NISM Certifications · NISM-Series-XV: Research Analyst
Fundamentals of Research for NISM-Series-XV Research Analyst
Fundamentals of Research is the NISM-Series-XV chapter that explains what research analysts do, the types of research, the research process, data sources, basic economic and industry analysis, and market efficiency. Learn the definitions and distinctions first, then practise MCQs that test which term or step fits a given situation.
What this chapter covers
This chapter is the base of the Research Analyst paper. It explains who a research analyst is, what kinds of research exist, how a research report is built, and where the data comes from. It also introduces market efficiency and core investment ideas that later chapters use.
Think of it as the vocabulary and method chapter. Later chapters on Economic Analysis, Industry Analysis, Company Analysis, Valuation Principles and Technical Analysis go deep into the techniques. This chapter tells you where each technique fits in the overall process.
The questions are mostly definition and distinction based. You may be asked to tell fundamental from technical analysis, top-down from bottom-up, primary from secondary data, or to identify the correct step in the research process. Precise wording matters more than calculation here.
The chapter carries 5 marks in the revised NISM-Series-XV exam, which is modest, but the marks are among the easiest to secure because the content is conceptual and needs little calculation. The same ideas also support questions in Economic Analysis, Industry Analysis, Valuation and Risk and Return, so weak basics here cost you marks elsewhere. With 25% negative marking on wrong answers, clear definitions help you avoid guesses on questions you should know.
Fundamentals of Research: topics in the order to study them
- 1Role and Types of Research AnalystsStart with who the analyst is and what the role covers, so every later topic has context.
- 2Types of Securities Research and AnalysisLearn the main classifications of research (for example fundamental and technical, top-down and bottom-up) before studying the process that uses them.
- 3Research Process and Report StructureOnce you know the types, learn the sequence of steps and how a report is organised.
- 4Sources of Data and Information for ResearchData feeds each step of the process, so study sources next, including primary versus secondary and reliability.
- 5Economic and Industry Analysis BasicsThis is a preview of the top-down approach and prepares you for the full chapters on Economic and Industry Analysis.
- 6Market Efficiency and Investment ConceptsFinish with the theory that questions the value of research, which is easier to grasp once you know how research is done.
How to prepare Fundamentals of Research
This chapter rewards clear definitions and sharp distinctions. Study it in short sessions and test yourself often.
- Read the topics in the order given and write a one-line definition for every new term.
- Build comparison lists for paired ideas, such as fundamental versus technical, top-down versus bottom-up, and primary versus secondary data.
- Write the research process steps in order from memory until you can do it without looking.
- Link each data source to the kind of information it gives, and note which is more reliable or timelier.
- Learn the forms of market efficiency with what information each one reflects, and the implication for research.
- Practise MCQs topic by topic. For every wrong answer, note which word in the option misled you.
- Revisit the Legal and Regulatory chapter alongside this one, since analyst conduct links to the role of the analyst.
Common mistakes in Fundamentals of Research
Mixing up fundamental and technical analysis
Fix: Tie each to its input: fundamental uses business, financial and economic data; technical uses price and volume history.
Confusing top-down with bottom-up
Fix: Remember the first step: top-down begins with the economy, bottom-up begins with the company.
Mixing up the levels of market efficiency
Fix: Attach one information set to each form: past prices, all public information, all information including private.
Treating primary and secondary data as a quality ranking
Fix: Treat the terms as describing how data is collected, not how good it is. Judge data by reliability, timeliness and relevance.
Guessing when unsure of a definition
Fix: Eliminate options that overstate with words like always or never, and skip if two options remain with no basis, given the negative marking.
Last-day revision: Fundamentals of Research
- Know the difference between fundamental analysis (intrinsic value from business and economy) and technical analysis (price and volume patterns).
- Top-down starts with economy, then industry, then company. Bottom-up starts with the company.
- Primary data is collected first-hand. Secondary data is already published by others.
- The research process moves in a logical order from defining the objective to collecting data, analysing, forming a view and reporting.
- A research report should be clear, supported by data and state its assumptions and risks.
- Check the date and source of any data before relying on it.
- Weak-form efficiency: prices reflect past price information.
- Semi-strong form: prices reflect all public information.
- Strong form: prices reflect all information, including private.
- If markets are efficient, consistently beating the market through analysis is hard.
- Read each option fully. Two options often differ by a single word.
Fundamentals of Research practice questions
- A research analyst studies the share price of an Indian company over 10 years and finds that its returns are best explained by a few large o…
- An analyst builds three scenarios for a stock's value: Rs 600 in the bull case with probability 0.25, Rs 480 in the base case with probabili…
- An analyst uses 5 years of a company's reported sales to estimate next year's sales by fitting a straight line to the past data. Which type …
- A research analyst compares the reported net profit of Company A with the average of the same item for 10 listed peers to judge relative per…
- An analyst studies the revenue of an Indian firm using 12 consecutive quarterly values and calculates the average of the most recent 4 quart…
- Which of the following is a limitation of using a simple average of past growth rates rather than a geometric mean to describe multi-year in…
- Over four years, a company's revenue grew from Rs 100 crore to Rs 146.41 crore, growing by the same percentage every year. An analyst comput…
- An analyst compares the research data collected directly through a management interview with figures taken from the company's annual report.…
Fundamentals of Research in other exams
The same ground in other exams, if you are preparing for more than one or want another angle on it.
Fundamentals of Research: frequently asked questions
How many marks does Fundamentals of Research carry in NISM-Series-XV?
It carries 5 marks in the revised exam that applies from 20 January 2026. The paper has 100 marks in total, with 2 hours to answer.
Is this chapter calculation based?
No. It is mostly conceptual and definition based. You need to know terms, types, steps and distinctions rather than formulas.
Is there negative marking in the Research Analyst exam?
Yes. A wrong answer costs 25% of the marks assigned to that question. The pass mark is 60%.
How should I study this chapter if I am short of time?
Focus on the distinctions: fundamental versus technical, top-down versus bottom-up, primary versus secondary data, and the forms of market efficiency. Then practise MCQs on the research process and report structure.