The financial sector has undergone tremendous transformation in the last few decades. Areas like equities, bonds and mutual funds, which were initially restricted to only the more business-oriented individuals, have now become simple and easy to manage. This is partly due to the emergence of well defined financial systems and partly due to the emergence of financial companies and institutions that cater to the needs of every individual. Investment analysts play a vital role in the financial sector through their research work.
Investment Analyst Job Description
The role of an investment analyst has gained greater significance in past few years. Some of the major tasks that form a part of an investment analyst profile are as follows:
1. The most important task of an investment analyst is to conduct extensive research and analysis of the investment portfolios of individuals or companies. Based on this analysis, the analysts create a report that provides solutions or ideas to the fund managers to enhance or diversify the portfolio.
2. They also need to take some key investment decisions based upon the research data.
3. Investment analysts are now an integral part of investment management companies and investment banks where they need to research on large company investment portfolios.
4. Investment analysts must be well-oriented about the financial set-up and procedures along with a good understanding of statistics and economics.
5. As part of their work profile, investment analysts need to work in tandem with either in-house fund managers or stockbrokers.
6. Their job also involves closely monitoring the finances of the company. This includes analyzing account statements and cash flow.
7. They must keep a track of the changing economic trends in the country as well as at the global level and make changes in the investment strategies. Analysts also need to create reports on the prospective investment avenues.
8. Investment analysts have to be in constant touch with the company management and discuss the major points or any concerns with respect to any critical investment modifications.
9. There are investment analysts who specialize in different sectors like retail, infrastructure, energy and banking and financial services.
10. Investment analysts can act the link between clients, attorneys and investment bankers.
Apart from these key tasks, the other duties include working on complex financial models, working on presentations for clients as well as for major conferences, analyzing the legal documents of client companies, regularly research the market trends and compile data.
Key Skills and Salary Structure
To secure a job of an investment analyst, candidates must have sound knowledge of accounting, mathematics, statistics, economics and politics. Also they must have keen business acumen to back their core knowledge areas.
Freshers must ensure that these key skills reflect in their resumes. Candidates must also research maximum sample resumes while preparing the ideal investment analyst resume.
Now-a-days, most investment institutions prefer candidates with a degree in finance, preferably a CFA (Chartered Financial Analyst) to recruit them. It is also important for the candidates to have strong reasoning skills and logical progression of thoughts and ideas to become a good financial analyst.
Usually fresh analysts begin from $30,000 and can reach a maximum limit of $100,000 depending upon the experience of the candidate.
The job of a investment analyst requires specialized knowledge but can be very interesting and challenging.