what is investment analysis 
investment analysis is a broad term for many different methods of evaluating investments industry sectors and economic trends it can include charting past returns to predict future performance selecting the type of investment that best suits an investor s needs or evaluating individual securities such as stocks and bonds to determine their risks yield potential or price movements investment analysis is key to a sound portfolio management strategy understanding investment analysisthe aim of investment analysis is to determine how an investment is likely to perform and how suitable it is for a particular investor key factors in investment analysis include the appropriate entry price the expected time horizon for holding an investment and the role the investment will play in the portfolio as a whole in conducting an investment analysis of a mutual fund for example an investor looks at how the fund performed over time compared to its benchmark and to its main competitors peer fund comparison includes investigating the differences in performance expense ratios management stability sector weighting investment style and asset allocation in investing one size does not fit all just as there are many different types of investors with unique goals time horizons and incomes there are investment opportunities that match those individual parameters investment analysis can also involve evaluating an overall investment strategy in terms of the thought process that went into making it the person s needs and financial situation at the time how the portfolio performed and whether it s time for a correction or adjustment investors who are not comfortable doing investment analysis on their own can seek advice from an investment advisor or another financial professional types of investment analysiswhile there are countless ways to analyze securities sectors and markets investment analysis can be divided into several basic approaches 