Pursuing CFA After MBA - Is It Worth It?

25 Sep 2024

Pursuing CFA After MBA - Is It Worth It?

The finance and investment sector is dynamic and ever-changing, with frequent expansions and mergers. Regulations and standards evolve continuously, demanding adaptable skills and knowledge to navigate the unpredictable realm of investment banking.

The CFA program addresses knowledge gaps commonly found among MBA and finance professionals. Its syllabus encompasses a blend of finance-centric topics, crucial industry concepts, and vital skills essential for effectively steering a career in investment advisory, and this is why pursuing CFA after MBA is a better idea.

What is CFA?

CFA (Chartered Financial Analyst) program, stands as a globally acknowledged professional credential for investment experts. It comprises self-study sessions centred on investment expertise, ethical conduct, and practical proficiencies. The program comprises three levels, each demanding success in a six-hour examination. Topics within the curriculum include economics, financial reporting, equity investments, fixed income, derivatives, alternative investments, and portfolio management.

What is MBA?

The Master of Business Administration (MBA) is a postgraduate degree program tailored to furnish individuals with the necessary knowledge and expertise to thrive in leadership roles across diverse sectors. Typically spanning two years, MBA programs entail a blend of coursework, case analyses, and hands-on projects. Throughout the program, participants engage in networking opportunities with industry professionals and acquire practical insights through internships and similar initiatives.

Why pursuing CFA after MBA is a better idea?

Historically, MBA programs provide a comprehensive business curriculum covering financial and investment components, representing the traditional route for business administration. Conversely, the CFA designation's curriculum specifically emphasizes investment analysis and portfolio management, offering profound insight into investment principles and ethics. Here is an analysis of CFA vs MBA in general:

Aspect	CFA	MBA
Focus	Specialized in investment analysis and portfolio management	Broad business curriculum with a focus on management
Scope	Narrower scope, highly focused on finance and investment	The wider scope covers various business disciplines
Time Requirement	Substantial time commitment typically takes over 1.5 years	Approximately 2 years of full-time study
Exam Structure	Divided into three parts, each taking six hours to complete	No standardized exam, coursework-based assessment

What are the Benefits of Pursuing CFA After MBA?

Holding a CFA after completing an MBA has many benefits. Below are some of the reasons why one should go for a CFA after an MBA

Enhances financial skills

CFA curriculum focuses on finance, and portfolio management, guided by top specialists. Level 1 establishes finance basics, Level 2 delves into the advanced theory, and Level 3 emphasizes portfolio management and capital markets, ensuring comprehensive qualification for the industry. The program bridges gaps in financial education, making CFA after MBA a compelling choice.

CFA recognized worldwide

CFA certification opens doors to various job profiles, favored by top global financial analysts. It enhances prospects for positions in major financial firms, offering lucrative MBA CFA combination salary ranging from INR 10 to INR 40 lakhs. Holding a CFA post-MBA enhances opportunities in prestigious financial firms, consultancy, or entrepreneurship.

CFA more feasible post-MBA

While challenging, a CFA after an MBA is manageable due to prior finance knowledge. Syllabi overlap, leveraging MBA training for smoother CFA progress. Many MBA graduates effortlessly clear Level 1.

Merge for proficiency

MBA fosters organizational, time management, and decision-making skills. CFA provides deep industry knowledge and market understanding. Together, they create adept finance professionals capable of navigating the industry's complexities. Combining both courses ensures proficiency and success.

Differentiate with CFA

Having a CFA after MBA on your resume distinguishes you, prompting recruiter interest and interview invitations. It's a strategic advantage for standing out in the competitive finance landscape, which in turn, leaves no doubt regarding whether to choose CFA or MBA.

Strategic Advantage of CFA after MBA

The dynamic finance and investment industry necessitates adaptable skills and knowledge to navigate its intricacies. Opting for a CFA after completing an MBA confers a strategic edge, bridging knowledge gaps and offering specialized investment analysis and portfolio management expertise. The combination of an MBA and CFA unlocks doors to lucrative career pathways in esteemed financial firms, consultancy, or entrepreneurship. Furthermore, amalgamating both programs cultivates proficiency and success, nurturing adept finance professionals capable of excelling in competitive environments.

Thus, the benefits of embarking on this transformative journey underscore the advantages of pursuing a CFA after an MBA, emphasizing the enhancement of financial skills, global recognition, post-MBA feasibility, proficiency through integration, and differentiation in the field.

Frequently Asked Questions (FAQs)

Is it worth doing a CFA after an MBA?

The CFA opens up various job opportunities, particularly in the financial sector. Many financial analysts in leading global firms hold CFA certifications, making it a compelling post-MBA pursuit.

What is the salary of a CFA with an MBA in India?

A fresher’s MBA CFA salarytypically ranges from ₹3,98,526 per annum, with potential bonuses between ₹30,000 to ₹1,50,000. Upon completing CFA Level-3, professionals can expect to earn ₹12+ Lakhs annually, while those from esteemed MBA programs may surpass ₹15 Lakhs per annum. After five years, CFA charter holders can earn upwards of ₹18+ Lakhs annually.

Is a CFA harder than an MBA?

Success rates for both the CFA exams and MBA programs are comparable. Discussions comparing the CFA Program to the MBA often cite CFA exam pass rates, which hover around 40% annually across the three levels.

Is CFA very tough?

Though challenging, candidates can enhance their chances of passing by dedicating over 300 hours to study, utilizing diverse preparation materials, solving numerous practice questions, and devising a structured study regimen.

Does CFA require maths?

The Chartered Financial Analyst curriculum covers mathematical topics, predominantly requiring fundamental math skills alongside comprehension of statistics and algebra. Having a calculator at hand is advisable before sitting for the exams.

Is CFA a stressful job?

Many CFAs operate in high-pressure environments characterized by tight deadlines and significant stakes. Hence, a decisive demeanour, adept stress management, and clear thinking are essential attributes.

Is the CFA syllabus vast?

The level 1 exam primarily focuses on investment tools, ethics, asset classes, and portfolio management. While it's impractical to cover every aspect of the extensive syllabus, focusing on key topics is recommended. The CFA board suggests dedicating roughly 300 hours to study before exam day.