Financial analysts collect and analyze data but always within the context of a prior deductive understanding of how markets should function. Their thinking is systemic and, particularly at more senior levels, subjective. Give a research analyst a series of inputs, and they can calculate the most efficient way to maximize output. If the research analyst works in the securities business, it’s likely that recommendations may be made based on some predetermined criteria.
Companies that employ research analysts sometimes require a master’s degree in finance or a chartered financial analyst (CFA) designation on top of several regulatory hurdles. Research analysts might be required to take the Series 86/87 exams if they are involved with a member organization. A research analyst is responsible for researching, analyzing, interpreting, and presenting data related to markets, operations, finance/accounting, economics, customers, and other information related to the field they work in. A research analyst is typically very quantitative, analytical, logical, and good at managing numbers and data. This guide will break down the main aspects of being an analyst in different industries, with a focus on the finance industry. Advancements in technology, especially in data collection, storage, and analysis tools, have made data more accessible and easier to analyze.
Certifications are a great way to pick up new skills while proving your proficiency. Certifications look amazing on a research analyst resume, enabling you to impress your future employer and land jobs with better salaries. An organization’s ability to make data-driven decisions that can boost performance and help them reach their objectives depends heavily on the work of research analysts.
Additional qualifications, such as relevant certifications or courses in data analysis, statistics, or the specific industry of interest, can facilitate this transition. Professionals who have advanced research skills, such as extensive knowledge of fundamental analysis, can pursue opportunities in all sectors of the investment industry. Certain fields, such as healthcare, finance, and technology, demand particularly strongly for Research Analysts. For instance, the healthcare industry requires analysts to interpret patient care, treatment outcomes, and operational efficiency data. At the same time, the finance sector relies on analysts for market trends, investment opportunities, and risk management.
Decision makers hire research analysts to do the research for which they don’t have the time and expertise. Accurate knowledge of a situation, a market, an issue, or a social context is often crucial to assessing a project’s parameters, precise goals, or likely chance of success. It’s the analyst’s job to understand the context clearly and completely enough to present it to stakeholders who will shape the final project.
Learn from Industry Experts with free Masterclasses
These might include internal databases, historical sources, and consumer reports. They also validate the accuracy of the data to provide meaningful and credible information. Market research analyst jobs involve studying market conditions to determine potential sales of a product or service.
Several education paths and schools can set you on a path to becoming a research analyst. The best education program for these professionals is a bachelor’s degree. Communication skills are essential when presenting and interpreting the findings from data collection and analysis.
Become a Data Science & Business Analytics Professional
Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI’s full course catalog and accredited Certification Programs. Take your learning and productivity to the next level with our Premium Templates. Access and download collection of free Templates to help power your productivity and performance.
- According to Glassdoor, the average base salary for a research analyst is $90,838, ranging anywhere between $68,000 and $125,000.
- Companies that employ research analysts sometimes require a master’s degree in finance or a chartered financial analyst (CFA) designation on top of several regulatory hurdles.
- This article discusses the key responsibilities and skills required for success as a research analyst, as well as the tools and techniques commonly used in research analysis.
What are some common challenges faced by Research Analysts?
Presenting data is often done through reports and presentations, which provide insights. The purpose of a typical what is research analyst report is to interpret data and explain it to stakeholders from a business perspective. Research analysts use statistical and mathematical modeling to derive patterns that may reveal business opportunities. These professionals must conduct research, which involves evaluating data from various sources.
Can you transition into a research analyst role from a different field?
Most of these professionals work in management, finance, insurance, and wholesale trade companies. Using statistical and other analytical tools, you’ll transform the raw data into meaningful information that can be easily understood by others. You’ll be responsible for creating reports and presentations that present your findings and recommendations to stakeholders, which may include executives or policymakers.
A research analyst is a professional who collects, analyzes, and interprets information from various sources, such as surveys, reports, databases, or interviews, to answer specific questions or solve problems. In this article, you will learn more about what a research analyst does, what skills and qualifications are required, and what types of industries and projects they can work on. According to Glassdoor, the average base salary for a research analyst is $90,838, ranging anywhere between $68,000 and $125,000.
To be a successful research analyst, you need to have strong research skills, such as finding relevant and reliable sources, designing and conducting surveys or experiments, and applying appropriate methods and tools to analyze data. You also need to have critical thinking and problem-solving skills, as you will have to interpret the results, identify patterns and trends, and draw conclusions and recommendations. Additionally, you need to have communication and presentation skills, as you will have to report and explain your findings to various audiences, such as clients, managers, or stakeholders, using clear and concise language, charts, graphs, or tables. Depending on the specific field or industry you want to work in, you may also need to have some domain knowledge, such as finance, marketing, health, or education, and some technical skills, such as using software like Excel, SPSS, R, or Python. Research analysts are finance professionals who analyze securities data to make recommendations to their own firms or outside clients.
Apart from increased demand, pursuing a career in this field means you can enjoy reasonably high salaries, better than the national average. Here are more reasons why you should consider a career as a research analyst. There are many reasons why you should explore how to become a research analyst. For instance, these professionals are paid well above the national average. The demand for professionals offering related services is also expected to increase over the next decade. Analysts are increasingly turning to online training programs such as CFI’s to master the practical, hands-on skills they need for professional success.
