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Nism Ra 15 - Chapter 1a

The primary role of a research analyst is to help investors make informed investment decisions by collecting and analyzing data. As investors do not have the time to do in-depth research themselves, they hire registered research analysts. Analysts collect micro and macroeconomic data, conduct industry and company analysis, and use both qualitative and quantitative factors to evaluate companies. There are three main types of research analysts: sell-side analysts who work for brokerages and banks, buy-side analysts who conduct research for asset management firms, and independent analysts who sell subscriptions to their research reports.

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122 views3 pages

Nism Ra 15 - Chapter 1a

The primary role of a research analyst is to help investors make informed investment decisions by collecting and analyzing data. As investors do not have the time to do in-depth research themselves, they hire registered research analysts. Analysts collect micro and macroeconomic data, conduct industry and company analysis, and use both qualitative and quantitative factors to evaluate companies. There are three main types of research analysts: sell-side analysts who work for brokerages and banks, buy-side analysts who conduct research for asset management firms, and independent analysts who sell subscriptions to their research reports.

Uploaded by

rex031162
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Parth Verma I The Valuation School

NISM XV
Chapter 1
Introduction to Research Analyst Profession

Learning objectives
• Primary role of Research Analyst 7 Companies
• Basic Principle of interaction of research Analyst S Clients

• Qualities of Research Analyst

1.1 PRIMARY ROLE OF RESEARCH ANALYST


They don't have time
-
• Investors/ Clients wants to invest in Stock market BUT
- They are not in stock
market as full time

• So they hire SEBI Registered Research Analyst to help them in their Investment
Decision.

• Research is a time consuming process.


For example:
While buying a smartphone,
• Research Analyst(RA) collects data/information about
you research about
• camera
1. Micro and Macro economics. • Brands
S -> • Price range
small ( Individual unit) Big ( Aggregate means total) • Battery ,etc

Example: Example:
• Individual customer behaviour • whole economy (GDP)
• Individual sector /market etc. • Inflation
• Employment/ Unemployment etc.

2. Industry Analysis related to your selected company on which research is to be done.


3. Company information about management and decisions and other factors.
• Economic information or data from Government Statistics/ Data provided
by RBI
local information

• For global data, - International Monetary Fund (IMF)


- Asian Development Bank (ADB)
- World Bank.

• For company specific data, - Annual Report (AR)


- Quarterly Result
- DRHP etc.

Analysis & Decision making Process = Qualitative + Quantitative factors.

Management Quality
( ethical Company's performance in terms of
' perspective)
profit,revenue,cash,etc l

• That's why it's for RA's important to interact with your company.

• Types of Research Analyst :

Sell side Analyst. Buy side Analyst Independent RA

Parth Verma The Valuation School


Parth Verma I The Valuation School

A. Sell Side Analyst. B. Buy Side Analyst


• publically available • For own investment
• Specific recommendation to buy,sell and hold. • Example:
• Income through brokerage Mutual fund
• Example : Investment Banks, Brokers. Pension fund, etc

Not for own investment Generation of brokerage

Asset Mang Company


(fund manager) has a
Angel Broking Demat team of

&
1

&
T

Research Analyst
Publish a
Research Report

Client buy/ sell stocks by Research on particular


Research Report. stock / security
X S

Now the company can act upon the result


of the research to buy,sell and hold for
their own on behalf of their clients.

C. Independent Research Analyst

+ Full time RA / Boutique firms +. No brokerage ( like sell side )


·
+ sell their research on subscriptions
e+. No own benefits / Investment
basis ( may be monthly, annually, (like buy side)
quarterly, etc) +. They also provide customised
⑲

+. Anyone can be a client


⑲ reports.
# Investor
# Institution , etc.

Apart from above 3 categories : -


Newspaper ,media, Tv also provide research report.

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