What is an Investment Analyst?
There are so many definitions from different authors. The description here says an investment analyst is known as a securities analyst, equity analyst, or financial analyst. This person advises people on future investments after the performance of many types of investment.
Another thing is that they help stockbrokers through the data they provide, as the fund managers and traders make investment decisions.
Investment analysts provide information to ensure that investment portfolios are well managed and potential opportunities highlighted.
Most things about an analyst are employed by investment management firms, where they provide data to in-house fund managers, as others work for stockbrokers and investment banks.
However, the investment analyst’s job is to make sure all the facts are in place when investment decisions finally made.
Furthermore, Investment analyst is demanding, require long hours and frequent travel, but they receive good pay with benefits, and most of the current analysts report high job satisfaction.
Duties of an Investment analyst include:
- By analyzing companies accounts, cash flow information, and profit and loss sheets.
- By writing financial reports.
- Analyzing and interpreting complex financial data.
- Providing advice and making informed recommendations.
- Keeping up-to-date with the domestic economy, world economy, and financial markets.
- Researching businesses.
- By doing regular meeting with stockbrokers, fund managers, stock market traders, and company managers.
Since the investment work provides good promotional opportunities and financial rewards, bear in mind that the role is demanding, as we said earlier and very long working hours.
Responsibilities of Investment Analyst
Responsibility is one of the primary things to consider, and maybe you are involved in a vast range of activities and disciplines, which vary based on your employer’s nature.
You will have to create and understand financial information, such as company accounts, financial statements, and sector data.
Another important thing is access and understanding more exhaustive business information, such as relevant economic data and political events.
An investment analyst is very skilled at examining and interpreting data from various sources and assessing its impact on investment decision-making.
Here are some of the work activities, which include:
- Financial modelling and projection
- By monitoring the economic update using specialist media sources
- By drafting and writing research reports for a fund manager
- To make sure that all compliance regulations met
- Conducting diligence on companies and industries via researching
- By doing financial information analyzing that relate to specific companies, like profit and loss, balance sheet and cash flow statement
- By keeping up with the trends with market developments, new investment products and some other area likely to affect the markets.
- Considering how the economic implications of factors such as natural disasters, weather and wars might affect the performance of companies and funds
- Connecting with and providing information to fund managers
- Giving recommendations to funding managers, being able to position ideas and articulate to the fund manager about the risk or payoff for each recommendation
Skills of Investment Analyst
Skills are one of the crucial ways an investment analyst can showcase their work.
You will have to show:
- The ability to work effectively in a team
- Initiative, flexibility and innovation
- Commitment to further study and qualifications
- Self-confidence, drive and tenacity
- The ability to work under pressure, meet deadlines and multi-task in a fast-paced environment
- Strong numerical ability and quantitative skills
- Language skills and a global mindset meant for international organizations.
- The ability to research, analyze and evaluate
- An interest in current affairs and an appreciation of their impact on the market
- Excellent communication skills
Note: Computer literacy is vital in these work fields, and can acquire some IT skills during training. It includes Excel, which is essential to learn as the roles mainly involve financial modelling and projection work.