An MBA is the traditional route into investment banking, particularly in the U.S., but it’s lack of technical training often leaves new recruits lagging others in the organisation and MBAs are gravitating away from finance anyway.
The CFA, meanwhile, gives a great technical grounding, but doesn’t necessarily give you the management nous to navigate the financial services industry into the senior ranks. And CFA and MBA qualifications are more relevant in some sectors of investment banks than others.
Demand for CFAs versus MBAs
Relatively speaking, the CFA is an exclusive club. There are 125,000 people who have passed all three exams globally after the 14,000 people who got through level three in June 2015 are added in. Around 72,000 of these are in the U.S.
MBAs are a vocation for elite students who can afford the fees, but here are around 100,000-150,000 people enrolling in MBAs every year in the U.S alone. Even at schools with close links to financial services firms, only around a quarter enter the industry upon graduation, but there are still a lot of MBAs out there.
For even more clarifications you can see the below mentioned point:
- #1. CFA: great for finance
- #2. MBA: more widely recognised outside of finance (but that is changing)
- #3. CFA: more time-efficient
- #4. But you can expect to earn an MBA sooner than a CFA charter
- #5. CFA charter costs less
- #6. CFA & MBA success rates are about equal
- #7. Both have great alumni networks
Hope this will help you in making a wiser decision. Best of luck!
Let us understand what an MBA and a CFA offers as a career:
- An MBA is a two year long course, and an MBA in finance opens up overwhelming opportunities. This degree focusses on broad knowledge of core business concepts related to finance. Getting an MBA costs heavily, of course. But also the return on investment is all worth it. Hence you will have a reputed job after an MBA.
- CFA designation is provided to those who pass three exams, i.e charter holders, portfolio strategy and asset allocation. It is less general than MBA and is coveted by investment professionals. Getting a CFA is cheaper but longer than an MBA. Also CFA has great scope in foreign countries too as it is more of a potential future career option gaining worldwide importance. CFA exam is considered to be harder to clear.
Hence it all comes down to the fact that what your preference and ability is, because both these degrees can offer you great career paths. So sit, explore and decide. All the best. Keep checking EduGorilla for more information regarding your doubts. 🙂
Depends on the side your would like to work.
- Buy side investment – CFA has more value.
- Sell side investment- MBA has more value.
Coming to the differences between the courses:
- Duration of course- CFA is usually a 3-4 years course, Where as , MBA is generally 2yrs(1yr) course.
- Cost of studying- Pursuing CFA is comparatively very cheap than that of MBA.
Finally, If you know what way you want to take your carrier, and you feel you want to do CFA, then only do it.
If you dont know, then i would suggest you to go for MBA in finance because it has a wide scope and while pursuing it you would know which way to choose 🙂