CAREER, JOB DESCRIPTION, SALARY, EXIT OPPORTUNITIES - A COMPLETE GUIDE

1. EQUITYRESEARCH/EQUITYANALYST: CAREER, JOB DESCRIPTION,SALARY, EXITOPPORTUNITIES - A
COMPLETE GUIDE | BankingPrep
Equity Researchis a fundamentaldivisionofallfinancialcorporates.Andyet it stays mystictoa lot ofpeopledue tolack of information.Inthis
articlewewillgiveyouthemost comprehensiveoverviewofEquity Researchandmorespecifically-EquityAnalyst tohelpyoumasterthis term.
Let us guideyour way.
Table of Content
“So exactly what is Equity Research” - you may ask
Equity Analyst: What do they do/ Where are they?
Equity Research: Career Path (Equity Associate to Equity Analyst)
How to break into Equity Research
Some tips from Bankingprep
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“So exactly what isEquity Research” - youmay ask:
Equity Researchis a divisionconsisting ofresearchersforpotentialequity.They willconduct researchabout a listedcompany ona stockexchange
torecommend which stocktobuy, sellorhold. This process contains various steps but mainly representsinthesetwofunctions:
● Evaluatecompany thoughdifferent aspects:
When a company is analyzedby anequity analyst,it is assessedandevaluated bothinternallyandexternally.Anequity researchanalyst
looks at financialperformanceinthepast andpresent topredict theperformanceofthecompany in thefuture.They estimate thepriceof

2. thestockdueto externalfactorssuchas GDP,thesizeof themarket,themarket sharethatcompany is holding,thecompetitivenessofthe
competitor,...Wewill explainthis indetailbelow.
● Recommendtheinvestment decisions forfinancialcorporations orindividualinvestors through EquityResearch Reports withconclusions
suchas “buy”, “sell”or“hold” thecompany’s stock.Oncetheequity researchanalyst finishes withtheresearch(this contains alltheprocess
of evaluationofthecompany’s stockandpredictionofperformanceofthe company) they willgive theinvestment recommendationtothe
fund managertopitchtheideas.
EquityAnalyst: What do they do/Where are they?
Equity researchmeans providing financialanalysis viatheformofanequity researchreport torecommenda company’s stocktoinvestors for
higherreturn.We dividethis process into3 parts ofwhat they do:
1. GatherInformation:
This part of Equity Research means catching up with the latest news that has animpact on the stock markets.
Equity ResearchAnalystsareresponsiblefora groupofstocks orcompanies ina specificfield.They havetogatherinformation-data to
conduct a research.Data willbecollectedfrommany sources,bothpublicsources (google,news,annualreports andsoon) andprivate
sources (thecompany’s boardofdirectors andsoon). They alsohavetolay theireyes ontheglobaleconomicsituation,new trending
markets,sizeofthemarket anda very important element-competitors,tohedgeriskorseizenewinvestment opportunities.
2. AnalyzeInformation:
Information gathered is analyzed daily
Equity ResearchAnalyst analyzes theinformationgatheredby evaluating thefinancialperformanceofthecompany throughfinancial
statements,building financialmodels inExceltoproject revenueandprofit ofthecompany in different scenarios ofthemarket.This gives
readers a clearinsight ofthepotentialofthecompany.
3. Evaluatethestockprice:
Investment Recommendation
Using thedata fromtheprevious step,Equity ResearchAnalystsconduct a researchtoconcludewhetherto“buy”,“sell”or “hold” that
company’s stocktoinvestors. They evaluatethepriceofthestockat themoment by using someEquity Valuationmodels such as DCF,
RelativeValuation,SOTPvaluation,P/EEV/EBITDAmethodologyorusing somemetrics likeP/ERatio,EPS,ROE,ROA,et cetera.

3. Equity Researchcanbedividedinto2 types,Equity ResearchinBuy-side(HedgeFunds,MutualFunds),Equity ResearchinSell-side(Investment
Banks),they generally playthesamerolebut therearesomekey differences.Inthetablebelow,wecoverthesekey differenceforyou:
Sell-side Buy-side
Key difference Investment Bank HedgeFund MutualFund
Working hours 55-60 hours perweek 60-70 hours per
week
58 hours per week
Daily Task Givebuy/sell/hold
recommendationforthe buy-
side
Constantly focus onideas that
aremore likecommercialthan
totally focus onnew potential
company
Not focus on only return, but
also focus on persuading
customers to trade on their
stock exchange
Allreports areon public
domain
Make investment
decisions based on
sell-side analysis
and further analysis
to make investment
decisions
Focus on assets that
bring the most return
in short-term
All reports stay
private
Similar to Hedge
fund but Mutual
fund focuses more
on assets that bring
the most return in
long-term
Compensation
(at entry level)
$125,000-$200,000 $150,000-$200,000 SimilartoHedge
Fund but less
volatilebonus
Goals Analyze,evaluateand
recommend investment
decisionon somespecific
stocks orsomespecificfields
Makeinvestmentdecisions basedonthe
company's analysis andstrategy.

4. ‘Why isan equity researchreport ofsell-sideprovidedfree?”youmayask
Investment Bankspublishtheirreports becauseoftherevenue: Investorsarelikelytotradecompany’s stocksright at thebankwhichpublishes
stockreports ofthat company.This makes thecommissionfeeforthebankincreaseandleads tohigherrevenue.
EquityResearch: CareerPath (EquityAssociate to EquityAnalyst)
Compensationandbonus
Compensationandbonus area littlebit different betweensell-sideandbuy-side
Sell-side
Position Promotion Timeline Base Salary (USD) Total Compensation (USD)
Associate 3 years $93,750-$150,000 $125,000-$200,000
VP-levelAnalyst 2-3 years $150,000-$225,000 $200,000-$300,000
SeniorVP-levelAnalyst 2-3 years $225,000-$450,000 $300,000-$600,000
MD-levelAnalyst 2-5 years $250,000-$600,000 $500.000-$1 Mil
Buy-side(Research/Investment DivisioninHedgeFund)
Position Promotion Timeline Base Salary (USD) Total Compensation (USD)

5. ResearchAssociate 2-3 years ormore $50,000-$70,000 $125,000-$150,000
HedgeFund Analyst 3-4 years $100,000-$150,000 $200,000-$600,000
SeniorAnalyst 3-5 years $130,000-$170,000 $500,000-$1 Mil
PortfolioManager 3-10 years Less than$200,000 $500,000-$3 Milormore
Compensationmay vary a largerangeduetodifferent financialinstitutionsandeconomicsituations.
Career Ladder and JobDescription:
Considering Sell-sidefirst:<chovàotrong khung>
Structureofa team:Eachteamhas 1 Analyst and2-3 Associates,eachassociatemanages 7-10 companies.
Equity Researchcontainsbasically2 big steps inthecareerladder.Let’sstartfromthebottomline:
Position Equity Research Associate Equity Research Analyst
VP-level Analyst Senior VP-level Analyst MD-level Analyst

6. Job Description The most fundamental job of Equity Research -
collecting data and building financial models:
- Collecting the information of the stock, the
market and turning it to valuable data
- Building good-looking charts to pitch ideas to
the sale team or the analyst
- Using some valuations models to conclude
about the price of the stock
- Writing equity research reports.
These positions differ from each other only in leadership, the main work is the same.
Analysts spend most of their time managing relationships with companies or investors in
other financial institutions. They spend just a little time doing research or building
financial models to evaluate the stocks. Their main tasks in the day are:
- Setting up meetings between buy-side and sell-side
- Pitching about the investment ideas to investors with the new perspective
- Checking output of Associates
- Maintaining relationship with investors
- Meeting with new booming startup founders to evaluate their potential when
IPO.
Associatesworka lot withdata tobring out theinsights,sotechnicalskills suchas building financialmodels andinternal communicationskills are
essentials. WhileAnalysts workmoreopenly suchas meeting newpeopleeveryday,setting upmeetingstopitchideas,etc.This meanstobecome
anAnalyst,communicationskillis very vital.Moreover,it oftentakes anAssociate 3-4 years ormoretobecomeanAnalyst.
Buy-side:
On thebuy-side,suchas HedgeFund or MutualFund and soon, thecareerpathis different.At thejuniorlevel,thejobmainly is researchwhileat
theseniorlevellikePortfolioManager,thejobis investment management. Starting at ResearchinHedgeFundmeans thecareerpathis likethis:

7. Position Research Associate
Job Description A Research Associate in a Hedge fund spends time on gathering,
synthesizing data daily. The main difference between Research Associates
in Hedge Fund and Associates in Sell-side is that Research Associates not
only look at stock, but they also look at other financial assets such as bonds,
real estate,... for investment opportunities.
- Perform internet searches to gather relevant information, and record any
findings in a manner pursuant to facility protocol
- Building financial models in Excel to evaluate stocks, bonds, and other
financial assets
- Assist other researchers with various tasks, including data entry, field
research, statistical analysis and presentation preparation
- Verify data in both digital and written form, make sure that any errors that
may occur are eliminated
- Read Sell-side report and conduct macro-economic analysis
- Work with Hedge Fund Analyst to pitch ideas for higher manager
Position Hedge Fund Analyst/Research Analyst
Job Description A higher level of Research Associate is Hedge Fund Analyst. Some jobs that
Hedge Fund Analyst may do are:
- Attend conferences and meetings with managers, suppliers of current
portfolio companies.
- Build different financial models within a sector
- Study sell-side report and macroeconomic research to catch the trend
- Work with Senior Analyst or Portfolio Manager on investment ideas
- Conduct due diligence

8. Position Senior Analyst/Sector Head
Job Description Senior Analyst is essentially the head of the research team. They work
directly with the portfolio manager. The Senior Analyst is responsible for
ensuring the timely and accurate completion of all funds within the team.
Their main tasks in the day are quite similar to Hedge Fund Analyst but there
are some differences:
- Pitch ideas to the Portfolio Manager
- Manage the team to enhance the portfolio performance
- Ensure the team valuations are prepared to meet daily deadlines
Position Portfolio Manager
Job Description Portfolio Manager is a very prestigious position due to not only compensation
but also the reputation he/she got. Portfolio Managers are the ones who make
the final decision to all the investment executions of the fund while also
estimating and hedging risks. Moreover, PMs manage the operation of middle
office and back office like IT, Accounting, Compliance. Some work of a PM
are:
- Construct and review performance reports to show to investors
- Focus on risk management in term of macro risk or individual positions
- Do marketing and raising capital for the fund
- Create research and review platforms for new, existing and potential
investment products
- Perform due diligence visits and assess investment management firms and
analyze investment pools

9. To know moreabout HedgeFund, checkout our article HedgeFund Mega
Working Hours
Associates:
Normaldays:Anassociatehas toworkabout 12 hours perday on average,mostly looks fornewpotentialstocks,updates financialmodels,etc,55-
60 hours per week.
Hot season-earning season:Hot seasonis whenthecompany releasesits quarterreport.During this,anassociatehas toworkfor16 hours or
more perday,70-80 hours perweekon average.
Analyst:
Normaldays:Ananalyst has toworkabout 12 hours per day on average,samewithanassociatebut usuallyupto50-70 hours perweek.
Hot season:Samewithassociatesbut canbeup to100 hours per week(this means weekendworkincluded).Most ofthetime analystsspendon
working with investors/clients/conferences.
Some factors affectingworking hours:
Friday
SincetheStockMarket is not operating during theweekends soFriday is kindofan easy day forEquity Research-ers.Trading volumeis not highas
usual,soyou may arrivea littlelateandleaveat5p.m.
TheAnalyst’s workstyle
A teamusually consists of1 Analyst and3-4 Associates.Sotheworkloadof that 3-4 Associatesdepends closelyontheanalyst’s workstyle.Ifthe
analyst wants a deep,insightfulreport,associatestendtoworkfor longerhours.
Exit OpportunitiesofEquityAnalyst
First option to exit: Hedge fundandother asset management firms

10. A lot of peoplefrom sell-sideequity researchchoosebuy-side(hedgefunds andotherasset management firms)tobethenext step.This is a
straightforwardandlogicalexit optionduetothesameamount ofwork and technicalskillneededsuchas building financialmodels toevaluate
financialperformanceandthepriceof stock.TojoinHedgeFund in particularandotherasset managementfirms,anEquity ResearchAnalyst
needs tohaveotherinvestment skillssuchas building portfolioorinvestment senseabout current financialassets,etc.SincetheHedgeFundis a
very prestigious place,tobreakintoHedgeFund fromEquity Research,anEquity ResearchAnalystneeds to put a lot ofeffort into networking.
Moreover,a CFA is a hugeplus.
Chanceof landing anoffer: MediumtoHigh
Second optionto exit: WealthManagement FirmorPrivate Banking
Anotherexit optionis to joinwealthmanagerfirms orprivatebanking serving a groupofhighnet worth individuals.This exit opportunityis
suitableforthosepeoplewho want to takea breakfromtheintenseworking environment inbothBuy-sideandSell-side.Sincethis optionrequires
a smalleramount ofwork, it requires morehuman skill. Toget this offer,a Equity ResearchAnalystneeds goodcommunicationskillsas wellas a
good reputationintheindustry andthelast is understanding theriskappetiteoftheinvestors.
Chanceof landing anoffer: High
Third option to exit: Corporate
A lot of peoplejump into corporateroles afterequity research.Whileworking, they havea very detailedinsight oftheindustry ingeneralandthe
company in particularwhenanalyzing theindustry overa long periodoftime.They alsohavea very goodrelationshipwiththecompany when
setting upmeetings orresearchingthecompany's policiestomakeinvestment recommendations.This is anadvantagewhenapplying forjobs at
this company.Potentially,evencorporatedevelopment andcorporatestrategyaregoodexit opportunitieswhenthedeepknowledgeofthe
company may makeup for thelackofdealknowledge.
Chanceof landing anoffer: Medium
Fourth optionto exit:PrivateEquity and Venture Capital
Oneof theoptions that many peopleconsideris PrivateEquity andVentureCapital.However,it is almostimpossibletobreakintoPrivateEquity
and VentureCapitaldirectly fromEquity Research.

11. PE/VCneeds otherskills,knowledgethat intheprevious position,Equity Research Analystsdon’t have.Therefore,choosing this optiontoexit,
Equity ResearchAnalystsneedtoat leasttransferto InvestmentBankingtohavesomeexperiencefirst,thenPE/VClater.
Chanceof landing anoffer: Low
Some otherCareerPlanning
How to break into EquityResearch
Some waysto get intoEquity Research:
● UndergraduateandMBAlevelintopschools:
Big banks oftenrecruit directly fromthetopschools.Ifyoustudy at topschool, havehighgrades (above3.2 GPA),someexperiencein
financethenyou aregood togo.
● UndergraduateandMBAlevelinnon-topschools:
Things area littlebit harderinnon-top schools.Toget intoER from non-top schools,youhavetohavesomerequirements (besideshigh
grades) suchas:having experienceinsomesmallfunds (privateequity may alsowork) orinvestmentbanks thenmovetobig ones next,
winning stockpitchcompetitions is a hugeplus.
● BecomeExpert inonespecificfieldlike(Biotech,CleanEnergy,...):
Therearea number of specificindustries suchas BiotechorCleanEnergy that needdeeptechnicalknowledgetobeabletoassessthe
potentialofa company in thesefields.Therefore,largebanks stillrecruit peoplewithfull-timeexperienceoftheseindustries toworkin
Equity Researchtoprovidethemost realisticview.However,they needtoknow thefundamentalskilloffinancetobeableto work
Theprocess of recruitment inEquity Researchis prettyrandomandunstructuredcomparedtotheInvestmentBankingrecruitmentprocess.
Generally,you’llgothroughsome internships tohaveexperience,resumescreening, first-roundinterviews,andthenproceedtoSuperday
interviews at thebank.
Internship- First stepto yourdream

12. Theinternshipprograms forEquity Researcharesuperrare.Statisticallysaying,only 0.3%ofallInvestment BankingInternshiprelatedis Equity
ResearchInternship.Ifyouwant tobreakintoEquity Research,youhavetoput allyourefforts andplana strategicway toapproacheach
opportunity.
Some InternshipPrograms youmay beinterestedin:JPMorganEquity ResearchInternship,RaymondJamesEquity ResearchInternship,Barclay
SummerInternship,etc.
Get prepare for the internship
1. Know the market:
You can get thesenseofthemarket by building yourown portfolio andmanaging it effectively overtime.
2. Practice“reading”news,long articles:
You areexpectedtoknow what is important froma long articleora report,thenhow toshortenit intobullet points.
3. Get someexperiencerelevanttothejob:
It willbe a hugeadvantageifyouhaveexperiencerelatedtoinvestment bankingingeneralorequity researchinparticular.
Network
Likeothers investmentbanking careers,networking isvery importantwhenit comes torecruitment. This is thesameas howtonetworkin
Investment Banking
Resume
Resumeis thefirst andthemost important part whenapplying forbothBuy-sideandSell-side.Throughthis,therecruiters knowmorebriefly
about your skills,experiences andwhat motivatesyoutoget intothefinancialindustry.Herearesometips tohelpyouace this round.
Your target is tomakeyourresumestandout.Todo so, youneed to:
● Highlight yourrelevant working experienceandachievements

13. ● Highlight yourability tailoringtothat positionyouareapplying for
● Shareabout your leadershipexperienceandhowyou work withothers in teamwork
No matterhowmany experiences youhave,youmust keepthembriefwithinone page.You cansharetherest ofthestory at theinterview. After
submitting yourresume,don’t forget toconfirm yourapplicationandstay connectedwiththefirm,youwill benoticedabout thenext steps ifyou
pass theround.
Interview
TheinterviewofEquity Researchis quitesimilartootherjobs inInvestment Banks.Youcanexpect mainly 2 typesofquestions:
1. Non-technicalQuestions:Thesequestions is allabout you
Personalquestions:
Thesequestions arethefirst andthemost fundamentalquestions youwillhavetoface.Mostly it willbeabout yourstrengths/weaknesses,
your goals,yourexperienceinfinance.Thesequestionswillprovidetheintervieweranoverviewabout you.
“Perspectiveabout industry”questions
Industry awarenessis vitalinthis field.Soyoumust havea wide knowledgetocovera lot of fields.Moreover,youwillbe askedabout global
trends,macroeconomic, microeconomic andsomepolicies of thegovernment.
2. Technicalquestions:Thesequestions areusedtotestyourknowledge
Analysis Questions:
They oftenexpect youtoknow briefly about balancesheets,financialmodels,andsoon.Ifyou can’t answerallthequestions given,it’s
totally fine,just askforanother question.
Situationalquestions:
Theinterviewerwillaskyouabout youropinion/evaluatea situation.Theright answeris not neededinthis typeofquestion.Allthe
interviewers want is toexamineyourway ofthinking.Sopleasebecareful,thesequestionsaretrickybut maybeyourlife-saverinthe
interview.
What do you needto master before becoming a part ofEquity Research - Equity Analyst?

14. Equity Researchis a very specificfieldsoit requires a lot oftechnical,analyticalskills.Wewilllist someofit below:
- FinancialModeling Skill
- ValuationSkill
- Words/ExcelSkill
- ResearchSkill
- Financeand Accounting Skill
Are you the rightone forEquity Research?
This is not the questionyoumay facewhileinterviewing but this is thequestionyouhavetoaskyourselffirst.Youarethe right onefor Equity
Researchifyouare:
- Loveworking withnumbers
- Beabletowork long hours (12 hours per day on average)andunderpressure..
- Lovewriting,building models from numbers
- Lovemeeting newpeople(oftenhighnetworthindividuals,founders of startups orportfoliomanagers).
- Beabletowork under pressureandmulti-task.
Some tips from Bankingprep:
Alwaysdouble check yourwork: there isnoroom formistakesin Wall Street
A smallmistakeis prohibitedinWallStreet becausethis may leadtoa biggermistakeanda hugeloss.Makesureyoualways doublecheckyour
work no matterhowsimpleyourwork is.
Do all the tasksgiven
By doing allthetasks givenwillgiveyoua clearerviewofa company stockorget toknowbetterwithyour boss.This helps yourcareerpatha lot
easierandfaster.
It’sall about networking

15. Networking is very important inIBingeneralandER inparticular.Youcanhaveunexpectedgoodjob offers fromalumnior peers in yournetwork.
So makesureyouhavea good networknot only during working hours but alsooutsideworking hours.
Job
Description