What jobs can a financial analyst do?
There are many positions available, such as investment consultant, investment banker, securities trader, CEO, chairman, partner, principal, investment director, financial director, accountant, auditor, market, investment company manager, securities Analysts, and Fixed Income Analysts, Portfolio Managers, etc.
Since everyone’s situation is different, take the investment analyst of CFA practitioners as an example to popularize the career development path of financial people.
1. Analyst
Analysts in investment banks are generally a 2-year program prepared for fresh graduates from colleges and universities, and fresh graduates generally start from there. Since it is called an analyst, the work content is nothing more than some data analysis, industry research, and other work, and some need to establish some preliminary models, including merge model, DCF, LBO, etc., and then hand it over to the associate for further review and processing.
At the end of the research, PPT should be used to present the research results, so this position will often use PPT. Of course, as a junior position, in many cases, it will involve a lot of miscellaneous things, which is always the basis of investment banking work, and it is also a position for training people.
This position is generally held for 3 years and can be promoted. Most financiers also start to study CFA in this position. Forward-looking college students have passed the CFA Level 1 exam before graduation, which can greatly shorten the time at the grassroots level. Working time, two years or even a short period can become an Associate, which is the next job we are going to talk about.
2. Associate (Deputy Manager)
The associate is a higher-level position than an Analyst, either promoted from Analyst, a top student in finance, or a CFA certificate holder. As the junior leader of Analyst, Associate still has to do some analytical work, but it is a bit technical and responsible for more complex modeling. Associates also assign tasks, undertake administrative work, and are mainly responsible for communication with customers according to the arrangement of the company or their superiors.
Although he is a leader, an Associate’s job is not easy, he needs to work overtime every day and is responsible for the work of the whole team. This position requires a certain background of financial knowledge, so MBA or CFA holders who like it very much will be welcomed even if they only pass the CFA Level 2 exam. Usually, employees will work in this position for 3 to 4 years before they learn enough skills to advance to higher positions.
3. VP (Vice President or Manager)
If you successfully entered the VP stage, then congratulations you have been sublimated. VP generally refers to all high-level deputy-level people. The work must guide the Associate and Analyst, and at the same time, there must be some contact with the external environment. A lot of the work that the CEO is too busy to do will be handed over to the VP.
The work of the VP is mainly composed of two parts. One is to act as the project manager. When D or MD receives the deal, he is responsible for executing the deal. The other is to plan all required processes and tasks to assign to associates and to ensure smooth progress. VP is also the core person who contacts customers and contacts with various support people such as accountants, lawyers, etc.
It is not easy to be a VP, and it is even more difficult to get a promotion. In the industry, VPs generally work for 3 to 15 years before they have the opportunity to be promoted. In addition to experience, ability, and luck, various self-improvements are also indispensable. Most financiers in this position work hard to pass the CFA Level 3 exam and submit a certificate application. If you are already a CFA certificate holder, that’s great.
4. Director (general manager, director)
Depending on the size of the investment bank, there may or may not be a Director. The Director is responsible for important transactions such as fee negotiation, transaction strategy, and client meetings. There is also marketing to attract customers. MD’s work is similar in nature, but with a focus on important clients.
5. MD (Managing Director)
Director will be promoted to MD (Managing Director) in about 3 years. The MD level has high business profit indicators and the responsibility for maintaining important customers, participating in the company’s overall strategy and business direction formulation.
If the MD develops further, he will be the manager of each branch or be the CEO. At this time, if there is no such arrogant certificate as CFA, it is not appropriate.
The above is a typical investment bank title sequence. Some financial institutions will set up some intermediate titles, such as assistant VP (AVP), assistant VP, senior VP (SVP), VP, etc. The only constant is the requirements for human ability and certificates.
Of course, CFA’s help in career development is more than that. From the perspective of career development, a CFA certificate that represents your strong financial theory and rich work experience can help you achieve your goals elegantly and efficiently. Now VC/pe is a very fashionable word, and there are many successful venture capital cases in China. There are not a few financial people who want to enter the venture capital circle or private equity circle. Can’t get in.
In addition to the more popular ones above, the following positions are also available for financial analysts:
Fund managers 18%
The industry is called “trader”, responsible for fundraising, management and operation, listing monitoring, etc. One of the main destinations for CFA certificate holders. The market demand is large and the prospect is broad.
To become a fund manager requires keen market intuition and investment judgment, and practical experience is also very important.
Researcher (Analyst) 15%
Domestically, it generally refers to the industry researcher of securities companies, who are responsible for researching the dynamics of related industries and exporting research reports of securities companies for reference in investment decision-making.
Investment Banking Analyst9%
The career chain of investment banking generally starts as an analyst and can be promoted to junior managers, vice presidents, senior managers, etc. if done well. Each stage has a corresponding promotion time.
There is a saying on Wall Street that investment bankers are paid more annually than presidents.
Industry executives 7%
In the high-end talent market, CFA is also very popular. Industry executives also need high-quality certificates to match their identities.
Risk control manager 6%
Responsible for financial risk identification and management, involving risk prediction, risk decision-making, risk assessment, and risk control. Generally, many excellent risk control managers are CFA+FRM dual-certificate holders.
Corporate Finance Analyst 5%
Responsible for providing financial value-added services for enterprises, such as industry surveys, listings, mergers, acquisitions, etc. At the same time, it provides suggestions on the optimization of corporate finance and taxation, asset allocation, etc.
Consultants 5%
Persons who provide professional consulting services to clients. Consulting and investment banking are recognized as two high-income industries. The consulting industry can open up young people’s horizons, and through exposure to different industries and different industrial backgrounds, they can grow rapidly in a short period.
Account Manager 5%
Usually refers to the bank’s relationship manager. When they recommend or introduce products to customers, they need to have a systematic understanding of financial markets and product systems.
Financial Advisor 5%
It is generally a financial intermediary institution. Mainly according to the actual situation and requirements of customers, provide customers with investment and financing, asset and debt restructuring, capital operation, strategic development, and other services.
MOM Investment Manager 4%
Instead of directly managing the investment of funds, the assets of the fund are delegated to some other fund managers who are responsible for selecting and tracking the investment performance of these fund managers. A mature international financial market requires the existence of MOM investment managers.
Trader 4%
Quickly and execute accurately trading orders, track and analyze trading varieties, and do after-hours analysis and statistics every day.
Strategist 3%
Responsible for the strategic analysis of the stock market, following up the macro market progress, and forming a strategic analysis report, you need to be proficient in a variety of strategic analysis methods.
Accountants/Auditors 3%
The financial market is also inseparable from financial analysis, and corporate mergers and acquisitions will involve many financial issues, so much professional financial personnel is also required.
I recommend a senior student who has taken the CFA exam. You can consult her about anything you don’t understand about CFA. Not only can solve CFA exam questions, but also the electronic version of CFA exam questions and CFA
