Your Guide To Jobs In Equity Research Is Right Here!
Are you willing to start your career in equity research?
Are you looking for Jobs In Equity Research?
If yes, we have curated some great information for you here. Equity research is picking up the pace, and the number of people required is way high. Being one of the most important fields in finance, it has given immense opportunities to the freshers to explore better career opportunities and for the existing staff to upskill and get better opportunities.
In one of our previous articles, we discussed the equity research career and various aspects that one should know while planning to start a career in the field. In this section, we will introduce you to the top profiles that are available when you are looking for jobs in equity research.
But before we explore the top equity research jobs, let us find out the typical job criteria and credentials you should have.
Equity Research Job Criteria And Credentials
Financial statement analysis, economic analysis, similar company analysis, valuations, recommendations, investment decisions, research report writing, management interactions, and so on are all part of an Equity Research career. This profession is ideal for people who appreciate and understand financial modeling, are enthusiastic about company analysis, have a good decision-making mindset, and can meet strict deadlines.
Now, once you have decided to start your career in the equity research and look for the potential jobs, you should know the following criteria:
- The basic credential that you should have is a degree in finance. It can be MBA or CFA. Having the CFA will offer you leverage over the others.
- Completing graduation in economics, finance, or business would be helpful, along with accounting knowledge and good computer skills.
- You will get an entry-level job as an equity research associate if you are a fresher.
- For those starting, an internship in the investment banking or linked field can offer you the much-needed leverage to position yourself as a better person.
- For those seeking growth as an equity research analyst, you will be required a work experience of 5-10 years before getting promoted.
So, now you know the basic criteria and requirements, let us find out what job profiles are available for you here.
Equity Research Jobs
Do you have the criteria list checked? Are you ready for the equity analyst courses? If so, here are the top job profiles that you will get a chance to work on:
1] Equity Research Associate
This is the starting point of your career when you are willing to start as an equity research analyst job. This position is offered to those who have completed their graduation, post-graduation or have completed the CFA level 1 or 2. At this point, you would work with a team of analysts and will learn the basics required to ensure that you are working positively in the competitive environment. The main roles that you would play in this position include the following:
- Using spreadsheets and database applications such as Excel and Access to update the earnings and industry models.
- Summarize current news and events that may impact the company’s valuation.
- Scripted research notes on corporate news and earnings regularly.
- One of the most important research papers is a quarterly earnings report.
- Once your manager has determined that you are comfortable with the work, you will be involved in client conversations.
- Discuss negotiations with clients and strive to earn a good reputation for your team by performing successfully.
- You would be promoted to the next level in line, the Analyst, after a few years as an associate.
2] Equity Research Analyst
The next profile on the list is the equity research analyst position. This one is gained when you have worked for at least a couple of years as an equity research associate. To reach this position, you can always take the help of the certificate courses in equity research. These will help you upskill and move ahead with your dream job in a fast-paced manner. Better communication, stock trading skills, and a better understanding of responsibilities are important. The roles that you would be required to accomplish at this position include the following:
- You’ll be assigned a group of companies/industries to research and will be responsible for their findings.
- As an analyst, you’d have to maintain relationships with clients, corporate management, and other industry professionals.
- You’d talk about projected industry changes that might affect the stock prices of the companies you’re covering.
- You’d have to keep an eye on developments in specific industries, undertake research, and make a buy/sell/hold recommendation on the stock.
3] Senior Equity Research Analyst
This can be considered a position in the top management that can help you reach the pinnacle of your equity research analyst career. You’d be an expert on specific industries as a senior analyst, such as consumer products(FMCG), automobile production, pharmaceutical, etc. At least five years of work experience, an MBA or finance-related degree from a reputable college, or the CFA charter are required for senior analyst roles. The main roles that you would play in this position include the following:
- Analyze the operations and earnings of organizations under investigation in a specific industry.
- You’d work as a buy-side analyst for hedge funds, mutual funds, or investment management firms, producing research. “Buy-side” refers to clients purchasing assets and formulating investment plans.
- As a sell-side analyst, you would work for investment banks, where salespeople use their research to advise individual and institutional clients on investments. See the key differences between sell-side and buy-side trading.
4] Trading Analyst
Though this is not a job profile known to many, you cannot deny the importance and need of the same. The function of certain equities research analysts is to handle high-net-worth individuals’ private portfolios. This means that you manage the personal investments of one or more wealthy individuals. Because you have a lot of freedom regarding the quantity of work you wish to take on, this may be preferable to other exit possibilities. Instead of being a salaried employee, you can run your own business. The role includes:
- Offering better financial management plans to avoid losses
- Assisting the client in investing and growing funds.
- Work with the companies to develop and devise plans to manage funds.
- Develop mechanisms or detailed plans that you can share with investors of the same grade.
5] Fund Manager
Another common profile that is available when you plan to start your career as an equity research analyst is a fund manager. Now, as the fund manager, the main role is to assist the clientele in properly investing the funds. The segment caters to both the companies as well as individual investors who are looking forwards to expanding their wealth by way of properly investing their capital. The roles that you can get in this line include private fund manager, wealth manager, and mutual fund manager. The main role of the fund manager includes the following responsibilities:
- Managing the funds and investing them to ensure better returns.
- Guiding the clients with the proper management of the funds.
- Offering portfolio designs that can help the investors to invest as per risk appetite.
- Allowing the companies to have better utilization of funds by diversification.
6] Corporate Roles
The last role that you can end up as an equity research analyst in the corporate role. These roles are available with multiple financial institutions and can help you upskill and grow immensely. You could, for example, be part of a company’s investor relations team, which is in charge of dealing with investors, including stock research analysts. You may prove to be a useful asset to a company operating in that industry, and you will be compensated accordingly, depending on your sector experience.
Type Of Companies Hiring Equity Research Analysts
The truth is that numerous organizations are looking for the equity research analyst’s role. The candidates now can participate in the recruitment process and start their careers with ease in all these organizations. The top list of the organizations includes the following:
- Stock Brokerage
- Accounting firms
- Mutual Funds
- PE firms
- Credit Rating Firms
- Media Companies
- Venture Capital Firms
- DataBase Firms
- Technology-Based Firms
Sample Job Descriptions Equity Research Analysts
The equity analyst job profile is fascinating. But what would you be required to do as an equity research analyst? What is the typical job description for the equity research analyst, and what does it look like?
Well, the fact is, the job description is quite simple and similar to the roles described above. The only change you will find will be based on the organization you are recruited. Before describing the job descriptions, let us look at the key responsibilities in a summary format here.
Now, based on the same, 3 samples of the job description are listed below for your ready reference:
This is the job role description for the post in the corporate. The basic description can help you understand what is expected from you and how you can fulfill those expectations.:
The Analyst is responsible for identifying the company and sector-specific drivers and utilizing fundamental valuation skills to provide impacting research and generate trading ideas while staying abreast of industry news and catalysts to assess and relay their potential impact on equity securities to our clients.
Role Responsibilities (including but not limited to):
- Based on the respective sector, lead research coverage on 6-10 stocks within the financial markets.
- Performing financial analyses of companies under coverage
- Preparation of financial forecasts and completion of valuation models
- Writing equity research reports that convey the valuation process results and the investment recommendation.
- Communicating with clients over the investment recommendation and following up on client requests and inquiries
- Updating financial models and investment recommendations based on industry developments and stock market directions
- Establishing and maintaining strong relationships with the management of companies under coverage
This job description links to the financial institute. The main description is listed down for you here:
Purpose of your role
The job involves providing research support to FIL’s PMs for uncovered names. The person should have a good understanding of equities and the broader financial research process.
- Work on bespoke requests (financial models, company analysis, data management, etc.) from PM, mainly on the uncovered name.
- Support projects for sustainable fund series and ESG V2.
- Provide quality data and analysis to make the research process more efficient and robust
- Keep abreast of important trends and developments in the relevant sectors/geographies.
- Provide need-based analysis on unassigned stocks
- Build and maintain strong relationships with clients and within the team
- Make regular presentations to the team on relevant topics/areas of expertise.
This job description links to the sell side of the equity research analyst post. The basic details include the following:
- Conduct accurate scoping of research assignments/projects
- Surpass the client’s expectations
- Seek regular client feedback from stakeholders
- Incorporate the feedback and close the loop
- Effective escalation management
- Delivery-cum-relationship management
- Surpass the delivery client /or ValueAdd benchmarks in terms of quality timelines, whichever is tougher
- Successfully independently delivered a variety of research assignments, including equity modeling, initiation coverage notes, investment idea generation, industry research, research coverage maintenance, news impact analysis, and MA analysis.
- Deliver and achieve 100% client satisfaction
- Timely and accurate Right Staffing for all the requirements
- Conduct classroom and on-the-job training for team members
- Do regular mentoring career development plans for team members.
- Plan and execute recreational team events/outings
- Marketing, business development, organization development support
- Support on business proposals, Scope of Work documents, collaterals, and samples
- Effectively contribute on calls with clients and prospects as a Domain Expert.
- Contribute towards marketing thought leadership content
- Assist in executing marketing business development campaigns
- Execute/participate in other organizational development initiatives
With this, we have come to the end of the article. Starting a career in equity research analysis is filled with golden opportunities for the future. There is a great scope for growth and development. Knowing the skills needed and the resources you can use to acquire those skills can help you greatly. Additionally, understanding the job description is very beneficial for applying for equity research analyst jobs. Read through the resources, do a little market analysis, and get certified to start the position with ease.