An investment analyst evaluates economic-, market- and asset-level information to provide high-level analysis and investment recommendations. Companies, fund managers and investors rely on this information to maximize their portfolios’ potential.
On a basic level, investment analysts (also called securities, equity or financial analysts) gather and analyze information to make buy, sell and hold recommendations.
Though fund managers usually make the final decisions, analysts’ research and recommendations are essential for:
The end goal is to maximize profitable opportunities and ensure their employers’ or clients’ portfolios are well-managed.
Investment analysts perform several tasks in the pursuit of making well-informed recommendations on assets like stocks, bonds, currencies and commodities.
The process starts with researching the current economic and market environment, as well as the individual asset. Analysts may examine market trends, companies’ financial information, recent price developments and other analysts’ recommendations. Macro developments like political changes or natural disasters may also play a role.
Analysts may also meet with industry, company and/or asset experts (like fund managers) for an alternative view.
From there, analysts compile their findings in financial reports and provide investment advice and recommendations.
Before an investment analyst can dive into the job, they have to begin to build their own knowledge with a bachelor’s degree. Typically, their education focuses on finance-related degrees like math, business, economics or accounting. Some go even further with their MBA (masters’ in business administration).
From there, investment analysts often acquire their CFA (Chartered Financial Analyst) certification. The process involves passing a series of difficult exams and proving they can practice their craft effectively.
Most investment analysts work at larger firms like:
Exact duties often differ by employer. For instance, investment management firms rely on analysts to provide research and recommend or support internal investment decisions. Meanwhile, brokerages may hire analysts to advise portfolio managers and clients.
Buy-side investment analysts typically work for companies with lots of capital to throw around. (Think mutual funds, hedge funds and financial advisory firms.) Here, they help identify, research and recommend new investment opportunities to buy.
Sell-side investment analysts often work for larger investment banks. Their jobs entail spotting investment risks and reporting on specific companies or assets like bonds or commodities. They may also perform company-specific research to help investment banks identify potentially profitable firms to take public.
If you’re invested in ETFs or mutual funds, or with many brokerages or investment firms, you may rely on an investment advisor and not even know it.
And at Q.ai, we augment the process with something more powerful than a human analyst: the power of artificial intelligence.
Our AI constantly analyzes market, economic and even Google search trends to select the best investments. Once you’re in, we keep up the hard work with regular rebalancing to keep you on track to achieve risk-adjusted returns.
The end result: an investment platform that puts the odds back in your favor – all without charging you a penny.
Q.ai is the trade name of Quantalytics Holdings, LLC. Q.ai, LLC is a wholly-owned subsidiary of Quantalytics Holdings, LLC ("Quantalytics"). Quantalytics offers automated financial advice tools through Quantalytics Investment Advisors, LLC ("QAI"), an SEC-registered investment advisor. QIA’s investment advisory services are ONLY available only to residents of the United States. Disclosures concerning QIA’s investment advisory services are available on its Form ADV filed with the SEC. The content in this newsletter is for informational purposes only and does not constitute a comprehensive description of Q.ai's investment advisory services.