Financial ServicesISCO 2412
Investment adviser
An investment adviser is a person who advises clients on investing: recommending solutions matched to their situation and financial goals.
Check yourself in a minute: investment adviser
Rate 5 of the 23 essential skills of this occupation (European ESCO data). No account needed.
explain financial jargon
analyse market financial trends
assess risks of clients' assets
review investment portfolios
advise on investment
About investment adviser
The work starts with gathering information about the client. The adviser collects a client's financial information: income, liabilities, savings, time horizon and how much loss the client can bear. The adviser assesses the risk to the client's assets. The information gathered at this stage shapes the choice of products later on.
The adviser knows securities, financial products and the financial markets: shares, bonds, mutual funds and exchange traded funds, along with banking products. Information about each financial product is given to the client transparently: what it costs, who earns the commission, what risk the client carries and what cannot be predicted.
The clients served are private individuals, families, households and owners of small businesses. The adviser explains the terms of contracts to them and helps them decide how, and for how long, to invest their money. The client makes the final decision on each investment, after hearing the adviser's recommendation.
Key Work Functions
Core areas of responsibility for a investment adviser.
1
Client Needs Assessment and Goal Planning
- Meet with clients to understand their financial goals, investment objectives, and life circumstances
- Assess clients' risk tolerance, investment timeline, and financial capacity to guide appropriate investment recommendations
- Obtain comprehensive financial information from clients including income, expenses, assets, liabilities, and existing investments
- Develop personalized investment plans aligned with client goals, time horizons, and financial circumstances
2
Financial Analysis and Market Research
- Analyze financial markets, economic trends, and investment opportunities to identify suitable options for clients
- Research and evaluate financial products including stocks, bonds, mutual funds, and exchange-traded funds
- Monitor stock market performance and economic indicators to assess how market changes affect client portfolios
- Synthesize financial information from multiple sources to provide comprehensive market analysis to clients
3
Investment Recommendation and Portfolio Management
- Recommend suitable investment solutions including allocation across stocks, bonds, mutual funds, and other securities
- Apply modern portfolio theory and asset management principles to optimize risk-adjusted returns for clients
- Review client investment portfolios regularly and rebalance allocations as needed to maintain alignment with investment objectives
- Assess risks associated with potential investments and communicate risk implications clearly to clients
4
Client Communication and Financial Education
- Explain financial products, investment concepts, and market conditions in clear, accessible language to diverse clients
- Provide financial product information and advise clients on banking activities and funding methods for investments
- Interpret financial statements and investment performance reports for clients to help them understand investment returns
- Advise clients on financial matters including pension planning, retirement strategies, and wealth management approaches
5
Documentation and Compliance
- Maintain detailed records of client interactions, recommendations, investment decisions, and portfolio transactions
- Ensure compliance with financial regulations, securities laws, and industry standards in all client interactions and recommendations
- Provide support in financial calculations, projections, and analytical work to demonstrate investment scenarios to clients
European Skills Framework
Skills and knowledge areas required for this occupation based on European classification.
Essential (23)
financial productsfinancial productsThe different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.funding methodsfunding methodsThe financial possibilities for funding projects such as the traditional ones, namely loans, venture capital, public or private grants up to alternative methods such as crowdfunding.banking activitiesbanking activitiesThe broad and continuously growing banking activities and financial products managed by banks ranging from personal banking, corporate banking, investment banking, private banking, up to insurance, fo...securitiessecuritiesThe financial instruments traded in financial markets representing both the right of property over the owner and at the same time, the obligation of payment over the issuer. The aim of securities whic...financial marketsfinancial marketsThe financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.asset managementasset managementThe process of increasing total wealth over time through investments that have potential to grow in value.explain financial jargonexplain financial jargonExplain all details of financial products in plain words to clients, including financial terms and all costs.analyse market financial trendsanalyse market financial trendsMonitor and forecast the tendencies of a financial market to move in a particular direction over time.assess risks of clients' assetsassess risks of clients' assetsIdentify, evaluate and determine the actual and potential risks of your clients’ assets, considering confidentiality standards.review investment portfoliosreview investment portfoliosMeet with clients to review or update an investment portfolio and provide financial advice on investments.advise on investmentadvise on investmentAssess the customer's economic goals and advise on the possible financial investments or capital investments to promote wealth creation or safeguarding.synthesise financial informationsynthesise financial informationCollect, revise and put together financial information coming from different sources or departments in order to create a document with unified financial accounts or plans.provide support in financial calculationprovide support in financial calculationProvide colleagues, clients or other parties with financial support for complex files or calculations.obtain financial informationobtain financial informationGather information on securities, market conditions, governmental regulations and the financial situation, goals and needs of clients or companies.advise on financial mattersadvise on financial mattersConsult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.monitor stock marketmonitor stock marketObserve and analyse the stock market and its trends on a daily basis to gather up-to-date information in order to develop investment strategies.provide financial product informationprovide financial product informationGive the customer or client information about financial products, the financial market, insurances, loans or other types of financial data.assess financial viabilityassess financial viabilityRevise and analyse financial information and requirements of projects such as their budget appraisal, expected turnover, and risk assessment for determining the benefits and costs of the project. Asse...analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.monitor bond marketmonitor bond marketObserve and analyse the bond or debt market and its trends on a daily basis to gather up-to-date information in order to develop investment strategies.modern portfolio theorymodern portfolio theoryThe theory of finance that attempts to either maximise the profit of an investment equivalent to the risk taken or to reduce the risk for the expected profit of an investment by judiciously choosing t...interpret financial statementsinterpret financial statementsRead, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this informa...stock marketstock marketThe market in which shares of publicly held companies are issued and traded.
Optional (24) — show
sustainable financesustainable financeThe process of integrating environmental, social and governance (ESG) considerations when making business or investment decisions, leading to increased longer-term investments into sustainable economi...green bondsgreen bondsThe financial instruments traded in financial markets that aim at raising capitals for projects with specific environmental benefits.social bondssocial bondsA set of financial instruments that aim at raising capital for projects with positive social outcomes and that provide return on the investment upon the achievement of specific social policy goals. So...fundamental analysisfundamental analysisThe techniques for measuring the intrinsic value of a financial security through the assessment its economic and financial factors. It combines together the analysis of macroeconomic trends and of fin...principles of insuranceprinciples of insuranceThe understanding of the principles of insurance, including third party liability, stock and facilities.credit control processescredit control processesThe various techniques and procedures applied to ensure that credit is given to the suitable customers and that they pay on time.types of insurancetypes of insuranceThe various types of risk or loss transfer policies that exist and their characteristics, such as health insurance, car insurance or life insurance.apply credit risk policyapply credit risk policyImplement company policies and procedures in the credit risk management process. Permanently keep company's credit risk at a manageable level and take measures to avoid credit failure.perform stock valuationperform stock valuationAnalyse, calculate and appraise the value of the stock of a company. Use mathematic and logarithm in order to determine the value in consideration of different variables.develop investment portfoliodevelop investment portfolioCreate an investment portfolio for a customer that includes an insurance policy or multiple policies to cover specific risks, such as financial risks, assistance, reinsurance, industrial risks or natu...create a financial plancreate a financial planDevelop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.analyse business plansanalyse business plansAnalyse the formal statements from businesses which outline their business goals and the strategies they set in place to meet them, in order to assess the feasibility of the plan and verify the busine...identify customer's needsidentify customer's needsUse appropriate questions and active listening in order to identify customer expectations, desires and requirements according to product and services.examine credit ratingsexamine credit ratingsInvestigate and look for information on the creditworthiness of companies and corporations, provided by credit rating agencies in order to determine the likelihood of default by the debtor.prospect new customersprospect new customersInitiate activities in order to attract new and interesting customers. Ask for recommendations and references, find places where potential customers can be located.analyse financial performance of a companyanalyse financial performance of a companyAnalyse the performance of the company in financial matters in order to identify improvement actions that could increase profit, based on accounts, records, financial statements and external informati...promote financial productspromote financial productsInform existing or potential customers about the various financial goods and services that are offered by the company.manage contractsmanage contractsNegotiate the terms, conditions, costs and other specifications of a contract while making sure they comply with legal requirements and are legally enforceable. Oversee the execution of the contract, ...perform clerical dutiesperform clerical dutiesPerform administrative tasks such as filing, typing up reports and maintaining mail correspondence.ensure proper document managementensure proper document managementGuarantee that the tracking and recording standards and rules for document management are followed, such as ensuring that changes are identified, that documents remain readable and that obsoleted docu...consult credit scoreconsult credit scoreAnalyse the credit files of an individual, such as credit reports which outlines a person's credit history, in order to assess their creditworthiness and all the risks that would be involved in granti...build business relationshipsbuild business relationshipsEstablish a positive, long-term relationship between organisations and interested third parties such as suppliers, distributors, shareholders and other stakeholders in order to inform them of the orga...impact investingimpact investingInvestment strategy aimed at investing in organisations or initiatives with a social or environmental outlook, which in turn generates financial gains but also a positive impact in society.business valuation techniquesbusiness valuation techniquesThe processes to valuate the worth of the assets of the company and the value of the business following techniques such as asset-based approach, business comparison, and past earnings.
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Frequently asked questions
What does an investment adviser do?
Investment advisers are professionals who offer transparent advice by recommending suitable solutions on financial matters to their clients. They advise on investing pension or free funds in securities such as stocks, bonds, mutual funds and exchange-traded funds to customers. Investment advisers serve individuals, households, families and owners of small companies.
What skills does an investment adviser need?
An investment adviser needs 23 essential skills, including financial products, funding methods, banking activities, securities, financial markets.
Will AI replace investment adviser jobs?
The AI disruption score for investment adviser is 83/100 (very high risk). Skills most exposed to automation: perform clerical duties, synthesise financial information, interpret financial statements. Most resilient: build business relationships, impact investing, types of insurance.
AI Replacement Risk
83/ 100
Very High Risk
Low riskHigh risk
Skills most at risk from AI
Skills resilient to automation
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