Equity research is a front-office division of investment banks that is often overlooked by people interested in pursuing a career in investment banking. In the past, the role of this department was to produce high-quality investment research and attract new clients or encourage the existing ones to do more business with the bank (buy/sell equities, bonds or other instruments). Research departments received part of the fees generated from trading but after the introduction of MiFID II financial institutions had to split the cost of research from the cost of trading and show clearly the cost of research to investors.I have worked in ER in the past and really enjoyed it. The biggest advantages of working in equity research are:1. Get paid for learning about different companies and industriesEquity analysts spend most of their time reading, analyzing different businesses, participating in earnings calls, attending conferences and meeting clients. Those activities allow them to constantly learn new things, accumulate valuable knowledge and develop deep industry expertise.2. Work in front office and have normal working hoursThe working hours in equity research are similar to the hours in trading. People tend to go to the office around 8 am, have a decent lunch break and leave around 6 pm. Most of the time working on the weekends is not required unless it is earnings season.3. Independent workEquity research teams are relatively small and as an analyst often you can end up being the only person working on a specific report. You don’t need to coordinate your work with many people above you who might have different opinions or expectations.4. Great exit opportunitiesTop-rated analysts receive many offers from other banks and investment firms (hedge funds, asset managers, family offices and others).5. Friendly working environmentThe environment on research floors is peaceful and the vibe is similar to libraries/studying areas at universities. There is much less competition between the people working there compared to other departments like M&A.6. Develop an investor mindsetEquity research analysts need to build valuation models and make investment recommendations to the buy side. Young analysts usually make a lot of mistakes and soon they realize that their recommendations are not very accurate. The feedback loop is relatively short and forces them to improve their judgment and adjust their models/processes.Of course, like any job, there are also some disadvantages associated with working in equity research:1. Lower compensationThe salaries of equity research analysts are slightly lower than the salaries of traders or M&A bankers.2. Fewer open positionsMany banks reduced the headcount and the size of their research departments after the introduction of MiFID II.3. Randomness can significantly affect your compensation and career progressThere are hundreds of factors that influence stock prices and it is extremely difficult to make accurate predictions about the future price. A good analyst can spend many days analyzing a business and developing a perfect model but in the end, his/her investment recommendation can turn out to be wrong due to random events such as C-suit misconduct.Things to consider before applying for jobs in equity research:1. What is your preferred industry?Most equity analysts focus on a single industry and have a very good understanding of that specific industry. If you are passionate about cars, the automotive industry might be a good fit for you or if your family happens to own a food & beverage company, you might know a lot about the consumer staples sector. Having industry-specific knowledge will increase your chances of getting a job and being successful.2. Which are the best banks for your preferred location and industry?Banks' position in the market varies a lot by geography and location. One bank can be a leader in one geography or industry and a laggard in another one. For example, Mizuho Financial Group and Itau are leaders in Japan and Brazil but are unknown in other geographies.3. How good is the team?The team that you join will have a tremendous impact on your career. If you join one of the top 3 teams in the sector/geography and you have colleagues that support you, you will have a very steep learning curve. Overall, working in equity research is very interesting and intellectually stimulating. The best equity analysts can earn more money than other bankers and at the same time have a good work-life balance.