How to Become an Equity Research Analyst?

An Equity Research Analyst is considered one of the most sought-after career profiles in the field of Finance. The work of an equity research analyst involves reviewing financial instruments like bonds and stocks, conducting a security analysis, preparing financial reports, and giving stock recommendations to organizations. Finance professionals like portfolio managers, investment analysts, and fund managers depend on the reports provided by 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.

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What Does an Equity Research Analyst do?

Equity Research Analysts typically work on both the buy side and the sell side. Buy-side Analysts carry out an accurate analysis of securities, financial modelling, and 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 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

Steps to Become an Equity Research Analyst

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

• Obtain a bachelor’s degree – 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 a financial firm. Moreover, an educational background in disciplines like Finance, Business, Administration, Accounting, Mathematics, Statistics, Engineering, and Economics is generally preferred.

• You can also pursue diploma courses – A Diploma in Banking and Finance or other short-term courses in finance can assist you in grasping the nuisances of the Banking and Finance industry.

• Get your master’s degree -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. 
• Get certified – 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 one of the most prestigious finance certifications in the world. A considerable number of students take this route to start their careers as Equity Research Analysts. 

Career Prospect

On completing a bachelor’s degree course in Finance, you can start your career in 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 Mutual Fund Agent. Initially, you will get work on a few specific areas but the job responsibilities will eventually increase and become more complex.

Equity Research Analyst Salary in India

Follow the below statistics to get an idea regarding how much an Equity Research Analyst can earn in India as per AmbitionBox.

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.