What skills does a investment analyst need?

A investment analyst needs 20 essential skills including financial products, funding methods, quantitative analysis, data visualisation software, securities. Core competencies include .

Will AI replace investment analyst jobs?

The AI disruption score for investment analyst is 74/100 (high risk). Some tasks may be automated but the role will evolve rather than disappear entirely.

Financial ServicesBusiness and administration professionalsISCO 2413

investment analyst

Investment analysts undertake research to make informed recommendations to fund managers. They research investments globally but depending on the nature and field of their employer they can specialise in fields like retail, infrastructure, energy, banking and financial services. They focus on financial and economical information such as the political and economic developments that can impact financial markets, the financial performance of the target companies and use the interpretation of data from different sources to understand how it affects investment decision making.

European Skills Framework

Skills and knowledge areas required for this occupation based on European classification.

Essential (20)

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.quantitative analysisquantitative analysisThe technique of employing statistical and mathematical modelling and measurement to represent a specific reality through numbers.data visualisation softwaredata visualisation softwareA computer tool or application that creates a graphical and visual representation of data, allowing a better understanding and interpretation of complex data through visual elements such as maps, char...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...economicseconomicsEconomic principles and practices, financial and commodity markets, banking and the analysis of financial data.financial marketsfinancial marketsThe financial infrastructure which permits trading securities offered by companies and individuals govern by regulatory financial frameworks.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...asset managementasset managementThe process of increasing total wealth over time through investments that have potential to grow in value.stock marketstock marketThe market in which shares of publicly held companies are issued and traded.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...actuarial scienceactuarial scienceThe rules of applying mathematical and statistical techniques to determine potential or existing risks in various industries, such as finance or insurance.empirical analysisempirical analysisThe evidence-based method that is used to analyse and interpret information with the aim of drawing conclusions about a specific issue.analyse market financial trendsanalyse market financial trendsMonitor and forecast the tendencies of a financial market to move in a particular direction over time.review investment portfoliosreview investment portfoliosMeet with clients to review or update an investment portfolio and provide financial advice on investments.analyse economic trendsanalyse economic trendsAnalyse developments in national or international trade, business relations, banking, and developments in public finance and how these factors interact with one another in a given economic context.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.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...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.

Optional (21)

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...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...investment bankinginvestment bankingThe branch of banking that provides services of capital raising and mergers and acquisitions (M&A).financial statementsfinancial statementsThe set of financial records disclosing the financial position of a company at the end of a set period or of the accounting year. The financial statements consisting of five parts which are the statem...international financial reporting standardsinternational financial reporting standardsThe set of accounting standards and rules aimed at companies listed in the stock exchange which are required to publish and disclose their financial statements.financial forecastingfinancial forecastingThe tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.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.corporate social responsibilitycorporate social responsibilityThe handling or managing of business processes in a responsible and ethical manner considering the economic responsibility towards shareholders as equally important as the responsibility towards envir...Monte Carlo simulationMonte Carlo simulationA mathematical technique used to predict, estimate, and analyse a range of future possible outcomes for an uncertain event. The process is performed through a simulation to estimate a range of values.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.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...trading softwaretrading softwareThe finance and trading integrated software solutions.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.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.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.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...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.budget for financial needsbudget for financial needsObserve the status and availability of funds for the smooth running of projects or operations in order to foresee and estimate the quantity of future financial resources.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.