With the development of financial industry, the career of investment analyst has attracted more and more attention. As an entry level job in the investment industry, investment analyst serves an important role in supporting investment research and decision making. This article will introduce what is investment analyst, what are the career path and daily work as a junior investment analyst, what skills are required, and how to land an entry level investment analyst job.
Career paths for entry level investment analysts
For fresh graduates who want to step into investment industry, investment analyst is one of the most common entry level positions. Large investment banks and asset management firms usually have structured training programs for junior investment analysts. The main career roadmap includes:
– Research Associate: Entry level position for undergraduate and master graduates with 0-2 years of experience. Main responsibilities are supporting senior analysts with models, data analysis and report drafting.
– Investment Analyst: Promotion opportunity for research associates with 2-4 years of experience. Will be responsible for independent research and analysis for certain sectors and industries.
– Senior Investment Analyst: 4-6 years of experience needed. Leads the research team and publishes research reports. Interacts frequently with portfolio managers and clients.
– Principal/Head of Research: 8+ years of experience. Oversees the research team and provides key insights to guide investment strategy and decision making.
Day-to-day work as an entry level investment analyst
The daily work of a junior investment analyst mainly consists of:
– Financial modeling – Build valuation models for companies based on financial statements, make projections and assumptions. Core skills like analyzing income statement, balance sheet and cash flow are heavily used.
– Industry research – Research the trends, growth drivers, competitors and risks of the industries covered. Make use of information from company filings, third party data sources and expert views.
– Company research – Study the business model, financials, management, competitors of the companies covered. Conduct channel checks and expert calls to obtain first-hand insights.
– Report drafting – Summarize research findings and analysis into well-structured research reports for clients. Communicate investment theses and recommendations clearly.
– Client communications – Prepare research materials to present to portfolio managers and clients. Address ad-hoc information requests.
Skills required for investment analyst entry level jobs
The key skills required for fresh graduates to land investment analyst roles include:
– Strong financial modeling capabilities – Must be highly proficient in analyzing financial statements, building integrated valuation models, conducting sensitivity analysis etc.
– Solid writing skills – Ability to distill complex analysis into clear, concise reports and presentations. Articulate complex ideas simply.
– Communication and interpersonal skills – Frequently interact with clients, team members and company managements. Need to be responsive, professional and articulate.
– Attention to details – All analysis must be thorough and accurate. Careless mistakes can ruin credibility.
– Passion for investing – Genuine interest in financial markets and analysis. Curiosity to keep learning. Information absorbed faster when intrinsically motivated.
How to land an entry level investment analyst job
For fresh graduates looking to break into investment analysis, the key steps are:
– Get relevant internship experience – Complete 1-2 investment related internships in research teams of banks or funds. Hands-on experience is valued.
– Build technical skills – Develop modeling, financial analysis and presentation skills. Investment banks provide good modeling courses.
– Craft your story – Understand why you are interested in investments, and your long term goals. Articulate your story clearly.
– Network extensively – Connect with professionals on LinkedIn. Attend career fairs, info sessions, coffee chats. Apply through referrals.
– Prepare thoroughly for interviews – Understand the business, technical and fit aspects. Practice modeling tests and stock pitches. Show passion and interest.
In summary, investment analyst is a great entry level position for fresh graduates to gain in-depth exposure into investments. With strong financial, interpersonal and communication skills, as well as networking and interview preparation, landing the first investment analyst job is very much achievable.