<p>I was looking into getting a CFA prior to an MBA and wanted to ask a few questions for those of you that are familiar with both qualifications.</p>
<p>My main interest is getting into Investment Management and I was wondering which program would be looked upon better (i.e. which would provide the best chances of getting hired somewhere like Fidelity or AIM) the CFA or MBA? </p>
<p>Additionally, would it be a hinderance or an asset to have a CFA when applying to Business School?</p>
<p>The answer is, it depends.
Those who are lucky enough to be hired straight from undergrad to the investment management industry usually do not find it necessary to go back to business school if they perform well at their job. They will find that a CFA will serve them well if they want to remain in the securities industry. They will have unlimited upside promotions because this industry rewards performance track record. These people, most often are top performing students from elite schools who already have the name brand school credentials and they can network within their industry.</p>
<p>On the other hand, those who lack the above credentials, will find it extremely difficult to get into the investment management industry. Getting an MBA from an elite school may be the only way to be recruited.</p>
<p>Is it necessary to take level I CFA exam before business school ? Not really, but it might grab the attention of a recruiter while in business school to let them know you are serious about working in the industry.</p>
<p>Will passing several levels of CFA be enough to be hired without going to an elite MBA program ? Not very likely, because there are thousands of candidates trying to do the same thing.</p>
<p>So basically unless I have some networking contacts already my best bet is to use alumni/networking resources from a top B-School? Because I do have some contacts at top IM firms here in Canada but they are large national firms with billions instead of trillions like with the large global firms that I was mentioning before.
That being said would it be worthwhile working here at a national firm and gaining reputation before trying to get into a global firm or will I just be wasting my time?</p>
<p>Also, which would you recommend besides the obvious (HBS, Wharton, Stanford) for IM recruitment if I decide to go the MBA route? </p>
<p>If you have the chance of being hired through your Canadian contacts into ANY IM firms, yes, definitely, explore that opportunity first. It doesn't matter how big the firm is as long as you are getting the experience. It takes time to have the experience and ability to network yourself into bigger roles.</p>
<p>As far as business schools, I think you know the top elites will attract IM recruiters. HBS, Wharton, Sloan, Stanford, Tuck, Chicago, Columbia, Kellog, NYU etc.</p>
<p>I think I will stick to finding work here at home first before seeking out opportunities abroad.
Out of curiousity though, do you think that compensation would be very different between national and global firms? Obviously there will be some discrepency but is the gap large enough to even warrant switching firms if I am succeeding at one of the well-known national firms?</p>
<p>I'm in IM and headed towards B School this fall... I'm gunning for some other IM firms or Sales & Trading on the sell side.</p>
<p>As far as CFA or MBA... it depends on the firm. Some firms only hire college grads and others only hire MBAs. If you can do both.. do it. If you had to choose 1, get a top MBA.</p>
<p>A CFA won't really help you get into B school. But it can help in other ways.. For instance if your quant portion on the GMAT is low... than a CFA can help offset that. But it would be much better to use the CFA study time to pursue some other activities/leadership roles outside of work because the CFA takes a chunk out of your free time.</p>
<p>I am in a similiar situation. I have an Engineering degree (Mech) and I am working as a Maintenance Coordinator, but I wish to make a career switch by pursuing an MBA. There is no money in Engineering and not a lot of motivation as I realized I am not here to work as an engineer, but more of a repairman and if it doesn't work, then it comes to the $. The company wouldn't care how much studies or investigation you did, all they cared is profit. However, I then realized doing an MBA is costy and it's time consuming. Then I heard about the CFA Certification, since I have no Finance background, I was under the impression that by doing one or all levels of CFA will leviate me to the door of Finance (IMs, IBs, and Portfolio Management, RM and others), but from what I am hearing, it won't be that easy. It's better to do the MBA from a Top/elite school then start from the bottom. Is it worth to make that career switch? Will there be any opportunities out there with a guy like myself even with an MBA at the age of 32? (I am already 28). What does the Finance/Investment field look like? Thanks</p>
<p>U know sokenneth I am in a similar situation as you and I would like to know the answer on how to switch careers.</p>
<p>I am an engineer (electrical) working right now who graduated with a BS in electrical engineering. I have realized that working as an engineer you will live comfortably but you will not be rich. Recently I started to have an interest in finance and Im starting to really like it. I would like to get a MBA first before I make a decision to switch careers from engineering to finance. </p>
<p>If any person can provide any advice or the path they took on how to make that career jump I would appreciate it. I am 25 right now and looking to apply for MBA school in 2 years so I still have some time. My goal is to get my MBA before 30 years old.</p>
<p>For career switching, getting into a top 15 MBA program is the way to go. Passing all CFA won't help as most firms want the CFA charter holder, and one cannot be a charter holder unless you also have 4 years of IM experience. There are a ton of people who have passed several levels of CFA and failed to get related work.</p>
<ol>
<li><p>Get into a Top-tier MBA Program. Any suggestion? What schools are top? Is part time MBA considered a 'back-seat' to full time?</p></li>
<li><p>Try to get an investment/finance related job? IMs, M&A, Risk Manager?, Fund Manager? Any other titles?</p></li>
<li><p>Get all levels of CFA and become a Charter holder while working at the investment related job.</p></li>
</ol>
<p>Am I right? Any suggestions/comments/advices? Thanks.</p>
<p>"and one cannot be a charter holder unless you also have 4 years of IM experience."</p>
<p>This is not true. First off, while there is some work experience requirement, I don't think it is as much as four years and it definitely is not constrained by experience within IM. There are plenty of people with a CFA with no IM experience at all.</p>
<p>
[quote]
This is not true. First off, while there is some work experience requirement, I don't think it is as much as four years and it definitely is not constrained by experience within IM. There are plenty of people with a CFA with no IM experience at all.
<p>^ I would have guessed three years instead of four and in fact when I was taking the CFA it may have been less, but either way didn't pay much attention since I had more than the minimum. </p>
<p>Your second link shows that you don't know what investment management (IM) is. Many of the jobs listed there (Securities Underwriter, Auditor, Management Consultant, Actuary) would not be considered IM; not to mention all the people working in treasury departments of corporations and the like that have CFAs.</p>
Your second link shows that you don't know what investment management (IM) is. Many of the jobs listed there (Securities Underwriter, Auditor, Management Consultant, Actuary) would not be considered IM; not to mention all the people working in treasury departments of corporations and the like that have CFAs.
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</p>
<p>On the contrary, my second link PROVES that people with the same job titles perform different functions according to the industry they work in. Some are securities related and some are not. Investment management is a broad term and if are a CFA as you claimed to be, you should know or you should know better.
Most people know job titles are pretty much meaningless and job descriptions vary a great deal with the same job title. For example, an analyst job in I banking means entry level, but in equity research the same analyst title is actually the VP level in I banking. It is the job description that matters.An analyst in I banks mostly deal with transactional side of banking, but an analyst in equity research and who works in the same bank deals with investment management. Same with the associate title. An associate is in I banks are usually above the analyst, but in equity research, an associate is entry level.
The treasury department in a Fortune 500 or any large corporation deals with functional capital, foreign exchange rates, repatriation of funds, interco loans, debt processing within the corporate structure and analyzing visibility and positions with your cash through the world. Often times this is also sometimes incorporated with some M&A activity for determining debt/collateral, and currency for acquisitions. A lot of their function is to increase value of their cash flow and profit, it essentially performs investment management of the company.</p>
<p>I know all about how the job titles differ between investment banking and equity research since I have worked in both capacities. However, at least on this site, when one mentions investment management, I don't think working in management consulting, corporate treasury, audit and actuarial work are what comes to mind.</p>
You have to be sponsored by your company to get a CFA.
you don’t need a CFA to get into asset management. What’s your major? Finish undergrad and get an entry level job in Ops, IT, Finance, Sales or Accounting at a big shop. There are tons of them. Buy side might be easier (JP Morgan, Prudential, Fidelity etc… )
you don’t need an MBA from a “top school” (or any) to get into asset management.
Once your are working, start studying for the CFA. If you are feeling optimistic and the company pays, start a masters in finance at night (if you are you a business major now) or MBA (If you are not a business major). Take a couple of classes a year, and you will be done in a few years.
A CFA is 10x more valuable than a grad degree once you are in asset management. But you have to be in to get it. That’s not that hard. Its not the Secret Service!
The post above is somewhat true.
1.) You do not need to be sponsored to write the CFA exam. You need to be a Senior in college or have a bachelors degree.
The CFA designation is one of the most highly regarded certifications in the financial industry. However, a MBA and CFA designation are not mutually exclusive. After level 1, CFA source material covers a micro area of finance, being asset management. An MBA on the other hand is more macro in terms of learning. You will learn all areas of business in addition to what ever your concentration is.