Everything You Need to Know About Starting A Career in Equity Research

Choosing the right career is one of life's most important decisions- one that requires ample consideration and research. one that requires ample consideration and research. Fortunately, there are many professions to choose from today - from media and entertainment to entrepreneurship to finance and working from home without investment. As avenues such as equity research gain ground and become more exciting and lucrative, you can forge new paths for your future.

So, if equity research is the field you see yourself growing and excelling in, here's a guide to help you get started on a successful career. 

Understanding the field of Equity Research

Equity research involves helping investment companies make the right decision about investing in the market at the right time to boost the chances of investors increasing their wealth. An Equity Research Analyst (one of the most common designations in the field) is responsible for several major decisions, such as tracking the growth of companies and evaluating their performance. The analytical study of equity and stocks of a dynamic market is an important skill to master to succeed in this role.

It is an industry that draws analytical and research-minded individuals who enjoy the dynamics of the stocks and shares market. In such a role, you would assist financial firms and banks in navigating selling and buying in the market. Since firms would depend on your projections of the market to make financial decisions, an interest in financial modelling and research is imperative.

How to Start A career in Equity Research?

Many investment firms look for graduates in the discipline of finance, commerce, business administration(MBA), and accounting. They also provide opportunities to undergraduates with analytical skills in mathematics and statistics. A collection of online courses and certifications such as the one provided by the National Stock Exchange of India can also help you gain an edge while planning a career in the Equity research industry.

1. CA- Chartered Accountant

Clearing the ICAI or CA exams can be highly beneficial to the role of an Equity Analyst as it can hone your skills associated with auditing, accountancy, and equity analysis. As a CA, you can be a part of the private sector or even join the public sector. You also have the opportunity to work with international clients or open a firm of your own. 

2. Chartered Financial Analyst

You can join the CFA program to get the certification to start a career in the equity research industry. It empowers you with the real-time skills of economics, quantitative and qualitative analysis, financial reporting, equity investments, and more. Getting a CFA degree can also help you gain a skill set that sets you apart from the crowd. 

3. Post Graduate Program in Investment Banking and Capital Markets

Fresh graduates can start a career in equity research by enrolling in a post-graduate program in Investment banking and capital markets. Following a CFA Level-1 syllabus, it comprises well-rounded modules that do not require a prior degree in commerce. Investing in this program can indeed be the launching pad to the job of your dreams.

What Does an Equity Research Analyst Do?

An equity research analyst's primary role is to provide detailed research reports of the stock market industry. Their in-depth knowledge of the market helps investors with major decisions involving selling, purchasing, and possessing a certain investment. 

The Equity Research Analysis process includes

• Economic Analysis
• Company analysis
• Industry Analysis
• Financial and valuation Modelling
• Financial Statement Analysis
• Report Writing

Choosing a career path

As an analyst, you can be a part of the research team at investment banks, asset management companies, and insurance firms, among others. New hires usually begin with research associate positions where they work under senior analysts and aid them with research. In time, you can take on an analyst position where you can head research on your own. You can also find fellow research analysts and connect with them on social media to better understand how your career will move ahead. Another option that is open to exploration is freelancing, as it can help you network with reputed analysts and build your resume at the same time. 

How much do Equity Analysts make?

Much like any other industry, your pay scale is subject to many factors such as your qualifications, the size of the company you are working with, prior work experience, and your current designation and work position. 

If you are looking for a career in finance that challenges you, helps increase your knowledge of the investment industry, and always keeps you on your toes, equity research is an ideal choice. It is a dynamic profession that demands a zestful spirit and can bring promising growth opportunities along the way. So, start preparing your resume with certifications and internships that can give you an edge in this field and set sail for a life-altering journey. 

Disclaimer

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