If you are planning to continue a career in finance then it is important to understand the two most common degrees which students generally earn to get jobs in this industry. One is known as a Master’s of Business Administration (with a specialization in finance), or a Chartered Financial Analyst (CFA) certification.

Both degrees are of great respect and require serious time and commitment. These degree programs prepare students for a variety of positions. This includes working as a financial advisor in managing an organization’s investment portfolios.

To make a decision between a CFA and an MBA, you need to recognize what you actually want in your education and career. By doing so, you will be able to understand the pros and cons of each degree. In this post, we will highlight basic difference between the two followed by how to decide which is best for you. Let’s find more about it.

CFA vs MBA: What’s The Main Difference?

One of the fundamental differences between a CFA and an MBA is the type of study involved.

CFA Requirements:

A CFA is a focused graduate-level study program. The coursework is divided into three areas, which correspond to three tiers of exams i.e. level 1, 2, and 3. To become a certified CFA, the enrolled candidates are forced to pass all three exams. Many test-takers tell that these exams are tough and also the provided material is complex too. It is not at all unusual aspiring for the CFAs to fail on their first attempt.

It actually takes 300 hours of self-study to complete this coursework. Moreover, there are additional certification requirements including several years of full-time work experience in the finance industry. All the exams and studies are viewed by the CFA Institute which is the regulatory body for investment management professionals.

MBA Requirements:

The MBA is a comprehensive but an expensive degree. Candidates rotate through the foundational disciplines of business. This includes human resources, operations management, marketing, and strategy. Moreover, the students are also asked to make a thesis on a topic of their own interest. Although thesis writing is a challenging task, now there are several online MBA thesis writing services are available which help students in completing their thesis in a professional manner.

Depending on the format, MBAs are commonly done as a full-time, two-year program. But, at some business schools, the students do have a choice of completing the degree in just 18 months.

CFA vs MBA: How to decide?

Most of the CFA and MBA programs are recognized internationally, so both of them are valuable in this respect. However, the main problem arises when you have to decide which one will be of great value to you? The following are a few tips/ guiding points to help you in the decision-making process.

• Do extensive research around costs to make sure you know what to expect instead of being hit with an unexpected figure. A CFA can be much cheaper than an MBA, depending on the education institution.

• Think either the investment of your time is really worth it or not. The CFA Institutes states that on average 322 hours of study time is needed for each of the three levels before taking the test. While an MBA on average requires two years of full-time study or on average three years for part-time study.

• Think about the best qualifications which match to your skills and your future career direction. An MBA program is best suited to someone who is looking to have a comprehensive and wide understanding of the different parts of a business along with a broad set of skills that are transferable to different industries. However, a CFA is more suited to someone who wants an in-depth and practical knowledge about the finance industry.

• It is also recommended to seek advice from others. Speak to senior finance professionals who have faced the decision of either doing a CFA or MBA. Ask them about their perspectives and what are the advantages and disadvantages of each program. You can get a good perception of other people’s views and opinions.

When it comes to CFA vs. MBA, so it is not at all easy to decide which one is best for you. Do consider the above-mentioned points while you make the decision. Once you have made a decision then this qualification will be like a shining star on your resume and will set up a successful career in finance.