CFA(Chartered Financial Analyst) is considered one of the most prestigious and high-potential certifications in the finance sector today. In this article, we analyze the total scope of the CFA certification, and answer some important questions including “How to become a CFA in India?”
The Chartered Financial Analyst (CFA) designation is awarded to those who have successfully completed the CFA Program and have acquired adequate work experience.
Three parts of the CFA exam test how to use investment tools, value assets, manage a portfolio and plan for wealth. Most people who complete the CFA Program have backgrounds in finance, accounting, economics, or business. Upon successful completion of the CFA program, application, and acceptance by the CFA Institute, CFA charter holders may use the CFA designation. The CFA charter qualifies professionals to hold senior and executive roles in investment management, risk management, and asset management, among other fields.
The path to becoming a CFA Charter holder consists of 3 level exams
• Level 1 includes portfolio management techniques, asset valuation, financial reporting, and analysis.
• Level 2, which includes quantitative methods in asset valuation.
• Level 3 includes equity, derivative investments, asset valuation, models
The Value & future of Candidates Applying for CFA :
- POWERFUL GLOBAL NETWORK of top industry professionals
- STRONG FOUNDATION AND COMMITMENT to ethics and professionalism
- REAL-WORLD SKILLS for making complex investment decisions
- RECOGNIZED AND WELCOMED by markets and employers globally
- UNMATCHED EXPERTISE in both practical investment analysis and management skills
- ACCESS to career-advancing tools and education
Students belonging to Chartered Financial Analysts can expect to work in the given domains;
• Risk Management
• Research analysis
• Business Analytics
• Accounting and Finance
• Investment Banking
• Portfolio Manager
• Financial Advisor
CFA Exam Pass Rates from 2011-2020: What the Latest Statistics Reveals:
Before pondering over the question of “How to become a CFA”, one should first note the statistics of the CFA exam pass rates.
Given that the CFA exam is multiple-tiered (i.e., you must pass one level before moving on to the next), it is useful to also look at the dropout rates to know how many candidates will complete the program. Despite the lack of specific data on completion rates, we can estimate the overall CFA success rate by considering how many candidates attempt each level of the exam
The Level 1 exam was taken by 1,079,679 candidates between 2011 and 2020. During the same period, 490,189 took the Level 2 exam and 273,394 took the Level 3 exam. As a result, we can estimate that about 25% of candidates begin the process by taking all three exams. We can estimate that 13 percent of all candidates who take the first exam pass all three, based on the fact that 146,612 people passed the third exam during that time frame.
You will find one thing common among students pursuing the CFA Program with all their capabilities – an intense desire to make big money.
- Getting a CFA does not come easy for everyone and anyone. It is very difficult to pass the exam and crack that nut in reality. The job takes away your weekends and any remaining relaxation you could have during the week (if you are employed full-time by an organization).
- The majority of people take the CFA exam without proper research and without thinking things through. Nevertheless, if you are someone who is interested in pursuing CFA, you should take the time to check the data before applying.
HIRING FOR CFA AS COMPARED TO CA :
Although both of these occupations have various classifications, there are some differences that distinguish them.
The CFA should only be considered if you are interested in training in financial or investment sectors as an analyst. As an alternative, if you want to improve your number-crunching skills, accounting, auditing, and taxation, you should pursue a career as a CA. Thus, you can choose between CFA and CA a little more easily.
As can be seen from the graph, the hiring trends for both these professionals have been more or less the same. It is to be noted though, that CFA professionals have a higher pay potential in comparison to CA professionals.
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