Financial Analyst Education Qualifications

Educational Requirements for Financial Analyst

There are three levels of educational degrees or certifications that a financial analystFinancial AnalystA Financial Analyst is someone who uses the fundamentals of financial analysis to evaluate the company’s position in terms of raising capital in the form of debt or equity, credit ratings, or budging. They are expected to analyze various scenarios, including but not limited to current market conditions, and make intelligent inferences.read more is expected to possess based on the position being applied. Let us look at the three kinds of educational qualifications, namely bachelor’s degree, master’s degree, and certification required for different levels of positions.

#1 – Bachelor’s Degree for Financial Analyst

To be a financial analyst, having a bachelor’s degree is the bare minimum you would require. 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.

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.

#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. Then, based on the level of performance, they can move ahead in their career level and grow to become a member of the management team.

#3 – Certification for Financial Analyst

A financial analyst is a very critical profile for employers, especially when the hiring is being done for the senior profiles. That is why many corporations look for certain professional certifications when hiring a senior-level candidate. The most prominent certification employers look for in a candidate is the Chartered Financial AnalystChartered Financial AnalystThe Chartered Financial Analyst (CFA®) Program offers a graduate-level curriculum and examination program designed to expand your working knowledge and practical skills related to investment decision-making. read more (CFA). The CFA Institute to eligible candidates grants this certification.

Analysts who have 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 and a master’s degree can expect prominent level jobs in financial analysis.

This has been a guide to financial analyst qualifications. Here we discuss the educational and certification requirements of financial analysts. You can learn more about finance from the following articles –

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