Research job is what the youth of the present era is thriving upon and many have made a successful career in the field of mutual funds and equity.
Financial markets have provided several job opportunities in addition to being one of the country’s main markets. Perhaps this is one of the reasons why, year after year, an increasing number of people are pursuing professions in the stock market. In this article, we are going to have a glimpse of the equity research analyst jobs opportunities.
What is Equity Research?
Equity research is a modern method of a company and its environment in order to decide whether to buy or sell its stock. An acquirer can use this research to establish the price from which to bid for a target company’s securities in a potential acquisition deal. Equity research firms are divided into two categories: buy-side and sell-side.
Equity research analysts investigate publicly traded firms and make recommendations to investors on whether to buy, sell, or hold certain stocks. They are required to provide detailed reports based on their findings and recommendations and help their clients make the most efficient decisions.
Equity research analysts are employed by sell-side brokerage firms as well as buy-side funds. Such equity research analyst jobs are prevailing in the world and in India. And the Equity Research Analyst salary in India is also quite generous.
How to make a career in equity research?
After finishing bachelor’s degree programs, the majority of equity research analysts begin their careers as research associates. Research associates create financial models and perform research under the supervision of a senior equity research analyst. As a broad introduction to the position, new hires may work with a range of analysts over the course of many months.
Eventually, most research associates are assigned to a single working group that covers a small number of companies. Associates can advance to analyst jobs with more experience and great performance, allowing them to play a more active role in the research process. As an analyst, you’ll work in one of these companies’ research divisions such as
- Companies that manage assets or (AMCs)
- Firms that provide investment advice.
- Banks that deal with investments.
- Companies that provide insurance.
- Investment businesses that specialize in niche markets (these provide specialized services to a specific category of investors).
The requirements for equity research analyst jobs
Undoubtedly there are a plethora of equity research analyst jobs and to get one of them for you is not easy but not impossible either.
Great things take time but you need to put in the effort too. Being an equity research analyst calls for a very specific set of skills. Of course, most of these skills can be developed for time. If you are passionate about the field, then you can achieve almost all of the required skillsets and certifications with little effort. Some of these are:
- The certificate from NISM. As authorized by the Securities and Exchange Board of India, NISM conducts certification examinations for various Securities Market Participants and Intermediaries (SEBI). Anyone interested in learning more about the Indian Securitized Markets is welcome to take the exam.
- An MBA in finance is a master’s degree in business administration with a focus on finance. There is also the CFA certification that is considered one of the most prestigious and noteworthy certifications in the investment field. Any of the above achievements would serve your purpose and if you have both then you are the gem of the industry.
- Many stock research analysts are required to have a FINRA (Financial Industry Regulatory Authority) license, which is a federal agency that regulates securities firms and brokers.
- A degree of graduation in commerce or finance & investment. Along with the experience or internship of any kind related to finance, investment, stock markets or anything like that counts.
Responsibilities of the equity research analyst.
An equity research analyst often provides information and recommendations to the business’s investment managers, who monitor client investment portfolios and make final decisions about which shares to keep, in a buy-side firm such as a wealth management firm, a pension fund, or a hedge fund.
An equity research analyst at a sell-side firm, such as a brokerage or a bank, often prepares reports and recommendations for the firm’s sales agents. The agents then go on to sell investments to their clients and the wider public using the information they’ve gathered.
Financial modeling takes up less time for analysts, and they spend more time preparing reports and making suggestions. Not only do the equity research analyst jobs necessitate micro-analytical skills, such as an understanding of financial accounts, a company’s business model, or management’s strengths and weaknesses, but these jobs also necessitate a thorough understanding of macroeconomic trends or key regional or global political issues that could affect one’s stocks or markets.
If these are some of the skills that you own or are dedicated enough to take down, then you are good to go.
What is the Equity Research Analyst Salary in India?
The average yearly income you can get from an equity research analyst salary in India is 6.2 lakhs, with salaries ranging from 2.4 lakhs to 28.0 lakhs.
- Equity research analysts operate in the securities sector for both buy-side and sell-side organizations, creating research reports, projections, and recommendations about companies and stocks.
- Analysts who desire to further their careers should pursue the Chartered Financial Analyst (CFA) designation, which is offered by the CFA Institute.
- A bachelor’s degree in finance, accounting, economics, or business administration is required for the majority of equities research analysts.
- For equity research analysts, having a background in statistics and mathematics is advantageous.
- A FINRA license is required for many equity research analyst employment. A master’s degree is common among senior stock research analysts.
In the end, the field of equity research is a highly rewarding one if you have the patience, skillset, and dedication to work hard. We hope the above information proves useful in your career endeavors.
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