Why investment banks are hiring CFAs rather than MBAs

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indian owned payday loans Investment banking from cfa rather mba

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http://cuba-clothing.com/blog/?m=payday-loan-alternative-arkansas If you’re considering a career in investments or investment banking, one of the biggest questions which comes to any aspiring candidate, is whether to pursue a Chartered Financial analyst (CFA) or do a full time MBA from any of the top colleges. CFA is a self-study, part time, three level certification program which requires a lot of time commitment but can be managed with a job and a relatively lower investment. On the other hand, MBAs from top colleges are usually full time and require a high investment in terms of money and time.

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  • Traditionally, an MBA is the standard route into investment banking, but in recent times there is trend of investment firms hiring CFA rather than MBA from top institutes. One of key reasons is that the CFA focuses on http://electrodomesticosam.com/?q=payday-loans-sidney-mt deep investment knowledge, analytical skills and ethical foundations. Investment banks want employees with a combination of strong analytical and interpersonal skills. However most of entry levels where investment banks typically recruit would require strong technical and analytical ability, where CFA scores over an MBA.
  • The emphasis of CFA is very much on achieving technical/analytics skills across a range of subjects like http://hiddenacres.ca/site/?m=payday-loans-28273 quantitative methods, economics and financial reporting and analysis along with strong foundation of ethics. This expertise gained through CFA will serve well throughout one’s career, demonstrating to any potential employer that you’re up-to-date on the latest industry trends and possess the requisite commitment to develop your career. Any potential employer will therefore likely to invest in you from both a career development point of view and, potentially, pay rises.
  • By contrast, MBA programs tend to offer little in the way of deep technical education and generally focus on general business and management topics. To generalize, the skills obtained in business school were better suited for employees in more general disciplines, such as marketing or general. Even if a particular MBA does provide deep investment expertise, there is no standardization even among top institutes. In comparison, the CFA program was devised to provide charter holders with specialized skills, such as investment analysis, portfolio strategy and asset allocation. CFA is a truly globally recognized certification with an up-to-date curriculum devised by practicing industry professionals and renowned academicians.
  • The other key advantage of the CFA program is the ability to acquire specific investment related skills at a relatively low cost. However, although the CFA program is based on self-study, it is demanding, requiring a commitment of minimum of 2.5 years (average of four years and 1,000 study hours on average) to complete it. Because of high commitments both in time and money, the total number of successful charter holders is limited. The effort of completing a CFA is well worth since it’s the only truly globally recognized finance certification and will stand out in your resume. The CFA has one of best ROIs, since with relatively lower hard cost, successful candidates who obtain the CFA charter can look forward to a significant boost in earnings over the course of their careers.
  • CFA program instills in you a strong foundation of ethics and ethical standards, culture of continuously improving one’s knowledge by participating in the continuous education program and assist you to network among peers by joining a vast professional network of more than 100,000 charter holders worldwide and gain unmatched career resources, important relationships, and lifelong insights.
  • Now, it’s not a question of whether one should pursue a CFA or not for a career in investments, since it has become a pre requisite in many areas of investment banking like portfolio management, equity research, hedge funds etc. Even in other areas of investment banking, a CFA charter would provide a significant boost to a career in investments. If you are thinking of an investment banking career, one has to consider becoming a CFA charter holder.