UK
Is it worth doing a Masters in Finance? Lukas Gresnigt, a student at the London Business School, thinks so.
After a science and an engineering degree in chemistry, I joined the Boston Consulting Group as an associate consultant, followed by a brief internet adventure. My last employer before I started the Masters in Finance degree was Nuon, a Dutch power and gas company. There I had different commercial and business developing roles, the last related to the merger of Nuon and Essent, creating a Dutch national energy champion.
I decided to go back to studying because I wanted to broaden my knowledge base and internationalise my career and network. The London Business School Masters in Finance combined excellent academics with practical experience, both from faculty and the fellow students. I’ve chosen not to be sponsored and am paying for the course myself, which will give me more freedom to decide what I want to do next – I aspire to stay in London after my degree, and with my experience in the energy sector my ambition is a role in private equity related to energy and infrastructure. I’m currently talking to various potential employers.
Why didn’t I choose an MBA? With my experience in strategy consulting I felt that many of the broader MBA subjects had already been covered in my work experience. The Masters in Finance programme has more depth and focus on the finance aspects. It’s a course that suits people with good quantitative skills and an ambition in any finance area. By comparison, people with a less clear idea about their post-business school interest or who want to have a broad overview of all business aspects should probably do an MBA.
Why didn’t I choose a CFA? The Masters in Finance covers a broader area of finance, assures more interaction with fellow students and provides ‘the business school experience’.
The Masters in Finance is not an easy option. It helps to be clear what your long-term career aspirations are when you arrive – a one-year degree forces you to make an early decision regarding the elective modules and your future. Whilst studying, you also need to ensure you’re spending sufficient time orientating yourself towards the job market. And you need to take time to learn from the wealth of experience of your fellow students.
If you get it right, the course can prove very rewarding: interaction with fellow students and faculty members is invaluable. I’ve been able to draw on my past work experience and to learn the ways in which things could be done differently next time – the combination of work experience and studying allows you to convert theory into business.
Well done, Lukas. You have taken the right decision and I dont think you’ll ever regret it choosing MSc finance over MBA. You’ll feel more satisfied with MSc finance than with MBA, given your quantitative background. There is serious demand for people with a mix of science and engineering plus a finance background. My advice however is, prepare your self for the more difficult task of choosing who to work for as you’ll be hunted left right and centre by employers.
MSc is an optimal path for people like us. I’m coming from Eastern Europe and want to build my career in M&A area. Consolidation activity (at least in Russia and FSU region) is set to peak this year so I don’t have 2 years to spend as an MBA though I admit it is a better match for investment banking career. Have a good time at LBS and good luck.
MSc in Finance is very rewarding. I took a number of classes with fellow MBA students when our modules overlapped and we consistently out performed them in course work and in the examinations. The technical skills are always harder to pick up on the job, while the soft skill tend to be very job specific. Prior to the course I did an internship at UBS in M&A which I enjoyed enormously.
I also have a degree in engineering and felt that before going back into investment banking I wanted to build my accountancy skills/knowledge. To the amazement of my class I now work for a big four accountancy firm advising small and mid cap private high growth companies. The training has been invaluable. I am about to complete my ACA qualification and have seen more “case studies” than you would ever see on an MBA programme. Something that I would recommend if you can stomach more exams.
The options afterwards are endless and you can pick and choose from M&A, Private Equity or Fund Management. I believe that the MSc is the premier business qualification and taught me the fundamentals of making money. If you can combine it with other skills you are gold dust.
I agree with Jasmine and Alek, you really should do an MBA regarding your background. Your MSc finance will be worthless compared to an ACCA Accounting diploma which is better than a MSc Social Engineering. Good luck at London School!
I like the comparisons between an MBA and MSc Finance however as an MBA student I would say the topics/areas covered so far have been great. I think an MSc is too restrictive whereas if you set your yourself to come out with a very good degree or a distinction the sky would be your limit in an MBA field. Its tough but its going to be worth it in the end
an MBA can never ever beat CFA. CFA these days in considered to be GOLD STANDARD of finance.the curriculum is spot on comprehensive doesnt beat around the bush like many MBA programs do in the name of developing soft skills.many MBAs even if they attempt to might not finish CFA such is breadth of this qaulificaiton it covers accounting, equity analysis, bonds and what not. I think MBA is just like paying for a brand and forgetting about the content it doesnt prepare for real work.
80% of Finance/ACA people drive Volvo whereas 80% of MBA people drive BMW or Audi. Thank you very much from an MBA who doesn’t have a car.
A focused Masters in Finance is far superior to an MBA. 1 year of focused finance learning with a class of former finance professionals is far more beneficial than a year of generalist business teaching with a class of generalists with different desired carrer paths. Good choice!
For me the biggest turn off with the MSc (specifically MIF at LBS) is the lack of internship opportunities. The 2 year MBA allows for a Summer Associate position, which I feel is vital for those wanting to move into I-Banking Front Office from another industry or function within I-Banking.
In my opinion the best way to gain a good quantitative grounding and maximise post-study employment opprtunities is to study CFA and then an MBA.
MBA is for the faint hearted. Coming from an engineering background, myself, I found my MSc in finance more rewarding. Job was even easier to find. I manage a mix of commodity portfolios and my quantitative focus MSc finance has been very very helpful.
I have an acca and also just completed MSC finance from LBS, do I need to get an ACA qualification too now? I would have thought the Msc is good enough?
I have an offer for a associate job in trading but feel I lack some financial knowledge and that my financial maths is not up to scratch. I am considering an MSc in Finance or the CFA. Colleagues I have spoken to suggest neighther and on the job learning as a CFA is not much help to a trader and the MSc is too expensive and requires me to take a year out. Other options are an MBA in the future but if I am already at a senior level by then will it make much difference. My main reasons to do an MBA would be to network and to get a good business scholl on my CV for future career prospects but am I better of doing it when I need to change careers if at all. I am still at odds about which MSc LBS, LSE, Birkbeck offer part-time courses so won’t need to take a year off. Is it required or am I better of doing other courses to fill the gap for my lack of financial mathematics
MBA and CFA are not comparable at all !!! Why would you wanna compare something that is aimed towards professionals with long experience at executive levels with something that almost anybody can start and finish (the FCA i mean)and does not require any significant work experience.. FCA will give you very deep understanding of finance and anything finance-related.. but what about the rest… dealing with competitors, taking strategic decisions, running a company, improving working atmosphere, HR issues, production issues, and those are the things that MBA guys do/study.. so you cannot compare CFA and MBA.. the same goes for MSs and MBA!!!
A 1yr MSc in Finance is better because you save time and time is money. If you are not sure which your next step will be don’t go for a post graduate course at all, don’t go for an MBA I’d suggest. If you’re an engineer or you’ve a kind of technical background, an MBA is a good option. London and Milan are good schools for MScs in Finance in Europe
As any good MBA graduate will tell you, a jobhunter needs a TOTAL academic solution. The MSc Finance offers only a PARTIAL solution. The job market is getting tougher. All candidates need a TOTAL academic portfolio. That means qualitative plus quantitative. That means an MBA plus a finance course.
If you are a doer, then choose ACCA or CIMA. If you are a thinker, choose CFA or MSc Finance.
The author’s hard, numbers-based approach indicates a lack of soft, complementary, qualitative skills. I suspect he will soon be back doing a part-time MBA in the future.
As a qualified actuary with ten years work experience, few (non-research) qualifications can give me both increase in prestige and increase in knowledge necessary to guarantee that the qualification really repays the time and effort necessary. I have therefore chosen an MSc in Math Finance through Oxford. The content appears to be extremely rigorous with in-depth coverage of the basic theory as well as extensive coverage of more cutting edge / advanced topics. That, together with the Oxford brand, put this course at the top of my desirability list.
In summary, it is not just the course name MBA / MSc but the school that is offering it. I thought about doing a CFA but the specimen exam papers on the website just didn’t look (to me) very challenging! On the other hand, in terms of low cash outlay, minimal disruption to lifestyle, and quickly available usable information for asset management types, the CFA would be the clear winner! I put Paul Wilmotts 7City courses into a similar category (although quite a bit more expensive).
But for me, I need something to push me to my limits and beyond.
Best wishes for whatever you choose to do.
MScs, CFAs, XXXs etc make excellent traders that think its ok spending their lifes watching blinking numbers on a screen or, ideally, five (as a trader’s status is measured by number of screens he have to ogle days and nights. MBAs, however, makes excellent senior managers to oversee The Matrix at work, and enjoy the perks and a nice lifestyle in addition to having varied, intellectually and socially stimulating career. Courses for horses.
Since hedge fund managers are the highest earners nowadays the question is not whether Financial Master is better or worse than MBA, but whether Financial Master is more appropriate to get into Hedge Fund business rather than MBA.
Different strokes for different folks. It all depends on where you want to head. I’d choose a MSc any day over an MBA, but only because I don’t need the broad business knowledge comes with an MBA.
Does anyone have tips for someone heading to the Central Bank in fin. markets, but wanting to go into the private sector at a later date in the capacity of a financial economist? Is it worth doing a CFA (obviously in addition to a MEc) simply to get the extra cred in finance?
Note that over half of the class usually comes to the program not only with Finance experience, but also some other Master’s degree, including MBAs. My class at LBS not only produced quants, but rather the majority is doing deals or other financial research or management.
I have read most of the comments and debate on MBA and MSc Finance.The facts is each of these programmes is designed to meet certain career needs considering the background of each individual. Many people have done very well in the industry after pursuing a MBA programme. The same can be said of MSc Finance. There it should be left for the individual to decide which would be benefitial to them considering where they are coming from and where they want to land in the industry.
In my humble opinion, there is no need for the two. We all would agree that each of the programmes has a structured module. This should be the basis for selecting a programme for that would suit your career needs. I studied International Economics and Trade. Before going into that, I analysed the modules offered in all the Universities before settling for one. I very much enjoyed the programme and am looking forward to an exciting perfomance out there.
Please consider your situation first and that should be the basis for selecting a course.
Actuary – you are talking complete rubbish or maybe, you just did not understand the purpose of the CFA programme. Each question you might have seen in isolation is not challenging but this exam is, no worries. “… need something that pushes me to the limit and beyond???”, I am sure you will be next nobel prize winner.
MBA, MSc, CFA, CAIA, e.t.c… All these letters mean so much, but still do not define an individual. Taking exams and getting certified is one thing, taking an opportunity and striking it big is another. Hedge fund managers make the most money in the industry and Private Equity bosses pay the least tax, this is the new road to dominance in the industry.
Interesting debate! There’s a saying in my village that when you’ve not visited other people’s farm, you’ll ever think your father’s farm is the biggest. Please keep defending what you’ve got. For me, I’ve MSc, MBA and almost completing the CFA Program. I cherish the CFA most because it’s more rigorous, detailed and academically more challenging. I’ll advise Actuary to attempt the real exams first and then come back to the comment he wrote about the CFA Program!
sola – passing actuarial fellowship (shere number, variety and academic quality – for example – cfa is not that quantitative) is much more difficult than cfa. The weaker (in academic terms) grads in investment consulting are usually placed on the cfa programme after failing first 2 sets of actuary exams
CFA is an inferior qualification compared to MBA/MSC from LBS/Insead/harvard. That’s because anyone can attempt a CFA (within) reason, whereas not everyone can go to LBS/Insead/harvard. Don’t believe me, then ask yourself, when was the last time you, CFA, had dozens of job offers? Whereas harvard MBA’s do. so eat your heart out CFA’s.
Extract from LBS MiF website
What are the benefits to MiF students?
* Scholarships will be available each year to enable five MiF students to take level 1 of the CFA at the reduced fee of USD 150.
* A full set of CFA study materials will be available at London Business School.
* MiF students will also receive a CFA Institute newsletter and will be invited to CFA events.
Help! I am swamped with choices. Any advice welcome
I worked as a senior private banker before I co- founded a private clients consultancy in London. I am aged 35, BA grad,IMC and a Chartered Certified financial planner. I am facing a mind boggling dilemma on this current juncture regarding my career choices and further education; here are some of the questions i have;
1. Considering my age, have i missed the party to work in hedge funds or private equity/VC and by completing MSC in finance or CFA, will it improve my options?
Alternatively,
2. Should i consider an MBA
Thanks for all your views
what is the difference between MIF from London Business School and MSc Finance from other universities?
I am an ACA but have no undergraduate degree. I currently work in Lead Advisory but want to move into Private Equity. What degree would you suggest I do?
Hi I too have no undergraduate degree but have done my ACA from ICEAW. If I did an MSc in FInance would that help me compete against other graduates or would I still be hindered by not having an undergraduate degree. What do you suggest I do?
CFA & MBA are complementary and only in the mind of Ibankers do they get confused. One is finance focused and the other is management focused. A MSc in Finance is definately weaker than a CFA designation and is not really a management program. It is a hybrid with all the pros and cons of its particular mix. If you can get the CFA and the MBA, they are a much more potent combination as it qualifies you to lead a financial institution. CFA only qualifies you to run portfolios and anaylisis.
I would like to have an idea of the entry salaries for CFA’s as well as the responsibilities on average. I’m trying to determine which route to take in my career and heard that CFA’s make lots of money once certified, however my other interest is MSc in Economics. Is the job exciting? is it difficult to move up the latter? Are there lots of opportunities? I would really appreciate the feedback of someone that already has a CFA. Thanks.
Hi, I graduated in Bachelor in Electrical Engieering two years ago. I am planning of switching my career and thinking of doing masters in Finance. Do you think, having only basic knowledge in finance might be an issue to pursue for finance degree. Suggestions please!
Hi,
Does any one know where I can find ranking of MS finance?
Thank you.
Can I know the best Universities IN U.S.A and Canada which offer MSc.Finance..
hmm i agree