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Top 5 Investment Analyst Skills That Will Get You Hired

Investment analysis is one of the top careers in financial services. When you try to apply for an investment analyst job, it is important to gain the right skills. These skills are a mixture of soft and hard skills. The right education helps you to sharpen these skills and understand their application even before you enter the job market. A Global MSF can prepare you to work anywhere in the world. Let us now understand more about it. 

What is investment analysis?

Investment analysis is a process that involves research and evaluation of the market to determine investment options and their future performance. There are different investment analysis types; let us look at a few examples. 

  1. Bottom-up analysis: This type of analysis essentially focuses on investments made in individual companies. This is done to help small investors by narrowing their investments in particular companies instead of the entire market. 
  2. Top-down analysis: In this type of analysis the person studies the whole market to understand the causes that sway the market and or what are the effects of various changes. This type of analysis is preferably done by large companies or investors to ensure their investments are made after a complete market analysis.
  3. Fundamental analysis: This is a traditional style of analysis where the financial potential of the company is noted and investments are made based on the long-term growth, the company’s financial soundness, future prospects, and dividend yield potential. 
  4. Technical analysis: This type of analysis is done based on computer-calculated patterns. This is used for short-term investments, where even a minute change is tracked and used to increase returns. 

Who is an investment analyst?

An investment analyst is someone who gives investment advice to direct clients or portfolio managers through financial analysis. They ensure all facts are checked before any investments are made, including taking into account the current economic climate and preparing financial models. 

What is the salary of an investment analyst?

The average yearly salary of an investment analyst is $79,535 in the US, according to Indeed.com.

What are the roles and responsibilities?

An investment analyst’s responsibilities include a variety of activities. The primary role is to advise their clients based on financial analysis. They provide insights on economic and market trends. 

Responsibilities for this job include;

  1. Conduct research on the market and data collected on different companies and industries
  2. Analyze financial information such as balance sheets, cash flow statements, etc.
  3. Stay up-to-date on market trends, investment opportunities, and other aspects that affect the market
  4. Write and draft research reports for various stakeholders
  5. Maintain research summaries 
  6. Ensure compliance with all regulations

What are the most important skills for investment analysts?

If you are applying for an investment analyst job, there are certain skills that would be helpful on your resume. 

  1. Portfolio management: It is important to know how to monitor exposures with a proper portfolio management system. Clients require integrated investment advice with daily report monitoring and removing portfolio discrepancies. Proper portfolio management helps to identify growth opportunities and monitor production. 
  2. Reading financial statements: As investment analysts, it is important to know how to read and understand financial statements which will give important information on the company and the industry. 
  3. Analytical skills: Analytics is essentially in the job title, hence analytical skills are quite important. Strong analytical skills help with identifying opportunities, tracking investments, and resolving issues if they come up with them. 
  4. Risk management: When investing in the market, various risks are involved. These risks need to be predicted and managed depending on the economic climate. They also have to advise clients on which kind of risks to take and not to take in the market. Thus, risk management is an important skill. 
  5. Asset allocation: When investing putting all your eggs in one basket would be a bad idea. Ideally, dividing investments among different assets such as stocks, bonds, etc. is important. This will also help minimize investment risks. 

How can you gain the necessary skills?

Skills that are needed for becoming an investment manager can be honed in different ways. Here are some ways you can do that: 

  1. Get the right education

    When working in the financial industry education often helps you strengthen the foundation, as the content is technical and very difficult to learn on your own. You can do this by getting a bachelor’s degree in finance or economics. Another way of getting the proper skills for this role would be doing a master’s degree. A master’s degree not only helps with getting the basics down, it is also often a requirement for getting promoted or a pay raise. A master’s degree from a good institution that prepares you holistically is preferred by employers and clients. Here is a example of an MSF degree and its benefits. 

    • Global Master of Science in Finance (Global MS in Finance) from the Richard DeVos Graduate School of Management: The Global MS in Finance program is engineered around the most advanced financial theories, quantitative models, and industry practices. This program includes subjects such as risk management, portfolio management, corporate financial decision-making, etc., which prove to be very helpful in investment analysis. Post finishing this program participants will be eligible to participate in the US OPT – Optional Practical Training program for F-1 students upon the completion of the degree.
  2. Gain the appropriate experience

    Your entry-level position and company, helps you apply a lot of things that you would have learned in college. It is advised to look for a company where you would be given the roles and responsibilities that would help you ahead in your career. 

Remember that the skills that show on your resume are important as they set you apart from the rest. These are your strengths, and honing them with the right education and experience will benefit you for the rest of your career.

FAQs

A financial analyst’s job profile has a much wider scope as it involves analyzing financial statements and other documents for various purposes while an investment analyst only conducts analyses only for the purpose of suggesting the best investment options. Although please note that people often start with a degree that helps them gain knowledge for both fields and choose their job profile later on. A course such as the Master of Science in Finance from Richard DeVos Graduate School of Management would be one such program.

An investment analyst conducts research to advise clients or portfolio managers on investment decisions. These investments can be long-term or short-term.

The top skills for a job in finance would be analyzing financial statements, managing risks, and proper communication.

Padmavati

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