MBA or CFA? It depends on where you want your career to go

MBA or CFA? It depends on where you want your career to go

Industry experts say those who see themselves in strategic roles should go for an MBA, while those who prefer research roles should opt for a CFA.

SINGAPORE: For many business professionals looking for career development or a job switch, gunning for higher qualifications is a common move, and recruitment firms like Robert Walters say the Master of Business Administration (MBA) and the Chartered Financial Analyst (CFA) are two of the most popular options.

Business school INSEAD has 200 students starting their MBA programme this year, and they are among hundreds across the country embarking on the same academic path. These students are typically around the age of 27, and have around three to five years of work experience.

"We see a lot of people from the corporate sector wanting a change, and getting into consulting and finance," said Ms Stephanie Villemagne, Director of INSEAD's MBA programme. "We have about 35 per cent of our students going into consulting, close to 50 per cent going into corporates - anything from high tech, telecom, the retail industry, etc.

The MBA AND CFA vary significantly in terms of the amount of time and money that have to be invested. A full-time, one-year MBA in Singapore can cost between S$55,000 and S$103,000, while the CFA programme - which is structured in three levels - costs around S$3,000. The CFA is undertaken on a part-time basis, and can take two to five years to complete.

The two programmes also offer slightly differentiated job prospects. Said Ms Orelia Chan, manager of financial services at Robert Walters Singapore: "People in strategic roles may go into an MBA for the networking events. The CFA is for people who want to go into research roles, they may want to equip themselves with this sort of qualification to increase their chances."

There are some 3,400 CFA charterholders in Singapore - forming the second largest group of CFA charterholders in the Asia Pacific, after Hong Kong. CFA Singapore says three in four CFA charter holders here are between 31 and 45 years old.

Mr Simon Ng, Society Leader of CFA Singapore, said the roles and responsibilities of CFA charter holders have broadened over the years. "Since the inception of the CFA programme, we have seen roles being expanded from portfolio management and analysis to chief executives, risk managers, consultants, and sales and relationship management," he noted.

Robert Walters says getting an MBA or a CFA can give one a pay bump of 15 to 20 per cent. But while these qualifications are seen as an advantage, they are not prerequisites, as most employers still value intangibles such as work experience and communication skills. This is why industry experts say it is important to have an idea of the kind of return on investment (ROI) you can get when considering whether to take time off to study.

"It is very important to note that the ROI is also based on different things. It's time, it's money, and it's what career path you plan to have afterwards," said Ms Villemagne. "The money invested is very important, and should be planned ahead of time. You don't want to overload yourself with loans when the time comes."

- CNA/xy

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