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NISM Certifications · NISM-Series-XV: Research Analyst · Introduction to Research Analyst Profession

Which of the following best describes the main difference between a research analyst and an investment adviser in India?

A research analyst prepares and publishes research and recommendations on securities, while an investment adviser gives personalised advice based on a client's risk profile and goals. They are governed by separate SEBI regulations, and the roles differ in tailoring of advice rather than in executing trades.

  1. AA research analyst gives personalised advice on a client's portfolio, whereas an investment adviser only publishes general reports
  2. BA research analyst prepares and publishes research reports and recommendations on securities, whereas an investment adviser gives personalised investment advice based on the client's profileCorrect
  3. CBoth are the same and are registered under the same regulations
  4. DA research analyst may execute trades for clients, whereas an investment adviser cannot

Explanation

Research analysts produce research reports or recommendations on securities, generally not tailored to an individual's risk profile. Investment advisers give personalised advice after profiling the client. Each is governed by separate SEBI regulations, and neither is the role that executes client trades.

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