ryguy904 wrote:
summer2010 wrote:
I have been thinking about going for a CFA Level I this June before I join Columbia this fall. My background is in business/tech consulting and I am going for either Investment management (IM) or IBanking. Do the esteemed people of the forum have any opinions or thoughts? I realize that CFA probably makes more sense for IM but I have no real fin background and figured that I would atleast use the next few months for something constructive instead of lying around sleeping, going to the gym etc. My friend who works as an analyst for Fidelity says that CFA Level I would be too much pain too little gain. I have heard varied opinions.
Does have any experience with this matter in recruiting at top schools? Please bear in mind that I am talking about just CFA Level I and not being a charter holder or passed all the levels. Thoughts? Plus it may doubtful if I have the time to study for Level II next summer when i an interning.
Here's my $.02. This is coming from a CFA Charterholder and somebody that is the director of a mentor program for Level I candidates in Cali and has worked with a lot of Level I Candidates over the past three years.
1) The test will be MUCH easier after MBA school
2) If you want to be in I-Banking, CFA is essentially worthless (from a $$$ perspective)
2a) Once you get into school, you will have no time to study for Level II or Level III. If you go into I-Banking after graduation, you will also have zero time to study for the second two exams.
2b) Level II builds off of Level I. If you take Level I now (and pass) and take Level II in 2011 (you'll be in b-school from 08-10), you're going to have to put significant time into relearning some of the elements from Level I.
3) The CFA is no joke. Pass rates for Level 1 are ~35%. And that's for the people that show up! Approximately 25-35% of those that register, don't even make it to test day (for a number of reasons, although I would assume the #1 excuse is because of lack of studying). I would also suspect that the pass rates for those that do not have finance backgrounds are likely to have pass rates closer to 20%.
4) If you go into IM, your firm will likely pay for the materials, tests, etc. All in, this could run you about $5k depending on your study materials how many times you need to take the exams.
Bottom Line: No point in taking it now.
CFA is huge for IM. As far as your amigo at Fidelity, I'm not sure what type of role he has, but I have to disagree. CFA definitely involves serious pain, but has been one of the most rewarding aspects of my personal/professional career.
That being said, if you end up taking the exam this June, you probably needed to start studying about a month ago. However, if you can seriously commit ~15 hours/week for 3 months (Feb-April) and ~25 hours/week in May, you have a shot.
Cheers,
RG
PS If you are interested in more opinions, check out analystforum.com
A couple of remarks / questions... (my 0.02 euro
)
First of all, I am a CFA level II candidate.
I totally agree with you concerning the dedication you need to pass the CFA. The CFA L1 is most probably the toughest exam I have ever passed I my life - and I have a financial background (studies and work). And it's only going to get tougher.
I'm not sure I agree with you concerning exam being easier after MBA. Yes it will be easier, but MUCH easier? I don't know. If you have a strong financial background, I don't think an MBA will make a massive difference. It might be the case if you don't a financial background however. Obviously I haven't done an MBA (yet!!
) but I don't really see how an MBA could drastically improve CFA study with a financial background. Might be completely wrong though.
I also wonder when you say that a CFA is useless in IB. Not sure I agree. I have the impression that Ibanks ask for either an MBA or a CFA in order to become an associate, am I right? Would have to check it.
Would be interesting to have other people's opinion on the subject.
PS: if you plan only DECIDING in a month on whether you're going to take the CFA, might as well forget it IMO.
close
21 Jan 2008, 12:14
