Lucrative Investment Analyst Careers: Salary Expectations

Investment analysts are financial professionals who research companies, industries, and economic trends to make investment recommendations. The average salary for an investment analyst is around $70,000 to $80,000 per year in the United States, but this can vary widely depending on experience, location, and the specific role. For example, senior analysts with over five years of experience can earn an average of $140,000 to $180,000 annually, while entry-level salaries typically stay under $60,000.

Salary by experience level

Investment analysts with over 20 years of experience can earn salaries of $140,000 and above, with some sources reporting salaries of up to $500,000 for analysts at top firms. It is important to note that salary ranges can vary widely depending on factors such as location, education, and the specific employer.

Salary by location

An investment analyst's salary is influenced by their location, with higher salaries in major global financial hubs such as New York, London, and Hong Kong. These cities tend to have a higher cost of living, which is reflected in the pay. However, when adjusted for expenses, salaries in other large metropolitan areas can be comparable.

In the United States, the average yearly salary for an investment analyst in California is $120,847, while in Massachusetts, it is $119,204, and in New Jersey, it is $120,080. At the city level, San Francisco, New York, and Boston offer above-average salaries, with New York-based investment analysts earning the highest average salary in the country. Denver, Chicago, and Minneapolis also offer competitive salaries. On the other hand, cities like Washington, Philadelphia, and Seattle show significantly lower salaries compared to the national average.

Internationally, the average investment analyst salary in the United Kingdom is £52,500, or approximately $61,896. In Hong Kong, the average salary for an investment analyst is HK$600,000, which is roughly equivalent to $76,920. These figures demonstrate the variation in salaries across different geographic regions.

It is worth noting that remote work options can provide more flexibility in terms of location and may impact the salary offered.

Salary by industry

The salary of an investment analyst varies depending on several factors, including experience, location, industry, education level, and company size.

The average investment analyst salary varies across industries. Analysts in the telecommunication industry earn the highest average salary of $103,872, while those in the real estate industry earn the lowest, with an average of $88,352. Here is a breakdown of average salaries in different industries:

• Telecommunication: $103,872
• Finance: $92,558
• Real Estate: $88,352

Salary by Location

Location is another factor that impacts the salary of investment analysts. The highest-paying cities for investment analysts are San Francisco, New York, and Stamford, with New York also being the state with the highest average salary. The lowest-paying states are Tennessee, Florida, and Louisiana.

Salary by Experience

Experience plays a significant role in determining the salary of investment analysts. Entry-level analysts typically earn between $44,000 and $60,000 per year, while those with 3-5 years of experience can expect salaries ranging from $70,000 to $140,000. Senior analysts with over 5 years of experience can earn an average of $140,000 to $180,000 annually, and salaries can exceed $200,000 with more specialized expertise and leadership roles.

Salary by Company Size and Type

The type and size of the employer also influence investment analyst salaries. Analysts at large investment banks and asset management firms generally earn higher base salaries, while boutique firms may offer lower salaries but higher performance-based bonuses. At hedge funds and proprietary trading firms, total compensation is heavily dependent on investment returns.

Salary by company

The salary of an investment analyst varies depending on the company they work for and their level of experience. For example, an entry-level investment analyst at EQ Office can expect to earn $100,000 to $150,000 a year, whereas an analyst at JPMorganChase with the same level of experience will make $95,000 to $120,000 annually.

At top firms, senior analysts can make over $500,000 with bonuses. For instance, senior-level analysts at Capital Research Center and The Citadel, who manage teams and high-value institutional client accounts, can see their compensation reach $150,000 to $250,000.

Some other companies that pay competitive salaries to their investment analysts include Ropes & Gray, Carnegie Corporation of New York, Siguler Guff & Company, Madison International Realty, New Mountain Capital, and Starwood Capital Group.

The average salary for an Investment Analyst III, a senior-level position, is $109,562 per year in the United States, with salaries ranging from a low of $85,086 to a high of $141,914. An entry-level Investment Analyst III with less than a year of experience earns about $104,815, while those with over eight years of experience can expect an average of $117,801.

The average yearly salary for an investment analyst in the United States is $79,056, with salaries typically ranging from $44,000 to $140,000. The average hourly rate for investment analysts is $38.01.

Salary by job title

The salary of an investment analyst varies depending on their level of experience, location, and the specific role they occupy.

Entry-Level Investment Analyst

Entry-level investment analysts typically earn between $44,000 and $60,000 per year. According to Payscale.com, an entry-level investment analyst with less than a year of experience can expect to earn an average of $64,663.

Mid-Level Investment Analyst

For mid-level investment analysts, salaries usually range from $70,000 to $90,000 per year. With 1-4 years of experience, investment analysts can expect to earn an average of $73,106.

Senior Investment Analyst

Senior investment analysts with over 5 years of experience can expect to earn between $100,000 and $180,000 per year. The average salary for a senior investment analyst is $108,309, with some analysts earning over $500,000 with bonuses.

Investment Analyst III

An Investment Analyst III is a more senior role that typically requires 4-7 years of experience. The average salary for this position is $109,562, with some professionals earning up to $141,914.

Location

The salary of an investment analyst can also vary depending on their location. Analysts in major global finance hubs like New York, London, and Hong Kong tend to earn higher salaries, but the cost of living in these cities is also higher.

Specific Roles

Certain specialized roles within investment analysis also tend to have higher salaries. Equity analysts and M&A analysts earn higher salaries than fixed-income analysts. Quantitative analysts who focus on complex financial modelling also command top salaries.

Bonuses and Profit-Sharing

In addition to their base salaries, investment analysts may also receive bonuses and profit-sharing structures. Bonuses can be as high as $20,000, and profit-sharing can be up to $12,000. Commissions of up to $11,000 annually have also been reported.

Frequently asked questions