Masters in finance or CFA (2024)

What’s the best choice to make?

When creating a blueprint for building a career in the field of finance, it can be nerve wracking to decide upon a firm career path. Especially when it comes to choosing between studying a masters in finance program or clearing CFA level 1 through level 3, one can get easily confused and swayed by the possibilities and choices.

I can help with this decision making through my personal experience of helping students build a successful career in finance . let me present to you a detailed understanding of both the programs- masters in finance program as well as CFA program, their benefits and drawbacks and the reason to pursue them in the first place. I have also provided my own advice on which is the better option to study and invest your time and resources in.

Chartered financial analyst (CFA)

What is CFA?

Chartered Financial Analyst (CFA) program is an international post-graduation certification offered by the CFA Institute based in America to investment and finance professionals. This program highlights a wide range of topics related to advanced investment analysis spread over three levels, which upon being successfully cleared declares the candidate as ‘CFA charter holder’ and adds immense value to their professional life. It should also be noted that candidates must have relevant work experience of 4 years or more at the time of clearing their level 3, in order to be awarded the CFA charter.

As of May 2024, 190,000 plus professionals are CFA charter holders. This scarcity in numbers of available CFA charter holders globally makes themhighly valuable assets to top finance organizations across the world.

Below are some of the main advantages as well as disadvantages of pursuing the CFA program.

Advantages

• Professional Credibility: According to Robert Half, the CFA charter has now become the ‘golden standard’ for the Wall Street qualifications due to its level of difficulty. Becoming a CFA charter holder can add value to your skills and bring recognition for it in the field of finance, being trusted for your knowledge in the finance industry.

• Better Job Opportunities & Stability: CFA charter holders being scarce in numbers are also high in demand. Firms across the globe acknowledge and respect the diligence and skills of CFA charter holders and would easily offer you an enticing job opportunity. Not only can you apply anywhere across the globe, but also expect a stable career and fulfilling professional life.

• Professional Freedom: The Chartered Financial Analyst program prepares the candidates for a variety of positions in finance, through a widespread coverage of different subjects important in the global finance industry. Thus, giving them the freedom to choose from a platter of job opportunities and firms.

• Better Salary & Real World Contribution: Becoming a CFA charterholder comes with better year-on-year salary increments compared to other jobs (2019 study by the CFA Institute). And as reported by 95% of candidates of the CFA Institute, it provides a curriculum that reflects current industry practices. Thus, imbibing skills to make real contributions in the industry.

• Cost Effective Course: CFA course is very economic compared to other post graduation options like MBA and can be easily pursued while working part-time. At the same time, for students needing financial assistance, the CFA Institute provides various scholarships with the added benefit of enrolment fee waiver and discounted registration.

The cost of CFA program includes a one-time enrolment fee of $350, while the total cost of each level of CFA exam can go up to $3050 for early bird registration and $3950 for standard registration.

Disadvantages

• Time Commitments: CFA program requires a rigorously dedicated studying schedule in order to clear all three levels in minimum number of years. It is based on self-study and would require four years on average and 1000 hours of study to become a CFA charter holder.
• Opportunity Cost: Although cost effective in comparison, it can turn out to be expensive if you choose to pause your working schedule for full-time dedication to this program and thus, cost you your annual income apart from books, enrolment and exam fees involved.

MFin or Masters in Finance

Masters in Finance (MFin) is a masters program offered by graduate schools to students with studies focused on subjects from the field of finance. With this course, students can get access to graduate school alumni professionals network and on completion are presented with a course completion degree. Hence, it is a full time degree program and not just a certification course.

Below are some of the main advantages as well as disadvantages of studying the masters in finance program.

Advantages

• Career Opportunities: Every graduate school has a dedicated career services center which serves the purpose of helping in finding the right job opportunities for the students and getting placed in their dream companies. They also help with mock interviews, feedback, and CV building workshops to help students stay sharp and look professional. Students can also attend career fairs in college to connect with firms of choice.

• Esteemed Alumni Network: Depending on which graduate school the candidate enrolls into, they can get direct access to their esteemed alumni which can include professionals from various positions in a variety of firms actively contributing to the finance industry. This can help them to learn from their alumni as well as seek mentorship and job opportunities from them.

• Soft Skills: An added advantage of a masters in finance program is receiving special soft skills training that will enable the candidate to present themselves professionally and manage situations other than ones requiring skills related to finance smoothly.

Disadvantages

• Cost of Education: A full-time masters in finance program can be very expensive. The program will require 0-2 years of dedicated full-time participation in studies and off-campus live projects. This along with living costs, tuition fees, books fee, food requirements, and others would surmount to be an expensive study experience.

• Time away from career: Unlike the CFA program, a masters in finance program requires you to dedicate your time entirely for 0-2 years of course study. During this time period, you don’t have the time to pursue a full-time or part-time job and are required to dedicate yourself to the masters in finance program study. You will also lose out on your annual income away from your job, that can be added to your opportunity cost as well.

Although these are the advantages and disadvantages, the quality of your study experience also depends upon the graduate school you choose to study in. I can help you get into a top Masters in finance program. Feel free to reach out here.

What’s the best choice of the two?

Once you understand both the programs- masters in finance and CFA in detail, you might still wonder which one would be the best to pursue. Since both come with their pros and cons, it can be a bit confusing to decide. So allow us to help clear your confusion.

So which is the best choice between masters in finance program and CFA program you ask?

My advice: CHOOSE BOTH! Masters in finance program as well as CFA program.

Yes, that’s right. I highly recommend pursuing both the programs together and here’s why:

• University Tie-ups: Many top graduate schools providing masters in finance programs abroad have a tie-up with the CFA Institute. This allows them to offer talented and skilled masters in finance students with CFA scholarships, and provide additional free training to their students with regards to CFA study and practice.

• Dedicated studies: You will be able to dedicate your entire time to your studies and as well as live projects. As a working professional, one may find it very exhausting to balance the two as CFA studies require all your focus and hard work, so it would be comparatively easier and better to focus on studies altogether.

• Overlapping subjects: Since both masters in finance and CFA program (level 1 and level 2) mostly cover subjects common in their curriculum, it becomes more convenient to study both the programs at once and might help with getting professors’ guidance for the same.

• Expert in Finance: The added benefits of studying both programs together is that you can enjoy the benefits of both the courses at once like access to esteemed alumni network, soft skills training, improved finance skills, ability to contribute to real world problems. This will help you in becoming a well-renowned expert in the finance industry, accessing note-worthy job opportunities and attracting a high-figure competitive salary for your skills.

Apart from these benefits, the most important of all is that some of the finest graduate schools for studying masters in finance programs accept CFA level 1 , level 2 clearing certificates in lieu of GMAT scores.

I hope this analysis will help you make the right decision. Feel free to reach out in case you have any questions.