It may sound tautological, but investment analysts perform financial analysis for their employers and clients. After examining the potential yield of a given investment, the analyst typically issues a recommendation to the requesting individual or firm. In most cases, the firm or individual will base its investment decision on the conclusions the analyst reached.
How Do You Become an Investment Analyst?
For starters, you need to obtain a bachelor’s degree. A degree in finance is the obvious choice, but there are plenty of others that will serve you just as well. Economics, business management, mathematics or any other quantitative major should more than provide you with adequate preparation for the financial sector. Regardless of which degree you choose, it would be wise to take courses in corporate finance, microeconomics, macroeconomics, econometrics, financial accounting, statistics, federal income taxation of individuals and business taxation. In case that list of recommended classes did not tip you off, a fondness for numbers is an absolute must-have if you intend to become an investment analyst.
Where Can You Work As an Investment Analyst?
The beauty of choosing a career as an investment analyst is that you can find work in virtually every industry. Employers in the private, public and nonprofit sectors are all eager to hire bright, enthusiastic college graduates who are interested in analyzing the ebbs and flows that occur in financial markets. Many of the largest employers in the professional services and financial services sector, such as investment banks, hedge funds, commercial banks and the Big 4 accounting firms, routinely appear on lists of best places to work, best places to start a career and college students’ dream employers, according to Bureau of Labor Statistics.
How Can You Get a Job as an Investment Analyst?
Competition for positions with the above-listed employers is no cakewalk, though. Many of them receive hundreds of applications for each position they have available, so it is important to make yourself stand out. A stellar GPA of 3.5 or above, is needed, as the most sought-after employers often have minimum GPA requirements of 3.4 or 3.5 just to be considered for a job. If you are a novice interviewer, drop by your school’s career services office and ask for some tips. See if you can schedule a few mock interviews to hone your personal sales pitch, identify your weaknesses and become comfortable (at least relatively speaking) in what can often be an uncomfortable situation.
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Conclusion
Financial markets are fascinating environments without hard-and-fast rules, and in which an individual or firm’s fortunes can change in the blink of an eye. If you have an analytical mind, want to be eminently employable and enjoy attempting to solve the many puzzles of the marketplace, a career as an investment analyst is well within your grasp.