With the growth of the investment industry, entry level investment research analyst roles are increasingly in demand. However, landing your first investment research job can be competitive. This article will provide insights into entry level investment research analyst jobs, including required skills, day-to-day responsibilities, career development, and tips for getting hired.
Investment research skills required for entry level roles
To be considered for entry level investment research analyst roles, certain skills are required or preferred. Solid financial modeling skills are a must, as you will build models to analyze companies and make recommendations. Strong accounting knowledge is also key to understand financial statements. Additionally, strong analytical, problem-solving, and attention to detail are crucial skills. Excel proficiency is very important, as you will work extensively with spreadsheets and data. Writing skills are also essential, as you will draft reports to convey your research insights. Other useful skills include valuation techniques like DCF modeling, the ability to synthesize complex information, and the ability to develop investment theses and recommendations.
Day-to-day responsibilities of an entry level investment research analyst
As an entry level investment research analyst, your daily work will involve supporting senior analysts and portfolio managers with various tasks. You will likely build and update financial models for companies being covered. This involves gathering financial data, projecting future performance, running valuation analyses, and identifying upside potential or risks. You may also generate investment ideas by researching companies and industries. Supporting senior analysts in drafting research reports is another key duty, ensuring reports are clear, accurate and compelling. Entry level analysts also prepare slide decks and presentations to communicate research conclusions. Maintaining knowledge of industries, companies and macroeconomic conditions is critical as well. Other responsibilities may include conducting peer analysis, analyzing market trends, and attending company meetings.
Career development for entry level investment research analysts
For ambitious analysts, there is tremendous career development potential. With 1-3 years of experience, you can expect to take on more responsibilities and ownership of research processes. After 3-5 years, promotion to a senior analyst role is common, being viewed as an expert on a sector or industry. At this stage, you will take the lead generating investment ideas, authoring reports and guiding more junior team members. Later on, there is the possibility of becoming a portfolio manager, leveraging your research expertise to directly invest capital and manage funds. Strong performers may also move into buyside roles at asset management firms or hedge funds. Overall, the learning potential and career advancement in investment research make it an attractive field for entry level candidates.
Tips for landing your first investment research analyst role
To stand out for entry level investment research roles, there are some key tips. Gaining relevant internship experience in equity research, investment banking or asset management is very helpful. Obtaining the CFA charter shows commitment to investment analysis. Networking with professionals from target firms, such as at industry events or through alumni connections, can provide an edge. Given the focus on financial modeling, taking modeling courses and practicing building models is wise. Finally, conveying genuine interest and passion for capital markets and investment research during interviews is critical.
Entry level investment research analyst roles allow you to gain valuable experience in analyzing companies, industries and markets. By honing financial modeling, valuation and writing skills, investment research offers a strong foundation for long-term career progression in the investment industry.