The Job Description of an Investment Research Analyst

In order to make a rational decision on how to invest money, an investor will need data. The people who gather this data are investment research analysts. Their research is often used by brokerage firms to help get orders and generate fees.  

• Investment research analysts look at financial data and trends specific to industries in order to determine if a particular company is a good investment. They examine a company’s financial statements in order to get an understanding of its financial health.
  
  


• In addition to gathering data about the potential benefits and risks of a particular investment, the analyst will be expected to explain it to the investors and present data supporting their recommendations. Naturally, this will call for above average communication skills.
  
  


• In most cases, investment research analysts work for only high-dollar clients, meaning those with a lot of money to invest, typically more than $100,000. There is little financial incentive to do investment analysis for the average individual investor.
  
  


• In many cases, research analysts will help a brokerage firm with its mergers and acquisitions business. This is often a more profitable way for an investment research analyst to spend his or her time.
  
  


• An investment research analyst should ideally be extremely knowledgeable about a particular industry or area of investment. Many research analysts come from a background in an industry and are able to read signs and subtle indications that may not be significant to an outsider. Someone with a history in the oil industry, for example, may be able to better forecast movements in the market than someone without that history.
  
  


• The job of investment research analyst may require a large amount of travel and time spent on the job beyond regular business hours.