Growth in financial analyst jobs is expected to be much higher than the average for all occupations. Despite rapid job growth, stiff competition is anticipated for highly paid positions.
Financial Analyst Jobs: Market Segments
The market segments in which financial analysts are in demand are:
- Investment banks
- Insurance companies
- Mutual and pension funds
- Securities firms
- Banks
- Hedge funds
- Business media
Financial Analyst Jobs: Employment Criteria
Financial analysts usually have an undergraduate degree in related fields, such as business, accounting, statistics or finance. However, a master's degree in business administration (MBA) is desirable for this job.
An aspiring financial analyst must also have the following skills:
- Aptitude for working with numbers
- Good IT skills. To be able to use the latest IT technology in research.
- Problem-solving skills.
- Excellent interpersonal skills to be able to properly interact with clients.
- Confidence and the ability to work on your own growth.
- Good communication skills to explain complex financial ideas in simple words to clients.
- Patience and persistence to be able to look for obscure facts and details about companies.
Financial Analyst Jobs: Prospects
Financial analyst jobs are expected to rise by 34% between 2006 and 2016, according to a survey conducted by the Occupational Employment Statistics (OES). This growth rate is significantly faster than the average for all occupations. The primary factors for the bright growth prospects are:
- Increasing complexity of investments
- Growing financial industry
- Rising number of mutual funds
- Increase in the amount of assets invested in the funds
With an increase in the number and type of mutual funds and the amount of assets invested in these funds, mutual fund companies will need more financial analysts to research and recommend investments.
Financial Analyst Jobs: Earnings
According to the OES, median annual earnings, including bonuses, wage and salary, of a financial analyst were $66,590 in May 2006. For many financial analysts, bonuses may form a significant part of their total earnings. These bonuses are usually based on how well an analyst’s predictions compare with the actual performance of the investment.
Financial Analyst Jobs: Work Environment
Financial analysts can either work from an office or their homes. The analysts usually face high pressure of deadlines. Their work might involve long hours as they have to:
- Frequently visit companies or potential investors.
- Conduct most of their research after office hours as they have to attend client calls and meetings through the day.