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Financial markets can move fast and be unpredictable. For people working in this field, investment analysis can be the difference between informed, strategic decisions and unnecessary risks based on speculation. Here’s what professionals in this field must know and do.��

An investment analyst is a professional who specializes in evaluating financial and investment information to support decisions about buying, selling or holding securities. (Securities are assets like stocks and bonds that hold monetary value.) The role typically involves collecting and interpreting complex datasets (e.g., financial statements or market developments) and evaluating macroeconomic factors (e.g., inflation, interest rates and laws and policies).

This role typically falls into three main categories: sell-side, buy-side and independent analysis. Sell-side entails working for investment banks and brokerage firms and conducting in-depth primary research on companies. This includes issuing reports with financial estimates, price targets, and buy, sell or hold recommendations.

Specialists in the buy-side category work for hedge funds, pension funds and mutual fund managers. They use internal and external research to evaluate a larger range of companies. They also produce shorter, more targeted reports specifically for their fund managers.

Independent investment analysts might serve companies that receive little attention from traditional Wall Street firms, including smaller or emerging businesses. Some serve institutional clients on a fee basis. Others provide research to both institutions and individual investors through subscriptions or free reports.

This role’s day-to-day duties involve a mix of research, number crunching and presentation of findings in a way that others can act on. Specifically, professionals in this role may:

• Advise clients on capitalization strategies, including optimal amounts, funding sources and timing
• Analyze the financial and operational health of companies and recommend corrective actions
• Assess potential investment opportunities by reviewing company operations, facilities and overall performance
• Collaborate with attorneys, accountants, public relations experts and investment bankers to support client initiatives and attract new business
• Conduct financial evaluations for sustainable investment projects, such as green construction or retrofitting efforts
• Assist clients with debt management strategies, including restructuring, refinancing and securing new financing
• Prepare detailed presentations and reports to communicate financial plans, investment recommendations and strategic advice to clients

Earning a professional certification can deepen your understanding and skill development within a given topic and, as a result, strengthen your professional credibility. Certification demonstrates a commitment to ongoing education and development in your field.

Individuals who wish to sell securities and other financial products must be licensed by the (FINRA). FINRA exams might be bundled into training programs for new hires at investment firms. Some companies require them.

This role requires a combination of financial knowledge, analysis, decision-making and technical know-how, including:

• Financial literacy: Candidates should be well versed in financial literacy and be able to make informed financial decisions.
• Analysis: This includes the ability to identify early-stage trends and determine if they’re lucrative investment opportunities.
• Communication and presentation: This role requires the ability to provide clear advice to clients and convey recommendations through presentations.
• Technical skills: Candidates should have proficiency in accounting, analytical, database, information retrieval and word processing software.
• Decision-making: This includes the ability to make sound decisions under pressure and provide quick, updated recommendations when the market shifts unexpectedly.
• Math: The ability to leverage mathematical models is a must-have skill for evaluating financial conditions.
• Keen attention to detail: When making judgments about potential investment opportunities, the smallest details matter.��

Joining a finance organization can help candidates stay abreast of industry trends. It may also offer better access to career support and professional growth.

The offers opportunities to learn and network with like-minded professionals. That includes the opportunity to find a local CFA Society, volunteer and attend events. Each year, the CFA Institute holds a conference where attendees can engage with leaders in the finance industry.

Similarly, the (GARP) provides members with priority chapter meetings, volunteer opportunities and networking events focused on industry trends and challenges.

Additionally, the offers premier conferences and events that address contemporary investment and wealth management issues. Members can take advantage of educational webinars, certificate programs and access to relevant publications and other resources, including a podcast.