Which is Better, CFA or MBA?

Are you also confused about which career option to choose? Is CFA the right career option for you, or are you meant for doing an MBA? Well, both these options are well sought out career options after you complete your graduation. But it comes down to your personal decision as well. Let’s now understand what is CFA course? 

CFA as a career option is more technical and is more specific if you aspire to become a risk manager, portfolio manager, research analyst, or maybe a financial advisor too. On the other hand, MBA is more suited for people who are interested in learning more about general management and executive leadership. It covers the core aspects of business concepts as well.

Let us now have a look at CFA course details:

1. CFA course details:

   1. CFA stands for Chartered Financial Analyst and is provided by the CFA Institute, which is situated in the US. The exam is conducted in three different levels, which are Level I, Level II, and Level III. Level I include topics like equity and derivatives, which are used for creating portfolios. 
   2.  Whereas Level II includes the application of various tools like quantitative analysis, portfolio analysis for asset valuation. 
   3.  The final level, which is Level III, focuses completely on portfolio management and strategies for creating specific portfolios for individuals and institutes. 
   4. Thus to conclude, the CFA certification is a globally recognized credential in the investment management segment. It demonstrates to the employers that a candidate has immense knowledge and is committed to succeeding in the ever-evolving investment industry.

2. MBA:

   1. MBA is an acronym for Masters in Business Administration, where the students who take up this qualification specialize in various areas of business like accounting, marketing, HR, etc. 
   2. The candidates can either opt for a full-time course or a part-time course which is quite flexible for candidates having a busy schedule. There is also an executive MBA which is for candidates having prior work experience. 
   3. To summarize, to opt for an MBA course, a candidate is required to clear certain entrance exams like CAT, SAT, XAT to enter the top B schools.

Key Takeaways: 

1. MBA will take around two years to complete, whereas CFA course duration would take an average of 2-3 years for completion for all three levels. 
2. The passing rate for the first year of MBA is roughly around 95%, whereas for the second year it is approximately 90%. For CFA the pass rate is 43% on average for level I. For level II, the average pass rate is about 40% wherein there was a significant jump to 55% for December’20 attempts. For level III, the pass rate is consistently stable and higher than the first two levels.
3. For CFA, the focus area is on investment tools, asset valuation, derivatives, portfolio management, and wealth management. Similarly, for MBA, the focus is not on anything specific. The subjects that are covered are Finance, Marketing, HR, IT, International Business, and Operations management. 

Thus to conclude, there is no ideal answer to which is better CFA or MBA? If a candidate is already in the investment management domain in the finance industry, it is suggested to take up theCFA course as a career option for further promotions. Similarly, if a candidate is interested in networking and wants to add a broad set of skills, then going for MBA is a wise decision.

Why you should go for CFA and not MBA: 

1. It is a globally recognized certification, and hence there is a lot of career recognition. 
2. You gain real-world expertise as you make strategies for creating specific portfolios for individuals and institutes. It is not only restricted to the application of various tools. 
3. Since it is a globally recognized certification, you also automatically become a part of a global community. 
4. Having a CFA certification on your resume adds a lot of weightage as compared to other certifications since it’s globally recognized and adds a great value. 

Why you should opt for MBA and not CFA: 

1. If you wish to acquire an overall development just to climb the corporate ladder, then it’s recommended to take up an MBA. 
2. If you are someone who wants to explore new career opportunities and expand your network, then MBA would be the right fit for you. 
3. If you want to work with top reputed companies and not specifically in the finance domain, then you can take up MBA as doing MBA from reputed B schools can give you direct access to top banks, consulting firms, and other entities. 

Eligibility for CFA and MBA: 

1. Any graduate or a student in the final year keen on learning the core concepts of finance can join the CFA course. It can also be pursued by professionals who already have experience and wish to upskill. 
2. To pursue an MBA, a candidate must complete 3 years of graduation. Some top B. Schools also require 4 years of graduation along with a minimum 50 CGPA in graduation with subject to clearance of entrance exams. In the case of an executive MBA, two years of work experience is mandatory. 

You may have to quit your job in case you wish to pursue MBA full time, but you need not quit your job in case you wish to pursue CFA. All you need to do is work hard, stay focused and sacrifice your leisure time.