17 Investment Analyst Interview Questions and Answers

An investment analyst is responsible for researching, analyzing, and reporting on potential investments for her company. This may involve studying financial reports and trends, meeting with company executives to discuss future plans, and evaluating the risks and potential rewards of various investments.

If you’re interviewing for an investment analyst position, you can expect to be asked a range of questions about your experience, education, and investment philosophy. Review the following investment analyst interview questions and answers to help you prepare for your interview.

Are you comfortable with working with financial data?

Investment analysts often work with financial data, so the interviewer wants to know if you have experience working with this type of information. Use your answer to highlight any specific skills or software programs that you use for analyzing financial data.

Example: “I am very comfortable working with financial data because I’ve been doing it for several years now. In my last role as an investment analyst, I used a variety of different tools and resources to analyze company financial statements, including Microsoft Excel, Access and SQL. I also regularly reviewed SEC filings and other important documents to ensure that I was using accurate data in my analysis.”

What are some of the most important things you look for when analyzing an investment?

This question can help the interviewer determine how you approach your work and what skills you use to complete it. Use examples from past experiences that show your analytical skills, attention to detail and ability to make decisions under pressure.

Example: “I look at a company’s financial statements, such as its balance sheet and income statement, to see if they are in good shape. I also consider whether the company is growing or shrinking and whether its stock price is rising or falling. I compare these factors with those of similar companies to get an idea of where this investment might go. For example, when looking at a new investment, I would examine the company’s financials, including revenue growth, expenses and debt levels, to see if they’re comparable to other companies in the same industry.”

How do you determine the risk level of an investment?

The interviewer may ask this question to assess your risk management skills. Use examples from past experiences where you used a specific method or process to determine the level of risk in an investment.

Example: “I use several methods to determine the risk level of an investment, including calculating the volatility and beta of a stock. I also look at the company’s financial statements to see if it has enough cash flow to support its debt. If the company is not generating enough revenue to cover its expenses, then that could be a sign of trouble for investors. Another way I determine risk is by looking at the overall market conditions. For example, when the Dow Jones Industrial Average falls more than 10% within one day, that can indicate a recession.”

What is your experience with using financial software?

Investment analysts use a variety of software to complete their work. Employers ask this question to learn about your experience with financial software and how you’ve used it in the past. Before your interview, make sure you read through the job description to see which specific programs they expect you to be familiar with. In your answer, share what software you have used in the past and explain why you are comfortable using it.

Example: “I am very experienced with using financial software. I started my career as an investment analyst at XYZ Financial Group where I worked on many projects that required me to use various types of software. One of the most common was Microsoft Excel, so I became quite skilled at creating spreadsheets and analyzing data. I also regularly used Bloomberg Terminal for market research.”

Provide an example of an investment you recommended that your employer implemented.

This question is an opportunity to show your interviewer that you can be innovative and creative in your work. You should provide a specific example of an investment recommendation you made that was implemented by your employer, along with the results of the investment.

Example: “In my previous role as an investment analyst for a large financial institution, I noticed that our company had not invested in any companies that were involved in renewable energy technology. I recommended that we invest in several different renewable energy companies, which would diversify our portfolio and reduce our risk. My employer agreed and invested $10 million into three separate renewable energy companies. Two years later, those investments generated over $20 million in revenue.”

If you saw an investment opportunity that you knew your company would not approve, would you still bring it up?

This question is designed to test your ethics and integrity. It’s important that you answer honestly, but also show that you would bring the opportunity up in a way that wouldn’t cause harm to your company.

Example: “I would absolutely bring it up, however I would do so in a way that didn’t make my employer feel like they were missing out on an opportunity. For example, if I saw a stock that was undervalued, I would explain why I thought it was undervalued and how we could take advantage of this without hurting our current investments.”

What would you do if you noticed a mistake in one of your previous investment reports?

Interviewers may ask this question to see how you handle mistakes and learn from them. They want to know that you’re willing to admit your errors, take responsibility for them and make changes in the future. In your answer, explain what steps you would take to correct the mistake and ensure it doesn’t happen again.

Example: “If I noticed a mistake in one of my investment reports, I would first apologize to my team and the client who received the report. Then, I would immediately begin researching the error to determine what caused it and how I could prevent it from happening again. Finally, I would create a new investment report with the correct information and send it out to everyone who received the previous report.”

How well do you understand the legal aspects of investment?

The interviewer may ask this question to assess your knowledge of the legal aspects of investment. This is because it’s important for an analyst to understand how their decisions can affect a company and its investors. Use examples from past experiences where you had to research or interpret laws that affected your work.

Example: “I have worked with several clients who were publicly traded companies, so I am familiar with the Securities Exchange Act of 1934. In my last role, I was working on a project when I realized that one of our client’s financial reports didn’t meet the requirements outlined in the act. I contacted the company’s management team to discuss the issue, and they informed me that they would need more time to compile the report. We agreed to extend the deadline until we could submit accurate information.”

Do you have any experience working with investment contracts?

This question can help the interviewer determine your level of experience with investment contracts and whether you have any expertise in this area. If you do, share a specific example of how you used it to benefit your company or organization. If you don’t have any experience working with investment contracts, you can explain what you would do if you were given an investment contract to analyze.

Example: “I’ve never worked with investment contracts before, but I am familiar with the process of analyzing them. In my last role as an analyst, I was responsible for reviewing all financial documents that came through our department. This included reading over annual reports, quarterly statements and other important information about the company’s finances. While I haven’t worked with investment contracts specifically, I understand the importance of understanding the terms and conditions of these types of agreements.”

When analyzing an investment, do you consider the company’s leadership as well as its products and services?

The interviewer may ask you a question like this to assess your understanding of the importance of analyzing a company’s leadership and its products and services when making investment decisions. Use examples from past experiences where you considered these factors in your analysis.

Example: “Yes, I do consider a company’s leadership as well as its products and services when performing my analysis. In my last role, for example, I was asked to analyze an investment opportunity that involved a pharmaceutical company. After reviewing the company’s leadership team, I learned that the company had recently hired a new CEO who had previously worked at another pharmaceutical company. This information helped me make a more informed decision about the investment.

We want to invest in a particular industry. How would you go about researching this industry and finding potential investments?

This question is a great way to test your analytical skills and how you would apply them in the workplace. Use examples from past experiences where you researched an industry or company, analyzed the data and found potential investments.

Example: “I recently wanted to invest in a particular type of technology that was being used by many companies. I started my research by looking at all the major players in this field. I then looked at each company’s financial statements to see if they were profitable and growing. After doing some more research on these companies, I found one that had a lot of growth potential and decided to invest.”

Describe your process for keeping up with changes in the financial world.

The interviewer may ask this question to understand how you stay up-to-date on current events that could affect the financial markets. Your answer should show your dedication to learning about new developments in the industry and staying informed of changes that can impact your analysis.

Example: “I subscribe to several newsletters and blogs that provide information on recent news, economic reports and other factors that influence the market. I also have a few subscriptions to investment research websites where I can find data on companies’ performance and learn more about their products or services. I try to read these sources at least once per week so I can be aware of any major changes that occur.”

What makes you stand out from other investment analysts?

Employers ask this question to learn more about your unique skills and talents. They want to know what makes you a valuable asset to their company. When answering this question, think of two or three things that make you stand out from other investment analysts. These can be specific skills or experiences that are relevant to the job.

Example: “I have several years of experience as an investment analyst, but I also have extensive knowledge in financial modeling. In my previous role, I was responsible for creating complex models to help predict future outcomes. This helped me understand how different variables affect the market. I am confident that I can use these skills to benefit your company.”

Which industries do you have the most experience with?

This question can help the interviewer determine if your experience aligns with their company’s industry. Use your answer to highlight any skills you have that would be beneficial in this role, such as communication or analytical skills.

Example: “I’ve worked primarily with technology companies, but I also have experience working with financial institutions and healthcare organizations. In my previous position, I helped a tech startup create an investment plan for its next five years of growth. This required me to analyze the company’s current revenue streams and project how they could grow over time. I was able to use my knowledge of the tech industry to make recommendations based on similar companies.”

What do you think is the most important skill for an investment analyst to have?

This question is your opportunity to show the interviewer that you have the skills and abilities needed for this role. You can answer by identifying a skill from the job description, such as communication or problem-solving skills, and explaining how you use it in your work.

Example: “I think one of the most important skills an investment analyst needs is strong analytical skills. I am always looking at data and financial reports to make predictions about what will happen with investments. Another important skill is communication because I need to be able to clearly explain my findings to clients and colleagues. In my previous position, I was often asked to present my analysis to senior management.”

How often do you recommend that companies make investments?

This question can help the interviewer determine how often you recommend investments and whether your recommendations are in line with company policy. Your answer should show that you understand when to make an investment and when not to, as well as how frequently you recommend making investments.

Example: “I usually recommend companies invest at least once a year. However, I also consider factors like the company’s cash flow and its ability to pay for the investment before it generates revenue. If these conditions aren’t met, then I may suggest waiting until they are or reducing the size of the investment.”

There is a new investment opportunity that you’re not familiar with. How would you go about researching it?

This question is a great way to test your analytical skills and how you approach new information. When answering this question, it can be helpful to provide specific steps that you would take when researching the opportunity.

Example: “I would first look at the company’s website for any information about the investment opportunity. If I couldn’t find anything there, I would then search online for reviews of the company or product. After that, I would read through the company’s financial statements to see if they have ever mentioned the investment opportunity before. Finally, I would reach out to my network to see if anyone has experience with the investment opportunity.”