Career opportunities in equity research
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Career opportunities in equity research Presentation Transcript

  • 1. FOREVERFOREVER
  • 2. Career Opportunities in Equity ResearchFOREVER
  • 3. 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
  • 4. 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 ResearchFOREVER
  • 5. Career Opportunities in Equity Research What is the structure of Broking Firms? Basic Business Model for Stock Broking: Mutual Mutual Funds Funds (Money) Insurance Buyer Seller Insurance Houses Houses (Shares) Banks Banks Retail Retail Investors Broker Investors FIIs (Brokerage) FIIs Companies CompaniesFOREVER
  • 6. Career Opportunities in Equity Research What is the Role of Research? Recommendations Research Recommendations TeamMutual MutualFunds Funds (Shares)Insurance Buyer Seller InsuranceHouses Houses (Money)Banks BanksRetail RetailInvestors Broker 2 Broker Broker 1 Investors (Brokerage) FIIsFIIs Broker 3 Broker 4 CompaniesCompanies How to Differentiate?FOREVER
  • 7. Career Opportunities in Equity Research What 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
  • 8. 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 firm that manages individual accounts and makes recommendations to the clients of the firm. Buy side Analyst: These individuals perform research and make recommendations to the money managers of the fund that employs them.FOREVER
  • 9. What Equity Research is ALL About?FOREVER
  • 10. What Equity Research is ALL About?  Financial Statement Analysis  Economy Analysis  Industry Analysis  Company Analysis  Valuation  Recommendations (Buy, Sell, etc)  Fat SalariesFOREVER
  • 11. What equity research is all about?  Management interactions  Lot of work in Core Finance  Analyst Meets  Investment World  Fascination  Money; Wealth  ExcitementFOREVER
  • 12. 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 marketFOREVER
  • 13. Career Opportunities in Equity Research How 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 marketsFOREVER
  • 14. Career Opportunities in Equity Research Career Classification depending on the clients the broker caters to: How does job of Equity Research Analyst differ across clients? Institutions High Networth Individuals (HNIs) Retail ClientsFOREVER
  • 15. Career Opportunities in Equity Research What are different hierarchies in the Equity Research? CEO Institutional Research Head of Equities Research Head Analyst1 Analyst 2 Analyst 3 Analyst 4 ……. Analyst n Associate1 Associate 2 Associate 3 Associate 4 ……. Associate n Sector 1 Sector 2 Sector 3 Sector 4 ……. Sector nFOREVER
  • 16. Career Opportunities in Equity Research What are different hierarchies in the Equity Research? HNI/ PCG Research Research Head Analyst 1 Analyst 2 Analyst 3 Sector 1 Sector 2 Sector 3 Sector 4 Sector 5 Sector 6 Sector 7 Sector 8 Sector 9FOREVER
  • 17. Career Opportunities in Equity Research What are different hierarchies in the Equity Research? Retail Research Research Head/ Sales Head Analyst Sector 1 Sector 2 Sector 3 Sector 4 Sector 5FOREVER
  • 18. 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
  • 19. 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 FirmsFOREVER
  • 20. 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
  • 21. 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 recommendationFOREVER
  • 22. Career Opportunities in Equity Research Career Path in Equity ResearchFund Manager Investment BankerAssist. Fund FundManager Private Manager Manager Equity Fund Investment managerBuy Side BankingResearch Private Head ofAnalyst Equity Equities Analyst Head of Research Sell Side Research Associate/ (5 to 10 years) Junior AnalystFOREVER
  • 23. Contact Details 022-65247782 ashwin@consci.co.in harshad@consci.co.inFOREVER
  • 24. Thank YouFOREVER