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
Careers in Equity Research

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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.

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

Who is a Market Research Analyst?

Market Research Analysts are employed by the financial services firm to do the required research of the market or any specific industry that will help the fund managers in their decision making.

Market Research Analyst – Job Description
ResponsibilitiesLeading 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.
DesignationMarket Research Analyst
Actual RoleHe 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 CompaniesJP Morgan, Goldman Sachs, Evercore, Citi, Barclays, UBS & RBC
SalaryThe 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 & SupplyDemand 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 RequirementA bachelor’s degree or CFA an MBA from a reputed college.
Recommended CoursesCFA/ MBA /CPA
PositivesHigh growth potential in the future with heavy compensation and exciting job profile researching the market as a whole.
NegativesLong working hours researching various industries/sectors can be a tiring job.

Career #2 – Sector Research Specialist

Who is a Sector Research Specialist?

Sector Research Specialist focus only on specific sectors in the industry and generate quality reports on their developments.

Sector Research Specialist – Job Description
ResponsibilitiesResponsible 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.
DesignationSector Research Specialist
Actual RoleIs a sector expert and will exclusively work on that particular sector only.
Top CompaniesJP Morgan, Goldman Sachs, Evercore, Citi, Barclays, UBS & RBC
SalaryThe 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 & SupplyA high demand profile since it requires extensive experience and knowledge of the allotted sector and the challenges in the same in the future.
Education RequirementCPA / MBA from Tier -1 Universities with at least 5-10 Yrs of Exp.
Recommended CoursesCPA/ MBA / CFP/ CFA
PositivesSector 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.
NegativesFocusing 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
ResponsibilitiesResponsible for mentoring the junior analyst team and giving them the required skills and knowledge to perform their duties.
DesignationSenior Equity Research Analyst
Actual RoleManages the team of analysts and reports the findings along with his opinion and recommendation on the same to the fund manager.
Top CompaniesJP Morgan, Goldman Sachs, Evercore, Citi, Barclays, UBS & RBC.
SalaryThe median annual salary for a senior research analyst can be anywhere between $1,00,000 to $2,00,000.
Demand & SupplyHigh demand and low supply due to the technical and practical experience required.
Education RequirementCFA/CPA / MBA from Tier -1 Universities with at least 5-10 Yrs of Exp.
Recommended CoursesCFA/CPA/ MBA
PositivesExtensive knowledge-gathering because of constant research making the person an expert in the field.
NegativesLong working hours and has to report in office before market hours.

Career #4 – Fund Manager

Who is a Fund Manager?

Fund Manager manages the fund in the company on behalf of the Investors.

Fund Manager – Job Description
ResponsibilitiesResponsible for buying/selling the stocks in the portfolio as per his understanding.
DesignationFund Manager
Actual RoleManage the portfolio of the fund through buying and sell securities in the equity/debt markets.
Top CompaniesJP Morgan, Goldman Sachs, Evercore, Citi, Barclays, UBS & RBC.
SalaryThe median annual salary for a general manager can be anywhere between $ 2,00,000 – $5,00,000 excluding bonuses.
Demand & SupplyA high-demand profile in the market and highly paid since these are specialized services that require extensive expertise in the field.
Education RequirementCFA/MBA/IIM/CPA
Recommended CoursesCFA/MBA/IIM/CPA
PositivesBeing 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.
NegativesHigh risk since public money is been invested.

Career #5 – Chief Investment Officer

Who is a Chief Investment Officer?

Chief Investment Officer leads the equity team in the financial services company and manages the fund managers as well.

Chief Investment Officer – Job Description
ResponsibilitiesTo make sure the funds are showing good performances by keeping track of their decisions.
DesignationCIO
Actual RoleSpearhead 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 CompaniesJP Morgan, Goldman Sachs, Evercore, Citi, Barclays, UBS & RBC.
SalaryThe median annual salary for the same can be anywhere between $ 5,00,000 to $10,00,000.
Demand & SupplyHighly demanded profile since the CIO is a strategic position in the company to drive the fund performance.
Education RequirementCFP/CPA / MBA from Tier -1 Universities with at least 20-25 Yrs of Exp.
Recommended CoursesCPA/MBA/CFA
PositivesHe is the face of the company in the financial markets and also the official spokesperson on the companies strategies.
NegativesOne wrong investment decision may close down the entire fund and the company in no time.

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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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