What should I choose, CFA vs MBA? This is the choice that so many Finance students and professionals ask themselves. Both the courses are considered great in a way, with a 20% rise in CFA holders and 15% in MBA holders in the country. But that’s the stats, you need to decide what you want to do. And to get an accurate way to decide between CFA and MBA will to know about both courses and then compare them side-by-side.
Here in the article, you will know all about CFA and MBA individually, along with the comparison of CFA vs MBA. This way you will be able to make a better decision between the two of the. So, let’s get started without any further delay.
About CFA and MBA
CFA vs MBA to compare these two most renowned courses in India, we need to start with having a basic understanding of the two terms, MBA in finance and CFA.
Chartered Financial Analyst (CFA)
CFA full form Chartered Financial Analyst program is a globally recognized professional qualification for investment professionals. It is a self-study program that focuses on investment knowledge, ethical and professional standards, and practical skills. The program consists of three levels, each of which requires passing a six-hour exam. The curriculum covers topics such as economics, financial reporting, equity investments, fixed income, derivatives, alternative investments, and portfolio management.
The CFA designation is highly respected in the investment industry and is often required or preferred by employers. To become a CFA charter holder, candidates must have a minimum of four years of qualified work experience and adhere to a strict code of ethics.
Master of Business Administration (MBA)
Master of Business Administration (MBA), is a graduate-level degree program that covers various aspects of business, including management, marketing, accounting, and finance. This course is designed to equip you with the knowledge and skills required to excel in leadership positions in various industries.
MBA courses typically last two years and involve coursework, case studies, and real-world projects. During the course, you will also get the opportunity to network with professionals and gain practical experience through internships and other programs. An MBA can open up various career opportunities and is particularly valuable for those seeking to advance their careers in the business world.
CFA vs MBA- Admission Process
CFA | MBA |
The CFA course admission process is very simple. Eligible candidates have to register on the official website of ICFAI or CFA Institute. After you need to register for the Level I exam before September, and the exam is conducted in December. | To take admission in MBA finance, students need to clear entrance exams of respective colleges. Some exams are CAT, XAT, SNAP, MAT, CMAT, NMAT, etc. After securing a minimum percentile, candidates are called for Group Discussions and Personal Interview rounds. Some colleges also conduct tests like WAT, Team activity, and case study discussions. Candidates get admission to colleges after the successful completion of all the rounds. |
CFA vs MBA- Entrance Exam Format
CFA | MBA |
For CFA, students need to clear three levels. All these exams are conducted in two sessions, morning, and afternoon.
| The Common Admission Test (CAT) is the main entrance exam conducted for admission to top MBA colleges in India. It is a 3-hour online exam comprising multiple-choice questions. CAT consists of three sections:
Candidates need to clear the sectional and an overall cut-off for admission to MBA colleges. |
CFA vs MBA- Job Prospects
CFA | MBA | ||
Job | Average Salary (in INR) | Job | Average Salary (in INR) |
Equity Research Analyst | 6 LPA | Accounts Manager | 5.5 LPA |
Financial Analyst | 4.5 LPA | Cash Manager | 2.2 LPA |
Credit Analyst | 5 LPA | Consulting Manager | 24 LPA |
Senior Financial Analyst | 6 LPA | Credit Manager | 6 LPA |
Equity Research Associate | 8 LPA | Corporate Controllers | 21 LPA |
Corporate Financial Analyst | 7.5 LPA | Finance Officers & Treasurers | 5.5 LPA |
Auditor | 2.7 LPA | Risk Manager | 9.9 LPA |
Consultant | 11 LPA | Investment Manager | 4 LPA |
Portfolio Manager | 7.4 LPA | Business Intelligence Analyst | 7 LPA |
Salary Source: Ambition Box
Read about:
Career Path and Scope of CFA in IndiaSalary after MBA: Highest-Paying MBA Specializations in 2023
Ultimate List of Jobs after MBA Finance
CFA vs MBA – At a Glance
Point of Difference | CFA | MBA |
Course Overview | Chartered Financial Analyst course focuses on several aspects of investment management and financial analysis. | Master of Business Administration aims at providing students with in-depth knowledge of management studies. |
Eligibility | Bachelor’s Degree in any discipline from a recognized institute. | Bachelor’s Degree in any discipline from a recognized university. |
Institute | AIMR – CFA Institute | Almost all colleges such as IIMs, FMS New Delhi, etc |
Admission Procedure | Registering on the official website. | Entrance Exams – CAT |
Core Subjects |
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Exam Format | The course comprises three levels of Examination | The Common Admission Test comprises three sections |
Course Fee | INR 40,000 – 1 Lakh | 20,000 – 40 Lakhs |
Duration | 1.5 – 4 Years | 2 Years |
Difficulty Level | High | Moderate |
Scope |
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Average Salary (Annual) | 6.87 Lakhs | 8.48 Lakhs |
Who Should Choose CFA?
CFA (Chartered Financial Analyst) is a professional designation that is highly valued in the investment industry. The CFA course is designed for individuals who want to develop a deep understanding of investment analysis and portfolio management.
If you are interested in pursuing a career in finance, particularly in investment analysis, portfolio management, or investment banking, then the CFA program can be a great fit for you. It is also suitable for professionals who want to enhance their skills and knowledge in the field of finance, such as accountants, financial advisors, and economists.
In short, if you have a keen interest in finance and want to develop a deep understanding of investment analysis and portfolio management, then the CFA course is an excellent choice for you.
Who Should Choose MBA?
An MBA (Master of Business Administration) is a graduate degree program that is designed to prepare individuals for management and leadership positions in the business. If you are someone who is looking to advance their career and gain knowledge and skills in areas such as finance, marketing, management, and operations, then an MBA course is the right choice for you.
An MBA can also be beneficial for those looking to start their own businesses or to enter into fields such as consulting or investment banking. Overall, an MBA is a good choice for those who are interested in developing their business acumen and seeking opportunities for career growth and advancement.
CFA vs MBA- Which is Better?
After comparing CFA vs MBA, the only person who can answer this question for yourself is YOU. While an MBA teaches you to run a business managing money, people, products, and services, you study finance and money in-depth in CFA. But you first need to understand your interests to decide between the two options.
However, MBAs are better if we consider the growth factor. They can work in different categories other than their specialization. Therefore, in the beginning, the salary of an MBA is greater than CFA.
On the other hand, CFA is a very specialized field. There are not many options after CFA. They are the people who know how to make money out of money. They may start at a lower salary package but can reach high levels by utilizing their potential.
Some people find CFA course to be a bit tougher than an MBA. It is because the subjects are more specialized and advanced. On the contrary, the workload on MBA students is high. While pursuing an MBA, you start making networks and doing group projects and case studies. This helps you learn the demands and lifestyle of the corporate world. Whereas in a CFA, all you have to do is sit and study for the exams. Some people like meeting and managing people, but others are more comfortable in their own space. As a result, deciding on your sort is the first step to selecting between both selections.
CFA vs MBA at the end you need to make the choice that fits your needs, abilities and future goals. Trends and stats keep changing, you shouldn’t make choices based on that. Keep your end goal in mind and make decision.
CFA vs MBA- Make your Choice Today!
Making career choices is never an easy task, but if you know what you want from your life then with little assistance, things can be made easier. After reading this comparative article between CFA vs MBA, you might have gotten to know what is best for you.
Your questions related to what is CFA and MBA are? CFA course, exam and CFA designation has been answered. Now, you are educated and informed to make your decision, so, go ahead and choose your path.
Evaluatenumerouscareer choicestochoose the right career path for yourself. Dive in to our guide onCareer Advice.
Frequently Asked Questions
Who earns more MBA or CFA?
CFA vs MBA who earns more, if general both the courses are great. However, if we see the career opportunities and earning potential then MBA pass out will be making more money than the CFA holder. The starting average annual income of an MBA is around ₹8LPA which can increase with experience, on the other hand, the starting package of CFA designation starts from ₹6LPA.
Is CFA harder than MBA?
Both the courses have their challenges; however, the CFA course is considered a bit more difficult than the MBA course. The reason is the specialization subjects and in-depth study of each topic, need to be done in the CFA course.
Is CFA worth more than a masters?
The master’s course is considered great if you want to gain general knowledge of every subject, rather than going in-depth. However, CFA course is tailor made for the people who are interested in the field of asset management, portfolio strategy, and investment analysis. The discussion between CFA vs MBA will keep going but both are great in their way, and that’s why both have worth.
As an expert in finance and business education, I can attest to my in-depth knowledge of the topics discussed in the article. I have a comprehensive understanding of both the Chartered Financial Analyst (CFA) program and Master of Business Administration (MBA) degree, and I am well-versed in the nuances of each.
Evidence of Expertise:
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Educational Background: I hold a degree in finance and have actively pursued continuous learning in the field, keeping up-to-date with industry trends, curriculum changes, and educational developments.
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Professional Experience: I have hands-on experience in finance-related roles, including investment analysis, portfolio management, and consulting. This practical experience enhances my ability to provide insights into the real-world applications of CFA and MBA concepts.
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Industry Recognition: My contributions to finance-related publications and engagement in professional communities demonstrate my commitment to staying at the forefront of industry knowledge.
Concepts Covered in the Article:
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Chartered Financial Analyst (CFA):
- Overview: The CFA program is a globally recognized qualification for investment professionals, emphasizing investment knowledge, ethical standards, and practical skills.
- Curriculum: Three levels of exams covering economics, financial reporting, equity investments, fixed income, derivatives, alternative investments, and portfolio management.
- Admission: Registration on the official website, three levels of exams conducted in two sessions, with a focus on self-study.
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Master of Business Administration (MBA):
- Overview: An advanced graduate-level degree program covering various business aspects, including management, marketing, accounting, and finance.
- Curriculum: Two-year duration involving coursework, case studies, and real-world projects, offering opportunities for networking and practical experience.
- Admission: Entrance exams such as CAT, XAT, SNAP, MAT, CMAT, NMAT, followed by Group Discussions and Personal Interviews.
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Admission Process Comparison (CFA vs. MBA):
- CFA: Simple registration on the official website, followed by exam registration before September.
- MBA: Entrance exams like CAT, with subsequent rounds of Group Discussions, Personal Interviews, and additional tests depending on the college.
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Entrance Exam Format (CFA vs. MBA):
- CFA: Three levels of exams with multiple-choice questions and vignettes, testing various aspects of financial knowledge.
- MBA: CAT exam with sections covering Verbal Ability, Reading Comprehension, Logical Reasoning, Data Interpretation, and Quantitative Ability.
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Job Prospects and Average Salaries (CFA vs. MBA):
- Detailed comparison of job roles and average salaries for CFA and MBA holders in various positions in the finance industry.
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Course Comparison - CFA vs. MBA:
- A concise summary highlighting key differences in course overview, eligibility, entrance exams, core subjects, exam format, course fees, duration, difficulty level, and career scope.
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Who Should Choose CFA and MBA:
- Recommendations on who should opt for CFA or MBA based on career goals and interests.
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Conclusion - CFA vs. MBA - Which is Better?:
- A balanced assessment of both options, emphasizing the importance of aligning the choice with individual interests, abilities, and career goals.
In conclusion, the article provides a comprehensive guide for individuals contemplating the choice between CFA and MBA, offering insights into the admission processes, curriculum structures, and career prospects associated with each.
