CFA vs MBA

14 May 2007

2 minute read

An article on our US site has created a furore over the relative merits of a CFA over an MBA. Here's the potted version.

According to the US commentators/ranters, here are the positives for both qualifications.

The plus points of an MBA

· An MBA is still exclusive: it works in its favour that the CFA designation has been devalued now that more and more people are taking it (including, allegedly, one child's violin teacher).

· The best i-banking and asset management jobs still go to graduates of the top 10 MBA schools.

· An MBA offers contacts and networking; a CFA offers all the networking opportunities of an after-work home study course.

· An MBA from a top 10 school is infinitely better than a CFA, but a CFA has the prestige of an MBA from a top 20 school.

· A good MBA is a bonus for career changers; a CFA is best for someone already in the industry.

· An MBA gives you a prestigious brand name to market yourself with.

The plus points of a CFA

· A CFA is more difficult than an MBA; it's also more relevant and more comprehensive.

· A CFA teaches hard skills and tests you on them; by comparison, an MBA teaches soft skills.

· A CFA is an excellent route into asset management.

· A CFA is already mandatory for most senior equity analysts and is increasingly required for fixed income analysts.

· Each of the three CFA exams requires 250 hours of study in your own time. That shows true commitment.

· MBA courses offer an introduction to financial theory. A CFA provides the tools to develop creative solutions to complex financial problems - and a growing number of top MBA schools are including it in their curriculum.

Conclusion

It helps to have both - MBA for strategy and networking and CFA for financial analysis - but even then you won't be assured of career success (particularly if you plan to use the combination to get a leg-up out of the back office).

AUTHORSarah Butcher

Global Editor

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tinashe mangwiro
12 July 2007
cfa is the way to go. its cheaper and you do it at your own pace. mba's is suited only for those dudes who want to lead. cfa is for us, quants, the people who actually sit down and make the money,without having to go out and make a show of things on tv.
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Dennis
9 July 2007
It appears that the whole issue is another much ado about nothing:
1. How do you compare an orange with an apple? My kindergarden kid say that 'a" is for apple and "o" is for orange, and so M is for MBA and C is for CFA.
2. There are variations even within the MBAs. A top 20 MBA's entrance requirements and internal exams differ from a top 500 MBA.
3. As pointed out by some that it ultimately depends upon one's aspiration and ability.
So, let this be the LAST COMMENT and get back to make your millions. However, my crystal ball is getting less cloudy and signals a crash around the corner, and market crash does not care whether it is a MBA or CFA.
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Anonymous
14 June 2007
CFA and MBA are very much complimentary.
I love how quants and hedgies belittle both degrees... guys you are great at working seemingly complex simulations (is Black Scholes that complex?) but let's face it you normally are off beat when selecting assumptions. Usually just picking recent volatilities. That is what a good MBA is for; developing criteria (CFA helps you understand the business). Try a great book "Black Swans" if you learn to pick volatities changing risk conditions in the coming storm you might actually not lose your job and end up as math teachers.
Best,
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mitchell adeose
8 June 2007
i think the cfa qualification is a far better qualification than an mba. i see the mba as a rip-off
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Niju Shiho
8 June 2007
Any tips on progressing from back office to middle/front office. Have an MSc Fin Mgt and studying towards IMC
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