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These companies, known as institutional investors, include pension funds, hedge funds, money managers and insurance companies. Buy-Sideīuy-side analysts help companies choose where to invest. Sell-Side Analystsįinancial analysts-not including those who work for research and media companies-fall into two main categories: buy-side analysts and sell-side analysts. The BLS predicts that these investors will hire financial analysts who have a deep understanding of political, economic and cultural trends in the geographical areas at play. As more markets develop around the world, companies need analysts to advise on where to expand or invest. Expanding and emerging industries require the help of financial analysts to guide their growth. This amounts to about 32,000 new financial analyst jobs by 2031.Īs you may guess, increases in economic activity affect the demand for financial analysts. The BLS projects employment for financial and investment analysts to grow by 9% from 2021 to 2031, which is faster than the average projected growth for all jobs.

The field is also growing at a steady pace.

These workers earn a mean annual salary of $124,020. Working as an analyst in the financial industry offers the most lucrative pay. In contrast, the median wage for all workers was $45,760. As of May 2021, the median annual wage for financial analysts was $91,580, according to the BLS. How Much Does a Financial Analyst Make?īecoming a financial analyst is a strong option for anyone seeking a higher-than-average paycheck. Analysts have to communicate their choices clearly and effectively, often through reports or presentations. Their recommendations can affect a company’s longevity, so they must be thorough but decisive.
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They need both strong math skills and computer literacy, as analysts use software to look at trends and make forecasts.Īfter all of their research, financial analysts need to make decisions.

Work Environmentįinancial analysts don’t just work with securities. Analysts tend to focus on one industry, region or product, and they build expertise in their specialty area. While financial analysts need a broad understanding of the market, they aren’t expected to know everything. Financial analysts are responsible for studying economic, political and global trends to make recommendations.
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These professionals may also help companies decide how to invest in growing industries. These professionals must be able to distill large amounts of information into concise recommendations.įinancial analysts assess whether a company is worth investing in by poring through the company’s financial history. In general terms, financial analysts do exactly what their title implies: They advise companies and individuals on the most profitable investments.
