Investment analysts collect financial information, perform financial research and analyze assets, including stocks, bonds, currencies, and commodities. Investment analysts usually focus on certain investment niches to become experts in their fields. Some focus on specific industries, asset classes, or geographical regions. (Investopedia.com)
Sponsored School(s)
The research is presented to investment or portfolio managers, usually as part of a team where several experts in various fields weigh their insights against each other before making final investment recommendations. Collaboration is a vital part of this job, as are providing detailed presentations and sharing information with stakeholders and peers.
An investment analyst is always collecting and interpreting data, including company financial statements, price developments, currency adjustments and yield fluctuations. This information often includes macro developments, such as following a nation’s political changes, climate change, and how natural disasters affect the economy.
Other duties of investment analysts are: (BLS.gov)
- Provide recommendations for an investment or portfolio of investments
- Evaluate financial data both current and historical
- Study business and economic trends
- Look at a company’s financial statements to understand company value
- Meet with company executives to get more insight into the prospects of the company
- Prepare financial reports
An investment analyst ensures that all facts are in place when an investment decision is made. While the job is demand, the pay and benefits are excellent, and most investment analysts are highly satisfied with their jobs. It also is a profession with high projected growth in the next decade.
If you are interested in a career as an investment analyst, below is detailed salary information about the profession.
Investment Analyst Salary Outlook
Bureau of Labor Statistics
The Bureau of Labor Statistics reports the median salary for investment analysts is $85,600, with a range between $52,500 and $167,400. Workers with an MBA or a master’s in finance will be able to earn more than $100,000 per year in many instances. Top industries for investment analysts are: (BLS.gov)
- Securities, commodity contracts and other financial investments: $101,400
- Professional, scientific, and technical services: $84,500
- Management of companies and enterprises: $83,600
- Credit intermediation and related activities: $81,400
- Insurance carriers and related activities: $78,800
BLS also notes the related field of budget analyst has a median salary of $76,200 with a range between $49,800 and $116,300. (BLS.gov)
Payscale.com
Payscale.com reports the average salary for investment analysts is $64,200 with a range between $45,000 and $92,000. (Payscale.com). Some of the salaries reported include:
- Cambridge Associates: $64,000
- Merrill Lynch and Co: $61,000
- Keybank: $52,000
- Prudential: $66,000
- NorthMarq Capital: $58,000
- Pacific Life: $82,000
- The Northern Trust Company: $65,000
- Prudential Financial: $71,000
Popular skills with related salaries in this field are:
- Financial analysis: $63,200
- Investment management: $67,200
- Microsoft Excel: $61,400
- Research analysis: $64,700
- Due diligence: $65,200
Experience for investment analysts leads to a higher salary:
- Less than one year of experience: $55,800
- One to four years of experience: $62,200
- Five to nine years of experience: $77,800
- 10 to 19 years of experience: $85,400
- More than 20 years of experience: $92,800
Your compensation also can rise or fall based on the city you live in:
- New York City: +21%
- San Francisco: +16%
- Philadelphia: +7%
- Boston: +5%
- Chicago: +3%
- Dallas: -3%
- Louis: -17%
Ziprecruiter.com
Ziprecruiter.com reports the average salary for a financial analyst is $67,392 with a range between $32,000 and $98,000. (Ziprecruiter.com). Most people in this field earn between $55,000 and $77,000.
Glassdoor.com
Glassdoor.com reports the average salary for this profession is $75,800 with a range between $51,000 and $114,000. (Glassdoor.com)
Indeed.com
Indeed.com reports the average salary for investment analysts in the US is $73,195. (Indeed.com). Some of the reported salaries include:
- AIG Investment Analyst: $99,800
- JPMorgan Chase Investment Analyst: $92,700
- QVT Financial LP Investment Analyst: $91,700
- Global Private Group Investment Analyst: $120,000
- Selby Jennings Investment Analyst: $110,800
- Dixon Advisory Investment Analyst: $100,000
- Phase One Investment Analyst: $80,000
- CSS Financial Investment Analyst: $65,000
- Foster Financial Group Investment Analyst: $40,000
Investment Analyst Job Outlook
Employment for investment analysts will rise 6% by 2028, about as fast as average for all occupations. A larger range of financial products and a need for deep knowledge of geographic regions will lead to economic growth for investment analysts. (BLS.gov)
Demand for investment analysts is always tied to economic activity. As the economy continues to expand, investment analysts will be needed to review investment opportunities when new businesses are started and existing ones are expanded. Also, emerging markets around the world provide new investment opportunities. These require expertise in the areas where those markets exist.
Demand for investment analysts also is expected because of the growing importance of ‘big data’ and improvements in technology that allow investment analysts to access more data and do higher-quality analyses. This analysis allows companies to more effectively manage their finances, pinpoint investment trends, and deliver new products and services.
Employment for the related occupation of financial manager will rise by 16% by 2028, which is much faster than average. Services that are offered by financial managers, such as directing, planning, and coordinating investments, will stay in strong demand as the economy shows little sign of slowing. Also, several specialties within financial management, such as risk management and cash management, will be in great demand over the next 10 years.
Recently, many large companies have accumulated more cash on their balance sheets, especially ones abroad. As globalization expands, this trend should continue, and demand for financial managers should increase.
Average Investment Analyst Salary by State
| State | Hourly Wage | Annual Salary |
|---|---|---|
| New York - Investment Analyst | $37.48 | $77,967 |
| Massachusetts - Investment Analyst | $37.21 | $77,406 |
| New Hampshire - Investment Analyst | $36.31 | $75,528 |
| Maryland - Investment Analyst | $34.54 | $71,845 |
| Hawaii - Investment Analyst | $34.38 | $71,506 |
| Connecticut - Investment Analyst | $34.28 | $71,299 |
| Alaska - Investment Analyst | $34.28 | $71,295 |
| Montana - Investment Analyst | $34.28 | $71,295 |
| North Dakota - Investment Analyst | $34.28 | $71,295 |
| Wyoming - Investment Analyst | $34.28 | $71,295 |
| Nevada - Investment Analyst | $34.28 | $71,295 |
| Idaho - Investment Analyst | $34.28 | $71,295 |
| Vermont - Investment Analyst | $34.19 | $71,106 |
| Nebraska - Investment Analyst | $34.12 | $70,967 |
| Washington - Investment Analyst | $34.10 | $70,926 |
| Rhode Island - Investment Analyst | $33.75 | $70,194 |
| California - Investment Analyst | $33.73 | $70,154 |
| Virginia - Investment Analyst | $33.56 | $69,807 |
| Arizona - Investment Analyst | $33.20 | $69,061 |
| New Jersey - Investment Analyst | $32.99 | $68,618 |
| Colorado - Investment Analyst | $32.55 | $67,713 |
| West Virginia - Investment Analyst | $32.54 | $67,674 |
| Minnesota - Investment Analyst | $32.41 | $67,410 |
| Pennsylvania - Investment Analyst | $32.41 | $67,406 |
| South Dakota - Investment Analyst | $32.39 | $67,381 |
| South Carolina - Investment Analyst | $32.35 | $67,282 |
| Tennessee - Investment Analyst | $32.22 | $67,020 |
| Delaware - Investment Analyst | $32.21 | $66,990 |
| Oregon - Investment Analyst | $32.18 | $66,927 |
| Utah - Investment Analyst | $31.95 | $66,459 |
| Ohio - Investment Analyst | $31.89 | $66,330 |
| Kentucky - Investment Analyst | $31.85 | $66,255 |
| Indiana - Investment Analyst | $31.67 | $65,877 |
| Oklahoma - Investment Analyst | $31.59 | $65,715 |
| Louisiana - Investment Analyst | $31.50 | $65,524 |
| Wisconsin - Investment Analyst | $31.45 | $65,410 |
| Kansas - Investment Analyst | $31.35 | $65,207 |
| Maine - Investment Analyst | $31.32 | $65,145 |
| Iowa - Investment Analyst | $31.25 | $64,997 |
| Texas - Investment Analyst | $30.73 | $63,910 |
| Georgia - Investment Analyst | $30.62 | $63,681 |
| Arkansas - Investment Analyst | $30.50 | $63,440 |
| New Mexico - Investment Analyst | $30.33 | $63,080 |
| Alabama - Investment Analyst | $30.10 | $62,611 |
| Michigan - Investment Analyst | $30.07 | $62,542 |
| Illinois - Investment Analyst | $29.97 | $62,345 |
| Mississippi - Investment Analyst | $29.64 | $61,641 |
| Missouri - Investment Analyst | $29.33 | $61,014 |
| Florida - Investment Analyst | $28.89 | $60,098 |
| North Carolina - Investment Analyst | $26.28 | $54,657 |
Source: Ziprecruiter.com, January 2020.
Summary
The US economy is expanding at a rapid pace, and the number of investment opportunities is on the rise. It is expected the need for investment analysts will rise substantially in the next 10 years. Earning a business or finance degree and becoming an investment analyst will probably lead to a high salary, so it is a career worth your consideration.