A Comprehensive Guide to Choosing Equity Research Career

When it comes to selecting a career in finance and consulting, there are plenty of options to consider. Nowadays, many are attracted to a career in equity research, which may be ideal for those who are interested in understanding the function of various industries and exploring the structural compositions of organizations.

One also needs to understand the concepts of financial modeling to excel in this career, and the job of an equity research specialist requires thorough research skills and forecasting. Equity researchers also need to have a very flexible mindset to adapt to changes and also needs to be rigid regarding meeting deadlines. Timeliness and punctuality are the other dominant traits required for equity research professionals.

What is equity research career?

Equity research is all about studying about various bonds, stocks, and other financial vehicles and reviewing these for the public in a neutral, extensive and factual manner. Equity researchers run extensive studies and advise the investors in light of their findings to go with the most lucrative investment opportunities.

A Comprehensive Guide to Choosing Equity Research Career

Equity researchers study about conventional materials issued by the companies including:

  • Quarterly to annual financial reports
  • Company statements
  • Revenue stats
  • Sales reports
  • Market performance etc.

Based on their evaluations and prevailing market conditions, equity researchers also need to know about future trends before publishing their final research reports.

How do they work?

An equity researcher is assigned to follow and study a certain number of listed companies. They are supposed to note down all the findings of these organizations, compile them, and present it simply for their clients to easily understand. Equity researchers used to specialize in any particular industry, a group of companies, or researching about contemporary market situations. 

Most of those who choose equity research career may work as employees of financial analysis firms and consultants, but some may also work as a freelance consultant. Those who become established as a freelancers have a scope of selling their research findings on a case to case basis to those organizations which in turn share this information with clients.

Qualifications needed for Equity Research Career

At the baseline, equity researchers should have a bachelor’s degree, preferably in finance, commerce, or other business disciplines. A master’s degree may be advantageous when you want to apply for the position in top organizations. Not just the academic qualifications, but equity research internship experiences may also play a vital role in determining whether you are an ideal candidate for employment or not.

Another smart move to get into equity research is to have your MBA with finance specialization preferably. Dedicate your first couple of years in studying about the capital market and practicing fundamental and technical analysis. In-depth knowledge of the major equity markets and the rate of fluctuations is vital to start practicing on your own.

Salary Scale

As per the latest US Bureau of Labor Statistics, average salary equity research analysts may earn in the USA may be around $ 85,000 yearly. However, as one gains more experience and expertise in this field, there is a potential to earn a higher salary also. Some of the senior analysts earn from $ 300,000 to even $ 700,000 yearly.

Individual consultants may charge their clients on a case to case basis. If you become established as a reliable and expert equity researcher and advisor, one can earn far higher than the working professionals.

What can additional perks equity researcher enjoy?

At the first point, there is cut-throat competition in the field of equity research. So, no two days of this job may be the same. The market conditions keep on changing each day, and there are always new materials and inputs to analyze and research. Equity researchers may also work as consultants by understanding debt program’s business financial management, etc.

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It is a unique career path which demands extensive mental exercise for research. However, expert equity researchers produce an end product which they can be proud of. Your name gets attached and published to the research stuff one produce, and they get something to show in recognition to the long hours and tiresome efforts they put into their jobs. Apart from this recognition and reputation, there is also a constant opportunity to earn bonuses and salary increments as additional perks.

Life as an equity researcher

Equity researchers mostly do the office-based job, working five day week. The used to work during typical office hours from 9 a.m. to 5 p.m. or so. The career mostly involved conducting extensive research, so equity researchers used to spend much time in front of the computer monitor as well as sifting through tedious paperwork. There is little or minimal travel required for this job.

Career competition

We can see that there is stiff competition in the equity research field. There are a large number of people coming into this job as there is a fair salary and excellent perks to enjoy. However, sometimes this does not fit ideally to the prevailing economic climate, which results in a level or corporate requirements. However, there are always opportunities for the well qualified, skilled, and experienced equity researchers to find secure jobs.

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Location preferences to make

Larger cities of the USA seem to be ideal for equity researchers to practice. As the business establishments and high-profile investors at these urban centers demand services of equity researchers the most. However, the need for equity researchers is now there globally including the suburban areas too as more and more investors are now interested in these types of investment opportunities.

Are there any downsides in an equity research career?

The major downside you can point out about equity research career is the low-level job opportunities for the fresh entrants into this discipline. Especially during the time of weak economic conditions and everyone is hesitant about exploring new investment avenues, getting a job in the field of equity research may become difficult. Along with it, there is also stiff competition for the few numbers of positions available in this area. For more details please visit here.

Adding to it, there is also a high level of alienation, which the researchers need to face. Lack of appreciation is prevailing in this sector. You work may be so brilliant and may have made a big difference, but it may soon be forgotten in the fast-paced nature of the financial markets and equity investments. So, job satisfaction based on recognition may be little among the equity researchers.

| About the Guest Author:

Guest Author
Isabella Rossellini is a marketing and communication expert. She also serves as a content developer with many years of experience. She has previously covered an extensive range of topics in her posts, including business and start-ups.

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