The following article discusses the career path of Investment Analyst. Learn about how to become one, education requirements, job duties, traits and qualities, national salary outlook as well as top national employers of Investment Analysts.
Investment analysts work as part of a group to review investment products, and potentially approve them. They may also be responsible for recommending portfolio changes to advisors, as well as focusing on other investment products, including assets, that financial advisors use on a daily basis. Furthermore, an investment analyst is likely to have to conduct research on various funds, writing an analysis or commentary, delivering presentations on various financial investment topics, supporting advisors, and supporting asset management.
Typically, these professionals are employed by large financial firms or institutions, venture capitalists, brokerages, or fund managers. Their role is highly stressful and they may work unsociable hours, particularly if they also focus on global financial markets.
Other job duties of an investment analyst are:
- To analyze and research various financial products to determine whether the industry or company is performing at maximum capability
- To work with other analysts to create investment strategies for individuals or companies
- To recommend different types of investments based on research of an industry or company
Where We Work
According to the U.S. Bureau of Labor Statistics, there were 296,100 financial analysts in 2016. The largest employers of these professionals were:
- Securities, commodity contracts, and other financial investments and related activities: 24%
- Professional, scientific, and technical services: 14%
- Credit intermediation and related activities: 13%
- Management of companies and enterprises: 12%
- Insurance carriers and related activities: 7%
How to Become
Typically, investment analysts are team players with excellent communication skills, both oral and written. They will be expected to hold a bachelor’s degree as a minimum, typically in a field such as accounting, business, or finance. It is common for them to have many years of work experience as well as for them to be certified in different financial areas. Many hold CIMA (certified investment management analyst), CAIA (chartered alternative investment analyst), or CFA (chartered financial analyst) certifications. This means that they have completed significant amounts of further education. Many, in fact, have completed a master’s degree, with the master in business administration (MBA) with a relevant concentration being the most popular.
A bachelor’s degree is generally the minimum requirement. While a bachelor’s degree in finance is recommended, fields such as mathematics, statistics, economics, and accounting are also suitable. Licenses and certifications are also available and sometimes required by employers.
The main licensing body for the investment industry is the Financial Industry Regulatory Authority (FINRA). If an investment analyst wishes to sell financial products, he or she will need to be licensed. To receive this license, employer sponsorship is required. This means that an analyst is not expected to already be licensed when starting in a job.
Certification is usually recommended depending on the position. The Chartered Financial Analyst (CFA), offered by the CFA Institute, is very popular. To obtain CFA certification, an investment analyst must hold a bachelor’s degree, have four years of relevant professional experience, and pass three different examinations. They can also obtain further certification in specialty fields. Doing so will also greatly improve their advancement prospects.
Traits & Qualities
The most effective investment analysts have the following traits to some degree or other:
- Excellent analytical skills
- Great communication skills, both verbal and written, particularly in relation to report writing and holding presentations
- Computer skills, focusing on financial analysis software
- Strong decision making skills
- Detail oriented
- Excellent mathematical skills
- Most Reported
Salary by State
The following section lists Investment Analyst salaries in each state around the country. The figures are based on the total number of job postings through Indeed.com. For example, New York had the largest quoted salary of $100,767 while Missouri had the smallest quoted salary of $27,859.
Top 20 National Employers
According to Indeed.com, the following states had employers looking to hire a Investment Analyst. The quoted salary figure represents the average salary from all job postings by this employer.
|Employer Name||Location||Average Salary|
|Selby Jennings Investment Analyst||Texas||$177,028|
|Robert Half Finance & Accounting Investment Analyst||Massachusetts||$163,966|
|QVT Financial LP Investment Analyst||New York||$155,892|
|Coatue Management LLC Investment Analyst||New York||$150,000|
|CyberCoders Investment Analyst||New York||$138,951|
|Kforce Finance and Accounting Investment Analyst||New York||$130,069|
|T. Rowe Price Investment Analyst||Maryland||$124,813|
|Bank of America Merrill Lynch Investment Analyst||New York||$120,805|
|PHAIDON INTERNATIONAL Investment Analyst||Pennsylvania||$120,485|
|Citi Investment Analyst||New York||$111,945|
|R.G. Niederhoffer Capital Management, Inc. Investment Analyst||New York||$104,055|
|Green Key Resources Investment Analyst||New York||$103,305|
- Financial Analysts : Occupational Outlook Handbook: : U.S …
- Financial analyst – Wikipedia
- Investment Analyst Program – IFC
|Career Name||Average Salary|
|Director of Communications||$81,076|
|Real Estate Manager||$76,119|
|Business Development Manager||$75,226|
|Information Technology Specialist||$73,668|