Top Careers in Equity Research

List of Top 5 Careers in Equity Research

Below are some of the top equity research analyst jobs that a person can look for in his career.

1. Market Research Analyst Job
2. Sector Research Specialist
3. Senior Equity Research Analyst
4. Fund Manager
5. Chief Investment Officer

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Source: Top Careers in Equity Research (wallstreetmojo.com)

Overview of Equity Research Analyst Career

An Analyst working in the equity researchEquity ResearchEquity Research refers to the study of a business, i.e., analyzing a company's financials, performing Ratio Analysis, Financial forecasting in Excel (Financial Modeling), & exploring scenarios to make insightful BUY/HOLD/SELL stock investment recommendations. Moreover, the Equity Research Analysts discuss their findings & details in the Equity Research Reports. read more department is responsible for preparing various valuation research reports and financial modelsFinancial ModelsFinancial modeling refers to the use of excel-based models to reflect a company's projected financial performance. Such models represent the financial situation by taking into account risks and future assumptions, which are critical for making significant decisions in the future, such as raising capital or valuing a business, and interpreting their impact.read more on selected companies under the guidance of the fund managers and the top management. They specialize in a particular sector for researching companies and market trends.

• The buy-sideBuy-sideThe term "buy-side" refers to entities that advise their clients like individual investors and institutional buyers on investments and securities purchases. Private equity firms, mutual fund companies, life insurance companies, unit trusts, hedge fund companies, and pension fund entities are examples of buy-side firms.read more equity research analyst works in-house, i.e., for the company fund managers to take a strategic call on the portfolio based upon the analyst report.
• The Sell-side equity research analyst generally works for the market as a whole and writes valuation reports on companies and sectors, which will benefit the common public by releasing the same on the company’s websites and external platforms.
• Most of the analyst time is spent on building financial models and updating it on a daily basis and writing research reports on the findings to the portfolio managerPortfolio ManagerA Portfolio Manager is an executive responsible for making investment decisions & handle investment portfolios for fulfilling the client’s investment-related objectives. Also, he/she works towards maximizing the benefits & minimizing the potential risks for clients. read more and the investment team for their decision-making process.
• It is one of the core jobs in the financial service sector. It requires a high degree of professional skills to write reports on companies and submit the same to the management.

Hence Equity Research is one of the most crucial departments in the financial services companies to take a buy/sell call on a specific security. Let us now look at the top 5 Equity Research Career Options –

Career #1 – Market Research Analyst

Market Research Analyst – Job Description

Responsibilities	Leading the buy-side and sell-side research for the company and preparing various research reports on the current & future market outlook & trends in the sector for the fund manager to make an informed decision.
Designation	Market Research Analyst
Actual Role	He will study the market as a whole and come out with a report on the opportunities and challenges in the current market and the road map for the days to come.
Top Companies	JP Morgan, Goldman Sachs, Evercore, Citi, Barclays, UBS & RBC
Salary	The median annual salary for a market research analyst as of May 2018 was $ 63,120 as per the bureau of labor statistics of the US (https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm)
Demand & Supply	Demand for research analysts will continue to grow at a faster pace with the advancement in technology & market turmoils. It is a highly-skilled job that requires extensive exposure to the financial markets and the ability to communicate both in reports and in person.
Education Requirement	A bachelor’s degree or CFA an MBA from a reputed college.
Recommended Courses	CFA/ MBA /CPA
Positives	High growth potential in the future with heavy compensation and exciting job profile researching the market as a whole.
Negatives	Long working hours researching various industries/sectors can be a tiring job.

Career #2 – Sector Research Specialist

Sector Research Specialist – Job Description

Responsibilities	Responsible for researching the allotted sector by the fund manager and come up with fact-based research report on the same consolidating information from various sources.
Designation	Sector Research Specialist
Actual Role	Is a sector expert and will exclusively work on that particular sector only.
Top Companies	JP Morgan, Goldman Sachs, Evercore, Citi, Barclays, UBS & RBC
Salary	The median annual salary for a research analyst as of May 2018 was $ 63,120 as per the Bureau of labor statistics of the US (https://www.bls.gov/ooh/business-and-financial/financial-analysts.htm).
Demand & Supply	A high demand profile since it requires extensive experience and knowledge of the allotted sector and the challenges in the same in the future.
Education Requirement	CPA / MBA from Tier -1 Universities with at least 5-10 Yrs of Exp.
Recommended Courses	CPA/ MBA / CFP/ CFA
Positives	Sector focused profile enables the analyst to concentrate on one sector only and gain as much knowledge as possible which will surely help him in a professional career.
Negatives	Focusing on only one sector may leave opportunities in other growing sectors and the profile will be restricted to that sector only which can be a hindrance to the candidate in the long term.

Career #3 – Senior Equity Research Analyst

Senior Equity Research Analyst – Job Description

Responsibilities	Responsible for mentoring the junior analyst team and giving them the required skills and knowledge to perform their duties.
Designation	Senior Equity Research Analyst
Actual Role	Manages the team of analysts and reports the findings along with his opinion and recommendation on the same to the fund manager.
Top Companies	JP Morgan, Goldman Sachs, Evercore, Citi, Barclays, UBS & RBC.
Salary	The median annual salary for a senior research analyst can be anywhere between $1,00,000 to $2,00,000.
Demand & Supply	High demand and low supply due to the technical and practical experience required.
Education Requirement	CFA/CPA / MBA from Tier -1 Universities with at least 5-10 Yrs of Exp.
Recommended Courses	CFA/CPA/ MBA
Positives	Extensive knowledge-gathering because of constant research making the person an expert in the field.
Negatives	Long working hours and has to report in office before market hours.

Career #4 – Fund Manager

Fund Manager – Job Description

Responsibilities	Responsible for buying/selling the stocks in the portfolio as per his understanding.
Designation	Fund Manager
Actual Role	Manage the portfolio of the fund through buying and sell securities in the equity/debt markets.
Top Companies	JP Morgan, Goldman Sachs, Evercore, Citi, Barclays, UBS & RBC.
Salary	The median annual salary for a general manager can be anywhere between $ 2,00,000 – $5,00,000 excluding bonuses.
Demand & Supply	A high-demand profile in the market and highly paid since these are specialized services that require extensive expertise in the field.
Education Requirement	CFA/MBA/IIM/CPA
Recommended Courses	CFA/MBA/IIM/CPA
Positives	Being a fund manager, he interacts directly with the CEO and top management of companies to know their strategy ahead in order to take a call whether to hold or sell the stock.
Negatives	High risk since public money is been invested.

Career #5 – Chief Investment Officer

Chief Investment Officer – Job Description

Responsibilities	To make sure the funds are showing good performances by keeping track of their decisions.
Designation	CIO
Actual Role	Spearhead the research and the fund management division of the company and be the face for the company in the market to the public and the shareholders.
Top Companies	JP Morgan, Goldman Sachs, Evercore, Citi, Barclays, UBS & RBC.
Salary	The median annual salary for the same can be anywhere between $ 5,00,000 to $10,00,000.
Demand & Supply	Highly demanded profile since the CIO is a strategic position in the company to drive the fund performance.
Education Requirement	CFP/CPA / MBA from Tier -1 Universities with at least 20-25 Yrs of Exp.
Recommended Courses	CPA/MBA/CFA
Positives	He is the face of the company in the financial markets and also the official spokesperson on the companies strategies.
Negatives	One wrong investment decision may close down the entire fund and the company in no time.

Recommended Articles

This has been a guide to Careers in Equity Research Analyst. Here we provide the top 5 jobs in Equity Research, which include Market Research Analyst, Fund Manager, etc. You may also have a look at these Finance Career articles below –

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