If you have a knack of financial
modeling and really passionate about analyzing companies and have a right
attitude of putting time and efforts, equity research career is for you.
If you get a real high when you think of
having your name on an equity research report, then start working towards it.
Get the right skill set, start reading annual reports, and interpreting
financial statements and valuing businesses.
What Do Equity Research Analysts Do?
Equity research analysts work on
both—the buy side and the sell side.
What’s buy side? Buy side is typically
indicates hedge funds, mutual funds or investment management companies.
What’s sell side? Sell side typically
indicates investment banks and independent research companies.
On the sell side, researchers develop
earnings models and carry out detailed company analysis and valuation.
So, for example, equity research
analysts working on sell side typically would like to know whether TCS is
better than Infosys for investment. They are assigned a particular
industry/sector and know more about that sector and the players in that sector.
On the contrary, buy side analysts do
not publish reports as sell side analysts do. They focus on 20-40 companies for
investments.
As an equity research analyst, you need
to study economy, industry and company to see macro and micro trends. There are
two main frameworks in equity analysis—one is E-I-C and the other is C-I-E,
based on the methodology.
Pay Package
Pay package of equity research analysts
include salary plus bonus. Bonus depends on the performance of the analyst.
Work Culture
Work hours one needs to put are less in
equity research, but 10 hours is the average in equity research.
Eligibility Criteria
Graduates/Postgraduates in Finance,
Economics, Mathematics, MBAs, CFAs, and CAs are preferred for equity research
role. You need to be proficient in MS-Office Suite, mathematics, analyzing
companies, financial analysis, web searching, and writing reports are some of
the skills required for this job.
Selection of the right person for managing your personal finances is one of the most crucial decisions. Financial advisors are professionals who specialize in assisting people in managing their finances.
ReplyDeletefinancial advisors in detroit
Theirs a lot to be said when it comes to picking stocks.
Delete