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

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.

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 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.

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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. 

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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.  

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Canada

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

Global Rank of Target College	NPV	IRR	Profit
1-50	80 Lakhs	55%	1.5 Crores
51-100	1 Crores	96%	1.78 Crores
101-250	91 Lakhs	92%	1.64 Crores
251-500	80 Lakhs	82%	1.46 Crores

Verdict - From the table above, we can conclude that the NPV, profit and IRR  are all positive and high for students who are currently earning INR 5 Lakhs in India. For such students, pursuing an MS in Finance from any college in Canada is an economically wise decision. An interesting trend to note in the above table is the NPA for colleges that are ranked in the top 50s. The NPA, IRR and Profit in such colleges is lower than the NPA, IRR and Profit for colleges that are ranked between 51 and 250. This is because of the higher tuition fees at colleges ranked in the top 50s. The higher tuition fee lowers the NPA and the corresponding IRR and Profit.  

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

Global Rank of Target College	NPV	IRR	Profit
1-50	(-) 24 Lakhs	(-) 7%	(-) 17 Lakhs
51-100	(-) 4 Lakhs	4%	6 Lakhs
101-250	(-) 13 Lakhs	(-) 5%	(-) 7 Lakhs
251-500	(-) 24 Lakhs	(-) 57%	(-) 25 Lakhs

Verdict - In the above table, we can observe a negative NPA for colleges of all ranks for students who are currently earning INR 15 Lakhs per annum in India. The IRR and Profit to are negative for all colleges, except for those that ranked between 51 to 100 and that too marginally. Thus, we can conclude that for students earning INR 15 Lakhs in India, pursuing an MS in Finance program from Canadian Universities wouldn’t be a financially wise decision. 

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

 

Global Rank of Target College	NPV	IRR	Profit
1-50	(-) 1.27 Crores	Negative	(-) 1.86 Crores
51-100	(-) 1.08 Crores	Negative	(-) 1.62 Crores
101-250	(-) 1.16 Crores	Negative	(-)1.77 Crores
251-500	(-) 1.27 Crores	Negative	(-) 1.95 Crores

Verdict - The table shows a highly negative NPA and profit for students who are currently earning INR 25 Lakhs in India. Thus, we can say that for such students, pursuing an MS in Finance from any Canadian university is not a wise decision.

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Germany

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

Global Rank of Target College	NPV	IRR	Profit
1-50	1.2 Crores	133%	2.1 Crores
51-100	1.12 Crores	134%	1.94 Crores
101-250	1.04 Crores	134%	1.82 Crores
251-500	93 Lakhs	119%	1.63 Crores

Verdict - NPV, IRR and Profit for students who are currently earning INR 5 Lakhs in India is positive and quite high. This indicates that such students should definitely consider going to Germany for an MS in Finance.  

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

Global Rank of Target College	NPV	IRR	Profit
1-50	15 Lakhs	20%	38 Lakhs
51-100	7 Lakhs	15%	23 Lakhs
101-250	(-) 8 thousand	8%	10 Lakhs
251-500	(-) 11 Lakhs	(-) 9%	(-) 8 Lakhs

Verdict - The NPV and profit for students currently earning 15 Lakhs in India for top 100 German colleges is positive but quite low. Therefore, such students can pursue an MS in Finance from top 100 colleges, if they really want to do it . However, the NPV is negative for colleges ranked between 100 and 500, and thus students who currently earn INR 15 Lakhs in India should shelf their plans of pursuing an MS in FInance from German colleges that are ranked lower than 100.  

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

Global Rank of Target College	NPV	IRR	Profit
1-50	(-) 87 Lakhs	Negative	(-) 1.31 Crores
51-100	(-) 96 Lakhs	Negative	(-) 1.46 Crores
101-250	(-) 1.03 Crores	Negative	(-) 1.59 Crores
251-500	(-) 1.14 Crores	Negative	(-) 1.77 Crores

Verdict - We see  that the NPV, profit and IRR are all negative and high for students currently earning INR 25Lakhs in India. For such students, pursuing an MS from any German college does not make financial sense.  

Australia

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

Global Rank of Target College	NPV	IRR	Profit
1-50	87 Lakhs	58%	1.65 Crores
51-100	81 Lakhs	59%	1.54 Crores
101-250	75 Lakhs	57%	1.43 Crores
251-500	66 Lakhs	53%	1.27 Crores

Verdict - Students who are currently earning INR 5 Lakhs in India have a very high and positive NPA and profit for all colleges in Australia. Such students should therefore definitely study an MS in Finance from Australia and quitting their current job shouldn’t be a deterrent. 
 

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

Global Rank of Target College	NPV	IRR	Profit
1-50	(-) 17 Lakhs	(-) 2%	(-) 6 Lakhs
51-100	(-) 23 Lakhs	(-) 8%	(-) 17 Lakhs
101-250	(-) 29 Lakhs	(-) 15%	(-) 28 Lakhs
251-500	(-) 38 Lakhs	(-) 30%	(-) 44 Lakhs

Verdict - The NPV and profit are both negative for colleges of all ranks for students earning INR 15 Lakhs in India. For such students, doing an MS in Finance from Australia would not be financially beneficial.  

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

Global Rank of Target College	NPV	IRR	Profit
1-50	(-) 1.20 Crores	Negative	(-) 1.75 Crores
51-100	(-) 1.26 Crores	Negative	(-) 1.86 Crores
101-250	(-) 1.33 Crores	Negative	(-) 1.98 Crores
251-500	(-) 1.42 Crores	Negative	(-) 2.14 Crores

Verdict - The NPV, profit and IRR are negative and quite high for all Australian colleges, irrespective of their ranking. Hence, students who are currently earning INR 25 Lakhs in India should not study an MS in Finance from Australia. 

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Final Verdict - Students who are currently earning INR 5 Lakhs in India can pursue an MS in Finance from any college in the top 500 from Australia, USA, Canada and Germany. However, for those who are currently earning INR 15 Lakhs in India, studying in a US college of any rank or the top 100 German colleges makes financial sense. For those students who are currently earning INR 25 Lakhs in India, quitting their job to study an MS in Finance from any top four countries - i.e. USA, Canada, Germany and Australia - will not be a financially wise decision. 

If you’d like further clarity on your future prospects, we highly recommend using the Estimate Future Earnings tool. You can also opt for FREE admission counselling before taking any crucial academic decision. 

Other GyanDhan tools like the Admit Predictor can be highly beneficial too. This tool can analyze your chances of making it to the top universities worldwide after critical profile evaluation. 

MS in Finance from top universities worldwide can be a costly affair. Aspirants seeking financial assistance for the same can get in touch with GyanDhan to know their best options. You can also find out how much loan you can acquire by checking your loan eligibility. 

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