CFA vs MBA: Which is Better for Your Finance Career?

Finance is amongst the most high-paying and rewarding disciplines in the world. There are a lot of promising courses at certification, diploma, undergraduate, postgraduate, and doctoral levels. A degree or a certification in finance allows candidates to explore several domains, due to the widespread applicability of Finance in every industry. However, choosing the most appropriate course can be an enormous challenge. CFA (Chartered Financial Analyst) and MBA (Master of Business Administration) are the two most rewarding courses in Finance.

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This Story also Contains

1. What is CFA? (Chartered Financial Analyst)
2. What is an MBA? (Master of Business Administration)
3. CFA vs MBA- A Comparison

CFA is a popular certification in finance that is globally recognised and considered a golden career in finance. The CFA course is divided into three levels: Level 1, Level 2, and Level 3. Similarly, an MBA or Master of Business Administration is another popular course offered in the field of management. Candidates can choose their preferred specialisation according to their interests.

While both the CFA and MBA offer a very promising career in finance, there are many differences. Candidates can choose any of the courses to have a great future in the finance domain. In this article, we will discuss the similarities, differences, scope, career opportunities, eligibility criteria, and admission guidelines of both of these courses.

What is CFA? (Chartered Financial Analyst)

CFA or Chartered Financial Analyst is a popular charter that is generally pursued by candidates interested in working in the BFSI segment. CFA charter is an official designation offered by the CFA Institute to those who have cleared all the levels and have met all the course requirements. CFA is one of the most respected designations offered in the field of finance and allows candidates to choose from a lot of high-paying careers.

Eligibility Criteria of CFA

To be eligible for the CFA charter, candidates must have fulfilled some enrollment requirements. Students can check these requirements on the official website of the CFA Institute, which is www.cfainstitute.org. However, for the student’s reference, we have mentioned the eligibility details of CFA below.

• Candidates must have an international travel passport.
• They must hold a bachelor’s degree or equivalent from a recognised institute in India. Candidates should apply for the CFA exam, 23 months from graduation.
• Candidates with a bachelor’s degree can apply for the CFA Level-1 exam, however, they can apply for the CFA Level-2, 11 months after their graduation.

Alternatively, candidates should also meet the requirements below.

• A minimum of 4000 hours of professional work experience, or a combination of work experience and education that is accrued over 36 months (or a minimum of three years duration).

How does CFA Contribute to a Successful Career in Finance?

CFA is often considered a gold standard in finance and prepares graduates for a range of job roles. The course curriculum of a CFA institute is very comprehensive, however, it is very exhaustive and requires in-depth knowledge and practical knowledge. Listed below are some of the benefits of a CFA charter and how it helps candidates to have successful careers in finance.

• Career Growth- CFA is a highly acclaimed course and prepares constituents to apply for several high-paying job roles. Candidates can explore a lot of jobs related to finance.
• Good Networking Opportunities- Candidates get various opportunities for building good professional relationships. These networks will assist them in their careers and allow them to grow professionally.
• In-depth knowledge of the Finance and Investment industry- CFA allows candidates to gain in-depth knowledge and understanding of the finance industry.
• Higher earning potential- Many candidates apply for a CFA course to get a salary hike and increase their earning potential.

Candidates can also check this article- CFA (Chartered Financial Analyst) - The Gold Standard in Finance, to learn more about how CFA is one of the highly desired courses for a successful career in the Finance industry.

What is an MBA? (Master of Business Administration)

MBA popularly known as Master of Business Administration is a well-known postgraduate degree programme in the field of business management. However, an MBA is a broad discipline consisting of a wide range of specialisations, popular ones being, Finance, Marketing, and Human Resource Management. Individual colleges may have their enrollment requirements for the course.

Eligibility Criteria of an MBA

Only eligible students will be allowed to advance to the application process. Generally, for an MBA degree, the eligibility varies depending on the provider, type of the institute, and depending on the specialisation. Students can check the eligibility or qualification details on the official website of the provider or the programme brochure. However, some of the basic admission requirements for an MBA are provided below.

Is an MBA good for a Career in Finance?

Compared to the CFA (Chartered Financial Analyst), an MBA provides a broader business knowledge to the candidates. While an MBA in Finance provides a promising career path in the field of Financial Services, students can also choose a range of specialisations depending on their interests and future goals.

MBA Finance graduates can explore areas such as investment banking, financial analysis, taxation, and the BFSI segment. Graduates can work in both private and public sectors or can pursue entrepreneurship and set up their own financial firms.

CFA vs MBA- A Comparison

The table mentioned below compares both MBA (Master of Business Administration) and CFA (Chartered Financial Analyst). For further information, candidates can check the official website of CFA Institute or their desired MBA institute.

Conclusion

To conclude, both MBA and CFA are excellent courses for someone interested in working in the field of Finance. Both these courses offer excellent knowledge of finance and prepare the graduates for a variety of career options. Students can also apply for higher-level degrees after graduation. Some of which are Ph.D, or M.Phil in Finance or similar disciplines. CFA and MBA are both indeed valuable courses, each offering good knowledge and a successful career in Finance.