Hi Tanmaiy,

I had come across this dilemma back in 2016, when I had to choose between a degree course and a professional certification. A few pointers helped me to decide:

1. CFA pros:
2. Cheaper than MBA
3. More focused on finance, can make you an expert in what you study
4. Establishes trust in your credentials
5. Global recognition, so can use it for international jobs
6. Self-paced, so you can learn without leaving job
7. CFA cons:
8. Very narrow focus only on finance, won't help you find jobs in marketing, ops, etc.
9. Rigorous and time consuming
10. Limited networking opportunities, no peer learning
11. Not a masters program, that can act as educational qualification
12. No direct placement support
13. MBA pros:
14. Broad skill set that helps to find jobs in other domains too
15. Massive peer learning and networking opportunity
16. Flexibility to use MBA education in different career paths
17. Soft skills and consulting skills development
18. Campus placements available, with good pay hikes
19. MBA cons:
20. High upfront cost (~22 lakh+ in fees)
21. Good only if done from top tier B-schools
22. High competition to get to a good college
23. Opportunity costs, as you need to leave job to study
24. No global recognition, as ranking of college in FT ranking determines credibility when you go abroad

For me, it was important to broaden my horizon of knowledge and be open to diverse fields. I did not want my acquired skills to be focused on a niche sector as I would be affected if the sector was going through an economic downturn. Moreover, I wanted a good hike over my pre-MBA salary. So, I chose to go for MBA and graduated out of IIM Kozhikode.

But let me tell you, having a CFA and then going for MBA makes you a lucrative candidate to the companies. Some finance firms and investment bankers value MBA guys having a CFA too. Obviously that means incurring additional costs.

See which parameters in the pros and cons list matters the most to you, prioritize the factors and decide which route you want to take.

I have completed all 3 levels of CFA program. Personally, I chose CFA over MBA for two reasons-

1. I did not want to take on debt to pursue MBA (20L+ is the norm if you plan to go to top 10 universities). And if you plan to do an MBA from a lesser-known college then it's not worth it in my opinion.
2. CFA is core finance while MBA is more broad. I wanted to get into private markets or public markets and CFA has the right curriculum for that.

A good starting point would be to assess why you want to get into finance and then weigh the pros and cons for each.

Choosing an MBA over a CFA is driven by several strategic considerations.

Firstly, an MBA opens up a broader spectrum of career opportunities, including strategy consulting, supply chain management, operations, roles within CEO offices, and investment banking. This diversity stands in contrast to the CFA, which primarily gears one towards finance-specific careers.

Secondly, the finance sector's susceptibility to market cycles, exemplified by events like the 2008 financial crisis, poses a risk of career stagnation. An MBA mitigates this risk by offering the flexibility to pivot across industries, ensuring career resilience in turbulent times.

Lastly, holding an engineering degree suggests a solid foundation in quantitative skills. Pursuing an MBA complements this by broadening one’s skill set, emphasizing leadership, strategic thinking, and managerial capabilities, thus adding significant value to a professional profile.

This strategic approach not only aligns with career aspirations but also leverages existing skills to maximize future opportunities.

Hope this helps!