If you’ve always dreamed of working on Wall Street, taking the steps to become an investment analyst could make this vision a reality. Investment analysts keep their fingers on the pulse of the stock market to provide key advice to fund managers on buying and selling investments. It’s their duty to analyze current market trends and economic activities to recommend the most profitable trading decisions. Investment analysts evaluate the performance of stocks, bonds, pensions, mutual funds, hedge funds, and other securities. As more of these financial products enter the market, there’s expected to be a rising demand for qualified investment analysts. In fact, the Bureau of Labor Statistics reports above-average employment growth by 16 percent through 2022. Below is a step-by-step guide to help you become an investment analyst.
Earn a Bachelor’s Degree
Before you can get your foot in the investing door, you’ll need to obtain at least a four-year baccalaureate degree from an accredited higher learning institution. Attending business school to receive a bachelor’s in finance is the common route. Some investment analysts also earn undergraduate majors in accounting, economics, business, math, or statistics. Make certain you’re building knowledge in the quantitative analysis practices used to assess different investment vehicles. Taking elective courses in risk management, stock valuation, options pricing, taxation, and securities trading will help.
Gain Investing Experience
Next, you must bridge the gap between classroom education and the actual workplace by gaining plenty of investing experience. While earning your degree, it’s wise to complete at least one supervised internship or co-operative in investment analysis. Upon graduation, start looking for entry-level positions open for financial analysts. Although you likely won’t land your dream investing job immediately, adding financial services experience to your resume is invaluable. Most employers will also sponsor your licensing with the Financial Industry Regulatory Authority (FINRA).
Pursue an MBA or MSF Degree
Although enrolling in graduate school isn’t necessarily required, investment analysts usually need a master’s degree to advance. Senior investment analysts are often trained with a Master of Business Administration (MBA) in Finance or Master of Science in Finance (MSF). Finding an accredited business school with a concentration or specialty track in Investment Management would be ideal. Employers will look for high-end advanced degrees, so choosing a program with Association to Advance Collegiate Schools of Business (AACSB) accreditation is advised. This step could help you advance into portfolio or fund manager jobs too.
Become Professionally Certified
Professional certification also plays a big role in advancement. Through the CFA Institute, you can receive the most prized credential for investment analysts – Chartered Financial Analyst, according to the Chartered Financial Analyst Institute. Becoming a CFA shows managers that you possess the latest knowledge in investment theory and analytical skills necessary to analyze securities. Candidates must have at least a bachelor’s degree and four years of relevant work experience. Reaching CFA status isn’t easy though because there are three rigorous certification exams you must study for and pass.
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Overall, investment analysts have an intense job researching emerging industry developments and building valuation models to correctly predict the performance of certain securities. Investors and fund managers depend on investment analysts to suggest the best strategies for moving money around the market and reaping great returns. Investment analysts bring home an average yearly salary of $92,250. If you become an investment analyst, you can use your passion for numbers and the stock market to develop a lucrative financial career.