According to IBIS World, as many as eight million people made a living in some capacity in the financial services and insurance industry in the United States in 2023. This includes investment analysts. These professionals do research and create reports about different types of investments. To succeed in this field, it's important to have the necessary education, experience, and skills. In this article, we look at what investment analysts do, how they get into the field, and the job outlook.

What Investment Analysts Do

Inv𝓰estment analysts conduct research, create financial models, and produce analytical reports and recommendations concerning specific types of stocks, bonds, or other investment securities. These professionals produce research and buy-sell recommendations for two distinct uses, deꦚpending on the employer.

They work for many types of firms in the securities industry, including brokerages, banks, money manageme🎀nt firܫms, hedge funds, and pension funds.

In a bank or brokerage, investment analysts generally produce recommendations for company agents who use the information to sell investments to individual clients and the public at large. These firms operate on the sell side of the market.

On the buy side of the market, which includes hedge funds, pension funds, and wealth management firms, analysts usually produce research and recommendations for the company's investment managers who use the information to buy and sell securities directly.

Career Path

Entry-Level Analysts

Many senior investment analysts start their careers as junior analysts collecting data, creating and updating financial spread🌄sheets, and learning the ins and outs of the profession under the supervision of a senior member of the analytical team.

Entry-level positions typically require a bachelor's degree. After several years of working and learning in a junior position, many analysts head back to school to complete a graduate degree in preparation f🍌or furth🍰er advancement in the field. A new hire with a master's degree often begins in a senior analyst role immediately, regardless of whether they have worked before as a junior analyst.

Senior Analysts

Most senior analysts focus on a specific category of 澳洲幸运5官方开奖结果体彩网:securities, developing a high level of expertise 🦩in the area over time. Work duties inclu✅de:

• Updating research data in response to new developments
• Planning and conducting new research projects
• Communicating with contacts in the focus industry
• Presenting research results to firm management, sales agents, or clients

Senior analysts usu💛ally oversee the work of one or🐭 more junior analysts.

A senior analyst with a record of high performance can become a 澳洲幸运5官方开奖结果体彩网:portfolio manager in a buy-side firm overseeing all aspects of an investment portfolio. Portfolio managers set investment strategies and select the specific mix of securities in a portfolio based on the work of senior analysts. 澳洲幸运5官方开奖结果体彩网:Portfolio management typically represents the end of the ᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚcareer path.

Educational Qualifications

An entry-level position in the field requires a bachelor's degree. Relevant subjects include business disciplines with a quantitative component, such as finance, accounting, or economics, and other subjects that provide training in analytical and quantitatꦡive skills, such as statistics, mathematics, physics, or engineering.

While a master's degree is not generally a requirement to advance to a senior analyst position, many firms seek out job candidates with relevant graduate degrees. Many advanced analyst positions and investment management positions require a master's degree. Relevant graduate degrees include a 澳洲幸运5官方开奖结果体彩网:master of business administration (MBA🃏) with a qua🌳ntitative focus or a master's degree♍ in finance.

Skills, Licensing, and Certification

As for skills, it's important for investment analysts to possess the following:

• Analytical and problem-solving skills
• Research skills
• Communication skills
• Portfolio and 澳洲幸运5官方开奖结果体彩网:risk management
• 澳洲幸运5官方开奖结果体彩网:Asset allocation

Investment analysts are generally required to obtain a license from the 澳洲幸运5官方开奖结果体彩网:Financial Industry Regulatory Authority (FIN🍎RA), a national regulatory body that handles oversight of securities firms and brokers in the U.S. To obtain an appropriate license, a candidate usually needs sponsorship from a qualifying employer. Consequently, the licensing process usually takes place after a candidate has been hired as an investment analyst.

The 澳洲幸运5官方开奖结果体彩网:Chartered Financial Analyst (CFA) designation, awarded by the CFA Institute, is a professional certification available to analysts with bachelor's degrees and at least 4,000 hours of professional experience in three years. Most employers expect qualifying analysts to pursue and complete CFA certification. Many require CFA certification for continued advancement into more senior positions in the firm. Certification requires candidates to pass a series of three exams.

Salary and Job Outlook

The Occupational Handbook from the 澳洲幸运5官方开奖结果体彩网:Bureau of Labor Statistics (BLS) places financial and investment analysts in the same category. According to the agency, the median annual salary for these professionals in May 2023 was $112,950.

Job growth for financial analysts is expected to be 9% between 2023 and 2033, which is much faster than average. The BLS expects to see 37,000 more positions added to the field within this period.

The Bottom Line

Investment analysts play a very important role in the financial industry. They conduct research and draft reports about market trends, investment performance, and real-time data. The information they provide can help investors and companies manage their risk, make important decisions about their investments, and optimize the performance of their portfolios. If you're looking to get into this profession, have the right education, skills, and certification help. Advancing in your career and continuing your education can make you a top earner in the field.

Correction—Dec. 22, 2022: A▨ previous version of this article stated that four y🌌ears of professional work experience were needed to become a CFA. The CFA Institute officially changed this requirement in March 2021 to 4,000 hours in a sequential three-year period.