Why Pursuing CFA After MBA Is A Better Idea?

Have you completed your MBA in Finance and looking for further certifications to upgrade your qualifications and skills? 

Then it’s a good time to be a part of the highly-competitive global finance industry. 

Most aspiring finance professionals are seeking CFA after MBA in Finance. CFA is a financial and investment management course with worldwide recognition and accreditation. The combination of an MBA and CFA certification helps professionals grab high-profile finance jobs in leading companies worldwide. 

If you are still contemplating whether pursuing CFA after MBA is a good idea, here is a comprehensive guide to help you make the right decision. 

Overview of CFA Course:

The CFA Program is a globally recognized professional credential offered by the CFA Institute. The program consists of three levels, and each level requires a minimum of 300 hours of study. The curriculum covers a broad range of topics, including economics, financial reporting and analysis, ethics, portfolio management, and equity investments. To earn the CFA designation, candidates must pass all three levels of the exam and meet specific work experience and ethical requirements.

Benefits of CFA after MBA:

The MBA program provides students with a broad-based education in business, while the CFA program focuses on specialized finance topics. Completing an MBA followed by the CFA program can significantly enhance your career prospects in the finance industry. Here are some benefits of pursuing the CFA after an MBA:

In-depth knowledge: The CFA program provides a more in-depth understanding of finance concepts than an MBA program. The CFA program’s curriculum is designed to provide a strong foundation in investment analysis and portfolio management, making it an ideal choice for those looking to specialize in these areas.

Credibility: The CFA designation is highly respected in the finance industry and is globally recognized. Adding this qualification to your resume after an MBA can significantly enhance your credibility and increase your chances of securing a job in the finance industry.

Competitive advantage: The combination of an MBA and CFA designation can give you a competitive edge in the job market. Employers are always on the lookout for candidates who possess specialized knowledge and qualifications, and the MBA-CFA combination can make you a more attractive candidate for finance-related jobs.

CFA vs MBA:

While both the CFA and MBA programs are highly respected and sought-after in the finance industry, they differ in terms of their focus and scope. Here are some key differences between the two programs:

Focus: The MBA program provides a broad-based education in business, while the CFA program focuses specifically on investment analysis and portfolio management.

Duration: The MBA program usually takes two years to complete, while the CFA program can take anywhere from two to five years, depending on how quickly you pass each level.

Cost: The cost of the MBA program is generally higher than the cost of the CFA program.

Requirements: To earn an MBA, you typically need a bachelor’s degree, while the CFA program requires no prior educational qualifications.

Job profiles for CFA after MBA:

Completing an MBA followed by the CFA program can open up a range of career opportunities in the finance industry. Here are some popular job profiles for CFA holders after completing their MBA:

1. Investment banker: Investment bankers help companies raise capital by underwriting and selling securities. CFA holders are well-suited for this role, as they possess a deep understanding of financial markets and investment analysis.
2. Portfolio manager: Portfolio managers oversee investment portfolios on behalf of clients and are responsible for making investment decisions. CFA holders are well-suited for this role, as they possess the knowledge and skills needed to make informed investment decisions.
3. Financial analyst: Financial analysts research and analyze financial information to help companies make investment decisions. CFA holders are well-suited for this role, as they possess a deep understanding of financial analysis and reporting.

Reasons Why CFA After MBA In Finance Is A Good Idea

Taking up CFA after MBA adds multiple dimensions to your career and takes it to a new level altogether. Let us see how:

• Similarity In Study Materials

An MBA programme in finance has topics overlapping with a CFA course, including the basics of finance, financial accounting, statistics, economics, and many more. These topics act as a base or a foundation for subjects like portfolio management, corporate finance, quantitative analysis, FRA, etc., which are covered in CFA. 

MBA students with knowledge of these topics and finance basics find it easy to follow the CFA course curriculum. On the other hand, during the CFA course, students learn topics like equity valuation or fixed income, which are generally not present in an MBA Finance curriculum.

Likewise, knowledge of corporate finance and portfolio management helps in understanding more difficult finance topics. Clearing CFA Level 1 becomes easier after completing MBA in Finance first.

• Broadening Of Expertise 

An MBA in Finance and a CFA are two specialised finance qualifications that broaden the candidate’s expertise. It is typical for candidates to land a job in the finance sector after completing an MBA in Finance. However, a finance specialisation course like CFA at this time can elevate one’s career further. 

The CFA course duration after MBA is about 2-3 years. With the combination of these two finance courses, a candidate can explore more employment opportunities in the finance sector. The upgraded qualification and enhanced expertise level help candidates get better job opportunities in higher and more responsible designations. 

• More Concentration On Financial Analysis

Unlike MBA in Finance, the CFA course curriculum primarily focuses on financial analysis. If you are interested in pursuing lucrative job roles in the investment industry, there is no better alternative than the CFA course. 

Learn more about CFA: Career Path to Investment Banking.

Level 1 of the CFA exam concentrates on building the foundation. The topics covered in this phase of the CFA curriculum are similar to those covered in an MBA in Finance. CFA Level 2 mainly deals with asset class valuations, and CFA Level 3 with portfolio management aspects. 

A candidate becomes highly proficient in financial analysis after completing CFA after MBA.

• Similarity in study techniques

Any MBA programme is a tough grind and demands hard work and determination. Understanding the various case studies, completing projects and making reports are just a few things in the MBA curriculum. Students, especially working professionals, develop excellent time management skills and study techniques while pursuing MBA. 

Experts recommend not losing much time after completing MBA and enrolling in the CFA course at the earliest. Taking a long gap between the two courses mean that candidates could lose the study techniques and habits adopted during the MBA. Chances are also high that students might lose interest in the CFA course if delayed for a long time. 

• Competitive Advantage

Employers expect commitment and dedication when hiring finance professionals in various job profiles. In this regard, a person with a CFA and an MBA degree is the best choice. 

A candidate with an MBA in Finance has a fair knowledge of financial concepts, ideas, and related management skills. Upgrading the skills and expertise levels with a CFA curriculum indicates that the person has an interest and passion in the finance and investment industry. Employers appreciate the commitment and hard work that goes into pursuing an MBA and CFA. Thus, candidates with these two qualifications can have a competitive advantage.

• Global Recognition 

The demand for globally-recognised courses is high among job aspirants across all sectors and industries. Such courses help aspirants stay ahead of the curve, and employers desperately seek such candidates. CFA is one such course targeted towards the financial and investment industry.

Globally recognised and accredited, CFA acts as a benchmark for the finance industry. Having a CFA certification enhances the credibility of one’s job profile. However, a CFA after an MBA in Finance raises employability prospects.

• Growth Prospects In Career

Career growth is something that every individual seeks, and it is an ongoing, non-stop process. After completing an MBA in Finance, a candidate can bag a dream job with campus placements and otherwise. But one must remember that the finance sector is dynamic, and a candidate needs to grow to succeed. A CFA certification, in addition to MBA in Finance, is a wise call. 

Significant changes are happening in the global finance market, and there is a need for astute candidates to handle such situations. New-age finance processes, financial planning and analysis (FP&A), and other areas need specialised professionals with the appropriate skills and expertise. A CFA certification will add to the career prospects of what an MBA alone can achieve.

Check out our blog on CFA Scope and Job Opportunities in 2022: Top Recruiting Sectors to learn about CFA career paths.

• Opportunities For A Broader Spectrum Of Job Roles

On completing CFA after MBA in Finance, a candidate develops a strong foundation for portfolio management and advanced investment analysis skills, a must-have for advanced job roles. A resume with such certifications stands out from the rest and makes a positive impression on employers. 

The MBA and CFA programme curriculum imparts skills and concepts beneficial for candidates navigating job prospects in the finance industry. This applies to careers in Portfolio Management, Investment Banking, Hedge Funds, Equity Research, Venture Capitalist, and so on. 

Watch this video for more details :

Wrapping it up

Plunging into CFA after MBA is a strategic move. The CFA course duration is about 2-3 years which candidates can pursue even while working. Completing both courses opens several rewarding career avenues in the financial and investment industry. 

Zell Education offers the globally-recognised CFA course with a personalised study plan, CFA-qualified faculty, student mentorship and other benefits. The 80% passing rate and access to curated notes and Zell’s Learning Management System are key highlights of the CFA course.

FAQ

Can I give CFA after MBA?
Yes, you can pursue CFA after MBA in Finance or any other specialisation. It is best if you take up CFA immediately after completing your MBA.

Should I do CFA before or after my MBA?
It is best if you do CFA directly after your MBA. The CFA course takes about 2-3 years to complete. You can continue the CFA course even while working.

How much does a CFA MBA make?
A combination of a CFA MBA fetches a handsome salary in India and worldwide. After clearing each CFA exam level, there is a huge salary hike. Upon completion of 1st level of CFA, the pay is approximately Rs 4 – 5.4 LPA; it reaches Rs 6 LPA after 2nd level and crosses almost Rs 10 LPA after the 3rd level.

Is CFA harder than MBA?
Yes, CFA is a globally recognised course and is pretty challenging to clear. However, both CFA and MBA demand dedication and hard work because of the rigorous course curriculum of the programmes.

Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.