MBA vs. CFA: What Are the Key Differences Between MBA and CFA? 

Choosing between a CFA or MBA is a tough decision that many professionals and students find it difficult to make. A crucial option for anyone looking to make a career in finance, investing, or company management is whether to pursue the Chartered Financial Analyst (CFA) designation or an MBA degree. A CFA charter and an MBA are two very distinct things that focus on separate fields; thus, comparing them is difficult.

However, we also acknowledge that it’s important to compare these two credentials—MBA vs. CFA—side by side these days because a lot of aspiring professionals who want to boost their resumes focus on these two credentials without fully understanding what each can provide them and their professions. 

To help the learners explore the expenses and career-enhancing benefits of each certificate, here are the key differentiating factors you can use to determine which is best for you. This compares a CFA with an MBA.

The Difference Between CFA and MBA

Find out which of these financial education choices best suits your career objectives.

1. Scope

With the CFA course, strong and focused skills are acquired, but in the case of the MBA, the applicant receives broad training with room to specialize in finance.

2. Course Overview

MBA:

Students pursuing this comprehensive, all-encompassing degree study the fundamental subjects of business. The main subjects covered include marketing, operations management, human resources, and strategic planning. However, people wishing to specialize would be able to take disciplines linked to finance.

Students in the program also get the opportunity to hone their generalist abilities.

CFA:

This graduate-level education, offered by the CFA Institute, the organization that oversees the profession of investment management, focuses on independent study for the level 1, 2, and 3 tests. To obtain the CFA certification, candidates must pass each of these three test tiers.

As a result of their high difficulty level, candidates have reported that they find it challenging to pass on their first try. To work in the banking industry, individuals must obtain additional qualifications after completing the course.

Get MBA courses online from the best universities in the world. To grow your profession more quickly, complete the Master’s, Executive PGP, or Advanced Certificate programs. 

3. Duration and Expertise

MBA:

The MBA programs are full-time courses that last two years, while some may only last eighteen months. Through classroom training and hands-on industrial learning outside of the classroom, the course assists students in developing their professional and social networks. They gain leadership qualities from it that will eventually help them succeed in the cutthroat market.

CFA:

This program’s student life is very different from the MBA’s, which places greater emphasis on developing relationships. This course offers less core learning, but it covers more ground in its detailed and focused financial teaching.

4. Job Type

MBA:

MBA offers all the job roles that a person with a CFA certification could be eligible for, in addition to more flexible employment options. Those who choose the in-person course will be in a better position since, in addition to opportunities for career progression, they will gain exposure to the alumni network. These candidates find it simpler to move between industries and take on a variety of responsibilities during their careers. For various roles, several firms favor candidates with MBAs.

CFA:

A candidate certified in the CFA program possesses knowledge of corporate finance, asset allocation, investment analysis, and portfolio strategy. They often hold positions as chief executives, risk managers, portfolio managers, financial advisors, consultants, financial analysts, and research analysts in the financial industry. However, CFA-qualified people have limited job choices. Put another way, the CFA program is not advised for applicants hoping to work in industries other than investment banking, investment management, equity research, or hedge funds.

5. Costs and Income Potential 

MBA:

Online course fees generally range from Rs. 1,00,000 to Rs. 3,00,000. Therefore, online courses are a smart choice if money is tight. The annual salary range for MBA applicants is between INR 3 lakh and INR 28 lakh. Learn more about Indian MBA salaries.

CFA:

Compared to the MBA, this course fee, which is only about 2 lakhs, is far less expensive. Candidates can enroll in CFA courses at ICFAI University or the CFA Institute US. Depending on their level of experience in the field, candidates with a CFA certification often make between INR 4.5 lakhs and INR 38 lakhs annually.

Bottom Line 

Ultimately, a great number of people manage to earn both an MBA and a CFA charter. It’s not an either-or choice, so by all means, take both if you’re determined to make your resume the greatest damn document the world has ever seen.

It all comes down to your circumstances and aspirations in the end.

The CFA Program is the best option if you want to establish your financial credentials or gain a certificate to advance your career in finance.

If you’re seeking certification to advance your profession beyond finance or want to switch industries, an MBA could be a more suitable option.

If you are looking for professional guidance in CFA, Mirchawala’s Hub of Accountancy can be your perfect learning partner. 

Frequently Asked Questions (FAQs)

Q: Who makes more money—CFAs or MBAs?

Ans: In general, both programs are excellent. But when it comes to job prospects and earning potential, an MBA graduate will make more money than a CFA. 

Q: Are CFAs more difficult than MBAs?

Ans: There are hurdles in both courses, but the CFA course is thought to be a little harder than the MBA course. The CFA course’s requirement for specialized courses and in-depth study of each issue is the cause.

Q: Is a master’s degree worth less than a CFA?

Ans: Instead of going in-depth, the master’s program is highly recommended if you want to learn everything there is to know about any subject. However the CFA program is designed specifically for those who are interested in asset management, portfolio strategy, and investment analysis.