Entering the investment community is a great career option for those looking outside the typical science careers. In particular, those with a science degree can become an equity research analyst. Equity Research Analyst Job Description: A research analyst researches macroeconomic and microeconomic conditions along with company fundamentals, as well as collects and analyzes financial information in order to make investment recommendations on stocks in specific sectors. With a science degree, the most appropriate sector to work in is the healthcare sector, which includes pharmaceutical, biotechnology, and medical device companies, as well as hospitals and other healthcare companies. Responsibilities include building financial models, researching industries, and communicating analysis and investment recommendations in research notes. Additionally, in the healthcare sector, responsibilities include analyzing clinical data and utilizing scientific information to make sound judgements. Within the investment industry, most analysts tend to work either for buy-side investment firms, where they research stocks for an in-house fund; or sell-side firms that write research reports for buy-side firms. Buy-side firms are investment houses that manage their own funds. In these companies, analysts research companies as they look for stocks to add to an investment fund. They also track the stocks that are in a fund’s portfolio in order to determine if the fund’s position in that stock should be sold.At a sell-side firm, analysts evaluate and compare the quality of securities in a given sector or industry. Based on this analysis, analysts make reports with recommendations on the stock, such as buy or sell. To learn more about buy- or sell-side analysts, read the article “Testing 3 Types of Analysts” by Rick Wayman. Junior Analyst: With only a science degree, it is most likely to get hired as a junior analyst. A junior analyst is an entry level position that works closely with a senior analyst. Junior analysts have similar job duties as the senior analyst, but most do not make final decisions on buying or selling stocks. Tips for Success:
- It is recommended to have some business knowledge and is suggested to take a few courses in business, economics, and accounting. There must be a general understanding of the income statement, balance sheet, and cash flow statements, as well as basic financial ratios that offer valuable snapshots of the health of an organization or business trend.
- Two recommended websites that are great tools in understanding basic investment principles and financial information are www.investopedia.com and www.fool.com.
- Begin preparing by keeping up to date on the healthcare industry in general. Read industry journals and/or look up healthcare news through google. Also, keep up to date with financial information. Read the “Wall Street Journal” and “Barron’s” to familiarize yourself with the equity industry. These are also great resources to watch for job listings.
- Get as much experience as possible while still getting your degree. Seek school year or summer internships working with an equity analyst. Most equity firms offer internship programs. It is best to speak with your business department to determine if they have a program set-up through your school. The business director should also be able to give you the contacts necessary to find a program.
Tags: analyst, equity, healthcare, investment, research
May 13th, 2010 at 2:24 pm
hi,
i m a science graduate and have 2 and a half yrs of experience wherein 1 yr i have worked in a kPO dealing in capital markets, i have also cleraed 5 modules of NCFM,so am i eligible to work in a KPO dealing wid Equity and investment research and what shud i fo to make my financial concepts more stronger as this is completely new field for me.
June 8th, 2010 at 11:45 am
The KPO (knowledge process outsourcing) experience to capital market firms is an excellent start and should provide some expertise that you will need. In order to work with equity and investment research firms, it will also be important to understand company financials, including how to perform valuations. In order to make your financial concepts stronger, I suggest you take a few business courses that focus on financials, such as accounting or other financial class. There are also websites online that offer descriptions of the most common financial terms and concepts. One site that I recommend is http://www.investopedia.com. You can type in any term, and it will give you a definition, as well as an example of how it is most commonly used.
Good luck in your endeavor.
July 27th, 2010 at 1:43 pm
Hi,
I have a Phd in Pharmacology and about 5 years postdoctoral experience in research at a very reputable university. I developed an interest in equity analysis so i appeared for and passed the level 1 CFA exams. What do you think are the prospects of getting in as an entry level biotech equity analyst? Are there any resources you could recommend.
Thanks
Sam
July 27th, 2010 at 5:48 pm
Hi,
I m a science graduate and have 2 and a half yrs of experience wherein 1 yr i have worked in a kPO dealing in capital markets,
i am thinking to do a cerification course in equity research in a few months. i am also doing my MBA from distance learning, so my question which specialization would be better MBA(finance) or Investments with this certification course which would complement it and would be benificial for my career.
thanks
Sashikant Dwivedi
August 3rd, 2010 at 3:23 pm
Hi,
I m a science graduate and have 2 and a half yrs of experience wherein 1 yr i have worked in a kPO dealing in capital markets,
i am thinking of doing a cerification course in equity research in a few months. i am also doing my MBA from distance learning, so my question is which specialization would be better for me,is it MBA(finance) or MBA(Investments) which would complement my course and would be benificial for my career.
Thanks
Sashikant Dwivedi