Financial Analyst Qualifications

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Blog Author :

Niti Gupta

Edited by :

Ashish Kumar Srivastav

Reviewed by :

Dheeraj Vaidya, CFA, FRM

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What Are Financial Analyst Qualifications?

If a candidate plans to become a financial analyst, there are certain educational qualifications that they would need to fulfill. As a minimum criterion, they would be required to obtain a bachelor’s degree. Doing so would help the candidate to enter the job profile of a financial analyst at the elementary level, i.e., as a junior financial analyst.

financial analyst qualifications

As the candidate works and performs, they can grow further in your career level. Further, they might need additional educational degrees or certifications to reach higher positions as a financial analyst. We are going to discuss these degrees and certifications in the present content.

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Certification Courses

Let us look at the qualifications for a financial analyst

There are three levels of educational degrees or certifications that a financial analysts job description is expected to unveil based on the position being applied. Let us look at the three kinds of financial analyst qualifications required, namely bachelor’s degree, master’s degree, and certification needed for different levels of positions.

What does a Financial Analyst do? - Video Explanation

 

#1 - Bachelor’s Degree for Financial Analyst

To be a financial analyst, having a bachelor’s degree is the bare minimum qualification for a financial analyst. A person possessing a bachelor’s degree can join any entry-level position in the financial analysis domain and usually works under the supervision of a senior analyst. However, it generally follows that people having a master’s degree are preferred for permanent and senior-level positions. A bachelor’s degree can be obtained in many fields, such as finance, economics, mathematics, statistics, etc.

#2 - Master’s Degree for Financial Analyst

A person having a master’s degree can directly expect to begin their career as a senior analyst. However, any corporate looking for a senior-level position would expect the candidate to have a master’s degree in finance or specific subjects such as project management or marketing. The time required for obtaining the master’s degree may depend on the field in which the degree is being obtained. For example, it takes two years to complete a master’s degree in business administration.

A senior analyst can get promoted to senior positions such as a portfolio manager, fund manager, and other senior positions in which they lead a team of senior analysts.

#3 - Certification for Financial Analyst

A financial analyst is a very critical profile for employers, especially when the hiring is being done for senior profiles. Therefore, many corporations look for financial analyst certification courses when hiring a senior-level candidate. The most prominent certification employers look for in a candidate is the Chartered Financial Analyst (CFA). The CFA Institute to eligible candidates grants this certification.

Analysts with a minimum work experience of four years can apply for the CFA certification. Also, the candidates need to pass the three levels of the certification course. It usually takes about two to five years to complete this certificate. Thus, a person having a CFA degree as one of the financial analyst certification courses and a master’s degree can expect prominent-level jobs in economic analysis.

Thus, the above are the financial analyst job qualifications.

Examples

Let us take the example of John, who has a bachelor’s degree in accounting. He aspires to become a financial analyst. He enrolls for a master’s degree in business administration. However, after completing the course, he gets a job as a junior analyst. But due to his high performance, he gets promoted to senior analyst. After completing five years in the job, he completes the CFA too, which adds to his qualification. He successfully becomes a financial analyst. Thus, we see that the required financial analyst job qualifications help John to become successful.

Skills

Apart from the financial analyst qualifications required, the candidates should have the following skills.

  • Although one may have a degree in mathematics or other non-finance fields, companies usually prefer those who have exposure in finance and accounts.
  • A junior analyst can get promoted to a senior analyst based on a good performance. based on the level of performance, they can move ahead in their career level and grow to become a member of the management team.
  • They should be able to think strategically and devise solutions to solve complicated problems.
  • Multitasking ability is very important since they need to manage many clients with different requirements within limited time.
  • Presentation skills are required which helps in communicating their ideas and decisions clearly.