Investment analyst

Investment analysts conduct in-depth market research to support investment decisions made by fund managers, traders and clients

You'll interpret financial data, as well as economic indicators, market trends and geopolitical developments, to forecast performance and provide investment recommendations. The insights you provide help ensure investment portfolios are well managed and that potential investment opportunities and areas of risk are identified.

Your research will typically span global markets and may focus on a specific sector, such as technology or healthcare, or a particular geographic region.

You can work for a range of organisations, including investment management firms, stockbrokers, asset managers and investment banks, supporting both institutional and private investors.

The role combines strong analytical skills with commercial awareness and an in-depth understanding of financial markets.

Responsibilities

Activities vary depending on the type of employer you work for. However, as an investment analyst, you'll typically need to:

• carry out financial, legal and commercial due diligence on companies, sectors and markets
• analyse financial statements, company results and other business information to assess performance and evaluate potential investment opportunities
• monitor and analyse market trends, economic indicators and industry data
• carry out detailed financial modelling and valuation analysis of potential investments
• create scenario analyses to assess commercial risk and opportunity
• use financial data platforms such as Bloomberg Terminal, LSEG Data & Analytics or FactSet to support research and reporting
• write high-quality, data-driven research reports for fund managers or clients
• summarise and present investment opportunities and key research findings to internal stakeholders
• make investment recommendations to fund managers, clearly articulating the investment rationale, associated risks and expected outcomes
• monitor investment performance and risk metrics, providing regular updates
• stay informed on financial news, new investment products and global events affecting markets
• attend meetings or calls with company management, investor relations teams or industry experts
• collaborate with internal teams, including portfolio managers, compliance and research colleagues
• ensure compliance with all relevant financial regulations and internal policies
• mentor and support junior investment analysts or trainees (with experience).

Salary

• Typical starting salaries for graduate trainee roles range from around £32,000 to £40,000 in London (plus bonuses). Salaries at the top investment banks will be higher.
• Salaries for trainees elsewhere in the UK tend to be lower, at around £28,000 to £33,000 (plus bonuses).
• With experience, salaries can rise to between £65,000 and £100,000 (plus bonuses).
• Salaries at senior level can exceed £110,000 (plus bonuses).

Bonuses can be significant and add substantially to your pay. Factors that affect bonus size include company performance, individual performance and wider economic conditions.

Salaries and bonuses vary significantly depending on the type and size of company. For example, salaries at investment banks are likely to be higher than in other areas.

Geographical location also affects salary. Roles in London, where most investment banks are based, typically offer higher pay.

Salaries and bonuses also depend on your experience, level of responsibility and performance.

Starting packages with the bigger companies may include annual bonuses, gym membership, life assurance, a pension scheme and private healthcare. Most organisations provide study support, and many offer flexible benefits packages.

Income figures are intended as a guide only.

Working hours

Full-time hours can be demanding and may include long days with early starts. While the core working week is typically Monday to Friday, occasional weekend work may be required, especially during busy reporting periods or major market events.

There may be opportunities for hybrid working.

What to expect

• The work is primarily office based, often within a team of analysts. Some roles include visits to companies to meet with management, including occasional overseas travel with larger firms.
• Early in your career, you'll support senior analysts, and it can take several years to gain responsibility for covering companies independently.
• Many roles are based in London, especially within investment banks, though opportunities also exist in other major UK cities with investment management companies, for example.
• The work can be high pressure, with long hours and tight deadlines, particularly when responding to market developments or trading issues.
• The financial sector is working to improve diversity and inclusion, with initiatives such as Women in Banking and Finance supporting underrepresented groups.

Qualifications

Although investment analyst jobs are open to all graduates, many employers prefer a degree in a numerate or analytical subject such as:

• accounting
• business management
• economics
• finance
• mathematics
• statistics.

Degrees in other subjects may also be relevant depending on the sector you're analysing. For example, a background in life sciences can be useful for roles covering pharmaceuticals or biotechnology.

Many employers look for a 2:1 or above, along with strong A-levels, although some may accept a 2:2. Check individual companies or job adverts for details.

Postgraduate qualifications aren't required, but a relevant Masters or an MBA can be advantageous, particularly for those from non-finance backgrounds.

Search postgraduate courses in finance and banking.

You can also enter the profession through a Level 7 Senior Investment and Commercial Banking Professional apprenticeship. You'll typically need a degree or equivalent. As part of the apprenticeship, you'll complete a professional qualification.

Skills

You'll need to have:

• strong quantitative analysis and research skills, including the ability to interpret complex data sets
• excellent written and verbal communication skills, including report writing and the ability to present investment ideas clearly
• excellent organisation and time management skills with the ability to meet deadlines in a fast-paced and sometimes high-pressure environment
• strong numerical ability
• self-motivation, drive and tenacity with a proactive and results-oriented approach
• keen attention to detail
• interpersonal and collaboration skills, with the ability to work effectively across teams and functions
• a positive, flexible and resilient approach to work
• strong IT skills, particularly in Excel, as roles often involve financial modelling and scenario analysis
• a strong interest in financial markets, investments and economic trends
• commercial awareness and the ability to assess the broader business context of investment decisions
• sound judgement and an understanding of ethical considerations in investment analysis
• commitment to continuing professional development (CPD).

A second language can be beneficial, particularly when working with European or international firms.

Work experience

Pre-entry experience is highly valued and can significantly improve your chances of getting a graduate role. London-based firms often recruit internationally, and competition is strong across Europe.

Many major financial employers offer summer internships and insight weeks, which provide a great opportunity to gain practical experience and build your professional network. These are usually highly competitive, but performing well on an internship may lead to a direct offer of a graduate position.

Experience at a bank, investment firm or financial consultancy is especially beneficial. Related experience in areas such as accounting, corporate finance or research is also helpful.

If you have a background or experience in a particular sector (e.g. pharmaceuticals, energy or technology), this can be advantageous for sector-specific research roles within investment analysis.

Graduate schemes

Closing dates for graduate schemes at investment banks, stockbrokers and investment management firms can be as early as September or October of your final year. It's important to check employer websites for exact deadlines, as they vary.

Entry onto graduate schemes is highly competitive. Many large employers, especially investment banks, run structured programmes with formal training, professional qualifications and rotations across departments.

Smaller firms or boutique investment houses may not run formal graduate schemes but may recruit graduates into analyst or trainee roles as and when needed.

Employers

Typical employers of investment analysts include:

• investment management (asset management) firms, where analysts support in-house fund managers
• investment banks and stockbrokers, where analysts produce research for internal teams and external clients
• wealth management divisions of private banks, offering tailored investment advice to high-net-worth individuals
• institutional investors such as pension funds and life assurance companies
• hedge funds and private equity firms.

The size and type of employer will influence your responsibilities. In large firms, investment analysts often work in specialised teams, while in smaller firms, you may take ownership of reports and research from start to finish.

Some graduate roles, especially in multinational firms, may offer the chance to work abroad through secondments or international placements.

Look for job vacancies at:

• City Jobs
• eFinancialCareers

Specialist recruitment consultancies include:

• Meredith Brown Associates
• Morgan McKinley
• Hays

You can also find vacancies on the career websites of major investment banks and asset management firms.

Industry bodies such as PIMFA and AFME publish directories of member firms that may be useful when making speculative applications.

Professional development

Training and development opportunities vary depending on the employer. However, most large firms offer structured graduate training programmes, often including rotations across departments and teams, mentoring and study support.

Most employers will expect you to have or be working towards the Level 4 Investment Management Certificate (IMC), offered by the CFA Society UK (CFA UK). This qualification, along with Level 1 of the Chartered Financial Analyst (CFA) Program, is a minimum requirement for those managing investments for retail clients and is recommended for anyone managing investments for institutional clients.

The Certificate teaches the fundamentals of investment management, covering essential regulatory, ethical and investment principles, and is frequently taken during the first year of employment.

Many employers also support progression to the Chartered Financial Analyst (CFA) Program (three levels), administered by CFA Institute. The CFA Program is a globally recognised qualification that typically takes three to four years to complete and is highly valued across investment roles.

Employers often provide financial assistance and structured support to complete CFA qualifications, viewing them as key to career progression and regulatory compliance.

As your career progresses, you could also choose to take an MBA. Find out more about MBA courses.

Career prospects

In investment banking, graduates typically spend the first two to three years as analysts before being considered for promotion to associate level.

Career development routes for investment analysts include:

• progressing to lead or senior analyst in a particular sector or region
• moving into management roles, overseeing teams or specific investment areas
• becoming a recognised expert in a particular asset class or industry
• moving into portfolio or fund management roles
• moving into related roles such as investor relations, strategy or consulting.

Career progression depends on the size and structure of your firm. In smaller investment boutiques, you may need to move to a larger company to access more opportunities or broaden your skillset.

Relocation within the UK or abroad may also be necessary in global firms to access more senior roles or specialised opportunities.

If you build a strong reputation or specialist expertise, you may be headhunted by other firms or investment houses.