A capital market analyst is primarily responsible for gathering research, and for compiling and analyzing data related to financial investments. He or she works either for a investment bank or as a freelance consultant for numerous clients. The responsibilities vary slightly depending on whether the capital market analyst is working for a larger firm or working as a consultant. Generally, an analyst for an investment bank is only concerned with the investment portfolio of that bank and possible investment acquisitions. A freelance capital market analyst is typically involved with the analysis of a more varied collection of investments because of the variety of individual clients linked to the consultancy.
The basic responsibilities of a capital market analyst include compiling data on all investment accounts under review at regular intervals. The data will include month to month earnings on interest, yearly overall performance of a particular investment, and the five-year outlook based on recent performance. The capital market analyst must take this data, assess its validity, then determine how those figures fit into the financial goals of the investment bank or the individual client. The analyst may then compile a report outlining the current state and future viability of the investment based upon the specific goals of the client or bank. The analyst may then make a recommendation on whether the investment should continue to remain in a portfolio, should be sold, should be altered to better suit the investor's needs.
Capital market analysts for investment banks usually have a specific area of investments to analyze. For example, an investment bank usually has an entire department of analysts, each tasked with a different type of investment, such as bonds, stocks, futures, treasury notes and foreign exchange currency trading. The investment bank may seek to diversify in a number of ways, but the analysis will largely remain the same for each of the analysts. With an investment bank, the capital market analyst has a set list of bank priorities and goals, and these, for the most part, do not change over short periods of time.
With private clients, a capital market analyst takes on a role similar to a financial adviser, looking out for short and long term needs, such as savings, retirement, and investment strategies based upon an aggressive or a conservative approach. Unlike an investment bank, a private client is more likely to need alterations to an investment strategy based upon life-changing events, such as the birth of a child, the loss of employment, or medical issues. A capital market analyst that works for private investment clients must consider a wider range of factors in the investment analysis.