Getting to know the different types of Financial Analysts
If you are an investor and you would like to invest on a certain business enterprise, chances are you will need a financial analyst to provide you essential information needed to gauge the attractiveness of a certain investment. Doing it on your own is such a daunting task. It is indeed better to hire a professional who specializes on this field of work. This has also resulted to an increase in the demand for financial analysts, thus giving more job options for people who are unfortunately battling career crisis. To be a legit financial analyst, one must undergo certification such as the one for Chartered Financial Analysts or CFA.
After obtaining certification, you have the option to specialize on these three types of financial analyst:
(a) Buy-side: work for large investment firms such as hedge funds, mutual funds or insurance companies. These analysts are offering securities found in employer’s accounts. They focus their research on specific securities or sectors that are of interest to the investment firm. Reports produced by buy-side analysts are strictly for internal use.
(b) Sell-side: are employed by dealers/brokers and investment banks as they are a part of the retail investment division. Their recommendations play a critical role in selling investments and typically offered free of charge to clients. Reports that they produced are more detailed than the ones created by buy-side analysts.
c) Independent: are not employed with any brokerage firm or fund company. They aim to provide fair and objective ratings to clients.
If in any case you are looking for a big switch in your career, then take time to evaluate the roles of each type of financial analyst and in time, you will surely find your niche.
by Korbin Howard