Equity Research Jobs (Careers)

Equity Research Jobs (Careers)

Equity Research Analysts job includes both sell as well as buy-side firms which typically involves the different brokerage houses present in the market, Non-Banking Financial Corporation’s (NBFC), different securities firms, mutual fund companies, etc.

An equity Research career is all about financial statement analysis, economic analysis, comparable company analysis, valuations, recommendations, investment decisions, research report writing, management interactions, and a lot more. This job fits well for those who enjoy and understand financial modeling, passionate about analyzing companies, have the right attitude in decision making, and meet rigid deadlines.

Equity Research Jobs

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Equity Research Job Criteria and credentials

  • You can either join right after their graduation or after attending an MBA program.  For the bachelor’s degree, specialization in economics, finance, or business would be helpful along with accounting knowledge and good computer skills.
  • Further up, a master’s degree, again in economics, finance, or business, would increase your chances.
  • Many get into equity research spend almost 5-10 years working and then look for an analyst job positions in the industry.
  • Another credential that can be important to crack the equity research jobs is having an internship experience in an investment banking firm, which would prove your interest and inclination towards an equity research career.
  • Apart from this, CFA  is one such credential that could provide you with a good base to get into equity research. This CFA credential can prove useful if you clear the three levels of the CFA examination, meet the educational and work experience rule the institute specifies. Check out the CFA Dates and Schedules

Have a look at the below screenshot to know the criteria specified by the equity research firmEquity Research FirmThe list of top 10 equity research firms in the world comprise: JP Morgan Chases and Co, Bank of America Merrill Lynch, Credit Suisse, Barclays Capital, Citigroup, Goldman Sachs, Morgan Stanley, AllianceBernstein L.P.,UBS, and Nomura Holding Inc.read more/division in an equity research job opening for the position of associate and analyst.

Equity Research Associate Job

Below is a snapshot of an equity research associate job opening

Equity Research Associate Criteria

Equity Research Analyst Job

Below is a snapshot of an equity research analyst job opening

Equity Research Analyst Criteria

The good side of the equity research

The evil side of the equity research

  • In not so good economic conditions getting a job in this field becomes difficult as there is tough competition and job positions are also less.
  • The industry is fast-paced; hence the great work done by you would get irrelevant quickly. Also, because of this, you might feel that you are not appreciated enough for the hard work you put in.
  • The working hour is comparatively longer than the routine corporate finance jobs and is majorly a deskbound job.
  • You will have to face work pressure not only from your company but your clients as well.

What is expected from you at equity research jobs?

Let’s summarize the key accountabilities of an equity research analyst career;

  • To make the quarterly updates.
  • To write event updates.
  • Updating the sales, dealing, and trading team about the latest events  in the sector/company
  • To build investment ideas/views that are distinctive in the market.
  • To bring the maximum number of companies under coverage in the sector, he/she track over a period of time.

Hierarchy and roles

The structure of the equity research jobs is where you would have one head person who would generally make the decisions, and others follow them.

Listed below is the equity research job hierarchy that can be found in an equity research division of an investment bankEquity Research Division Of An Investment BankEquity 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. However, it might not get as hierarchical as the one discussed here. Many times it is restricted only to associate and analyst and the vice president position.

Associate

Inequity research jobs, the associate position is for those who are fresh graduates right from college. Their academic credentials would be given due weight-age and also intern-ship experience, if any. Typically a candidate with 1-2 years of work experience or someone who has cleared CFA level 1CFA Level 1The CFA exam is regarded as one of the most difficult to crack. Your preparation, time management, and sequence plays will all play an important role in your journey.read more or 2 would be recruited for this position. It is like a starting point where you would learn about the companies that are covered by your boss or the team you are part of.

Role:
  • Your role revolves around updating the earnings model, industry models using spreadsheets, and database software such as Excel and Access.
  • You will have to summarize news and recent developments that can affect the valuation of the companies.
  • You need to script research notes on company news and earnings regularly.
  • You would have to prepare a quarterly earnings report, which is one of the critical research reports.
  • You would be involved in conversations with clients once your manager feels that you are comfortable with the work.
  • Discuss deals with clients and try to build a reputation by performing well on behalf of your team
  • After spending a few years as an associate, you would be promoted to the next level in line, the Analyst.

Analyst

This equity research career position can be achieved depending upon how quickly you are able to get hold of the companies under study, discussing the industry of the stock that you have analyzed, your way of communicating ideas, and give formal presentations. To become an analyst, you would need an advanced degree in business administration and prior work experience as an associate.

Role:
  • You would be allotted a set of companies/industries to work upon and be responsible for their research.
  • As an analyst, you would have to maintain relations with clients, company management, and other industry experts. You would discuss the expected changes in the industry that could affect the stock prices of the companies you are covering.
  • You would have to monitor trends in particular industries, conduct research on those industries and recommend a buy/sell/hold recommendation on the stock. Such research, of course, has to be backed up by reliable research.

Senior analyst

After having served as an associate or an analyst, the next position equity research career progression is that of a senior analyst. As a senior analyst, you would be an expert on specific industries such as consumer goods, automobile manufacturing, pharmaceuticals, etc. The senior analyst level positions would need at least 5 years of work experience, MBA or finance based degree from a reputed college or the CFA charter. Useful comparison – CFA or MBA

Role:

Who provides you with equity research jobs?

Equity research is used in many areas. Primarily, these are the companies that need Research Analysts:

Below is an exhibit of the job description.

Equity Research Job Description

Work culture in Equity Research Career

Equity research Salary

You could expect an equity research career as financially rewarding. The salary would increase with good experience and credentials. Your salary would include an element of annual bonus based on your performance. The bonus is small at the start, but as you are established, and work gets published, the bonus can be a pretty hefty figure.

Below is the excerpt from the Financial-Salary-Guide-2014 by Robert half. It shows the average salary for financial analysts, which include equity research careers.

Equity Research Salary

Quality of work

Exit Opportunities

You may have to work as an associate for 3-4 years and then work as an analyst for several other years before getting promoted.

The below picture explains the exit options/career paths one has after being a sell-side research analyst.

Equity Research Exit Opportunities

Tips for making an Equity Research Career

This article has been a guide to Equity Research Jobs. Here we discuss Equity Research careers of Associates and Analysts, along with the skills and the core criteria required to get hired. Additionally, we discuss the salaries, work culture, good and bad about an equity research career. You may also have a look at these articles below to learn more about Equity Research –