The financial market has grown leaps and bounds over the years. Apart from being one of the largest markets of the county, financial markets have also offered a lot of employment opportunities.
Maybe this is one of the reasons that every year, more and more people are thriving to make their career in the equity market. Equity research is all about helping investors choose the best investments to make their wealth grow. As an individual, it is cumbersome to gain insight on the economy, industry and a particular company. The equity research report gives a snap-shot view and detailed analysis of the financial performance of the company, its management, its products, and its fair value and also gives a picture of its future growth trajectory. It makes the life of an investor, or, a common man much easier.
MBA for a Career in Equity Research
Aspiring students and young professionals who are inclined to skilled problem solvers, logical thinkers, possess market knowledge, financial management, money matter ideas should consider a career as an equity analyst. The role of equity analyst has become very important as well as critical, especially in India which is witnessing accelerated corporatisation of business on the one hand and increase in domestic savings channelled to equities, largely through mutual funds and insurance, and partly through direct investments.
In India, investment banks visit the top-notch MBA campuses to offer students internships and job placements. Internships are quite essential because research divisions prefer if you have some experience in finance before getting a job as a full-time analyst. After doing the program, you can either get a job from the placements or get it on your own as well. It isn’t impossible to become an analyst if you don’t pursue an MBA. Getting a value-intensive internship with an MBA will make your career journey smooth, that’s all.
Post completion of MBA, an equity analyst begins with an entry-level research associate position. They can gradually move up the ladder with more experience and good performance Reaching a mid-managerial level or a senior analyst post may take at least three-five years. A senior Equity Analyst with a high degree of expertise can move into an investment management role overseeing a team and an investment portfolio.
Equity research is used in many areas. Primarily, these are the companies that require Equity Research Analyst career:
- Stock Brokerage
- Mutual Funds
- Venture Capital Firms
- Credit Rating Firms
- Media Companies
- Data Base Firms
Role of Equity Research Analyst
The research conducted by equity researchers generally involves studying the official materials published by the company issuing equity, including annual financial reports, company statements, sales reports etc. Before publishing their research, equity researchers also take into consideration the current market conditions and predict future trends. Mostly the equity researchers are allotted a group of companies that they are expected to follow. All the findings need to be presented in a simple manner to the clients through formal presentations and report.
However, there are equity researchers who do not specialize in any particular industry or companies but study and interpret the market conditions. They basically study how external pressures could impact investments in a particular region.
Skills Required for Equity Research
- Strong analytical and reasoning skills – They should have strong analytical and reasoning skills to assess financial data whether qualitative or quantitative and bring out informative insights from it to make informed decisions about the stocks.
- Knowledge of market fundamentals - Market knowledge of prime importance especially understands of trend spotting, tracking and analysing market trends and opportunities as it allows them to consider the data in terms of the market as a whole.
- Communication skills – A promising analyst skill set is incomplete with proficient communication skill. Equity analysts should be strong communicators, able to present data and information to brokers, investors, and advisors in a concise manner.
- Knowledge of financial analysis – An Equity Analyst should have the knowledge of financial statements and their analysis. One should invest in a CFA program or some other course related to financial analysis to get an understanding of the basics.
- Data Modelling and Analysis – Data modelling techniques coupled with data visualisation, reporting and presentations skills play an important part as these skills help in deriving actionable insights and trends from the data.
Scope of the Career in Equity Research
The profession of an equity analyst includes providing knowledge expertise and financial advice related to stocks and bonds to investment advisors, brokers, and individual investors. Depending upon the organisation, equity analyst shares several core responsibilities which include security performance analysis and pricing involving the analysis of financial reports and statements of the companies to examine the market performance and pricing of the stocks in the market.
There are plenty of growth prospects for an equity analyst professional. As the importance of data is gaining tremendous momentum, an equity analyst must make themselves relevant by adopting data handling techniques. People with the amalgamation of skills consisting of handling big data, internet of things, artificial intelligence, block chain, etc. and domain competency will be in great demand, with a glorious future.
Top Equity Research Firms
- Motilal Oswal
- Deutsche Bank
- Standard Chartered Bank
- Credit Suisse
- JP Morgan Equity
- Cornerstone Macro
- BNP Paribas Securities
- Citi Bank
- Goldman, Sachs & Co.
- Cowen and Co.
- CLSA Asia-Pacific Markets
- ABG Sundal Collier
- Amherst Securities Group
- ICICI Securities
- ING Financial Markets
Equity Research is the art of turning information into insight. Working alongside experts in our industry-leading team, you’ll learn how to help internal and external clients make informed investment decisions. You’ll support innovative offerings, while bringing your own incisive thinking to the table.
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