MBA Admission 2014: Know the ROI of your degree
Studying MBA is a huge investment in terms of finance. Investing a huge amount increases expectations of returns as well. The return, i.e., salary potential of a particular course is always weighed with the investment which is the fee paid for that particular course.
According to Virender Kapoor, president of MILE Institute, “Education is a solid investment like gold or real estate. But there is a difference. In case you buy gold, it doesn’t give you monthly returns but appreciates in value year on year. In case of real estate, you get monthly returns as rent while your property value appreciates. In case of education, it is even better. It gives you monthly returns, it appreciates and the best part is that no one can steal it from you.”
While it is not logical to weigh the fees paid and placement statistics to measure the Return on Investment (ROI) but the figures so help us a bit.
Shiksha.com brings you a comparative list of top B-schools on the basis of their fees and compensation received at the end of the programme.
| Institute
|
Course |
Fee |
Highest Package offered in placements * (in Rs/per annum) |
Median /Average package offered in placements (in Rs/per annum) |
| PGP |
16.6 lakhs |
NA |
NA |
|
| IIM Calcutta |
PGP |
16.20 lakhs |
NA |
NA |
| PGP |
17 Lakhs (Domestic) |
NA |
19.5 lakhs (Average) |
|
| PGP (1-yr) |
25.68 lakhs |
NA |
NA |
|
| IIM Lucknow |
PGP |
10.8 lakhs |
NA |
NA |
| PGDBM PGDHRM |
9.5 lakhs |
NA |
16.25 lakhs (Median) |
|
| MBA |
20,960 |
NA |
16.18 lakhs (Average) |
|
| PGP |
9.7 lakhs |
32 lakhs (Domestic) |
NA |
|
| PGP |
13 lakhs (Domestic); 19.5 (Overseas students) |
32 lakhs (Domestic); 37 lakhs (International) |
12.13 lakhs (Average) |
|
| PGDM |
10.50 lakhs |
36 lakhs |
17.2 lakhs (Average) |
|
| MBA (IB) |
13.25 lakhs |
24 lakhs (Domestic); US$ 88,500 (Inetrnational) |
14.32 lakhs (Average) |
|
| MMS |
2 lakhs |
26 lakhs |
16.18 lakhs (Average) |
|
| PGPM |
14.91 lakhs |
23.36 lakhs |
14.74 lakhs (Average Domestic); 32 lakhs (Average International) |
|
| Shailesh J Mehta School of Management |
M.Mgmt |
4.49 lakhs |
23.36 lakhs |
14.26 lakhs (Average) |
| MBA |
13.15 lakhs |
30 lakhs |
15.30 lakhs (Average) |
|
| PGDM (C) |
13.50 lakhs |
23 lakhs |
9.3 lakhs |
|
| Xavier Institute of Management, Bhubaneswar |
PGDM |
12 lakhs |
18 Lakhs (Domestic); USD 40,750 (International) |
12.08 Lakhs |
| MBA |
4 lakhs |
18.50 lakhs |
12.52 lakhs (Average) |
|
| PGDM |
13.5 lakhs |
55 lakhs |
9.71 lakhs (Average) |
|
| PGDM |
9.2 lakhs (Domestic) |
18.5 lakhs |
11.7 lakhs |
|
| IIM Raipur |
PGP |
9.85 lakhs |
18 lakhs (Domestic CTC); 38.5 lakhs (International CTC) |
10.06 lakhs (Average) |
| PGP |
10 lakhs |
19.25 lakhs |
11 lakhs (Median) |
|
| IIM Udaipur |
PGP |
8 lakhs |
NA |
10.37 lakhs (Average) |
| PGP |
8.30 lakhs |
13.5 lakhs |
8.59 lakhs (Median) |
|
| PGP |
9.48 lakhs |
17 lakhs |
9.68 lakhs (Average) |
|
| PGP |
13.5 lakhs |
22 lakhs (Domestic); 37 lakhs (International) |
12.49 lakhs (Average) |
The best way to judge ROI of an MBA degree, as suggested by experts, is to estimate the annual increase in salary and calculating the number of years on will take to pay off the student loan/ investment through salary increases over a period of 10 years. The pre-MBA and post-MBA work experience, EMIs, market conditions and so on should also be considered while calculating the ROI.NA: Not Available
Salary packages reflect the latest placement reports of 2014 (Sources: Official placement report and news websites)
But for a laymen, what matters at the end is the salary package and the status in the society. MBA from a top B-School is itself a status symbol and a good salary package is an ‘icing on cake’. However, investing in MBA is cementing the base for a bright future and evolving as a professional in the current job market.
Data compiled by Barkha Sethi
