In today’s competitive world, it is imperative to be updated with the latest career options. Career options demanding the knowledge of financial markets and financial instruments is the need of the hour. Equity research analyst is a new career option especially in banks, brokerage firms and asset liability management firms for the students opting for B.com (Financial Markets) programme at The NorthCap University, Gurugram. The main profile of equity research analyst is to suggest investment avenues available for the investors in the stock market. Equity research analyst also involves themselves into financial statement analysis and scrutinising the balance sheets, cash flow statement and profit and loss statements of different companies. SWOT analysis of corporate bodies, finding information about their financial soundness and taking right decisions at the right time are other roles of equity research analyst. At The NorthCap University, students are offered B. Com (Financial Markets), a program that prepares them for a career in equity research.
In the securities sector, equity research analysts provide reports, forecasts, and endorsements about firms and stocks for both buy-side and sell-side firms. With a thorough understanding of financial markets, equity research analysts advise financial managers on their investment choices while working for them. They collect the data required to create a comprehensive picture of a company's alternative investment alternatives, with a focus on securities investments such as stocks, bonds, and options. Financial forecasting is also a part of equity research analyst’s job which helps them the corporate firms to take correct decisions.
Capital budgeting decisions are also taken by the managers on the basis of the research reports of the equity research analyst. Analysts that specify in equity research write reports that include recommendations and a summary of pertinent factors. Using their strong analytical and communication abilities, equity research analysts do research, evaluate financial data, forecast financial outcomes, and produce reports. They then use their findings to present their results in meetings. They discuss their findings with management during meetings, and they frequently have industry-specific specializations to keep an eye on the situation. Fixed income analyst is another name for the equity research analyst who have research skills within them helping the firms to take correct decisions. Research and analyst employment are available in all forms of investment businesses and organizations, in addition to the classic analyst professions.
These include: hedge funds, investment banking, commercial banking, investment strategy, portfolio construction, and private wealth. Business finance is also an additional responsibility that the equity research analyst are involved into. They also perform financial forecasting and capital budgeting decisions based on their research reports. Financial managers are counselled and suggested about the investment avenues available in the securities markets. Wide information is provided by them to gain insights into the securities behaviour in the markets. It is necessary to have a bachelor’s degree in economics and finance to gain the knowledge of investments.
If you have a keen interest in finance and an analytical mindset, NorthCap University cordially invites you all to start preparing for a career as an equity research analyst. Your research and analytical skills enable you to forecast and counsel your clients to purchase equities that will yield a healthy return on their capital. You can run your own company and be your own boss if you have a few years of expertise and adequate labor. Additionally, one can work in investment banking and benefit financially from significant earnings. Buy-side and sell-side firms in the securities industry provide support to equities research analysts. Strong experience in their industry enables a Senior Equity Research Analyst to also opt for a move into investment management, where they will oversee an investment portfolio and a research staff.
Dr. Renu Yadav
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