Careers Advice: How To Become a Investment analyst
What is a Investment analyst?
An investment analyst provides research and information to help traders, fund managers, and stockbrokers make decisions about investments.
What does a Investment analyst do?
Regular activities for an investment analyst will include:
- Producing research and financial information for companies
- Analysing financial information relating to specific companies
- Keeping up to date with market developments, such as new investment products
- Considering how economic factors such as recessions or political risk (e.g. elections) may affect investment performances
- Monitoring financial news
- Producing research reports for fund management
- Making recommendations to fund managers
- Ensuring all compliance regulations are met
Investment analyst Jobs
Skills & interests required for a Investment analyst
To be successful as an investment analyst, you will need to be intelligent, driven and able to identify key trends in a variety of different data sets (from financial reports to sales figures) in order to assess the viability and profitability of potential investments. You will also need to have a detailed knowledge of current affairs and their potential to impact investments.- Ability to Work Under Pressure
- Data Analysis
- Quantitative Research
Working hours can be long, e.g. 10 or 11 hours a day, while some weekend and overtime work will be necessary.
You will primarily be based in an office, probably in London.
Travel may be required to meet other colleagues and/or teams, usually in the UK, but occasionally also abroad. Larger firms may provide opportunities to work abroad in the longer term.
Salary ranges & earning potential
Starting salaries range from £28,000 to £40,000 per annum. After several years of experience, you may earn between £65,000 and £100,000, with bonuses of up to 40% or 50%. Typical salaries at senior level can be around £110,000 with bonuses of up to 200%.
Perks & benefits
Aside from large bonuses, opportunities for promotion are strong. You may move on to become a lead analyst in a particular sector, a supervisor for a particular area of investment, a manager of an investment organisation, or get involved in investor relations.
Pre-entry experience, such as work experience or internships in a financial institution, will be hugely beneficial. Most firms will offer summer internships to pre-select graduate recruits. Most of these opportunities will be in London.
Useful subjects to study at school & university
Degrees in accounting, economics, mathematics, and statistics will be beneficial.