CFA or MBA from one of the best B schools of the world..? What should one enroll for ………

CFA® vs MBA – Which shall you choose?  – The key difference between CFA and MBA is the skills obtained. CFA focusses on enhancing Investment Management skills including Investment Analysis, Portfolio Strategy, Asset Allocation and Corporate Finance. Whereas, MBA focusses on overall Management Skills like Marketing, Operations, Finance, Human Resources etc. Another difference is the mode of study.

CFA is a low-cost  program, whereas, MBA in most cases is a Full-time Classroom-based Program. The recovery of total cost of CFA can be done within a year of becoming a charter holder whereas MBA (excluding top 50 B schools) can take years to recover.

On one hand CFA can take between 2 -4 years to complete whereas MBA can be completed within 2 years. CFA is a globally recognized program having a decent value wherever you go and as per UK NARIC it has also been taken equivalent to Masters level in most of the countries like USA, Singapore, India, Scotland, Philippines, Canada, Hong Kong etc. On other hand, MBA from Nepal has a questionable value as a master level qualification in job markets throughout the world.

International Salary surveys also indicate that CFAs usually are paid 15-20% premium over MBAs.

Metaphorically, CFA is a foot wide and a mile deep while MBA is a mile wide with the depth of a foot.

CFA has the following aspects embedded in its essence which makes it demand so high in global markets.

• Real-world expertise
• Career recognition
• Ethical grounding
• Global community
• Employer demand

So Why CFA…..?

• Investment Management/Research Career – If Investment Management / Research is the word you are attracted to, then CFA® is definitely for you. Investment Management generally includes managing large investment funds and deciding where to invest money.
• High End Investment Banking Stuff? – CFA® curriculum covers advanced skill sets required for Investment Bankers, Portfolio Managers and Equity Research analysts. You will find most of the Investment Bankers and analysts have taken CFA® examination. It’s like a pre-requisite for a successful financial career.
• Hedge Fund/PE/VC Career – You will also find CFA® helpful if you are planning for a career in Hedge Funds/PE/VC.
• Resume Booster – Due to the high value for a CFA® Charter holder, having this degree is definitely a Resume booster.

So Why MBA…..?

• Work with Best Firms (not necessarily Investment Banking) – Doing your MBA from international world-class business schools can get you entry in the best knows firms to work for. Well known business schools give you direct access to recruiters at top banks, consulting firms, and other companies.
• Re-branding – If you want to rebrand yourself, expand your networks or explore new industries, then definitely MBA is for you.
• Overall Development – MBA focusses on the overall development of the student and does not focus on any particular skill set. Overall development is important when you want to rise up the ladder and are expected to posses multiple skill sets.

Conclusion:-

CFA® is highly useful if you want to make career in Investment management or any other field related to finance, however, MBA is widely recognized degree and you will get diverse experience provided you have the option of pursuing it from one of the best B school globally. For doing MBA, you will have to sacrifice your full-time job and comes at a very high cost along with the opportunity cost. However, for CFA®, you don’t have to quit your job to take CFA® exams but sacrifice your leisure time. Another option could be to consider both – CFA® and MBA? Again its a matter of individual choice and capacity..?

Best of luck and we hope you make a right choice….? But if you are still confused you always have an option to contact us for mentoring.  🙂