Career opportunities in equity research

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Career Opportunities in Equity Research

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Knowledge Sharing Session: Agenda

What is the structure of Broking Firms?

Role of Research

How does the day of a Equity Research Analyst go?

What are pay packages of Analysts?

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Knowledge Sharing Session: Agenda

What are hierarchies in Stock Broking Houses?

Few most important qualities of the analyst?

What are the companies that require Research Analysts?

What is low end and high end work for Research Analysts?

What gives an individual edge over others

Career Path in Equity Research

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What is the structure of Broking Firms?

Basic Business Model for Stock Broking:

Buyer Seller

Broker

(Money)

(Shares)

(Brokerage)

Mutual Funds

Insurance Houses

Banks

Retail Investors

Companies

Mutual Funds

Insurance Houses

Banks

Retail Investors

Companies

FIIs FIIs

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Career Opportunities in Equity ResearchWhat is the Role of Research?

Broker 1Broker 2

Broker 3Broker 4

How to Differentiate?

Buyer Seller

Broker

(Shares)

(Money)

(Brokerage)

Mutual Funds

Insurance Houses

Banks

Retail Investors

Companies

Mutual Funds

Insurance Houses

Banks

Retail Investors

Companies

FIIs FIIs

Research Team

RecommendationsRecommendations

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Career Opportunities in Equity ResearchWhat is the Role of Research?

Every investment decision process needs to have some reasoning.

Research is an attempt to come up with that reasoning.

Research attempts to identify the hidden gems in the piles of stocks and recommend it to its clients.

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Distinction between Sell Side and Buy Side Analyst:

Sell Side Analyst: A sell-side analyst works for a brokerage or firmthat manages individual accounts and makes recommendations tothe clients of the firm.

Buy side Analyst: These individuals perform research and makerecommendations to the money managers of the fund that employsthem.

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What Equity Research is ALL About?

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What Equity Research is ALL About?

Financial Statement Analysis

Economy Analysis

Industry Analysis

Company Analysis

Valuation

Recommendations (Buy, Sell, etc)

Fat Salaries

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What equity research is all about?

Management interactions

Lot of work in Core Finance

Analyst Meets

Investment World

Fascination

Money; Wealth

Excitement

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What are key accountabilities of Research Analysts?

To bring maximum companies under coverage in the sector he/ she tracks over a period of time.

To generate the quarterly updates

To write event updates

To update the sales, dealing and trading team about the latest happenings in the sector/ company

To build views that are distinct and can stand separate in market

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Career Opportunities in Equity ResearchHow does a typical day of Research Analyst go?

Attending morning meetings

Answering to queries from sales, dealers etc.

Talking to company management

Punching the data, Modeling, Verifying

Reading & reading and reading

Writing & writing and writing

Attending analysts Meets

Attending conference calls

Talking to clients and convincing them about the call you have

Going home thinking what can really excite my boss and markets

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Career Classification depending on the clients the broker caters to:

Retail Clients

High NetworthIndividuals

(HNIs)

Institutions

How does job of Equity Research Analyst differ across clients?

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What are different hierarchies in the Equity Research?

Associate1

Analyst1

Research Head

Associate 2

Analyst 2

Associate 3

Analyst 3

Associate 4

Analyst 4

Associate n

Analyst n

Head of Equities

CEO

Sector 1 Sector 2 Sector 3 Sector 4 Sector n

Institutional Research

…….

…….

…….

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Research Head

Analyst 1 Analyst 2 Analyst 3

Sector 1 Sector 2 Sector 3 Sector 4 Sector 5 Sector 6

HNI/ PCG Research

Sector 7 Sector 8 Sector 9

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Research Head/ Sales Head

Analyst

Sector 1 Sector 2 Sector 3 Sector 4 Sector 5

Retail Research

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What pay packages could be expected?

If you are a fresher, you can expect annual package in the range of Rs2.4 lakh to Rs3.6 lakh.

People with prior experience but not in equity research, should negotiate the salaries.

Do you have to sacrifice your salaries if you are shifting the career?

Packages depend a lot on the market conditions, kind of work you have done earlier, what you bring on the table and your ability to negotiate.

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Who are the companies that require Research Analysts? Stock Brokerage

Mutual Funds

PE Firms

Venture Capital Firms

Banks

KPOs

Credit Rating Firms

Media Companies

Data Base Firms

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What is low end and high end work in Equity Research? Per say, if you are a part of research team, you are already doing a high end work.

However, some individuals consider, punching data, drawing different charts, tables, formatting excel sheets, formatting reports a relatively low end work.

High End work: Financial Modeling, Projecting the Financials, Valuations, Interacting with the management, Interacting with the fund managers is considered a high end work.

Is low end work really a low end work?

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What gives an individual edge over others if he/ she wishes to enter into Equity Research: Clear inclination towards finance

Clear Inclination for analysis

Ability to deal with a lot of numbers

Ability to deal with uncertainty

Ability to talk to higher authorities like top management and fund managers

Ability to write professionally about the financial happenings

Conviction to stand by your belief and views

Ability to look into the future of the organization

Having rationale thought process

Ability to Network and convince clients your recommendation

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Career Path in Equity Research

Sell Side Research Associate/ Junior Analyst

Head of Research

Buy Side Research Analyst

(5 to 10 years)

Assist. Fund Manager

Fund Manager

Manager Investment Banking

Private Equity Analyst

Investment Banker

Private Equity Fund manager

Head of Equities

Fund Manager

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[email protected]@consci.co.in

Contact Details

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Thank You

Career opportunities in equity research

Economy & Finance

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