What are the Duties of a Research Analyst?

Research analysts from a financial perspective, also known as equity research analysts, work on either the sell-side or buy-side investments. Financial research analysts analyze data on factors that affect financial markets such as industry changes and news, economic trends, political changes and obtain financial information and write financial reports and expert opinions. Therefore financial analysts are essential to the investment industry because investors use these reports to decide which stocks to buy or sell.

Research analysts can choose to have buy-side or sell-side careers. Sell-side research analysts and companies create services and products and avail them to the buy-side of the finance industry. Job designations in the financial sell-side sector include sell-side traders, researchers, and investment bankers. Research analysts who work on the sell-side carry out a much more in-depth analysis of companies in specific industry sectors than buy-side research analysts. Consequently, they have a narrow focus and develop strong expertise to prepare public reports with recommendations and expert opinions.

Buy-side researchers work for companies that purchase investment services and products, for example, hedge funds, private equity, trusts, pension funds, life insurance, and venture capital. Buy-side research analysts research companies in specific financial industry sectors but focus on a broader area than sell-side research analysts. As a result, buy-side research analysts rely on sell-side researchers for reliable information and expert reports.

Research analysis and creativity

Creativity and being innovative are essential skills that will set you apart from your peers as a research analyst. In addition to the required financial knowledge and analytical skills, research analysts should identify information that is not visible to others and develop expert opinions. Secondly, they should creatively communicate this information and come up with innovative investment recommendations for their clients.

Global perspective in research analysis

Research analysts need to be updated on historical and current world events because they should understand how these factors affect financial markets. Since research analysts help to predict the performance of the stock of specific companies, analysts should have information on how regional economies, countries, industries, businesses, and individuals could react to these market changes.

As a result, research analysts read about international geopolitics, investments, world economics, business mergers, and acquisitions. In addition, they keep up with world news and assess how certain events affect different countries and industries and their impact on markets and governments.

As a research analyst, it is essential to develop global perspectives based on an in-depth understanding of world events to enable you to make accurate predictions of the impact of certain changes in future markets. A global perspective provides the analyst with a historical framework and evidence to justify recommendations.

Accountability and responsibility in research analysis

Research analysts give expert opinions based on an in-depth assessment of historical trends and other factors that affect financial markets. However, since these opinions are not always right, the research analyst should take accountability for their prediction. Research analysts need to take responsibility for their well-informed opinions even when they are wrong and learn from their mistakes.

Research analysts in the finance industry usually have a bachelor of science in a business-related degree, such as a BSc in business administration or finance or an MBA. You can supplement your degree by earning a CFA charter. According to the CFA Institute, fifteen percent of CFA charter holders are research analysts working in corporate finance.

If you are considering a career as a research analyst, earning a CFA certification has numerous benefits outlined as follows:

CFA is the international gold standard for finance and investment professionals

If your goal is to advance your career in finance or investment, earning a CFA designation is an excellent investment. Since it is recognized internationally as the gold standard for investment and finance profession, you enjoy global career mobility. There are more than 164,000 CFA charter holders all over the world.

The qualification is the same for all candidates globally. Consequently, your CFA charter is recognized by employers regardless of where you earned it.

CFA enhances your knowledge in finance

The CFA exams are hard to pass because the curriculum equips you with extensive graduate-level knowledge of finance. Additionally, the CFA Institute regularly updates the learning material to ensure that it remains relevant. Consequently, having a CFA designation indicates that you have the in-depth financial knowledge and technical skills that potential employers need.

CFA level I curriculum is broad and covers all relevant areas in finance. As the candidates progress to level II, the curriculum is more specialized and in-depth. Level III requires candidates to combine topic areas and have the skills to apply this knowledge to real-life situations.

CFA charter holders have unique networking platforms

The CFA Institute offers the program globally, and as a result, there are more than 164,000 CFA charter holders from164 countries. In addition, CFA societies present a unique opportunity for you to network with other CFA charter holders. Additionally, CFA charter holders enjoy higher salary increments compared to non-holders. Having an internationally recognized designation also gives you a better chance of working for global firms with better pay.

If you want to enjoy the benefits of earning a CFA designation, you can start your journey today. Enroll in study packages from Analystprep.com and give yourself the best chance for success. Enrolling in study packages from Analystprep.com will provide additional study resources. We offer practice questions and mock exams to help you identify weak areas that you should improve on.