CFA vs MBA: how the two differ and how to choose
The CFA and the MBA are often put side by side, as if they were two answers to the same question. They are not. One is a professional qualification in investment analysis; the other is a general management degree. Which suits you depends on where you want to end up, and some people do both, in either order.
What each one is
The CFA Program is a three-level sequence of exams, run by CFA Institute, covering the knowledge and ethics of investment management. You study largely on your own, sit the exams, and separately build qualifying work experience. The charter is awarded once you have done all of it, including joining CFA Institute and committing to its code of ethics.
An MBA is a postgraduate degree in management, awarded by a business school. It usually covers strategy, marketing, operations, accounting and finance, leadership and more, and it is taught to a cohort, often with a mix of coursework, projects and recruiting events.
How they differ
| CFA Program | MBA | |
|---|---|---|
| What it is | Professional qualification | Postgraduate degree |
| Scope | Deep in investments, with ethics throughout | Broad across management |
| How you study | Mostly self-study, sitting exams | Taught, in a cohort |
| Alongside a job | The usual way to do it | Possible part-time; full-time is a break from work |
| Credential from | CFA Institute | A university or business school |
| Work experience | A requirement for the charter | Often a requirement for admission |
| Network | Local societies and charterholders | The cohort and alumni |
| Cost shape | Exam fees and study materials | Tuition, usually the larger sum, and often lost income |
The cost point deserves one more word. Full-time MBA study typically means giving up a salary for the duration, which is often the largest cost. Neither route has a single price, and amounts vary by school, country and year.
What each is good for
The CFA suits roles that are about analysing and managing investments: research, portfolio management, risk and many parts of wealth management. It signals technical depth in that field and a shared standard of conduct.
An MBA suits people changing industry or function, moving into general management, or building a network in a new place. It is often valued for the career change it enables as much as for the content.
Where the two overlap is finance careers that are also about leadership, such as running a fund or an asset management firm. People in those roles sometimes hold both.
Questions that point one way or the other
- Do I already know what I want to do? A clear investment goal favours the CFA. An open goal, or a wish to change field, favours the MBA.
- Can I afford a break from work? If not, the CFA's part-time, self-paced shape fits better.
- Do the roles I want name one or the other? Read job descriptions, and ask people who do the job.
- What is my timeline? The CFA has a minimum experience requirement and exams spread across months. An MBA has a fixed duration.
- Do I want the credential, or the learning, or the network? The two give different proportions of each.
You do not have to choose forever
Plenty of careers include both, and neither rules out the other. A common pattern is to sit Level I early, as a low-commitment test of interest and fit, and decide later about the rest. The guide on whether the CFA is worth it sets out how to weigh the costs, and the charter requirements guide explains everything a charterholder must complete.
Sources
- CFA Institute, The CFA Program: program structure and charter requirements.
Comparisons of cost and career outcomes between the two vary widely by school, country and role, so this guide gives none. Look at the schools and employers relevant to you.