Should an Investment Banking Candidate Earn an MBA or CFA? (2024)

FAQs

Should an Investment Banking Candidate Earn an MBA or CFA? ›

Completion of an MBA degree can get you direct access to investment banking jobs since the major firms recruit on campuses. It also can get you a good network of contacts. These benefits are not available with the CFA, which is primarily a self-study program.

The CFA covers plenty of material that goes beyond the job of an IB Analyst or Associate… which is exactly why you don't need it. For example, they won't ask about quantitative methods, derivatives, or portfolio management in a standard investment banking interview.

Career aspirations: While there is certainly overlap in how business school graduates and charterholders apply their expertise, MBA programs are generally ideal for professionals who want to pursue management positions in any industry. A CFA designation suits professionals dedicated to working in the finance industry.

Although the responsibilities of an investment banker are wide-reaching and the role requires an in-depth knowledge of several fields, including finance, accounting, M&A, and much more, pursuing an MBA can help you fortify your foundation to transition into or advance within the investment banking industry.

2. Does CFA help get into investment banking? Yes, since the CFA course is based on financial markets, investments and efficient financial planning, a CFA degree helps to get into investment banking.

Investment Banking

Large banks such as Goldman Sachs and Merrill Lynch tend to be good examples of the specific types of companies that hire CFA charterholders.

In the end, both the MBA and the CFA are valuable. Not only does an MBA enhance job prospects and earning potential and help build a broader network, but in some cases, firms will require an MBA for certain leadership or management roles.

For Level II, the average age at registration has dropped from 28.6 to 28.1 over the last five years. Meanwhile, the average for Level III has remained very consistent for much of the last half-decade – around 30 years of age – before dropping to 29.7 this past June.

If you are primarily interested in managing wealth for institutions or in an institution such as a mutual fund, then the CFA and/or a Master's are the most recognized. If you are primarily interested in working for a company as a financial analyst, financial manager or in a similar role then a Masters is a good choice.

Does Goldman Sachs pay for MBA? ›

MBA programs can cost more than $160,000 in tuition alone and generally take about 2 years to complete. Goldman Sachs offers employees tuition assistance to pursue MBAs as well as MBA fellowships to first-year business school students.

At the MBA Level

Assuming you get into one of the top programs, you have a pretty good chance of winning an IB offer if you put in a lot of effort and start networking long in advance (i.e., months before the program starts). Read more about the MBA investment banking recruiting process here.

Overall, about 30-40% of candidates in the top MBA programs who apply for investment banking roles will win at least one IB summer internship offer, and 10-15% of candidates will win an offer at their top choice.

According to the CFA Institute, this credential "is the professional standard of choice for more than 31,000 investment firms worldwide."1 It can be especially helpful if you don't have an undergraduate degree in finance, economics, or accounting, and your goal is a job or career in the finance industry.

You may have an MBA in finance or a CFA certification, but you need several additional skills to get a recruiter to notice you. To get yourself on of these coveted M&A jobs, keep reading. As a sell-side analyst whose client is the seller or a buy-side analyst where the client is the buyer.

CFA® Program vs. CPA. The certified public accountant (CPA) credential is well established but is primarily associated with careers in accounting. The CFA Program is designed to advance investment careers and provides deep knowledge of investment analysis and portfolio management as well as professional ethics.

The CFA UK Level 4 Certificate in Investment Management (IMC) transforms your career and turns your potential into progression – and it's open to everyone. Developed, delivered and awarded by CFA UK, we combine essential investment knowledge and theory with practical, day-to-day application.

The CFA course will give you the skills and tools to become a good investor. Fundamental analysis is taught in depth. Valuation is the core of the CFA curicullum. Every investor should know how to analyse a business and come to a fair valuation estimate.

A lot of limited partner private equity firms will hire undergraduates and then put them through the CFA. It's rare for direct investment firms to do the same. However, we also see a lot of junior investment bankers with CFA level one, as it shows both technical knowledge and evidence of commitment.”