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Why Should One Become A Financial Analyst?
The demand for skilled financial analysts in India continues to grow strongly, driven by expanding capital markets, increasing corporate activity, and the rise of data-driven financial decision-making. Financial analysts are recruited across a wide range of sectors — investment banks, asset management firms, corporate finance departments, FP&A teams, equity and credit research desks, and government agencies.
Financial analysts need to keep themselves updated with the stock market, varied interest rates, and current affairs related to finances as that will help them apply their existing knowledge and upskill themselves continuously. They will be able to keep up with the diverse economic changes and stay relevant for newer job opportunities.
While the job market sees constant fluctuation, financial analysts can enjoy job security due to the nature of their job. As financial analysts engage with critical industry information, replacing them in a short period of time can prove to be very expensive for companies. Additionally, since the essential job of a financial analyst is to help people decide how to invest their money, one can also look into working as a consultant for multiple companies, or starting their own firm and choosing their own clients.
Unlike roles such as investment banking where one is often overworked, a financial analyst role typically allows for a healthier work-life balance, particularly in corporate FP&A and credit research functions.
With data playing a key role in finance today, see how MBA in Business Analytics enhances financial analyst skills in data-driven decision making for roles in FP&A, credit research, and valuation.
What Are The Duties Of A Financial Analyst?
Essentially, a financial analyst's main job is to understand and simplify the complexities of financial markets for their clients and suggest appropriate investment decisions. However, that is not all that a financial analyst is required to do.
They are also required to write detailed reports to present their findings and set investment principles for companies as part of brokerage. For this, they would need to work closely with the accounting team. They are also responsible for building automated forecast tools that would enhance productivity.
Furthermore, a financial analyst would need to develop technical analyses like charts and financial models. They must evaluate market health to support and guide their clients. They need to gather data and forecast changes in revenue and propose increases or decreases in expenditure.
What Are The Skills Needed To Become A Financial Analyst?
A financial analyst's job is to provide reliable financial insights and guide critical business decisions. Let us take a look at the essential skills required to be a good financial analyst.
1. Financial Modelling and Valuation
Financial modelling is the core technical skill for almost every analyst role in India. Analysts build three-statement models, DCF (Discounted Cash Flow) valuations, comparable company analyses, and LBO models to support investment decisions, M&A transactions, and equity or credit research. Mastering Excel-based modelling is essential before moving to tools like Python or Tableau.
2. Excel and Data Analysis
Advanced Excel proficiency — including pivot tables, VLOOKUP, financial functions, and Power Query — remains a non-negotiable baseline. Companies also increasingly value familiarity with Python, SQL, and data visualisation tools like Power BI for handling large financial datasets.
3. FP&A and Budgeting
Financial Planning and Analysis (FP&A) is one of the most common career tracks for financial analysts in India. Skills in budgeting, variance analysis, forecasting, and management reporting are highly valued by corporates, MNCs, and startups alike.
4. Equity and Credit Research
Analysts working in equity research build and update financial models, write investment notes, and track sector developments. Credit analysts assess borrower risk for banks, NBFCs, and rating agencies. Both tracks require strong knowledge of financial statements and industry analysis.
5. Research and Analytical Thinking
Strong research skills are required to understand business scenarios, identify the right questions, refer to credible sources, and synthesise data into actionable recommendations.
6. Communication
Good oral and written communication skills are essential — financial analysts must simplify and present complex financial information to clients, management, and stakeholders through reports and presentations.
7. Soft Skills
Key soft skills include leadership, sound decision-making, attention to detail, and relationship-building with clients and internal teams.
How to Become a Financial Analyst?
If you have decided to become a financial analyst, there are some essential academic milestones that you must achieve.
First, it is important that you complete a bachelor's degree. Many universities and colleges provide admission based on the results of senior secondary examinations (10+2). However, some universities may also ask you to appear for entrance examinations such as:
- Delhi University: DUET (Delhi University Entrance Test)
- Indraprastha University: IPU CET (Indraprastha University Common Entrance Test)
- Jamia Millia Islamia: JMI EE (Jamia Millia Islamia Entrance Examination)
- Jawaharlal Nehru University: JNU EE (Jawaharlal Nehru University Entrance Examination)
To become a financial analyst, the knowledge of subjects such as mathematics, business administration, accounting, and statistics is important. So, candidates must acquire any of the following degrees:
- B.Com in Accounts and Finance
- B.Com (Hons)
- B.Com in Banking and Insurance
- BBA
- BBA (Hons)
Next, potential financial analysts can pursue two career paths. The first is to continue their academic journey without any gap between their bachelor's and master's degrees. The second path is to get on-field experience with entry-level jobs before pursuing a master's course. In both cases, a master's degree strengthens career prospects significantly.
Below are the entrance examinations that one must appear for in order to pursue an MBA (Masters of Business Administration):
- Common Admission Test (CAT)
- Management Aptitude Test (MAT)
- Xavier Aptitude Test (XAT)
- Symbiosis National Aptitude Test (SNAP)
- Common Management Aptitude Test (CMAT)
Please check the official websites of each exam for current registration and examination dates, as schedules are updated annually.
In order to get admission in the programme for an MBA in Finance, candidates should score at least 50% in their bachelor's degree. During the selection process, the combination of their scores in their bachelor's degree and entrance examination would be considered.
Tips to Crack MBA Entrance Examinations
The MBA (Masters of Business Administration) entrance examinations mostly last 120 to 180 minutes. The examination papers are usually divided into three to four sections. These sections include:
Verbal Ability:
This section tests the candidate's language proficiency through grammar and reading comprehension questions. To prepare for this, candidates must read a variety of passages that will help in developing their comprehension skills.
Reasoning Ability:
This section tests the candidate's logical and analytical thinking. Here, it is important that one pay attention to detail, be quick to think and come up with out-of-the-box solutions.
Quantitative Ability:
This section deals with a candidate's mathematical skills. However, rather than focusing on complex theories, candidates must familiarise themselves with number functions and focus on increasing their mathematical speed.
Since some of these entrance examinations also include negative marking, it is important that candidates be extremely careful when answering the questions.
- It would also help if candidates solve past papers and time themselves while doing so
- To improve vocabulary, candidates can also use game-based apps to make learning fun
- Solving puzzles and situation-based questions will help in developing logical thinking
Along with the preparation, it is important to balance it out with nutritious food, adequate time breaks, and appropriate sleep. This will ensure that you are mentally and physically ready for the examination.
Breakdown of MBA in Finance
Below is the MBA syllabus that will be covered in the two-year course of MBA in Finance.
Year 1
| Macroeconomics and Business Environment | Computer Applications in Business |
|---|---|
| Managerial Economics | Fundamentals of Marketing Management |
| Fundamentals of Accounting | Operations Research |
| Direct and Indirect Taxes | Managerial Accounting |
| Statistical Techniques for Managerial Decisions | Financial Management |
| Management Information System | Research Methodology and Project Work |
Year 2
| Money Market and Capital Market | Risk Management: Tools and Applications |
|---|---|
| Business Strategy | International Accounting |
| Business Ethics and Corporate Governance | Mergers and Acquisitions |
| International Financial Management | Dissertation |
| Security Analysis and Portfolio Management | Indian Financial Institutions and Markets |
Specialisation Available in MBA Finance
Within MBA Finance, students can pursue two specialisations:
- MBA Financial Management: Focuses on concepts like statistics for business, portfolio analysis, money and capital markets, advanced marketing, and microeconomics
- MBA in Banking and Finance: Focuses on the banking aspect of the finance industry
Job Prospects and Salaries Available after MBA Finance
An MBA in Finance assures that students get hired for a variety of roles in top companies across the industry. These profiles include:
- Corporate Finance and FP&A
- Corporate Banking
- Asset Management
- Equity and Credit Research
- Private Equity
- Credit Risk Management
- Hedge Fund Management
Some of the top companies that hire financial analysts in India are:
- Barclays
- HSBC Bank
- McKinsey
- Bain & Company
- Boston Consulting Group
- JP Morgan
- Goldman Sachs
- Deloitte
- KPMG
As of 2025-26, financial analyst salary ranges in India are as follows (figures are indicative and vary by employer, city, and role type): freshers with an MBA in Finance typically earn between ₹5 lakh and ₹10 lakh per annum; professionals with 3–5 years of experience can earn ₹12 lakh to ₹20 lakh per annum; senior analysts and those with a CFA charterholder designation or specialist expertise in equity research, private equity, or credit may command ₹25 lakh per annum and above.
