CFA Vs MBA: Top 6 Differences You Must Know
admin 28 Apr, 2024 The higher education world for commerce students is evolving quickly. Today, it presents several options. However, the higher number of choices also leads to great confusion. Students usually find themselves stuck between two or more choices. One such case is CFA vs MBA. CFA and MBA will be two of the best courses for you when looking forward to advancing your career in the finance field. Both of these courses offer some great advantages for your career. Therefore, you might get confused about which one to choose.
Stuck between two options while choosing a higher education course is nothing new. Every student faces this dilemma at a certain point in their life. So, do not worry. Getting out of this confusion cloud is easy. All you need is a thorough CFA vs MBA comparison. There are several differences between these two options. It is crucial for you to know about all of them. A thorough differentiation will assist you with making an informed choice. Although both offer a career in investment, finance, and business management fields, they highly differ based on numerous factors.
This post will provide a detailed look into the CFA vs MBA comparison. It differentiates the two based on various factors. This thorough differentiation will significantly help you decide the right path for you. But, before starting with the differentiation, it will introduce you to each course in detail.
CFA
The CFA Institute offers the CFA certification that establishes you as a Chartered Financial Analyst. It is a professional certification program recognized globally. The CFA Institute designed it to help investment professionals and aspiring candidates advance their skills and knowledge. It primarily focuses on investment knowledge, advanced concepts, professional and ethical standards, and practical skills.
The global investment industry highly values the CFA certification. Professionals with this qualification are in high demand because of their unparalleled expertise. Its course curriculum includes several advanced topics. Some of these topics are financial reporting, fixed income, alternative investments, equity investments, economics, derivatives, and portfolio management.
MBA
MBA is another contender in the CFA vs MBA comparison. An MBA is a postgraduate degree. It is for individuals aiming to get into the business management world. It covers various aspects like marketing, management, accounting, and finance. It offers the best knowledge and skills to get leading designations in various industries.
The MBA program is for two years. It deals with coursework, real-world scenarios, and case studies. This program also trains students in work ethics. Do you want to gain practical knowledge and build connections with industry leaders? MBA courses can be the go-to answer!
CFA vs. MBA
Choosing between two courses makes all the difference for your future. There is no universal best among these two courses. Hence, you must evaluate them both and find the most suitable one for you. Below is a detailed comparison of CFA vs MBA to help you make an informed choice.
CFA vs MBA Eligibility
CFA
- Undergraduate degree, or in the final year
- 4 years of relevant work experience or more
MBA
- An undergraduate degree in any discipline
- Minimum aggregate percentages differ from one institute to another.
CFA Vs MBA Qualifying Examination
CFA
The CFA course includes a three-level examination. Below are the subjects included in this examination:
- Ethical and Professional Standards
- Quantitative Methods
- Economics
- Financial Statement Analysis
- Corporate Issuers
- Equity Investments
- Fixed Income
- Derivatives
- Alternative Investments
- Portfolio Management and Wealth Planning
CFA Level 1 and 2 exams consist of all the above-listed 10 subjects. However, the Level 3 exam does not have quantitative methods, financial statement analysis, or corporate issuers. The weight of each subject at each level is different.
MBA
MBA has several entrance examinations for varying institutions. CAT, XAT, SNAP, CMAT, MAT, and NMAT are several of the countless MBA entrance examinations. In general, the exam curriculum for an MBA is often as follows:
- Reading Comprehension and Verbal Ability
- Quantitative Ability
- Logical Reasoning and Data Interpretation
CFA vs. MBA Exam Structure
CFA
CFA Level 1
CFA Level 1 gets divided into two sessions:
- First Session: 90 MCQs (2 hours and 15 minutes)
- Second Session: 90 MCQs (2 hours and 15 minutes)
You get an optional break between these two sessions.
CFA Level 2
Level 2 of the CFA exam is also a two-session examination.
- First Session: 11 Vignettes supporting 44 MCQs (2 hours and 12 minutes)
- Second Session: 11 Vignettes supporting 44 MCQs (2 hours and 12 minutes)
The break between the two sessions is optional.
CFA Level 3
The two sessions of Level 3 are as follows:
- First Session: 6 Vignette sets and 5 Essay sets, or 5 Vignette sets and 6 Essay sets
- Second Session: 6 Vignette sets and 5 Essay sets, or 5 Vignette sets and 6 Essay sets
Both sessions last for 2 hours and 12 minutes. The break between the two sessions is optional.
MBA
CAT is regarded as the most esteemed among the different MBA entrance examinations. It's a 3-hour web-based assessment. Candidates should pass the sectional along with the general cut-off for this particular examination.
CFA Vs MBA Exam Dates
CFA
CFA Level 1
- 15–21 May 2024
- 20–26 August 2024
- 13–19 November 2024
CFA Level 2
- 22-26 May 2024
- 27–31 August 2024
- 20–24 November 2024
CFA Level 3
- 16–19 August 2024
MBA
CAT is usually conducted between August and November every year. The dates of other MBA entrance exams vary.
CFA Vs MBA Job Opportunities
CFA
- Equity Research Analyst
- Credit Analyst
- Financial Analyst
- Equity Research Associate
- Corporate Financial Analyst
- Auditor
- Consultant
- Portfolio Manager
- Senior Financial Analyst
MBA
- Cash Manager
- Accounts Manager
- Consulting Manager
- Finance Officers and Treasurers
- Investment Manager
- Risk Manager
- Business Intelligence Analyst
- Corporate Controllers
CFA Vs MBA Employers and Salary
Top employers and salary are other crucial differences you must know between a CFA and an MBA.
CFA
Top employers, including the Big 4, hire CFAs. This qualification empowers you to enter the global job market. Also, it offers you quick career advancement. On average, freshers with CFA certification earn around INR 6 LPA. The salary range goes much higher with increasing experience.
MBA
MBA graduates are also hired by reputable companies. But you receive preference only if you graduate from the best MBA colleges. The typical income for MBA graduates is INR 8 LPA in India.
FAQs
- Is CFA Level 1 equivalent to an MBA?
The CFA and MBA are both prestigious qualifications. Employers continuously look forward to adding professionals with these degrees to their teams.
- Is a CFA worth more than a Masters?
The worth of both qualifications cannot be compared. If you wish to specialize in the investment domain, CFA will be a more worthy choice for you. On the other hand, choose a Masters degree if you wish to gain general knowledge of the finance field.
- What is the salary of a CFA or MBA?
Both courses are great and offer high packages. However, several factors influence one’s salary. These factors include experience level, location, and company. On average, CFAs earn around INR 6 LPA at entry level in India. For MBA graduates, the average salary in India is around INR 8 LPA.
Wrapping Up
CFA vs MBA is a long-running debate. However, your confusion is justified. Both courses offer the most lucrative career opportunities. But you will find a number of benefits to selecting a CFA over an MBA. The typical program duration for CFA is 1.5 to 2 years. Having said that, for an MBA, it's two years or even more.
Also, CFA is your direct pass to entering the global investment job market. So, if the investment field is your dream working field, CFA is your path to success. But if you wish to gain general knowledge in the finance field, you can choose an MBA.
The examination for CFA certification needs you to be thorough and well-prepared. So, choose NorthStar Academy’s expert-guided CFA course to achieve success. As a leading coaching institute for professional certification course preparation in the investment field, we offer the best study material. Also, our accredited teachers will stay by your side throughout the preparation and selection process. So, do not wait any longer, and start your CFA preparation today with NorthStar Academy.