With the development of financial markets, investment analyst has become a popular career choice for many new graduates. However, entry level jobs in investment research area are very competitive. This article will provide a comprehensive guide on how to get started as an investment analyst. We’ll explain what investment analysts do day to day, what skills are required, and how to land your first job in investment research field after college. Both educational background and practical experience are important for breaking into entry level investment analyst roles. Majors like finance, accounting, economics and STEM degrees are preferred. Obtaining financial modeling, valuation skills and CFA certification in school will give you a head start. But understanding industry trends, company analysis via internships are equally critical. When applying, highlight your passion, focus on learning, and ability to work under pressure. With the right education, experience and interview prep, you can successfully embark on an investment analyst career right after graduation.
Daily responsibilities of an entry level investment analyst
As an entry level investment analyst, your primary duties involve supporting senior analysts and portfolio managers in investment research process. Typical daily tasks include:
– Financial modeling and valuation – Building detailed financial models and performing valuation analysis like DCF, comps based on senior analysts’ instructions to forecast companies’ future performance.
– Industry and company research – Research industry trends, competitive landscape, analyze financial statements to understand business performance deeply.
– Investment memos and reports – Summarize analysis and investment theses in written format for decision making.
– Presentations – Prepare presentations to communicate your investment recommendations.
– Client communications – Interact with clients like asset managers and hedge funds to provide market updates and investment ideas under supervision.
Key skills and qualifications for entry level investment analyst roles
As an investment analyst, both technical and soft skills are crucial for success. Here are some key skills and qualifications investment banks look for when hiring for junior investment analyst roles:
– Strong financial modeling and valuation skills – You need to be highly proficient in Excel, building DCF, comps and other models. Taking online courses to learn these skills is highly recommended.
– Accounting and finance knowledge – Solid grasp of accounting and corporate finance concepts is a must. Coursework in these areas is preferred.
– Communication and interpersonal skills – You’ll interact with colleagues and clients daily, so ability to communicate analysis and articulate your ideas is very important.
– Attention to detail – Investment analysis requires meticulous attention to detail given the amount of data you will work with.
– Passion for markets – Genuine interest in financial markets and investing is a prerequisite. Curiosity to constantly learn more about industries and companies is a big plus.
– Highly motivated and ability to work under pressure – You will frequently work under tight deadlines so being self-driven and performing under pressure is critical.
Education and experience requirements for investment analyst entry level
While specific requirements may vary a bit by firms, here are the typical education and experience credentials needed to get started as an investment analyst straight out of college:
– Education: Bachelor’s degree with strong academic performance, preferably in finance, accounting, economics or STEM fields. Business majors are also OK but finance experience is a plus.
– Coursework: Finance, accounting, financial modeling, business statistics courses are highly valued. Classes that involve analyzing financial data, modeling, valuations are a huge plus.
– Work experience: 1-2 internships especially in investment management, research or banking roles. This demonstrates passion and some hands on experience.
– Certifications: Obtaining the CFA Level 1 certification shows commitment to investment management career. But not required at entry level.
– Technical skills: Advanced Excel modeling, financial databases, programming like Python or R are preferred but not required for junior roles.
– GPA: 3.5+ GPA from a reputable university is highly preferred. Anything above 3.0 is OK but may be more competitive.
How to get your first investment analyst entry level job
Competition is fierce for entry level investment analyst roles at top financial firms. Here are some tips to stand out and maximize your chances:
– Start networking early – Attend on campus events, info sessions to connect with firms. Follow analysts on LinkedIn and social media to learn more about the job.
– Target boutiques and smaller firms – Applying to established firms like Morgan Stanley is more competitive. Smaller, lesser known investment managers and equity research firms may be easier to get your foot in the door.
– Highlight your passion and enthusiasm – Since you lack experience, emphasize your genuine interest in markets and investing. Show you are eager to learn on the job.
– Prepare thoroughly for interviews – Common questions involve investment philosophy, stock analysis, modeling, current industry trends. Practice finance and accounting questions as well as behavioral ones about your work style.
– Pursue extra credentials – Obtaining additional certifications like the CFA, financial modeling courses enhance your resume.
– Apply to fellowship and development programs – Many banks have selective programs for high potential graduates interested to start in analyst roles. These can be a great way to enter the field out of college.
With the right combination of education, internship experience, strong technical and interpersonal skills, you can break into investment analyst entry level jobs directly after undergrad. Be sure to network extensively, highlight your passion, and thoroughly prepare for interviews. Consider boutique firms and development programs which may be less competitive than mega banks. With perseverance and hard work, you can attain your goal of becoming an investment analyst early in your career.