Investment Analyst as a Career

Description of the Job

Investment analysts collect information, perform research, and analyze assets including stocks, bonds, currencies, and commodities. They continuously collect and interpret data, such as company financial statements, price developments, currency adjustments, and yield fluctuations. They use relevant research and data to provide guidance regarding investment portfolios. Their primary goal is to offer analysis that guides investment managers toward high-yield, minimal-loss investments.

Fast Facts

  • Number of hours per weekOver 40 hours, often in the range of 50-70 hours
  • Average starting pay$87k Nationally, $89k in the Bay Area
  • Amount of travel requiredDepends on project, may require frequent travel
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Roles & Responsibilities

  • Analyze assets including bonds, equities, commodities, and real estate
  • Collect data from a variety of sources including financial statements 
  • Interpret data to help guide decision making
  • Write reports to summarize data and research findings
  • Present research to investment manager to help assist manager in investment decisions

Skills Needed

  • Market Research Skills: As an analyst, it is important to have the ability to research opportunities and obtain relevant data. (source)
  • Financial Knowledge: As an analyst, it is important to understand financial markets and trends in order to provide the right guidance for investment portfolios.
  • Data Analysis: One needs to know how to analyze and interpret financial data from many sources and use this data to make educated decisions.
  • Proficiency with Microsoft Office software: An investment analyst regularly uses Microsoft Office tools, especially Excel, and therefore it is important to have a good understanding of how to use these tools. 
  • Analytical Thinking: In this position, one needs to have an analytic mind and use data analysis and one’s financial knowledge to make informed choices.

Steps to Enter The Field

  • A bachelor's degree in finance or business is the most common minimum requirement for an investment analyst. Degrees in accounting, statistics, and economics may also be accepted by prospective employers. MBAs and higher degrees in math or financial disciplines are common, especially among analysts who move into management positions
  • Gaining experience through internships and clubs can be helpful to join this field. Experience can be gained through investment or finance-focused clubs as well as internships in the industry. An internship with a focus on financial analysis is particularly helpful
  • The main certification for investment analyst is the Chartered Financial Analyst (CFA). It contains 3 very challenging exams with pass rates between 40-50% for the first 2 exams. You must also have 48 months of working experience to get the CFA title. It can open up many doors for career advancement for investment analysts

Landscape of the Field & Companies in the Field

External Resources to Learn More & Develop Skills

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