Whether or not to obtain a Chartered Financial Analyst (CFA) program after Master of Business Administration (MBA) is yet a debatable question. Unlike others, some students have really high dreams that they want to fulfill by becoming investment professionals.
Apparently, MBA in Finance and CFA are the most popular courses that seize your grounds to break into financial analysts and investment banking jobs. This adds-on to the list of benefits of doing CFA. Earlier, students were forced to choose between one of the two courses as they were not allowed to pursue both the courses simultaneously. However, the tables have turned ever since the new rules came into existence. To attract more and more aspirants, MBA institutes have started covering a part of the CFA program in their MBA Curriculum. Students can get either degree or certification program as a major to get acquainted with the finance and investment world.
Now the question comes is, why do we need to back one of the most coveted degrees by a CFA? To get the answer, we first need to understand the similarities and the difference between the two degrees.
MBA Finance/CFA- The Difference
Let’s first go through the differences.
| Features/Degree | MBA | Chartered Financial Analyst (CFA) |
| Duration | 2 Years | 2-4 Years |
| Eligibility | Graduation | Graduation |
| Offered by | Top MBA Colleges in India | Institute of Chartered Financial Analysts of India CFA Institute the USA |
| Avg. Course Fee | INR 6-8 Lakh | INR 2 Lakh |
| Avg. Starting Salary | INR 3- 3.5 Lakh | INR 3-4.5Lakh |
| Eligibility and Skills Required | Bachelor’s degree from any recognized university with minimum 50% marks in graduation degree. | Bachelor’s degree in any stream minimum 4 years of work ex. in finance/investment-related fields. |
| Core Subjects | Advance Marketing
Financial Planning Hedge Fund Management Securities Analysis Global Finance |
Financial Reporting Analysis
Ethics in Investment Portfolio Management Asset Management Financial Strategy |
| The Curriculum Focuses on | MBA degree prepares students for the finance world by working on their management skills but they may lack technical proficiency. | CFA inculcates knowledge related to technicalities but then management remains unaddressed. |
Getting an MBA degree will prepare you not only for the investment world but also for industries outside it. But the course fee is four times higher than CFA. Whether you have a knack for management or want to lead the world, a degree in MBA will prepare you for all of it. Topics covered during MBA are credit analysis, chief investment officer, relationship management and wealth management, data science, trading, investment banking, and financial planning, accounting and auditing.
Benefits of Doing MBA
Keep reading to find reasons for how pursuing a CFA after an MBA will enrich your career growth. An MBA covers finance and investing as a whole, while the CFA program focuses on the specifics of investing. There are thousands of firms out there that employ CFA charter holders to meet their company’s needs. Undoubtedly, an MBA degree makes students ambitious to harbour their plans in an optimistic and well-led manner.
MBA degree is a gateway to endless opportunities in almost every industry. Perhaps before the completion of the degree, students get insight into where they want to see them in the future. These students are prepared for everything from marketing skills, resource management, company building processes to strategies, frameworks, etc. Thus enhancing their overall value.
Almost every college offers an MBA degree, and hence it’s easy to find a college according to your comfort. But then the specialization you are seeking may not be available everywhere, pay heed to it. Also, top-tier business schools are expensive enough to join; so students are advised to look for college within their approx. range. The chances of turning into an entrepreneur increase with an MBA degree.
Benefits of Doing CFA
As far as the benefits of CFA are concerned, it gives the opportunity to aspirants to acquire specific investment skills without spending much. The certification is quite economical and can help students who prefer self-study. The course is quite arduous and requires hour-based commitment.
The CFA has to be well-versed with quantitative techniques in corporate finance, and the focus is laid on the teaching and learning of financial analysis. CFA program prepares students with essential investment knowledge that a general MBA degree might neglect. Let’s not ignore the fact that not every student is privileged to pursue MBA from top institutes, but everyone should be given such opportunities that might help them to evolve, CFA can be that opportunity. CFA can boost the credibility of your profile and lay a strong foundation for students to explore a wide spectrum of roles. Mentioning CFA Certification in your resume would be a feather in your cap to add to your chances of getting a job in the finance world. If you are pursuing the degree and diploma course simultaneously, you might study similar subjects, thus making it easy for you to complete the course with a better score. The new-age finance processes are getting complex and require the next level of proficiency. Your CFA certification will prepare you for Financial Planning and Analysis (FP&A).
However, enrolling in both will get you a graduate degree and certification. Growth Opportunities after CFA increases for those who already have an MBA degree and want to get acquainted with both management and technical skills. However, the benefits of doing CFA can be counted, only when you have an MBA degree as well. Have any more doubts? Write us more.
About Author
