finance jobs, we can help you.
website to apply online or alternatively you can contact one of our branches
for more information.
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