CFA versus MBA

The positives of doing an MBA

• An MBA is still exclusive: It works in its favour that the CFA 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. The 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 – the MBA for strategy and networking and the 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).