Graduating from a reputed educational institute in itself is a remarkable milestone that marks the beginning of a new journey. As students navigate the decision-making process for their next steps, one of the most common dilemmas is choosing between two top qualifications in the finance and accounting fields: CFA vs MBA. The availability of abundant educational options after graduation can create confusion. Taking a call to decide what to do next is a crucial factor in shaping your career trajectory. Therefore, let us further dive into the blog that aims to be your ultimate guide on learning the key difference between CFA and MBA programs to understand which is better CFA or MBA?
Table of Contents:
- About the CFA and MBA Program
- CFA vs MBA – Admission Process
- MBA vs CFA Curriculum
- CFA vs MBA – Entrance Exam Format
- MBA vs CFA Career Paths
- CFA vs MBA – At a Glance
- Who Should Choose CFA?
- Who Should Choose MBA?
- Benefits of CFA over MBA
- CFA or MBA which is better?
- CFA vs MBA – Make your Choice Today!
- Frequently Asked Questions
About the CFA and MBA Program
Are you struggling to decide between CFA vs MBA? Both CFA and MBA programs offer distinct advantages and cater to different career goals, but it is challenging to decide on which path to take.
Should you pursue the in-depth, finance-focused CFA certification, or opt for the broad, managerial perspective of an MBA?
About CFA Program
A global non-profit association of financial experts, the CFA Institute grants the Chartered Financial Analyst designation. The institute’s mission is to advance professional excellence, ethical standards, and education in the worldwide investment services sector.
The three-part CFA Program exam covers the principles of asset valuation, portfolio management, wealth planning, and investing instruments.
About MBA Program
MBA is a master’s degree in Business Administration preparing graduates for managerial roles in various sectors. You can do MBA from many educational institutes having their own eligibility criteria. Some institutes may ask for work experience and a competitive entrance exam like GMAT or GRE. However, other institutes only require a graduation pass certificate.
CFA vs MBA finance, the curriculum covers core topics including financial management, international finance, corporate finance, financial statement analysis, and more. Apart from MBA finance, you can also specialize MBA in accounting, finance, marketing, strategy, and operations, as well as electives and specializations. Graduates can pursue careers in consulting, banking, entrepreneurship, technology, and social impact, depending on their goals and interests.
*Note: Nowadays, students pursuing MBAs as soon as they become aware of the benefits of CFA certification start pursuing CFA with MBA degree.
CFA vs MBA – Admission Process
Once you decide between CFA vs MBA on which course to pursue after your graduation, you must be aware of its eligibility criteria.
The CFA admission process requires you to find a reputable institute that caters to your educational needs along with practical focus. One of the qualifying requirements set out by the CFA Institute must be met in order to enroll in the edZeb CFA Program:
- Have a bachelor’s degree or its equivalent
- You still have two years left to complete your undergraduate degree
- Have at least 4,000 hours of professional work experience
However, the admission process for an MBA requires you to:
- Present a graduation pass certificate
- Then take an entrance exam such as CAT, GMAT, XAT, MAT or any other equivalent to qualify for an MBA.
- Have a professional work history (which differs by school).
- Meet any additional requirements for the program (varies by school).
Otherwise, you can directly enroll in private colleges and universities that offer different MBA courses. Also, the admission process varies in different countries and universities.
MBA vs CFA Curriculum
Both qualifications differ in their career goals and so do their curriculum, so let’s briefly explore the CFA vs MBA curriculum differences:
MBA Program Curriculum
MBA curriculum in India includes core courses in different fields of study such as
- Finance and Accounting
- Marketing
- Leadership and organizational behavior
- Strategy
- Business ethics
These MBA courses can be supplemented with additional elective modules like
- Entrepreneurship
- FinTech
- Big Data
- Analytics
- Logistics & Supply Chain Management
- Operation Management
The syllabus and subject differ according to the course of study you choose with electives focusing on the core managerial level studies to enhance your knowledge of the business environment and its various procedures to effectively and efficiently carry out tasks.
CFA Program Curriculum
The CFA program is divided into three levels and the table represents the CFA curriculum topic areas and their weights across these three levels.
Topic Area | Level I | Level II | Level III |
| Ethical and Professional Standards | 15-20% | 10-15% | 10-15% |
| Quantitative Methods | 6-9% | 5-10% | – |
| Economics | 6-9% | 5-10% | 5-10% |
| Financial Statement Analysis | 11-14% | 10-15% | – |
| Corporate Issuers | 6-9% | 5-10% | – |
| Equity Investments | 11-14% | 10-15% | 10-15% |
| Fixed Income | 11-14% | 10-15% | 15-20% |
| Derivatives | 5-8% | 5-10% | 5-10% |
| Alternative Investments | 7-10% | 5-10% | 5-10% |
| Portfolio Mgt. and Wealth Planning | 8-12% | 10-15% | 35-40% |
CFA Institute tries to keep the curriculum up-to-date and timely make changes to the curriculum. So, various changes introduced in the guidebook for 2024 are given below:
- The curriculum has been updated to improve the learning experience of candidates.
- The Alternative Investments section in the curriculum now covers digital assets and private capital investments.
- The Corporate Issuers section includes business models, capital allocation, working capital, and corporate governance.
- The Equity section is introduced with updates on financial modeling and private company valuation.
- The Fixed Income section has revised concepts to make it more relatable to real-world scenarios.
Overall, these changes focus on modernizing the content, improving the learning design, and incorporating more practical, real-world applications of concepts.
CFA vs MBA – Entrance Exam Format
Anyone seeking CFA certification has to clear all three levels to gain certification. All these exams are conducted in two sessions, morning, and afternoon.
CFA Level 1
In CFA level 1 you have to attempt a total of 180 multiple-choice questions equally divided in each135 minutes morning and afternoon session.
CFA Level 2
The CFA Level II exam, consisting of 22 vignettes and 88 multiple-choice questions, is 4 hours and 24 minutes long, divided into two sessions with an optional break.
CFA Level 3
The Level III exam consists of 11 item sets and 11 essay sets, each worth 12 points, with a mixed distribution across two sessions.
However, the CAT is the primary entrance exam used to get admission to India’s best MBA schools. It is an online two-hour test. The entrance exam format includes multiple-choice questions in three sections:
- Verbal Ability a Reading Comprehension (VARC)
- Logical Reasoning and Data Interpretation (LRDI)
- Quantitative Ability (QA)
Applicants who wish to be admitted to MBA colleges must pass both the sectional and overall cutoff exams.
MBA vs CFA Career Paths
CFA offers candidates to make a career in:
- Institutional investing industry
- Actively managed mutual and hedge funds
- Mid- and high-level employees involved in the investing process
You can be offered Investment management, Portfolio management, Financial analysis, Risk management, and Asset management positions.
Whereas MBA students can find work in:
- Corporate finance organizations
- High-level positions in various business fields
At various designations including General manager, Financial Advisor, and Marketing Consultant.
CFA vs MBA Salary Prospects
| CFA Jobs with Salaries | |
Job Title | Salary (LPA) |
Equity Research Analyst | 10 |
Financial Analyst | 5.8 |
Credit Analyst | 7.9 |
| Senior Financial Analyst | 8.3 |
Equity Research Associate | 12.5 |
Corporate Financial Analyst | 7 |
Risk Manager | 11.5 |
| Portfolio Manager | 11.7 |
| Investment Manager | 6.1 |
*Note: the salaries are just for reference as these have been sourced from various sites.
MBA Jobs with Salaries | |
Job Title | Salary (LPA) |
Accounts Manager | 8.6 |
Consulting Manager | 29.8 |
Cash Manager | 2.4 |
| Credit Manager | 7.4 |
| Corporate Controllers | 24 |
Finance Officers & Treasurers | 5.5 |
Auditor | 4.4 |
Consultant | 13.4 |
Business Intelligence Analyst | 8.5 |
*Note: the salaries are just for reference as these have been sourced from various sites.
CFA versus MBA – At a Glance
Aspect | CFA | MBA |
Subject | Finance and investment | General business management |
Difficulty Level | High | Moderate |
Scope | Narrow (focused on finance) | Broad |
Salary | Varies (competitive within finance) | Varies (depends on specialization) |
Duration | 3-4 years (part-time) | 1-2 years (full-time) |
Focus | Finance and investments | General business management |
Cost | Lower (exam fees and study materials) | Higher (tuition, living expenses) |
Flexibility | Self-paced study | Fixed schedule |
Career Path | Specialized in Finance | Broader business roles |
Global Recognition | Highly recognized in finance | Wide industrial recognition |
Networking | Limited networking opportunities | Strong networking opportunities |
Admission Requirements | Bachelor’s degree or 4,000 hours of professional experience | Bachelor’s degree, entrance exam (e.g., GMAT, CAT), work experience |
Job Opportunities | Available after each level | Typically available post-graduation |
Who Should Choose CFA?
The Chartered Financial Analyst (CFA) is a highly valued professional designation in the investment industry worldwide. For those with a keen interest in finance and a deep understanding of investment analysis and portfolio management, the CFA course is an excellent choice. CFA helps in developing the skills of professionals like accountants, financial advisors, and economists.
Who Should Choose MBA?
An MBA degree prepares individuals for management and leadership roles in business. It focuses on areas like finance, marketing, management, and operations. MBAs are beneficial for those looking to start businesses, enter consulting or investment banking fields, or develop their business acumen.
Benefits of CFA over MBA
There are various benefits of selecting a CFA over an MBA, particularly for those who are conscious of budget and flexibility.
Affordability
The CFA program does not cost you as much as MBA can, so it is easy to do without digging a hole in your pocket.
Career Opportunities
You can secure a job just after completing each level of the CFA program but if you do MBA then you must finish it and attain the degree to do a job on the basis of your MBA.
Global Recognition
The CFA exam is standardized globally, so its value is consistent, unlike an MBA, where the degree’s worth heavily depends on the institution you attend. If you do an MBA from the top B schools or IIMs, you are valued but if you do it from not so recognized institute then it is hardly valued by employers.
Flexibility
You can pursue the CFA along with your job, which allows you to gain practical experience and growth in your career simultaneously. Whereas pursuing an MBA requires a full-time commitment and doing a job along with MBA is a challenging thing to do.
CFA or MBA which is better?
Deciding on which is better CFA or MBA, particularly requires you to take into account certain factors including individual interests and the growth factor.
First of all you should be aware that MBAs teach business management, finance, and money in-depth, while CFA focuses on finance and money in-depth. Moreover, MBAs offer a higher salary initially due to their growth potential and ability to work in various categories beyond their specialization.
On the other hand, CFA is a specialized field with limited options after graduation, but those who can make money out of money can reach high levels. CFA is also considered tougher due to its more specialized and advanced subjects, while MBA students face high workloads.
Therefore, choosing between a CFA and an MBA depends on individual needs, abilities, and future goals because market trends and statistics constantly change, so it’s essential to keep your end goal in mind when making a decision. However, you can also opt to pursue your CFA with MBA as well to have the advantage of dual qualifications.
CFA versus MBA- Make your Choice Today!
CFA vs MBA after graduation must have been clear until now if you have reached up until this point in the article. Your decision must align with your professional aspirations and learning style as well. Whether you seek the in-depth financial expertise of the CFA or the comprehensive business acumen of an MBA, both paths offer unique benefits that can significantly impact your career trajectory. So, consider your long-term objectives, weigh the advantages of each program, and choose the one that best fits your vision for the future.
FAQ’s
Who earns more CFA or MBA?
Both MBA and CFA are generally good but when it comes to job prospects and earning potential, an MBA graduate earns more than a CFA. Initially, the CFAs earn ₹6LPA, but the yearly income for an MBA pass out from top IIMs and B schools starts at about ₹8LPA which increases with experience.
Is a CFA harder than an MBA?
There are difficulties in both courses, but the CFA course is harder than the MBA course. The root cause of this difficulty lies in the CFA course's requirement for specific coursework and in-depth study of every topic.
Is CFA worth more than a master's?
The CFA is the best option if you want to establish your finance credentials or gain a certificate to make your career in finance sector. But if you are looking for a certification to make a career beyond finance and do not want industry-specific jobs then an MBA is a more suitable option. It allows you to work at different designations across various industries like investment, accounting, management, and more.
What is CFA vs MBA salary?
The earning potential of professionals MBA and CFA professionals varies. Early-stage CFA Level-1 professionals earn ₹3-4+ Lakhs P.A., progressing to ₹6-10+ Lakhs P.A. at Level-2. MBA Finance students start at ₹3,98,526 per year with potential bonuses. CFA professionals earn ₹12+ Lakhs P.A. at Level-3, while MBA Finance graduates may exceed ₹15 Lakhs P.A.
Is MBA good for making a career in Finance?
An MBA is suitable if you want a broad education in business and management, with opportunities to specialize in finance. It can lead to various roles in finance, consulting, and management if you aim for leadership positions or wish to explore diverse business areas.
