List of Top 5 Careers in Equity Research
Below are some of the top Equity Research jobs that you can look for in your career.
- Market Research Analyst
- Sector Research Specialist
- Senior Equity Research Analyst
- Fund Manager
- Chief Investment Officer
Equity Research Career Overview
Equity research refers to the in-depth analysis of the companies in order to provide relevant data and valuation information to the investors, traders, fund managers to plan their strategies for the investments. Equity research job helps in studying the company and its financials in detail so that the investors can be serviced by providing them with the relevant information about the buy/sell/hold call.
- It is divided into buy-side and sell-side equity research firms.
- Buy-Side: In buy-side, there is an in-house equity research team that advises the investment team on the buy-sell strategies on the selected stocks in the portfolio.
- Sell-Side: In sell-side, there are various companies that provide Research Services for their HNI or institutional investors to make an informed decision.
- The equity research process is been divided into the below-mentioned stages in order to analyze a company and provide a recommendation on the same.
- Company Profile: Understanding the business model of the company and the quality of the top management in taking strategic decisions.
- Financial Analysis: It refers to the analysis of the financial information of the company and studying the impact of the ratios on future prospects.
- Sector Research: It refers to the sector level analysis in which the companies operate in order to have an understanding of the positioning of the company as compared to their peers.
- Economic Analysis: It refers to the economic analysis with regards to the macro-level research on infrastructure and other relevant criteria for the company to progress.
- Equity research professionals are employed by stock broking houses, investment banks, credit rating agencies, banks, KPOS, venture capitalist firms.
Career #1 – Market Research Analyst
Who is a Market Research Analyst?
Market Research Analyst is 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 | |
|---|---|
| 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 research analyst as of May 2018 was $ 63,120 as per bureau of labor statistics of us (https://www.bls.gov) |
| 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 ability to communicate both in reports and in person. |
| Education Requirement | A bachelors 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
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 | |
|---|---|
| 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 | This 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 bureau of labor statistics of the US (https://www.bls.gov). |
| 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
Who is a Senior Equity Research Analyst?
Senior Equity Research Analyst leads the research team and the junior 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 expert in the field. |
| Negatives | Long 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 | |
|---|---|
| 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 selling securities in the equity/debt markets. |
| Job Statistics | The bureau of labor statistics of us does not display data on this role. |
| 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 which 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
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 | |
|---|---|
| Responsibilities | To make sure the funds are showing good performances by keeping track on 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 Equity Research Careers. Here we provide the list of top 5 job roles in equity research career which include Market Research Analyst, Sector Research Specialist, Senior Equity Research Analyst, Fund Manager, and Chief Investment Officer. You may also have a look at these finance career articles below –
