How to Become an Equity Research Analyst

3 minute read
Equity Research Analyst

An Equity Research Analyst is considered as one of the most sought after career profiles in the field of Finance. The work of an equity research analyst involves reviewing the financial instruments like bonds and stocks, conducting a security analysis, prepare financial reports, and give stock recommendations to organizations. Finance professionals like portfolio managers, investment analysts, and fund managers depend on the reports provided by the equity research analysts. The following paragraphs elucidate more on the job, career paths and qualifications you need to kickstart a career as an equity research analyst.

What does an Equity Research Analyst do?

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Equity Research Analysts typically work in both buy-side and sell-side. Buy-side Analysts carry out an accurate analysis of securities, financial modelling, daily movements of stocks of various organizations. On the other hand, the Sell-side Analysts are well versed in judging the everyday movements in terms of the actual holding of stocks by clients. Epitomized by ‘TV Analysts’, a Sell-side Analyst not only recommends securities but is also in charge of building a cordial relationship with the customers, suppliers, competitors, and other analysts. Sell-side analysts give a comprehensive view of various aspects while their buy-side counterparts have to delve deep into stock fundamentals. Buy-sides generally work in wealth management firms, hedge funds, and pension funds while the Sell-side Analysts work in brokerage firms and banks.

Skills Required

An Equity Research Analyst can work in an array of financial firms that specialize in hedge funds, brokerage, and wealth management. But to build a strong career in this field, you also need to possess a set of industry-specific skills like:

  • Familiarity with Advanced Software
  • Analytical and Logical Thinking 
  • Problem-solving Skills
  • Presentation and Report Writing Skills
  • Excellent Verbal and Written Communication Skills
  • Strong Temperament and Creativity
  • Excellent Time-Management Skills 
  • Leadership and Client Management skills

Educational Qualifications

Following are the key educational qualifications you need to become an Equity Research Analyst:

  • A bachelor’s degree program in analysis-intensive fields such as a BFM Course or BAF Course can help you apply for the profile of an Equity Research Analyst at financial firms. Moreover, an educational background in disciplines like Finance, Business, Administration, Accounting, Mathematics, Statistics, Engineering, and Economics is generally preferred.
  • To delve deeper into this field, you can pursue a master’s degree in Financial Management as well. The most common job profiles of an equity research analyst are namely, equity research, portfolio management, and fund management. 

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Certification Courses

Chartered Financial Analyst (CFA), Financial Risk Management (FRM) and Certified Financial Planner (CFP) are some of the professional certification courses you can pursue apart from the above-mentioned courses. The CFA charter is awarded by the CFA Institute and is considered as one of the most prestigious finance certifications in the world. A considerable number of students take this route to start their career as an Equity Research Analyst. 

Growth Opportunities

On completing a bachelor’s degree course in Finance, you can start your career at a junior-level associate position working under the supervision of a Senior Analyst. After gaining some experience in this field, you can progress towards becoming a Senior Associate and undertake high-level responsibilities. After this, you can either pursue higher education to upskill your competencies or explore career opportunities as an Investment Manager, Financial Planner, Financial Analyst, Portfolio Manager, and a Mutual Fund Agent. Initially, you will get work on a few specific areas but the job responsibilities will eventually increase and become more complex.

We hope that this blog familiarized you with the qualifications and job responsibilities of an Equity Research Analyst. If you planning to pursue a program in Finance, but don’t know where to start, you can take the help of Leverage Edu‘s AI tool to browse through a wide range of courses and academic institutions and find a suitable combination of program and university that fits your interest and career aspirations.

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