Is MS in Finance Worth it if You are Already Earning Well in India?

Updated on: 06 Sep 2023

What is MS in Finance?

An MS in Finance or Masters in Finance is a postgraduate program that helps graduates get prepared for a career in Finance. Unlike an MBA with a specialization in Finance, a Masters in Finance is of 12 months or 18 months. This is a much better option for students who wish to enter into the field of finance, such as investments, trading, risk management, etc. Many Indian students who wish to carve out a career in Finance head out to countries such as the US, UK, Canada, Australia, etc. to study this program according to the international standards. 

What are the Benefits After MS in Finance Abroad?

The scope of Finance in foreign countries is bright. According to The US Bureau of Labor, the job opportunities after MS in Finance are numerous as the field of finance and business is likely to witness an increase by 10% by 2026. The IE Business School report to says that 64% of its MS in Finance students found a job in the investment banking sector within three months of graduation while another 18% found a job in the consulting sector. The trend is similar in most developing countries. Students who have pursued a Masters in Finance program from St Gallen, a top school in Germany, get an average salary of USD 1,09,000 a year, while those who have studied the same program from Imperial School in London get an approximate salary of USD 91,000 a year. Students who have studied MS in Finance from Canada have an annual salary of CAD $50,000-$60,000 on an average. 

Is it Financially Worth Doing MS in Finance from Abroad? 

Even though the career prospects after an MS in Finance from abroad look quite bright, is that really the case, especially for people who are already earning well in India? We will take a look at this question and present a thorough analysis for all our readers who might be contemplating on whether to quit their job in India and pursue an MS in Finance program from abroad or not. For aspirants who are confused about quitting their job or not, the best way to decide is to calculate the future estimated earnings after their MS in Finance degree from abroad. 

GyanDhan has already done that for its readers. Depending on the current salary that aspirants generally draw in India, we have done a detailed country-wise analysis of the expected returns that students can get after studying MS in Finance abroad.

In this blog, we will also be using some terms that are explained below:

• NPV - This refers to the Net Present Value and is the difference between the present value of cash inflows and outflows over a fixed period of time. The higher the NPV, the better the investment and vice versa.
• IRR - This is the Internal Rate of Return. It measures the rate of return of an investment. The higher the IRR, the better it is to invest.
• Profit - Profit is the amount that the students are expected to save while studying and working abroad.

Now that our readers are aware of the various terminologies and the assumptions, let us start with the country-wise analysis. For the benefit of our readers, we will take a look at the best places to study MS in Finance, i.e. the USA, Canada, Australia, and Germany. We have grouped the colleges in these countries in groups according to their global rank and will discuss the ROI for three salary levels. 

United States

If you are earning a salary of INR 5 Lakhs per annum in India:

Verdict - The table above clearly shows that the NPV and profit are quite high for colleges of all rankings. This means that students who are currently earning INR 5 Lakhs in India will make a financially rewarding decision if they pursue an MS in Finance program from a US college.

If you are earning a salary of INR 15 Lakhs per annum in India:

Verdict - The NPV, for students who currently earn INR 15 Lakhs in India, is positive. Even though the NPV is on the lower side, the profit is substantial for such students. Thus, they can quit their job and pursue an MS in Finance program from a US university. Studying at a higher-ranked university will increase their NPV and profit, so they should aim for that. 

If you are earning a salary of INR 25 Lakhs per annum in India:

Verdict - The table above clearly shows that the NPV, IRR and Profit are all negative and high for students who are currently earning INR 25 Lakhs in India. For all such students, pursuing an MS in Finance from US is not a financially prudent decision, and hence, they should shelf their plans of doing an MS in Finance from US if they are doing it for purely economic reasons.  

• MS 
• MS in Finance 
• Finance 

First published date: 10 Dec 2019