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How to Become an Equity Research Analyst?

Your ultimate guide to becoming an Equity Research Analyst: Steps, eligibility, skills, job roles, career opportunities, and top colleges

Published By Team SetMyCareer
Last Updated: 09 August 2024
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In this Career Outline


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Introduction to Equity Research Analyst

"In the world of finance, an Equity Research Analyst is the navigator who guides investors through the complexities of the market." - Benjamin Graham

An equity research analyst reviews market information and news, staying updated by regularly interacting with industry contacts. They mainly focus on writing reports and making recommendations rather than on mathematical forecasting. Experienced analysts may transition into investment management roles, overseeing research programs and investment accounts. Their role involves analyzing economic data, conducting research, and providing insights to both their organization and clients.


Steps to Become an Equity Research Analyst:

Step-1

Start by gaining a solid understanding of financial concepts, accounting principles, and economic theories.

Step-2

Pursue a bachelor's degree in finance, economics, accounting, or business administration.

Step-3

Gaining hands-on experience through internships or entry-level roles at finance or investment firms is crucial.

Step-4

A master's degree in finance, business administration (MBA), or related fields can enhance your credentials.

Step-5

Certifications like the Chartered Financial Analyst (CFA) or Financial Risk Manager (FRM) are highly regarded in the industry.

Step-6

Cultivate strong analytical abilities and proficiency in financial modeling, data analysis, and research methodologies.

Step-7

Build a professional network through industry events, seminars, and online forums. Keep yourself informed about current market trends and financial news.

Eligibility Criteria

Eligibility Criteria Description
Eligibility Must possess at least 50% aggregate from a recognized institution (PUC/CBSE/ICSE/ISC, etc.)
Educational Background High school diploma or equivalent.
Undergraduate Degree B.A, B.Com, BBA, or relevant diploma in Finance, Economics, or a related field.
Postgraduate Degree MBA in Finance for advanced learning and career opportunities.
Entrance Exams Valid score in CAT, MAT, CMAT, or equivalent; some colleges offer their own entrance exams or state-specific exams.

  • Must have at least 50% in 12th grade from any recognized board (PUC/CBSE/ICSE/ISC). Cut-offs vary by college.
  • A valid score in Entrance exams after 12th like CAT, MAT, CMAT, etc., is required. Colleges like NMIMS, Symbiosis, XUB, and others may offer their own exams if needed.
  • A degree in B.A/B.Com/BBA or a Diploma is essential to become an Equity Research Analyst.
  • An MBA in Finance is beneficial for higher education and advanced learning.

  • No specific entrance Exams after 12th required for Content Writing.

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Not eligible to pursue this career?


Find out different career options based on your current academic accomplishments. Enquire with our career experts and build a roadmap to your career success!

Tasks to perform as an Equity Research Analyst:

Work with business advancement organizations to investigate, design, evaluate, or deploy quantitatively organized innovative alternatives or enlarged industries.

Participate in the creation or evaluation of novel software packages to verify that it meets the needs, standards, and capabilities of the customer.

Applying mathematics and analytical tools to realistic accounting challenges such as derivatives pricing, capital markets, regulatory compliance, and economic sector regulations.

Discuss investment methods, competitive analysis, or operating machine performances alongside other finance technologists or researchers in order to influence the advancement of mathematical methodologies.

Engage with dealers or other members of the economic business to identify the requirement for additional or enhanced research technologies.

Knowledge & Skills Required

Equity Research Analyst must possess a wide array of skills to succeed in their careers. Here are the key knowledge areas and skills needed to excel in this field:

Knowledge Required
Develop skills in analyzing financial statements, conducting ratio analysis, and evaluating a company's financial health. Knowledge of macroeconomic factors, market trends, and how they impact equity markets and individual stocks.
Understanding of methods such as Discounted Cash Flow (DCF), Comparable Company Analysis, and Precedent Transactions. Insight into specific industries and sectors, including key drivers, challenges, and competitive landscape.
Proficiency in statistical techniques and quantitative methods for analyzing data and forecasting trends. Awareness of relevant regulations and compliance issues affecting financial markets and reporting standards.
Skills Required
Financial Analysis Valuation Techniques
Excel Proficiency Research Skills
Attention to Detail Communication Skills

Understanding What are soft skills? and why is it important,as they complement technical abilities and enhance overall performance in the field of Equity Research Analyst.

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The Knowlegde and Skills don't intrigue you?


The reason is that your interests don't align with this career. Identify your interests and match them with careers that require those skills. This alignment will help you grow and succeed in your career faster than you might expect!

Job roles offered for an Equity Research Analyst:

Once you have the qualifications to become an Equity Research Analyst, various career options open up:

Financial Quantitative Analyst:

Analyze investment opportunities and asset performance to advise on profitable investments. Specialize in particular sectors or regions to better inform your investment choices.

Financial Risk Analyst:

Evaluate financial data to forecast investment success and guide decisions on equities, bonds, and other investments. Specialize in specific sectors to provide detailed recommendations.

Securities Analyst:

Assess companies' financial health and market potential to recommend buying or selling financial products. This role is crucial for understanding market trends and guiding investment strategies.

Data Analyst:

Collect and analyze data to uncover trends and patterns, providing valuable insights for decision-making across various industries.

Risk Analyst:

Examine financial records and economic conditions to assess risk for businesses, often working in banks and insurance firms, with potential for advancement to management roles.

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Not sure where you fit in?


With the wide variety of careers and job roles available, pinpointing the best option for you can be challenging. Thorough analysis and dedicated sessions can provide clarity on what to study, which industry and role to pursue, and the most suitable career path to follow.

Career Opportunities for an Equity Research Analyst:

Equity Research Analysts can opt for various fields of work in the companies listed below:

FactSet Morningstar JP Morgan
Goldman Sachs HSBC Edelweiss Financial Services
Cisco Oracle NatWest Group
Aditya Birla Group

Colleges offering courses for Equity Research Analyst:

Here is the list of colleges offering the Best courses after 12th:

St Xaviers College, Ranchi KJ Somaiya College of Science and Commerce, Mumbai
PSGR Krishnammal College for Women, Coimbatore Sri Krishna Arts and Science College, Coimbatore
JBIMS Mumbai - Jamnalal Bajaj Institute of Management Studies School of Distance Education, Andhra University, Visakhapatnam
BJB Autonomous College, Bhubaneswar Karmaveer Bhaurao Patil College, Vashi
Samrat Prithviraj Chauhan Government College, Ajmer Serampore College, Serampore

End Note

Becoming an Equity Research Analyst is a rewarding journey that combines finance, research, and strategic thinking. Whether you're analyzing market trends or advising clients, this role offers continuous learning and growth opportunities. Ready to take the next step in your career? Connect with our experts at SetMyCareer to guide you with Career counselling after graduation along your career goals.