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The equity research process is divided into the below-mentioned stages to analyze a company and provide a recommendation.
Company Profile: Understanding the business model of the company and the quality of the top management in making strategic decisions.
Financial Analysis: It refers to the analysis of the financial information of the company and studying the impact of the ratios on prospects.
Sector Research: It refers to the sector level analysis in which the companies operate to have an understanding of the positioning of the company as compared to their peers.
Economic Analysis: It refers to the economic analysis regarding 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 to 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.
The median annual salary for a research analyst as of May 2018 was $ 63,120 as per the 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 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
Who is a Sector Research Specialist?
Sector Research Specialists 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.
The median annual salary for a research analyst as of May 2018 was $ 63,120 as per the bureau of labor statistics of 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
Long working hours researching various industries/sectors can be a tiring job. 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. Long working hours researching various industries/sectors can be a tiring job.
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. the candidate in the long term. Long working hours researching various industries/sectors can be a tiring job.
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.
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.
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.
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 an equity research career, including 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 –
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