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Investment advisor vs investment analyst

The differences between investment advisors and investment analysts can be seen in a few details. Each job has different responsibilities and duties. It typically takes 2-4 years to become both an investment advisor and an investment analyst. Additionally, an investment advisor has an average salary of $105,377, which is higher than the $79,056 average annual salary of an investment analyst.

The top three skills for an investment advisor include exceptional client, risk management and client relationships. The most important skills for an investment analyst are portfolio management, financial statements, and strong analytical.

Investment advisor vs investment analyst overview

Investment AdvisorInvestment Analyst
Yearly salary$105,377$79,056
Hourly rate$50.66$38.01
Growth rate15%9%
Number of jobs63,43863,003
Job satisfaction-5
Most common degreeBachelor's Degree, 76%Bachelor's Degree, 76%
Average age4540
Years of experience44

What does an investment advisor do?

An investment advisor is responsible for managing the clients' financial portfolios, advising them of investment options according to their financial goals and objectives, and their ability to handle risks. Investment advisors should have excellent knowledge of the investment policies, providing the clients with the best financial strategies according to their interests. They also determine their expenses, income, and credit scores to identify a comprehensive financial plan. An investment advisor helps the clients with cash management techniques, as well as conducting data analysis on financial market projections.

What does an investment analyst do?

An Investment Analyst provides research and information to help traders, fund managers and stock brokers make decisions about investments. They are hired by companies, investment trusts, stock trading and brokerage firms, and insurance providers.

Investment advisor vs investment analyst salary

Investment advisors and investment analysts have different pay scales, as shown below.

Investment AdvisorInvestment Analyst
Average salary$105,377$79,056
Salary rangeBetween $60,000 And $184,000Between $44,000 And $140,000
Highest paying CityNew York, NYSan Francisco, CA
Highest paying stateNew YorkNew York
Best paying companyMcKinsey & Company IncThe Citadel
Best paying industryTelecommunicationTelecommunication

Differences between investment advisor and investment analyst education

There are a few differences between an investment advisor and an investment analyst in terms of educational background:

Investment AdvisorInvestment Analyst
Most common degreeBachelor's Degree, 76%Bachelor's Degree, 76%
Most common majorBusinessFinance
Most common collegeUniversity of Minnesota - Twin CitiesUniversity of Pennsylvania

Investment advisor vs investment analyst demographics

Here are the differences between investment advisors' and investment analysts' demographics:

Investment AdvisorInvestment Analyst
Average age4540
Gender ratioMale, 72.3% Female, 27.7%Male, 70.1% Female, 29.9%
Race ratioBlack or African American, 5.6% Unknown, 4.4% Hispanic or Latino, 9.4% Asian, 8.2% White, 72.3% American Indian and Alaska Native, 0.1%Black or African American, 5.6% Unknown, 4.5% Hispanic or Latino, 7.7% Asian, 14.1% White, 68.0% American Indian and Alaska Native, 0.1%
LGBT Percentage5%7%

Differences between investment advisor and investment analyst duties and responsibilities

Investment advisor example responsibilities.

  • Manage and strengthen customer relationships through cross-selling and up-selling to maximize retention and income generation by contacting existing and prospective customers.
  • Obtain skills with different financial programs and tools such as Morningstar and NetX360.
  • Advise and recommend insurance products including, fix and variable annuities, and term life.
  • Focus on macroeconomic fundamentals, high yield, distress debt, volatility and macro base cross-asset statistical strategies.
  • Communicate information to clients on various products offer such as equity funds, bond funds, annuities, and money markets.
  • Identify client- specific and regulatory reporting requirements, review purchase and redemption activity, securities settlements, and cash movements.
  • Show more

Investment analyst example responsibilities.

  • Update weekly liquidity stress report and utilize VBA and SQL to automate the process
  • Manage and update early engagement processes daily through SharePoint.
  • Manage trade executions and broker relationships for all portfolio positions across several banks, prime brokerage accounts and electronic commodities exchanges.
  • Perform financial analyses including discount cash flow, leverage buyout, public market comparable trading and precedent transaction-base valuations
  • Participate in the asset management valuation committee and provide management oversight to accounting, legal, and operations personnel.
  • Used JAVA to develop trading spread calculator.
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Investment advisor vs investment analyst skills

Common investment advisor skills
  • Exceptional Client, 12%
  • Risk Management, 10%
  • Client Relationships, 9%
  • Health Insurance, 8%
  • Business Development, 7%
  • FINRA, 5%
Common investment analyst skills
  • Portfolio Management, 7%
  • Financial Statements, 6%
  • Strong Analytical, 6%
  • PowerPoint, 5%
  • Real Estate, 5%
  • Risk Management, 3%

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