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Investment Analyst

What is an Investment Analyst?

This occupation provides services to investment brokers, banks, pension funds, investment banking firms, investment management and counseling firms, and also to insurance companies. The investment analyst is often referred to as a Securities Analyst or a Financial Analyst and they work in the field of investment securities. An investment analyst is hired to makes assessments of the economic performance of individual firms or whole industries and to make investment recommendations. The financial analyst will read company financial statement and analyze commodity prices, sales, costs, expenses, and tax rates in order to determine a company’s value and to project a company’s future earnings.

The financial analyst if often divided into two basic types of investment analysts. There are those that work on the “buy” side and those that work on the “sell” side. Analysts that work on the buy side generally work for companies that have a lot of money to invest.  These are typically institutional investors and they include investing in mutual funds, hedge funds, insurance companies, independent money managers, universities, hospitals, and charitable organizations. The investment analyst works to develop investment strategies for a company’s strong portfolio. On the other side, you have your analyst that works on the “sell” side.  This analyst helps securities dealers to sell their products and typically include investment banks and securities firms.

The investment analyst will typically focus on a specific industry, type of product or a region. For example, an analyst may focus on the oil industry, South America, or even options markets.  Experienced analysts are often called portfolio managers and their job is to supervise a team of analysts to help guide the company in selecting the right mix of products, industries, and regions for their investment portfolio. There are other analysts who may manage mutual fund investing and hedge fund investing and they are typically referred to as fund managers. There are also risk managers who are responsible for creating portfolio diversification for their clients through maximizing profits and hedging.

Another type of investment analyst is a personal financial advisor. They are responsible for recommending financial investment options to individuals. They assist individual investors with determining and reaching their short term and long term investing goals. They may assist with retirement investment choices, college funding for children, and estate planning. Their job is to develop a comprehensive financial plan that identifies problem areas, provide recommendations for improvement, and to select investment options that are compatible with the client’s needs and their expectation for a return on investment.

The investment analyst is consistently delegated additional responsibilities and typically advances. They are typically able to remember details and have an intense motivation for seeking out obscure information. They have the ability to gain national recognition by becoming a specialist in one industry if they are really good, and some become so familiar with an industry that they are offered management positions within the company. The success of the investment analyst is measured by the ability to evaluate stock market trends accurately, and the better they are, the more unbelievable opportunities will arise.


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