CFA or FRM: Solving the Dilemma for Students

Many MBA students FinQuiz pursue these financial certifications to enhance their financial knowledge. During campus placements companies do not have the time to go through each and every resume or interview every candidate. The students who get shortlisted for campus placements are students who have an extra push on their resume. A CFA degree also gives the recruiter a perception that the student has more financial knowledge than just a MBA finance student. Hence CFA does support a lot to get shortlisted for the interview stage of MBA placements. Even after placements the knowledge that a candidate gains is useful in his future job pursuits.What are the profiles that a MBA in Finance with a CFA degree will be offered?CFA is a comprehensive exam in finance. So whether it be investment banking or portfolio management or equity research or strategy consulting in the financial domain or corporate finance in a manufacturing company, CFA concepts are going to be directly applicable to your job. For anyone who is interested in a career in the financial domain the CFA designation gives an edge and imparts value to your knowledge and resume. A CFA qualification today is more of a requirement than an advantage for a career in investment banking of private equity. Doing a CFA today is not a guarantee of finding a job in investment banking or private equity, it is depends on your financial understanding and communication skills.What is the difference between CFA and FRM?That is a very common question that many students have.. I believe that degrees of MBA, CFA and FRM have to be looked at compliments rather than as competing with each other. CFA teaches you the inside-out of finance, MBA finance teaches you how to link the financial aspect with the overall business management perspective.FRM is a designation which is dedicated to risk management. It gives the candidate a very good perspective about credit, operational and market risk aspect of a business. A lot of students today (including me as a student) have taken all 3 designations. I believe all 3 degrees added to my knowledge and enhanced my employability. I would advise students not do an either or for the courses. CFA and FRM are not standalone designations and are supposed to be complimented with either a MBA degree or work experience.How should a student decide between opting for a CFA or a FRM?Firstly students have a misconception that CFA takes 3 years while FRM just takes 2 exams. So they should not base their judgment on the duration of the course. CFA curriculum is much more exhaustive than FRM. In one level of CFA it can be argued that you learn more than two levels of FRM combined.Coming to choosing between CFA and FRM, if someone wants a more holistic designation in finance then he or she should opt for CFA. The CFA certification does not restrict the domain to any niche in finance and for students who are not sure of their preference in finance should opt for CFA. CFA will teach you risk management, corporate finance, risk management and portfolio management hence the scope is broader. If a candidate is sure that he wants to pursue risk management i.e.

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