There’s a lot more to finance than balance sheets and numbers. Its scope has extended to technology, science, engineering, and beyond. Therefore, all aspiring candidates planning to pursue finance in recent times need to have complete knowledge about the emerging subsets of finance. It will help them boost their chances of securing a place in the dynamic field.
Finance management is one such subset of finance that has seen substantial growth in the last decade. And financial analysis is the most in-demand finance niche in 2022. It is believed that a financial analyst’s job profile has seen a surge of 30% in the last decade.
Since the finance industry works on the fundamental principle of demand and supply, the need for a skilled financial analyst is more than ever. So, all aspiring candidates looking to make tides in the financial analysis niche must refer to this article to gauge the salary trends of financial analysts in India. But before we look at a financial analyst’s salary in India, let’s understand what financial management is.
Financial Management and the Trends of Financial Analyst Salary in India
For a long time, the finance department of a company was only associated with maintaining balance sheets and computing accounts of a business. However, complex business environment trends and increases in operating costs have compelled businesses to expand the scope of work for the finance department. Today, the company’s finance department performs various functions, from maintaining books to financial investments, account management to portfolio management.
Finance management is a business function performed by the finance department of a company. It is a branch of finance that minimizes business risks, ensures the availability of funds, and maximizes the utilization of resources. “Financial management is the activity concerned with planning, raising, controlling and administering funds used in the business,” according to Guthman and Dougal, authors of the book Corporate Finance Policy.
Financial management is an inevitable part of the modern-day business environment. Therefore, this financial niche is incorporated in many organizations. Interestingly, India is believed to be the third-largest hotspot for financial management after the US and China.
Meanwhile, the need for skilled financial analysts to perform different finance management processes is also increasing. It is believed that financial analysis will soon become one of the coveted professions in the world, and India will be one of the potential markets for budding analysts. Additionally, the salary drawn by financial analysts is huge. A finance analyst earns about ₹ 4,00,000 per annum on average in India. In the succeeding section of the article, we will be discussing the salary of a finance analyst. However, before that, let’s look at the job description of financial analyst, the roles and responsibilities of a financial analyst, and more.
Job Description of Financial Analyst
A financial analyst is an integral part of the organization. They perform a plethora of duties related to investment, portfolio management, and risk management. Here are the typical duties of a finance analyst.
● Financial forecasting
A financial analyst is responsible for undertaking the financial forecasting of an organization. Financial forecasting refers to numerical projections of business performance in future. Financial forecasting acts as an aid for portfolio management and risk management. They also help in tracking business performance, business trends, and competitors’ growth and sales trends.
● Analyzing financial data
A financial analyst is responsible for analyzing financial data and creating financial models to ease business decisions and solve roadblocks. They track the financial performance of a business through these financial data reports, which help in devising business plans that ensure an increase in funds and growth of the business.
● Perform variance analysis
Variance analysis is a process that helps businesses evaluate their over-performance or under-performance for a particular period. In simple words, variance analysis is an organization’s way of analyzing the difference between planned and actual sales and profit numbers. A financial analyst plays a vital role in performing this business function.
A financial analyst is also responsible for fulfilling other duties, namely, identifying process improvements, recommending actions on achieving the business target by performing comparative analysis, increasing productivity by financial tools, etc. Since we have understood the duties of a financial analyst, let’s look at the qualifications required by aspiring candidates to become successful financial analysts.
Aspiring candidates who are planning to build a career as a financial analyst should have a bachelor’s or master’s degree in business finance with relevant work experience. They should also be well-versed in different financial modelling techniques and Excel spreadsheets.
Financial Analyst Roles and Responsibilities
A financial analyst is responsible for ensuring that the business operations are carried out smoothly and that there is no shortage of funds for research, development, marketing, and other resources. So, they perform various roles and responsibilities to ensure a business’s smooth functioning. Here are some:
- Ensure there is a positive financial performance of the business.
- Make financial recommendations to management and executives.
- Develop financial models to support valuation, planning, and forecasting.
- Conduct market research, competitive analysis, variance analysis, and different types of analysis to derive financial performance of an organization.
- Be up to date with technical knowledge of financial instruments, market conditions, and trends.
Financial Analyst Salary
A financial analyst ensures that an organization is financially sound and survives in uncertain market scenarios like a recession. So, they are an irreplaceable and inevitable part of an organization. Interestingly, the Bureau of Labour Statistics (US) also agrees to believe the same. A recent survey conducted by the bureau, revealed that there will be an 11% growth in employment opportunities for financial analysts by 2026. So, if you are an aspiring financial analyst, now is the right time to pursue financial analysis. Here is all you need to know about a financial analyst’s salary in India.
It is believed a financial analyst, on average, earns between ₹ 2,19,000 to ₹ 9,93,000 per annum. Below we will be stating the financial analyst’s starting salary, senior financial analyst salary, and prospects of the job title.
Financial Analyst Salary Entry Level
A finance analyst with less than a year’s work experience should earn around ₹ 3,42,516 per annum. Meanwhile, a financial analyst with more than one year of work experience should earn around ₹ 3,87,058 per annum. The figures mentioned here are relative and can change due to many factors, namely, location, educational qualification, skills, organization pay scale, etc.
Senior Financial Analyst Salary
Senior finance analysts have the right skills and relevant work experience, which helps them acquire a good salary package. A senior financial analyst, on average, earns between ₹ 5,88,755- ₹8,50,683 per annum. So, if you have more than a decade of experience in financial analysis, then you can find a financial analyst role in MNCs that pay you on par with the market standards.
Future of Financial Analyst
Financial analysis is believed to be a booming and rewarding career. With globalization, many MNCs have set up their subsidiaries in India, which has paved the way for new employment opportunities for many talented and skilled financial analysts. Therefore, the future of financial analyst aspirants seems bright. However, the industry is competitive and cutthroat. To make a splash in the industry, you must take up a financial management certification course. These financial management courses will equip you with knowledge and insight into the industry’s workings and help you develop relevant basic and technical skills that will give you an edge over the competition.
Emeritus India offers several financial management certification courses in collaboration with reputed education institutes. These courses are endorsed by industry leaders and specifically designed for working professionals trying to attain a competitive advantage in their field of work. So, wait no more, and enrol yourself in Emeritus’ financial management courses and accelerate your career.