Choosing a career path in the realm of finance can be both exciting and challenging. Two of the most prominent positions that capture the attention of aspiring financial professionals are none other than equity research and investment banking.
Although both these positions play critical roles in the finance industry, when it comes to responsibilities, skill sets, and career trajectories, there are quite a few differences between them.
If you, too, are someone who still has not been able to decide which career path to pursue between these two, then don’t worry; we have got you covered.
In this below-mentioned article, we will take you through a detailed guide exploring the details of both equity research and investment banking so that you can make a well-informed decision.
What Is Equity Research?
Equity research can be described as a form of financial analysis that involves studying market trends and interpreting stock prices to help portfolio managers make well-informed investment decisions.
As an equity research analyst, you will be required to bridge the gap between financial markets and investors by providing valuable insights to guide investment decisions. In addition to this, equity research analysts are also entrusted with the responsibility of identifying any underlying patterns within current market changes and using the gathered information to create algorithms that highlight profitable stock investment opportunities.
In order to be successful in this field, financial professionals must possess a blend of data interpretation and problem-solving skills, alongside a detailed knowledge of various other financial tools.
Career Prospects in Equity Research
As of 2023, the demand for equity research analysts is increasing at an unprecedented rate. In fact, did you know that according to a recent survey, the employment rate of market research analysts is estimated to witness a growth of 13% by the end of the year 2032?
On that note, mentioned below are some of the many career paths that you can explore in the domain of equity research.
Market Research Analyst
Market research analysts are entrusted with the responsibility of leading the buy-side and sell-side research for the company. In addition to this, they are also required to thoroughly analyse all the current as well as upcoming market trends and prepare reports on the same to help businesses make informed decisions.
The average salary of a market research analyst is currently estimated at INR 4 lakh per annum.
Sector Research Specialist
As a sector research specialist, you will be required to conduct thorough research on areas as specified by the fund manager and prepare reports on the same by consolidating information from various sources.
The current average salary of a sector research specialist is INR 4.6 lakhs per annum.
Senior Equity Research Analyst
Last but definitely not least, senior equity research analysts are required to mentor the junior analyst team, providing them with the necessary guidance and skill set required to perform their duties efficiently.
On average, a senior equity research analyst is expected to earn compensation amounting to INR 10.9 lakhs per annum.
What Is Investment Banking?
On the other side of the spectrum is investment banking, a field that is primarily focused on capital creation, debt underwriting and equity for corporations of all types.
Think of investment bankers as the architects behind the mergers, acquisitions, capital raising and other financial transactions. They play a crucial role in understanding the client’s financial needs and providing them with the required strategic financial advice.
In order to pursue a successful career in the domain of investment banking, you must be organised and quick on your feet. This is primarily because this field mainly operates in a fast-paced and high-pressure environment. The deadlines are tight, and professionals need to be adept at managing multiple tasks simultaneously. In addition to this, you are also required to possess a strong knowledge of various complex financial models to evaluate potential deals.
Career Prospects in Investment Banking
The global market for investment banking is estimated to witness a CAGR of 10.8%, amounting to as much as $213.6 billion by the end of the year 2032.
Mentioned below are some of the many career paths that you can explore in this vast realm of investment banking.
Bankers can be described as professionals who are adept at handling a firm’s private and business clients. From overseeing the management of investment portfolios to offering valuable advice to clients, everything falls under the realm of the responsibility of a banker.
The current average salary of a banker in India is currently estimated at INR 6-8 lakhs per annum.
Branch managers are required to manage the day-to-day operations of a bank or any other financial institution. This includes training and supervision of all employees, as well as ensuring optimal quality of service and assistance to customers.
Presently, the average salary of a branch manager in India is estimated to be INR 11,50,000 per annum.
Financial planners can be described as individuals who are responsible for helping clients perfect all their financial plans and manage their money. From setting up an account in the bank to choosing investment portfolios and managing risks, everything falls under the role and responsibility of a financial planner.
The average salary for financial planners currently in India is INR 5,71,149 per annum.
Equity Research Vs Investment Banking: Making The Choice
The ultimate decision of choosing between equity research and investment banking boils down to your individual needs, interests and skill sets.
|As an equity research analyst, you will primarily have a backend job.
|Investment bankers, on the other hand, get to enjoy the limelight.
|Equity research can offer a much better work-life balance when compared to most other professions.
|Investment banking is notoriously known for its demanding work hours.
|Equity research can lead to roles such as portfolio management or investment analysis.
|Investment banking often serves as a launchpad for various high-level finance positions.
|To excel in this field, individuals must possess great research abilities, a good analytical mindset and decisive thinking.
|Investment bankers are required to be extremely flexible, have statistical talents, and need specific financial capabilities.
Wrapping it all up, both these fields offer rewarding opportunities in the vast arena of the finance industry, each with its own specific challenges and advantages. The key is to assess your goals thoroughly and ensure that they are in perfect sync with the skills and demands of each role. Whether you find yourself in the analytical world of equity research or the dynamic field of investment banking, with the right skill set and knowledge, you are guaranteed to enjoy quite a blooming career in finance.
With that being said, we present to you the Financial Analysis course offered by Imarticus Learning in collaboration with KPMG. In this four-month program, you will get to explore all the intricacies of the finance world via live virtual training. In addition to this, it also brings forth several advantages, including hands-on training by industry experts, extensive career support, industry certification, and more!