What is MBA Return on Investment (ROI)?
The importance of knowing the ROI for an MBA from India gives a prospective student an idea about maximizing investment which he/she is to make when pursuing his/ her MBA. A lot of times the students realize that the investment in an MBA is a heavy one since they would have to pay several lakhs of rupees towards tuition and living expenses. Therefore, the ROI helps students determine which program to pursue and which can align with their career interests.
What is MBA Return on Investment(ROI)
It is the monetary return generated from an MBA compared to investing in such a degree. Usually expressed as a percentage, the ROI is calculated using this formula:
ROI= (Cost of the Degree/Net Profit from the Degree)×100
Here, the cost would include tuition fees, living expenses, and lost wages during the study period. Net profit, on the other hand, mostly comes from the difference between pre-MBA and post-MBA salaries.
Importance of ROI in Choosing an MBA College
When selecting an MBA program, ROI can be helpful for students to make selections that will generate financial returns. High ROI reflects the reality that when they graduate, the salaries earned will be much more than the investment one makes in education. This is more particularly the case in India, where so many take loans to fund education.
Major Factors Influencing MBA ROI
- Institutional Reputation: Clearly, a business school's reputation will have its bearing on salary outcome. Alumni and students from major institutions such as IIMs or FMS, Delhi earn higher salaries compared to others.
- Location: The students can be located in any location of the geographical area where they are studying and working. Salary levels are sometimes in rural areas, but salary levels at other times can be relatively better in urban centers like Mumbai and Delhi.
- Specialization: The field of specialization taken by students in finance or data analytics demands more in the job market, thereby affecting the salary package of the graduate.
- Networking Opportunities: Using the network from a strong alumni network helps in job placements and career advancement, thereby increasing the return on investment.
- Program Design: The program can be full-time rather than part-time. This would affect the short-term loss of income while training and the jump in the post-graduation wage scale.
ROI assessment for MBA in India
Students wanting to evaluate an MBA program in India have to take the following steps in the right manner to get a proper ROI.
- Total Cost Calculation: These will include tuition fees, living expenses, and lost wages during studies.
- Post-MBA Salaries: Average salary figures of recent graduates working in your desired area and of your locality are obtainable at school career services or from industry reports.
- Compare Programs: you need to compare different programs depending on the amount of costs associated with the programs, as well as their reputation, success rates of alumni, and more material resources such as internships or mentorship opportunities.
- Consider long-term benefits: this may involve evaluating intangible benefits, such as skill development as well as personal growth that an MBA can offer.
Top ROI MBA Colleges in India
Some of the best colleges and universities in India for high return on their MBA programs are listed below:
Faculty of Management Studies (FMS), Delhi
- Fees: Rs.2 Lakhs
- Average CTC: Rs.34.1 Lakhs per annum
- FMS consistently stands at the top because it offers low tuition fees as well as high placement packages. The ROI for such an MBA is spectacular at this institute.
Jamnalal Bajaj Institute of Management Studies (JBIMS), Mumbai
- Fees: Rs.6.1 Lakhs
- Average CTC: ?28 Lakhs per annum
- Known for its healthy industry linkages and placement.
NITIE Mumbai
- Fees: Rs.21 Lakhs
- Average CTC: Rs.31 Lakhs per annum
- Industrial management with excellent placements.
Tata Institute of Social Sciences (TISS), Mumbai
- Fees: Rs.1.85 Lakhs
- Average CTC: Rs.27 Lakhs per annum
- Specialized HR program with marked placement statistics.
Indian Institute of Technology (IIT) Bombay – SJMSOM
- Fees: Rs.12.8 Lakhs
- Average CTC: Rs.22 Lakhs per annum
- Technical strength in management education.
Xavier Labour Relations Institute (XLRI), Jamshedpur
- Fee: Rs.23 Lakhs
- Average CTC: Rs.30 Lakhs per annum
- Also very well known for its HRM programs with a very high placement rate.
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