The strategy to become an Investment Analyst

by Sneha Rathod | Feb 24, 2023
how to become an investment analyst

Investment analysts in India have become increasingly sought after as the country’s economy grows and develops. Companies, investors, and other financial institutions rely on these professionals to help them make sound investments and determine which strategies will yield the best returns. To become an investment analyst, individuals must possess analytical and research skills, an understanding of finance and economics, and market knowledge. 

Education Requirements

The minimum educational requirement for becoming an investment analyst in India is typically a bachelor’s degree in finance or economics. However, many employers prefer candidates who have earned a master’s degree or higher with a focus on either finance or economics and a chartered financial analyst (CFA) certificate. The CFA certificate requires three levels of examination that test proficiency in accounting, financial analysis, quantitative methods, economics, corporate finance, ethics security investments, and portfolio management. 

Relevant Skills & Experience 

In addition to having the necessary educational qualifications for the job, potential investment analysts should possess other relevant skills and experience. These include

  • strong analytical skills for researching securities markets and analyzing data;

excellent communication abilities for conveying results to clients; 

  • familiarity with software programs used by financial analysts; 
  • the ability to interpret financial statements; 
  • problem-solving capabilities; and
  • knowledge of stocks, bonds, and mutual funds.

 Additionally, individuals should be comfortable working independently while still assisting when needed. 

Job Outlook & Career Options 

Investment analysts can find employment opportunities at banks or brokerage houses, where they review securities market trends and develop plans regarding asset allocation strategies for companies or individual investors. They may also work in independent advisory firms offering portfolio management services or with private equity firms that invest funds on behalf of clients into specific projects or businesses with high returns promised over time. According to the U.S. Bureau of Labor Statistics (BLS), employment opportunities for personal financial advisers—which includes investment analysts—are expected to grow by 7% from 2019-2029 due to increased demand from younger generations seeking retirement planning advice from experts like them.  

Strategy to become an Investment Analyst

  • Understand Your Role:
    As an investment analyst, you’ll need a good understanding of the markets, financial instruments, and strategies used in trading and investing. To become an investment analyst, familiarize yourself with terms like stocks, bonds, mutual funds, and derivatives.
  • Build a Solid Foundation of Knowledge:
    To become an investment analyst, you should have a sound grounding in finance and economics. Pursuing courses in accounting, business law, statistics, or mathematics can be handy. Financial certifications, such as the Chartered Financial Analyst (CFA) designation, may be required by some employers as well.
  • Develop Analytical Skills
    : Investment analysts rely on their analytical skills to analyze investments and assess the risks associated so they can then recommend specific investments for their clients. You should be able to analyze data from published sources, such as company financial statements and economic reports, quickly and accurately.
  • Stay Up to Date:
    Developing strong research skills is also very important for investment analysts. They constantly monitor news events that could impact the market or specific investments they recommend to their clients. Being able to interpret news releases accurately is critical so that you don’t make wrong calls based on data analysis or misinterpretation of the information provided in these sources.
  • Network Within Your Industry:
    Keeping up with industry trends is essential to stay ahead of the competition. Networking within your industry allows you access to valuable resources such as industry publications, conferences, training seminars, and more which can help keep you informed about investment markets and best practices employed by leading firms in the sector.

Overall, becoming an investment analyst requires more than just academic qualifications. A range of skills, including analytical abilities and knowledge about stocks and bonds, are essential for success in this field. Those looking to build their credentials further should consider pursuing the CFA certification upon completing the associated requirements. It could give them a competitive edge over other applicants vying for positions within the industry.

5 1 vote
Article Rating
Notify of

Inline Feedbacks
View all comments
Moti Joseph
M.A, M.Phil
Mr. Moti Joseph, the pioneer of HigherEd For All, is adroit in Language, Literature, Interpersonal & Communication Skills, Educational Technology, and Career Counselling. In addition to his M.Phil in English, Certified Education Counselor, and Psychometric Professional certification, he is committed to enriching career motivation and professional success among aspirants through HigherEd for All.
Dr.Nibedita Paul
M.A, Ph.D
Dr.Nibedita Paul, a Ph.D. holder from the Central University of Gujarat, has 5 years of teaching experience and is currently the Assistant Professor of English at Techno India University in Kolkata. Her teaching span covers Literature, Language, Communications, and Career Advancement Skills. As an academician, she is an exceedingly enlightening personality who will guide our aspirants on the right track of motivation and knowledge.
Krishna P V
Krishna P V, with her keen interest in English Literature and Teaching, is an MA graduate from Bangalore University and has qualified for UGC NET in English Literature. She is currently working as a faculty at multiple Online Platforms. Her experience of 3 years spans coaching students in offline and online mediums of instruction in Literary, Critical, and Language Acquisition Programmes. She has taken up the role of a counselor at HigherEd For All, aiming to change the traditional perceptions of making educational and career decisions.
Dr.V.L Jaya Paul
M.A, M.Phil, Ph.D
Dr.V. L. Jaya Paul is an enthusiastic Professor, exuberant Researcher, and an impetus trainer of English Language and Soft Skills. With an experience of over 20-plus years of teaching, he specializes in training ESL learners through Psycho-physio therapeutic training strategies. He is a muse to research scholars and a proficient Student-Centric Motivational Speaker. He has helped thousands of students achieve their career goals through structured educational guidance.
Ajin Thomas
M.A, B.Ed

Mr. Ajin Thomas, with 4+ years experience in teaching, is a B.Ed holder with a postgraduate degree in English and Comparative Literature and a PG Diploma in Journalism and Mass Communication. Having qualified for competitive exams, Mr. Ajin Thomas imparts qualitative supervision to the learners at HigherEd For All.

Would love your thoughts, please comment.x