Investment Analyst Responsibilities

The individuals who have an aptitude for numbers, passion for conducting research related activities in the financial sector, and good analyzing skills can pursue their career as investment analysts. The investment analyst responsibilities are mostly associated with determining the existing value of the investment, researching new and better opportunities for investment, preparing reports and advising the clients or the organization to make the best investment decision that would assist in meeting their financial and business goals. Let us have a look as to what exactly are the kind of responsibilities that need to be handled by these professionals and what is the relevant educational background and skills required to ensure it to be a big success.

Key Responsibilities of an Investment Analyst

The role of an investment analyst is significant in identifying the scope of the project, defining the plans, preparing advice reports, and escalating the issues that are relevant. He/she needs to execute duties that are related to research work, process the deals, and to get involved in strategic business development. He/she functions under the direction and supervision of senior personnel and makes effective contribution to develop marketing material, making presentations, information memorandums, etc. He/she may assist in acquisition and identification of new business opportunities, development of financial models, and evaluation of the analytical research to advise the current and prospective clients on the actual as well as prospective transactions. The following points will enable you to understand in detail the various responsibilities of this professional:

  1. To conduct a thorough research activity in the financial sector and to identify new opportunities that would help in making better decisions for the client by forecasting the future economic trends
  2. To compile all the financial information of the client or the organization and conduct in depth analysis of the same and interpret the data in the right way, study the financial records of the company, and keep updated on the latest economic trends
  3. To ensure that all the short term and long term goals will be achieved by taking into account the financial risks associated with the economically volatile situation and its effects
  4. To guide the clients/organization on relevant investment options and suggest them the right time to make investment that would ensure better returns by closely monitoring the financial situation as well as may make recommendations to improve the organization's policies as well
  5. To establish professional, healthy relationship with the clients and to build an effective networking and bonding with them
  6. To be involved in preparing the reports and reviewing the business related newspapers or journals and to take decisions by reviewing the financial condition and assessing the risks involved in it

The investment analyst, thus needs to closely monitor the finances of the client or the company he/she is working for and closely track the cash flow and the related account statements. He/she may choose a field for specializing in a specific areas like infrastructure, retail, banking, financial, etc. He/she is the most vital link between the clients and the investment bankers. He/she creates reports related to potential investment avenues and based on these, provides ideas to enhance the portfolio. Apart from these major responsibilities, he/she may be involved in making client presentations and may work on preparing financial models that are more complex in nature. Thus, the role of an investment analyst is very significant for the clients and plays a crucial role, especially in the financial sector.

Essential Skills

To get the desired job, it is essential that the individual has sound knowledge of mathematics, statistics, accounts, economics, etc. He/she should have good business acumen and should have a vision to predict the best investment options for the client by studying the financial market. Strong quantitative and analytical skills combined with good researching skills are a must. He/she should be able to function independently as well as should be ready to work in a team environment and demonstrate strong work ethics. He/she should keep himself/herself updated with the current economic trends and take key decisions based on individual judgment. Strong reasoning skills with logical progression of ideas or thoughts would be an advantage.

Educational Background

The most preferred educational background to make an entry in this field is that the candidate should have completed a degree in finance. Those with an advanced educational qualification like a CFA would have an edge over others.

Work Schedule

The professional in this field is mostly hired in investment management organizations. The weekly routine for this professional does not exceed beyond forty five hours per week though he/she may need to work overtime on a few occasions.

Salary Details

According to a survey conducted recently, the average salary normally varies between $55,000 to $175,000. The remuneration package varies depending upon the relevant skills, educational background, and experience of that particular individual. The location, type, and size of the organization are equally important factors that will define the final salary for that individual.

Career Prospects

The career prospects look promising as the financial sector has undergone a tremendous change in the recent years. Thus, those with demonstrated work experience have got better chances for growth and development to higher management level positions.

Therefore, shouldering the investment analyst responsibilities will definitely be easier if you have the specialized knowledge, experience, and skills required to make your career challenging, interesting, and rewarding as well.

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