CFA or MBA: Which is right for you?

A lot of people are wondering whether they should seek a CFA in place of the more traditional MBA. In large part, the answer depends on your focus.

The Chartered Financial Analyst (CFA) designation has been enjoying a heightened profile and increased popularity in light of surging private equity activity. So far In 2007 – the program’s 44th year – 140,000 people from 156 countries have registered to sit for the three exams that determine, in part, whether one is permitted to tag those three letters at the end of their signature.

A lot of people are wondering whether they should seek a CFA in place of the more traditional MBA. Which will get them ahead? Which will make them more marketable? Which will attract a bigger compensation package?

Whether you should seek a CFA, an MBA, or both has everything to do you’re your professional goals, says Joshua Wimberley, a client partner in recruiter Korn/Ferry’s financial officers practice. Simply put, if your goals include anything but asset management, a CFA isn’t for you.

Read the complete article on : http://news.efinancialcareers.com/6302/cfa-or-mba-which-is-right-for-you/

Choosing between MBA or Chartered Accountancy

Came across this good article by Rashmi Bansal on MBA vs. CA on Rediff.com. Am copying the text:

During my last career chat on rediffcom, someone asked the following question: 
vic asked, what do u think of chartered accountant career in terms of rewards it carry? kindly suggest

this is what I answered: CA is a good and rewarding career although, like in medicine, building a practice from scratch takes time. Of course, there is the option of working for someone else -- CAs are in demand in the industry like never before.

KPOs, equity analysis and accounting firms employ a lot of CAs at very good salaries. But remember, it can be a very boring profession if you don't like working with numbers. So don't make a choice based only on the job potential!

Half-a-dozen readers sent in angry emails saying that Chartered Accountancy was a great profession -- and that I was projecting a wrong picture. That no profession can be termed as 'boring'.
Well, I'm afraid I can't be politically correct and will go out on a limb to say that CA -- despite being a respectable profession with great career prospects -- has lost out to the MBA. And, like it or not, this trend will only grow stronger.

The ABCD of CA

Ask most engineers why they did a BE and they'll tell you: "That's what all bright students who opt for science do... unless they want to do medicine."

The situation is something similar with CA. "That's what all bright commerce students do... unless they want to do MBA." Of course, the situation is a bit different. Even those doing the CA may eventually top it off with an MBA.
The difference between the CA and MBA is a bit like the difference between a five day test match and one day cricket. Acquiring a CA takes a lot of plodding and perseverance; at the end of the day, a result may prove inconclusive.
The MBA, like one day cricket, is quick, glamorous and performers get faster recognition as stars.
Okay, let's not stretch it. One day or five day -- in both cases, the players hold a bat and throw a ball. In case of CA and MBA, there is a difference. Both may join the same companies, but their job profiles would be completely distinct.
This is not to say that one job is 'superior' to the other. But the fact is that, starting as a CA, you can expect to climb up the ladder upto the CFO position. While an MBA's career path could -- in theory -- lead upto CEO. There are notable exceptions such as Deepak Parekh of HDFC [ Get Quote ], but, generally, this holds true.

Why MBAs are preferred

The reason is simple: being CEO is about vision and leadership. This would require you -- at times -- to take a leap of faith, even when the numbers are against you. For example, you diversify into a new area of business. This may mean investing a lot of money, literally burning cash in the initial phase. It may look very bad on the balance sheet for a while, but there is a gameplan and eventually it pays off.
MBAs are exposed to all aspects of the business -- their role is to take a bird's eye view of the organisation. On the other hand, CAs are trained to look at the eye of the fish. And they do a damn good job of it.
But should a CA decide to throw down his accounting and auditing arrow and don a different hat, it is not easy. The mobility into general management and consulting that comes with an MBA from a premier institute is missing for CAs. Even though the CA has battled equally hard; a rank holder in particular would be one among several thousand aspirants.
Overall, it appears that MBAs score when it comes to communication skills, presentation and customer orientation. The 'soft skills' so crucial for success in today's corporate world.
The bottomline is that certain jobs are purely in the CA domain: Statutory & Regulatory compliance, Consolidations, Taxation, International Accounting (GAAP), Internal Audit, Systems Audit, Transaction Advisory -- to name a few.
Other profiles are available to both CA s and MBAs: MIS, Budgeting forecasting, Business Planning, Equity Research, Treasury, Investment Banking, Mergers and Acquisitions, Portfolio management, Fund management, Sector Analysis.
However, these are diversified roles. Many employers prefer to hire MBAs from premier institutes for these roles, as it is felt they are more equipped to provide insight and analysis.
Does a CA + MBA combination provide an extra edge? Well, it never hurts to have a double degree but there's no sure fire formula to become a finance whizkid. An engineer + MBA or a B Com with a degree from a top 10 institute stands an equal chance!

So, how do you decide?

Reasons to do a CA include:

1. Dad owns a CA firm, it makes sense to join the business
2. Professional qualification chahiye. CA is a good one -- nothing stops you from doing an MBA later.
3. You genuinely like accounting. It's what you've always dreamt of doing in life.
As few 17 or 18 year olds know what they want in life, Reason 3 is rare. But Reasons 1 and 2 are perfectly valid.
If lucky, you may find that you enjoy the subjects and become an excellent CA. If not so lucky but smart, you may not like what you study but still become a competent CA. If neither smart nor lucky, you will probably remain a frustrated 'trying to clear my CA' student.
The perception is that the CA success story is 'all or nothing'. Either you clear the exam  -- rather, three different exams -- or you get left behind. Whereas, in the case of an MBA, while only a few make it to the top 10 institutes, there is always the hope of the next 10 and then the next 10.
However, things are changing on that front. In a recent interview, T N Manoharan, president of the Institute of Chartered Accountants of India, stated the pass percentage has risen dramatically in recent years. 'Gone are the days when the pass rates were 2-3 percent. Now, if you consider both groups at the final level, these are at 15-20 percent. In a single group, it is often as high as 30 percent,' he said.
What's more, 83 percent of the 7,445 candidates who passed out in 2005 were absorbed by industries. Out of a total number of 1.3 lakh CA professionals, 10,000 are settled abroad. Of the rest, 55,000 were employed in industries, and the rest were practitioners. ICAI believes there is a requirement of 40,000 more CA professionals in the country.
In fact, it does appear that ICAI has woken up and taken the challenge posed by the 'lure of the MBA' seriously. A new syllabus will be launched this year, and the duration of the course condensed to four years.
That's still two years more than an MBA though!
ICAI is also undertaking marketing itself aggressively. For example, by screening films at schools 'to sensitise teachers, students and parents to the importance of the profession.'
Most importantly, ICAI has started offering 'campus placements.' Not only is this great for newly certified students, it's a good revenue earner for the institute. Like premier MBA institutes, ICAI charges recruiting companies -- Rs 1.2 lakhs is the going rate for  'Day 1' at the Mumbai [ Images ] and New Delhi [ Images ] centres.
Top recruiters during the February/ March interviews were Progeon (which offered 163 jobs), Gecis (160), Tata Sons (68) and Reliance Industries [ Get Quote ] (63). The average salary would be Rs 4 lakhs while the highest salary offered was Rs 12 lakh per annum.
But it didn't make headline news, unlike IIM salaries...
The basic problem
ICAI can shout itself hoarse over the great new career opportunities a CA degree brings -- and rightly so. But it is impossible to fight the MBA. At best, it can hope to attract some of the very bright students who become CAs first and MBAs later. 
The very nature of the profession -- exacting, detailed and dealing with numbers will put off many students. And there is nothing that anyone can do about it.
That is all I meant when I made my original statement -- that CA can be a boring profession. That does not imply that all those who become CAs are either bored -- or boring.
But just like you can't become a doctor if you faint at the sight of blood, you can't become a CA if you are unable to make sense of numbers. Realising this simple truth would save many young people a lot of wasted time and effort.

5 tips on how to ace your B-school interview

So the entrance tests are done with, and the preparation for the group discussion-personal interview phase has begun. Most candidates wonder why a group discussion/interview is even necessary after they have managed to pass the gruelling exams. The common sentiment is that after clearing the hurdles of a tough examination like the CAT or XAT, the interview sessions and group discussions simply add to the burden. But the fact remains that a written examination can only test the academic capabilities of a candidate. The group discussions and interviews on the other hand are more like assessment tools that help the interviewers find the qualities that they are searching for in an ideal candidate.
 Personal interviews can help candidates too however. They present a platform where the candidate can elaborate on his / her candidature. S/he can put forward various points that he or she might have missed in the application.
Remember, the interviewers look forward to meeting some of the best minds in the country; so make sure you are one of them. Here are some tips to help you ace your B-school interview:
Make a positive first impression
The first impression has to be good -- so make sure you dress well. One should go for conservative business attire. Flashy dresses, dirty nails or unkempt hair are to be avoided. If you happen to be wearing a party outfit, the board might think that you lack focus about your career. A casual attitude can ruin everything.
Be punctual
Punctuality is a virtue that is never wasted. If you are not on time, you cannot expect the interview panel to believe that you can manage all the work timings, deadlines and meetings that MBA students and professionals have to handle. In case there is a genuine cause, you should be apologetic. People on the board are not unfair and they will understand. But the reasons should be valid. Silly reasons like the betrayal of alarm clock or traffic jams are to be avoided if you want to make a positive impression on the board.
Stay focused, be confident
Different interviewers look for different things is a prospective student but one thing that is common to all is the search for emotional maturity. The candidate is standing on the threshold of a career that will need him or her to take firm decisions. Taking these decisions will not be easy, but a good manager should rarely lose his or her cool. Likewise, a good candidate should not lose his focus or his cool during the interview even though he is under a lot of pressure. The interviewers will mark you on different points and one of them is the way you handle stress.
Do your homework
During the selection procedure, the admission committee is sure to why the candidate has chosen to study in that particular school. So make sure you read about the school and its programme so you are prepared for this question and will be able to give a well thought out answer.
Communication is key
An ideal candidate must have clarity of thought when they are communicating something to the interview board.
Unfocused candidates often lose track of their argument and end up irritating the interviewer(s). The interviewer will look for confidence and alertness in a prospective student. They also assess candidates on the way they present their arguments. If you can articulate your thoughts in a concise and crisp manner, the interview board will appreciate it.
Like yoru verbal communication, positive body language will be appreciated. Things that should be avoided include bad eye contact, bone crushing handshakes or playing with finger rings. These are distractions that the interview board will not like.
When you prepare for the interview, you should also prepare to learn from unusual sources. No knowledge can go wasted. Before you say anything, take a second or two to reflect on your words. This will help.

How to Select the Best MBA College? Know MBA School Rankings

There are probably thousands of MBA colleges if you consider the whole subcontinent. And with all these colleges, you will have thousands of MBA programs to choose from. This has made it really difficult for a student to choose the right college. So, what are the factors you need to keep in mind before you select the right college? Knowing the MBA school rankings is a must and apart from that one needs to know on what parameters these rankings are based. Here are a few pointers...
The accreditation of the college matters a lot and is one of the prime factors which determine MBA school rankings. The accreditation is a kind of certification which is being given by the senior management of other schools and a team of professional assessors who are specially employed for the job. A college with accreditation must meet the prescribed academic standard set by the professional assessors. If the college is not accredited, it is better not to enroll for the course.
The college faculty is equally important. They are not just teachers but are the ones who will guide you in the path of your career. Teachers in MBA schools are like counselors or guides who will help you to identify your weaknesses and strengths, and direct you towards your goal. The college which is known to have qualified professors will be undoubtedly the best choice. Check out the quality of professors especially in the field where you want to specialize. For instance if you want to specialize in marketing, take note of the professors who will teach you the subject. They should be experts in their fields.
Some factors like the location of the college also matters for the students and is a determining factor in MBA school rankings. There are students who would not like to travel thousands of miles and stay apart from their family. A college in a convenient location can be good for both such parents and their children. However keep in mind that location is often a secondary factor, while things like college faculty and accreditation are given primary importance in the selection process. If you are leaving your home for the first time to lead a life in hostel, you should be extra cautious. The reputation of the college is also important.
You will be leaving home to make a successful career. So you need to choose only the best, which means that you should be discerning about the reputation of the college and the importance of the degree which you will receive. This is directly related to the quality of education imparted in the institution. It is better to do your own research work about the college, the kind of courses offered and if the degree offered by the college is considered prestigious in the corporate world. The ultimate goal of every MBA student is to get a good placement. It is the brand value of the institute which actually helps to determine the kind of placements you will be getting, and the kind of companies which will come to hire you. The best companies of the world will like to hire the best minds in the industry-so make sure you go to an institution which makes you one of the best.
You should also consider the performance of the college before taking admission. Check out their previous year's placement statistics. Also find out if they have a suitable academic corporate interface as it will allow you to be in touch with the current needs of the corporate world. Visit the college as brochures and websites can often be misleading. Take you time but take a wise decision while selecting the right college.