I have been lurking in this forum for quite some time and finally decided to join.
I will start with a brief description about mysef - I’m 21 - hold a Bachelor of Commerce degree - and currently working as an Analyst in a Financial Research Firm - I Plan to appear for CFA Dec 2014 level 1 Exams.
I’m extremely interested in Finance and hence decided to do CFA after going through its curriculum and prospects. My dream is to get into a PE / IB / ER/ or a FA firm.
Now, the CFA course best suits those who are already in the Investment field and helps improve credentials. Going once through this Forum easily gives an impression that clearing CFA is NOT a free pass to Investment Banking/Finance Jobs.
So my question is - should I aim for a Top 5 MBA Program instead. Since that will be a much more credible route to get into Finance,IB and such roles.
On a personal level I’m more inclined towards CFA, as it is cost effective and appeases my quest for learning the subject of Finance in extreme depth and can help into getting jobs with good work satisfaction. However I also value a finacially rewarding job.
So my dilemma is -
-Should I clear the CFA Exams and try to get into any PE/IB after L2 or L3. And if it doesnt turns out the way I want I can go for a top 5 mba program afterwards.
-or Should I do MBA right away without waiting to write the CFA Exams first (Which I can always write later on after or while doing MBA)
This industry puts a premium on experience. Given your age, that should be your focus. Participating in the CFA program seems like a great way to address your desire for learning and self-improvement in the meantime.
MBA programs generally require some work experience (like at least 2) before they will take your application seriously. CFA doesn’t. Given that it may make sense for you to have both credentials, why not get started on the CFA and then apply for the MBA after you have more work experience.
Also, if you don’t like the CFA exams, you don’t have to continue with them, and that may be useful at MBA time, because you will focus on different recruiting opportunities when you are finishing up your MBA.
You’re right that the CFA exams aren’t a golden ticket or guarantee of anything, but for young folk interested in things like portfolio management, it’s still better to have it than not. Every bit helps. The main question about the CFA is not so much “is it useful for my resume” (it is) and more “is it worth the hours of effort it takes to get it” (your mileage may vary).
But for someone of your description, it looks like it’s worth trying, because you will find out if you have enough interest in the subject matter to go through all the work it takes to do it, and that’s not a bad thing to figure out.
Wow. Thanks for the responses guys. Really appreciate it.
@ bchad Do you think clearing the CFA exams first and than aiming for a MBA Program (Top Tier) a good option ? will the CFA (and work experience) be a good vaue addition during MBA Campus Pacements. Is it really worth putting the time(i.e 2 years) and effort ? im also worried about the age factor.
if we take a scenario - A Big Global Private Equity Firm comes for hiring MBA Grads during placements. It may hire anyone - It might be an Engineer with 0 work experience or an Commerce grad with work exp and CFA level 3. You see - NO difference between the two individuals.
So is it rather a better option to put all that energy and focus on MBA preparation? While CFA can be pursued later on when you are ACTUALLY in the investment / finance proffession.
If you still think that trying out the CFA exams first is the way to go than when do you think i should start preparing for MBA Entrance/GMAT. After L1 or L2 or L3?
Anyones suggestion, opinion and criticism is welcome.
@Freak you said , "A Big Global Private Equity Firm comes for hiring MBA Grads during placements . It may hire anyone - It might be an Engineer with 0 work experience or an Commerce grad with work exp and CFA level 3. "
It does not happen the way you think it does! A global equity firm and for that matter any finance related firm will
first of all look for the prior experience that the aspirant has. As you may be aware only a few exceptional candidates ( less than 10% because they are in any case have some other outstanding credentials) are selected in top tier MBA programmes whether in India or US, average work-experience is 2 to 2.5+ years depending on the quality and type of experience ;
the specialisation , whether an engineering or medicine graduate stands no chance unless he/she has excelled with finance specialisation and is able to prove his depth in the two/three rounds of interviews held for the campus placement;
then the internship details (where, what and how relevant) and the project report.
Based on this preliminary requirements only the candidate may expect to go into first /second round of the selection process. Getting into a top tier MBA programme (business school) only goes to prove one’s merit, learning competency and quality of knowledge and skill the candidate has got, that is why higher the ranking of the school better the chances for attracting top grade firms in placement process. Going there the firms are assured of a certain level of managerial skill and leadership quality as well as knowledge base in the potential candidate. That is why the selection process for top tier schools are tough and your presumptions are in most cases unfounded and reflects more of a self-contradiction. In fact in most cases (rather rarely) the candidate who is just a commerce grad and / or the ones with no experience stands almost no chance of getting in the top-tier programme even with very very high score in CAT or GMAT.
You see - NO difference between the two individuals.
On the contrary it is the ’difference’ between the candidates, whether in top tier or comparatively lower category business school makes the difference. That is why even among the top tier MBA pass outs the difference between where they get selected and what (salary and perks etc) they get are not only substantial but also depends on their own standing vis-a-vis the selection criteria listed above. So work experience does matter and with quality experience you will never be at par with the one with no experience all other things being equal. Also CFA or no CFA matters equally.
Average age on admission for the top MBA programs is usually like 28-29. 25 would be considered young, you have pretty much 0 shot at 21. Do some research and google the class profile stats for schools you are interested in.
I know that the average age of students in top MBA Programs is late 20s.
But i want to settle early in life and finish with my studies as soon as possible. later in my life i may have increased responsibilities like supporting my family and during that time it will become impossible to do full time MBA. So right now im aiming for only 3-4 years of work experience.
My only concern is that should i do CFA in this time period or not. Is it worth the time and money.?Im interested in pursuing it but the time which i will put into CFA prep can be efficiently put into MBA prep. and CFA can be done even after MBA.
any kind of input & suggestion will be very helpfull
Only MBA prep would be GMAT and work experience…you can certainly do CFA prep while working full time. There is no such thing as MBA prep really so doesn’t seem like you have a dilemma. As for settling early in life…starting an MBA at 27 and finishing at 29 is still plenty early and you would have had about 5 years of experience by the time of starting the program.
Do you guys think, in the process of gaining work experience for mba will it be a good idea to change jobs after 2 years/Level 2 ?? Because the current work im doing is irrelevant to CFA work experience requirements. And more so the company is just a small startup research firm tracking pe and m&a deals and doing KPO Esque services for private equity and investment banking firms. however if i stay in the company i will have the benefit of- 1. less work stress 2. employer being ready to give me leave of 3-4 months for gmat prep(when im an older employee). Which i doubt i will get when i move to a new company. And 3) quick career growth within the organisation. However staying in the same company would mean 1. not having a real solid experience in the Finance field like equity research / corporate finance. 2. Not having an employer with “brand/bigger name” so do you think it will be better to get more extensive / advance experience in finance by changing companies before i do my mba. thanks for any kind of guidance/suggestion
I had the same dilemna. I decided to stick with the smaller firm and quick career growth. Might be able to spin it as leadership potential later on, *shrug*
***if we take a scenario - A Big Global Private Equity Firm comes for hiring MBA Grads during placements. It may hire anyone - It might be an Engineer with 0 work experience or an Commerce grad with work exp and CFA level 3. You see - NO difference between the two individuals.***
You see the Big Global consulting firm you are talking about hires only from IIM A and IIM C and it DOES NOT hire anyone.
The minimum requirement is you should be from IIT with atleast 1.5 years of experience in Management Consulting. As far as I know, people who worked for Mckinsey or BCG only get through. They aren’t CFA’s.
So the ideal career path would be.
IIT (Comp. Science) with a badass GPA. Work for McKinsey for 2 years. Switch over to PE (Blackstone). Work for 2 years. Then HBS. And then you’re the Boss.
Is it not crazy. I don’t understand how they pull it off. Just Insane. They’ve got all the brains.
@ Anand singh. Not sure if you are talking about PE when you say big global consulting firm. but yeah if you mean global PE firms than IIT - Work Exp - HBS/similar MBA programs seem like the only way to get those kind of elite positions. And yeah that kind of track record is crazy ha ha. But if we talk about PE hiring in general, i have seen a lot of people from Non IIT + IIM background working in India offices of global PE firms like KKR, Carlyle, Warburg Pincus etc. And considering their annual pay cheque and purchase power parity in india these people easily fall in the elite class category. So in my point of view I don’t think we have lost it yet when the opportunity is still there but we just need to work our ass off to grab that. However i don’t see cfa adding any significant value to my profile that is why i have thought of writing gmat/cat after level 2 and try to get in one of the IIMs.
What you lack here is a focus and understanding of what you want to do longer term. “My dream is to get into a PE / IB / ER/ or a FA firm.” You need to be much more attuned to understanding the typical career path into each, not to mention each field appeals to a different skill set an investing interest.
What you really should do is spend some time on www.mergersandinquisitions.com and figure out what each of these fields represent. I think people have been more than generous responding on this thread given that your original question lacked a lot of direction. Suggest you read some of my articles on M&I as well about ER and HF, and then post here once you’ve done a bit more self reflection.