Major Difference Between Sell-Side and Buy-Side Career Paths

While the research analyst work is often seen in the investment domain, the responsibilities of a research analyst may vary significantly. Since both buy-side and sell-side research services include spending time in researching industries and companies, the type of the job and research conducted differ considerably.

Both buy-side and sell-side careers can be lucrative and rewarding, but the right thing to do for you is to explore and depend on what you think is vital for your finance job. So, lets us find out which career path will be perfect for you.

Job Tasks

There is no major difference between the tasks at the beginning of the career, but once individuals move up in the ranks, one can see a clear difference. On sell-side, the functions are focused on financial modeling and analysis and also include report and investment opinion writing. Buy-side jobs differ widely as individual move up. For instance, investment bankers receive more opportunities to work on acquisitions, mergers, and other deals.

On the other hand, the rising popularity of Financial Modeling and Analysis services is making aspirants go for sell-side jobs.

Work-life Balance

If this aspect is vital to you, a sell-side career will be a better fit. While both sides need hard work and time, a sell-side job has more phases to calm. Burnout is one of the reasons that people on the buy-side leave the industry, but it’s less common on the sell-side.

Recognition

Sell-side gives you more opportunities for recognition at the beginning of your career than the buy-side. Seeing your name on research reports is an awesome feeling that helps you build a stronger name for you as these reports are publicly distributed clients and media outlets. Once you become a senior in the sell-side, you have higher chances to become a go-to expert in your profession.

On the buy-side, the opportunity for recognition is less, especially at the beginning of the career. However, as you climb the ladder in your field, there are chances of receiving visibility later.

Opportunities for Advancement

There is an equal demand for both sell-side and buy-side research services. However, buy-side jobs have a clearer path with specific timeframes. On the buy-side, the way often leads you to be an analyst, associate, director, managing director, or VP.

The sell-side career path takes you towards becoming an associate, analyst, senior analyst, and research director.

So, these are the pros and cons of these two fields in the financial industry. If you want to know more about sell-side and buy-side research, you can speak to our experts at Penterra Analytics.