Investment Analyst and What is an investment analyst?

An investment analyst is a person who presents his investment advice (buy, sell, hold) to their clients or portfolio managers after conducting a thorough financial analysis, preparing financial models, and correlating the impact of economic conditions on the related.


The job of an investment analyst depends on the type of employer. For example, investment management firms hire their fund managers to help them make specific investment decisions. In contrast, brokers and investment banks Appoint analysts to advise your clients or portfolio managers.

It focuses on evaluating financial and economic information about a given company and making recommendations on whether to buy, sell or hold.

  • Buy Side: Mutual Funds
  • And advisory firms tend to be buy-side.
  • Analysts identify market investment opportunities.
  • Sell-side: Investment banks and research firms hire sell-side analysts to understand investment risk and investment and prepare reports on specific companies.
  • responsibilities

1 – Top-down approach

Focus on economic events and conditions and their impact on investment, such as, bank rates, unemployment rates, inflation rates, performance by industry, and company financial data.

2 – Approach to the bottom

Focus on action by creating research reports by company, sector industry, economic data, etc. In this approach, the priority is focused on the company’s finances and then other factors affecting its business are approached.

  • Company Research: Research on its industry performance, importance and status.
  • Analyzing: Current analysis of the company’s financials such as profit and loss account balance sheet and cash flow statement.
  • Preparing Reports: Preparing reports after analyzing the financial data and summarizing the company’s financial condition, growth outlook and value.
  • Updating knowledge: Meeting with company management, fund managers, and brokers to understand their views and business perspectives on the market.
  • Industry/Sector and Economic Analysis: Analysis of economic factors
  • Affecting the company’s operations and overall business.
  • Recommendation: After developing and analyzing the company’s financials, management perspective, and prospects, develop recommendations based on the reports.
  • Update Knowledge: Constantly updating information is the main responsibility of an investment analyst, which never ends. ability


  • Bachelor’s Degree: Important for entry-level jobs in business-related subjects such as finance, commerce, and economics with additional skills such as quantitative analysis statistics.
  • Master’s Degree: Many companies prefer candidates with Master’s degree in Business Management and Finance to advance in this profile.
  • Professional qualifications: Qualifications and experience from institutions such as the Chartered Institute of Securities and Investments CFA Institute take many years, but they provide enough knowledge and skills to become an advanced analyst.


  • Understanding of Finances and Economics: The most important skill set is to understand the finances and economics of a company as these two components determine the business outlook and future in the market.
  • Analytical: Must have an analytical mind and can generate and analyze given data.
  • Latest Knowledge: Analyst position requires constant updates on current affairs, bank rates, corporate actions, government announcements, tax policies, company management etc.
  • Basic IT Skills: Although an analyst does not need an IT background, certain skills will help investment analysts prepare reports and work effectively under pressure. For example, Excel, VBA, SQL, etc.
  • Team Efforts: The position of analyst is not a one-person job but requires a team, which generates data, updates information in the system, analyzes and provides reports. An analyst needs to work and coordinate with a team to be more effective.
  • Communication: They may have to attend meetings with company management, brokers, and traders and provide prepared data and information, which requires a high level of communication skills.

Investment Analyst Career Path

1 – Entry Level

  • Graduates with relevant disciplines begin entry-level positions as junior analysts. The job of junior analysts is to collect and update data in the system to generate financial reports.
  • While working as a junior analyst, individuals can learn various techniques to gain expertise. At the same time, they can earn a master’s degree to advance in the field.
    A person with a master’s degree may be offered a senior analyst role if he has the skills and knowledge.
  • Senior analysts focus on various categories of securities by planning, conducting new projects, preparing and updating data, meeting with company management, and presenting reports to clients. In addition, senior analysts observe, understand, and work under junior process analysts.


Job profiles and career prospects for investment analysts are good for individuals who want to pursue a career in the financial industry, particularly in investments. The job profile requires an individual who is willing to work under pressure, work hard while coordinating with a team, and demand to work on holidays if applicable with these levels of duty. can The stress analyst profile provides high levels of job satisfaction and career advancement. In addition, many large firms such as investment banks, financial institutions, insurance firms, and brokers require analysts in day-to-day operations. Individuals with a given skill set and competency level can approach the profile of portfolio managers.

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