What Does an Investment Analyst Do?

An investment analyst conducts extensive research on potential investments before providing recommendations to clients or firm management. They may work for banks, fund managers, and stockbrokers; their position usually involves long hours and travel.

This position requires strong interpersonal and analytical abilities as well as a bachelor’s degree in finance or another related subject.

Job description

Investment analysts are financial professionals who provide research and advice to traders, fund managers and stock brokers. They typically work for investment banks or research firms. Being an effective analyst requires both an interest in financial markets as well as excellent interpersonal skills – they must also have the ability to present complex data clearly.

Job duties of buy/sell/hold recommendations require thorough research and analysis. Furthermore, job holders create research reports while analyzing financial and economic information regarding a given company. Investors or corporate partners may want to meet up with them to discuss performance. They also should keep abreast of current events at economic, industrial and business levels.

These individuals must possess an in-depth knowledge of financial and accounting concepts and be proficient with several computer software packages – Excel, VBA and SQL being among them – in addition to understanding the business environment where they operate and having the ability to make quick decisions under pressure.

Education and training requirements

Are You Seeking Employment as an Investment Analyst? When seeking an entry-level role as an investment analyst, it’s essential that you understand the qualifications and training requirements. Most entry-level roles require at least a bachelor’s degree in business management or finance as well as additional skills such as quantitative analysis statistics. Some larger firms also provide graduate trainee programs which allow trainees to get hands-on experience quickly while moving up in their careers quickly.

Excellent written communication and presentation skills are also a requirement of this job, since you will regularly need to communicate via email, meetings, and presentations. Furthermore, keeping abreast of current economic trends, market conditions, and government regulations is vital in keeping future profitability of investments up-to-date; additionally it must also allow for long hours under pressure without stress becoming an issue.

Work environment

Work environments for investment analysts vary depending on their position. Some professionals specialize in working on the buy side, providing advice to companies with large amounts of capital to invest, such as pension funds, mutual fund firms, insurance companies and some nonprofit organizations with endowments. Others provide advice to financial services sales agents that sell stocks and bonds directly to individual investors – this often necessitates travel.

Buy side employees often spend their days analyzing financial data, monitoring economic trends and assessing potential investments before providing information to traders, portfolio managers and stockbrokers. As part of their role within the trading process they may take on more of a managerial-oriented role or specialize in one market sector; either way they often bear significant responsibility for their employer’s business.


Investment analysts receive their pay depending on their employer and firm size, and may receive bonuses. Ideally-paid analyst positions are found within bulge bracket banks specializing in mergers and acquisitions as well as exclusive boutique firms.

Investment analysts must possess excellent math skills and be familiar with spreadsheet software to effectively perform their duties. Furthermore, they must understand industry regulations as well as be capable of making projections. Finally, they must be comfortable communicating with clients and other employees alike.

Investment analysts often begin their careers at brokerages or finance companies’ research departments before transitioning into trading as they gain experience. Over time, these professionals may become portfolio managers or financial advisors at their respective firms; many roles within these professions allow remote working capabilities allowing for flexibility from any location as long as a computer and internet are accessible.

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