ER vs. IB as Short-Term Goal on MBA Applications

When considering your short-term goal for MBA applications, especially when torn between equity research (ER) and investment banking (IB), it's crucial to weigh the strategic implications of each choice in relation to your long-term aspirations and the realities of MBA recruitment. Here's a breakdown based on insights from the Wall Street Oasis dataset:

1. Alignment with Long-Term Goals:

   • Equity Research is more directly aligned with your stated long-term goal of asset management. ER involves deep dives into companies and industries, generating insights and recommendations, which is a core skill in asset management.
   • Investment Banking, while offering a broader exposure to financial markets and transactions, focuses more on deal-making and financial structuring, which might not be as directly relevant to asset management but provides a strong foundation in finance.

2. Recruitment Pipeline:

   • It's true that MBA programs have a more established recruitment pipeline for IB roles compared to ER. IB internships and full-time roles are more traditionally integrated into MBA recruitment processes.
   • For ER, the path is less structured. Internships specifically tailored for MBA students in ER are less common, and full-time roles often require networking and direct application efforts akin to experienced hires.

3. Employability and MBA Admissions:

   • Admissions committees do value the employability of their graduates. Presenting a goal that aligns with more traditional MBA recruitment paths (like IB) might seem safer from an employability perspective.
   • However, authenticity and a clear rationale for your goals can also be compelling. If you can convincingly articulate why ER is your chosen path and how it aligns with your skills, experiences, and long-term aspirations, this can differentiate your application.

4. Strategies for Equity Research Aspirants:

   • Networking: Start building connections in the ER field as early as possible. Reach out to alumni, attend industry conferences, and engage with professionals on platforms like LinkedIn.
   • Relevant Experience: Consider internships or projects (even if outside traditional ER roles) that can build relevant skills, such as financial modeling, industry analysis, and report writing.
   • Highlight Transferable Skills: Your background in business operations, strategy, and analytics, coupled with a strong GMAT score and CFA pursuit, positions you well for ER. Make sure to highlight these in your application.

5. Summer Internship Suggestions:

   • Look for internships in smaller boutique firms, asset management companies, or research departments within larger financial institutions that might be open to MBA interns.
   • Consider related fields that offer valuable experience, such as financial analysis roles in corporate finance departments, consulting projects with a focus on financial services, or internships with investment management firms.

In conclusion, if equity research truly resonates with your career vision and personal interests, it's worth considering as your stated short-term goal, provided you can articulate a strong, coherent strategy for achieving it. Demonstrating awareness of the challenges and a proactive approach to overcoming them can be just as persuasive as opting for a more traditional MBA path like investment banking.

Sources: https://www.wallstreetoasis.com/forum/equity-research/career-ladder-equity-research-vs-investment-banking-a-definitive-guide-part-3?customgpt=1, Work/Life Balance: Equity Research vs. Investment Banking - (A Definitive Guide, Part 1), Breaking into buy-side equity research - my experience, Feel Trapped, Exit Opps From Sell-Side ER?, Career Ladder: Equity Research vs. Investment Banking - (A Definitive Guide, Part 3)