Is it Worth to Study for CFA L1 Before B-School Starts?

Question

Dear Clubbers,

Would you spend your valuable time studying in order to take the CFA L1 in June???

I have a solid technical background, which I intend to complement via finance and strategy eduacation at B-school, and via my first job after graduation, which may be a consulting or IB gig.

I want to use my free time wisely before I start B-school, i.e, in a way that will help me during the recruiting process. Is passing the CFA L1 a good way to sign your interests – especially for those who come from the tech industry – to recruiters?

I also thought about the CAIA certification, but the exams are in March or September. I won’t have enough time to study for the former and the latter will mess with my B-school logistics. Moreover, everyone I know who does IB says that CFA has more prestige than CAIA.

I’m undecided between studying for the CFA and keeping myself from any kind of harsh, burn-out studying efforts before I get to B-school campus.

Is this fight worth or should I just relax and read finance/strategy related stuff prior to the MBA?

Thanks for the inputs :-D

2011

2011

interviewbay · Answer

If you are planning to take up a investment management career post-MBA, CFA can help you. Moreover, if you don't have any pre-MBA experience in finance, CFA can give you many more tools before you go for your internship. Good luck!

Edited by moderator: Advertising your site web is not allowed.

Edited by moderator: Advertising your site web is not allowed.

akshathbs · Answer

CFA and CAIA are two very different exams...

prhegde2000 · Answer

I feel you should totally go for CFA L1 , even if you are not planning a IM/Trading profile post MBA , mainly because L1 gives you a solid fundamentals on Financial statement analysis, economics and a bit of stats . L2 is even more rigorous and you will get a taste of finance courses at bschool .

I am an L3 candidate and a FRM holder I wish to clear L3 before I head to b school

I am an L3 candidate and a FRM holder I wish to clear L3 before I head to b school

addictive · Answer

i'm a CFA charterholder and would suggest take it this June and you would still be left with almost 2-3months to rejuvinate before the MBA starts ....... there's no downside and definitely it'll help you get noticed by employers, but plz note that it is most helpful only in research and investment management roles, and is no trump card for core IB roles ....... it'll give you basics of finance and will cover almost 40-50% of finance topics in compulsary finance in MBA, so an edge anyway ...... but take it seriously because if you fail, you might hate to taken this decision and not enjoyed the next few months of easy life before an MBA and may be a taxing rest of the career

abushey31 · Answer

Here's my view...

I am currently a CFA Level III Candidate (June 2011), and my post-MBA career path will be investment management. If you are indeed planning on going into investment management/research, you will likely be studying alongside many in your classes who will have passed one or more of the CFA Levels (especially if you are considering schools that are traditionally strong in finance). So bottom-line, it couldn't hurt to take it, although if you don't pass it, it's not the end of the world either.

Andoverjon · Answer

Can anyone recommend prep books?

Anonymous · Answer

The best prep book you will find is Schewser note books. They are 5 books that cover all of the matiral. I passed level one studying only from these books plus the Schewser and CFA institute mock Exams. 
Good luck for you

secondtime · Answer

Have you considered the CMA?

2011hereIgo · Answer

Guys, I appreciate your feedbacks very much. The thing is that I’m not 100% sure that I want IB. Currently, my break is 60% IB, 20% consulting and 20% remaining on the tech industry.

That’s why I’m struggling to take this decision. If IB were my certain destiny, I’d study for the exam.

Furthermore, I’m 33 and some people say that it’s going to be an uphill battle to get an IB gig at that age. Such kind of advice hasn’t encouraged me to start studying. Instead, it has kept me from purchasing the Schewser pack and devoting this 25 hours/week to the cause.

I’d appreciate if people with working experience within the finance world tell me how IB recruiters view a guy who entered bschool at 33. Only solid (positive) prospects regarding my chances of getting, at least, a summer internship in a decent bank can tilt me back towards the CFA path.

@secondtime: Man, I don’t know what CMA is. Please enlighten me :-D

2011

2011

secondtime · Answer

It stands for Certified Management Accountant; seems it would be more of a fit though if you are leaning towards something finance related that is not IB. From what I can tell the knowledge would be very applicable to a lot of other roles though. The problem IMO would be a little in terms of recognition, I wonder if people would think you won a country music award

.

https://www.imanet.org/ima_home.aspx

. https://www.imanet.org/ima_home.aspx

strikethree · Answer

I met a Wells Fargo IB recruiter who had a CFA (or at least completed level 1) and was working in TMT. I asked him about it and he said it definitely helped him better understand the financial statements within his own work.

I'm a college student, who's also considering the CFA, so I don't have first hand experience but I have spoken to a lot of IB recruiters. From what I gathered, the CFA shows that you're able to handle the quantitative aspects of IB work but it doesn't pull as much weight as a brand name undergrad/bschool would. In some cases, they might think you're not committed to IB since the CFA is more geared toward investment management.

And with consulting, the CFA is nice but also doesn't do too much with your chances of entry.

Now, please note that this was advice given to me. However, you're 33 so there is an age gap and experience gap. (which is already very rare for IB entrance) This could mean that the above advice is totally useless but I just wanted to share what I learned.

From your post, I can tell that you might be a little hesitant so I'm not sure if it is a good idea since the CFA does require devotion. (and I'm just going to assume it's been a while since you were in a study mode) But, if you have the time and the money then I would definitely go for it. Again, you have to compare the time studying the CFA (and this doesn't even mean that you're guaranteed to pass but let's just be optimistic) to what you otherwise would have done.

3underscore · Answer

It is best to sit in the summer of the first year. The overlap for study is pretty large, so you can do L1 and the L2 as you graduate. The difference between an MBA who has just completed the CFA versus one who is sitting Level 3 is really very little. The commitment point is made, and the actual need for a CFA is only at levels above where an MBA is recruited, if at all.

So I say do yourself a favor and work out how to do the career thing now. The CFA will get easier later.

So I say do yourself a favor and work out how to do the career thing now. The CFA will get easier later.

Andoverjon · Answer

Do you guys even recommend buying additional materials? or does signing up for the exam already provide you with study materials and practice tests?

3underscore · Answer

I think the Schweser notes are pretty popular. A colleague did it with just the books that came with it.

rni · Answer

Schweser notes are very effective.. but as you move from L1 to L2 to L3, the effectiveness decreases

Ashikurrahman · Answer

Is they any CFA forum for studying and discussing exam questins, guidelines like GMAT CLUB. I am planning to give L1 exam nxt year.

Posted from my mobile device

dsg · Answer

AnalystForum

Is it Worth to Study for CFA L1 Before B-School Starts?

Should I take CFA L1???????

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards