Is the CFA the right option for you?

Increasing your qualifications is one way to enhance your skills and increase your chances of landing your desired financial services career. Should you go for a traditional MBA or the more recent CFA designation?

Understanding the distinctions between an MBA and a CFA, as well as how they may affect your future financial work opportunities, is crucial. An MBA is a fantastic way for a finance professional to develop their general business skills, and it's a valuable certification that can be used to a variety of fields if you decide to change employment in the future.

The Chartered Financial Analyst (CFA) designation is given by the nonprofit CFA Institute and is a very specific investing and finance qualification. The CFA program emphasizes investment skills such as investment analysis, portfolio management, and asset allocation.

According to the CFA Institute, "the CFA® Program bridges industry practice, investment theory, and ethical and professional norms to educate investment analysis and portfolio management skills."

The CFA curriculum is a self-guided program that is more concentrated, simplified, and targeted than the MBA program. While the CFA designation is highly regarded in the financial industry, it is not ideal for all vocations.

The steps of the CFA program are as follows:

The CFA is a notoriously difficult program that teaches students about ethics, mathematical techniques, economics, corporate finance, financial reporting and analysis, security analysis, and portfolio management through a demanding set of procedures.

Preparing for an exam is a demanding task. The examinations must be completed in a specified order and must cover all aspects of the CBOK ("candidate body of knowledge"). Only 40 to 65 percent of candidates pass each exam level, with only 30 percent of Level 1 candidates progressing to Level 3. According to the CFA Institute, candidates should spend about 250 hours studying for each level. When the minimum four years of work experience is factored in, the average CFA takes about the same length of time to complete as an MBA.

The benefits and drawbacks of the CFA

Completing the CFA program not only provides you with a valuable degree and a thorough understanding of your field, but it also demonstrates to potential employers that you are serious and dedicated to your work. Obtaining the CFA credential shows potential employers that you are really interested in improving your skills. Obtaining a CFA can lead to better job prospects and higher compensation. The CFA is advantageous, particularly if you intend to work in investment management or as an economist, financial advisor, or planner.

The CFA, on the other hand, necessitates a substantial amount of time. You should be confident that you want to achieve the distinction before you commit. It's also expensive: there's a one-time enrollment fee, as well as exam and registration fees, the cost of books and study programs, and the loss of income while pursuing the certification. The CFA program will cost between $2,500 and $8,500 to finish and will take two to four years.

MBAs are, of course, expensive to earn, requiring a few years of intensive schooling at a significant cost, with no chance to work while studying. The CFA is less expensive than an MBA, and many people work full-time while studying. It is, nevertheless, extremely competitive and challenging to complete.