career opportunities in equity research
Post on 11-Nov-2014
715 Views
Preview:
DESCRIPTION
TRANSCRIPT
FOREVER
FOREVER
FOREVER
Career Opportunities in Equity Research
FOREVER
Career Opportunities in Equity Research
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?
FOREVER
Career Opportunities in Equity Research
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
FOREVER
Career Opportunities in Equity Research
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
FOREVER
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
FOREVER
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.
FOREVER
Career Opportunities in Equity Research
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.
FOREVER
What Equity Research is ALL About?
FOREVER
What Equity Research is ALL About?
Financial Statement Analysis
Economy Analysis
Industry Analysis
Company Analysis
Valuation
Recommendations (Buy, Sell, etc)
Fat Salaries
FOREVER
What equity research is all about?
Management interactions
Lot of work in Core Finance
Analyst Meets
Investment World
Fascination
Money; Wealth
Excitement
FOREVER
Career Opportunities in Equity Research
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
FOREVER
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
FOREVER
Career Opportunities in Equity Research
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?
FOREVER
Career Opportunities in Equity Research
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
…….
…….
…….
FOREVER
Career Opportunities in Equity Research
What are different hierarchies in the Equity Research?
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
FOREVER
Career Opportunities in Equity Research
What are different hierarchies in the Equity Research?
Research Head/ Sales Head
Analyst
Sector 1 Sector 2 Sector 3 Sector 4 Sector 5
Retail Research
FOREVER
Career Opportunities in Equity Research
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.
FOREVER
Career Opportunities in Equity Research
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
FOREVER
Career Opportunities in Equity Research
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?
FOREVER
Career Opportunities in Equity Research
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
FOREVER
Career Opportunities in Equity Research
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
FOREVER
022-65247782ashwin@consci.co.inharshad@consci.co.in
Contact Details
FOREVER
Thank You
top related