A chartered financial analyst (CFA) is a globally-recognized competent designation given by the CFA Institute, (formerly the AIMR (Association for Investment Management and Research)), that estimates and certifies the competence and integrity of financial analysts. The CFA charter is one of the most reputable designations in finance and is widely considered to be the gold standard in the field of investment analysis. To become a charter holder, candidates must pass three-level exams, have a bachelor’s degree and have at least four years of relevant professRRonal experience. Pas sing the CFA Programme exams requires strong domain and a substantial amount of studying. There are more than 160,000 CFA charter holders worldwide in 164 countries and regions. The nomination is handed out by the CFA Institute, which has nine offices worldwide and 156 local member societies. Candidates take an average of 4 years to finish off the entire program.
Who is Financial Analyst?
A financial analyst is competent, undertaking financial analysis for exterior or interior clients as a core trait of the job. The role may precisely be titled securities analyst, rresearch analyst undertakes investment analyst or rating analyst. The job title is a broad one in banking, and industry more generally, various other analyst roles cover financial management and (credit) risk management, as opposed to focusing on investments and valuation; these are also discussed in this article. Currently, there are more than 170,000 CFA charter holders worldwide in 164 countries.
Exam Curriculum and Fees Structure:
The CFA certification is offered internationally across the globe to the competitors passing all the 3 levels of examination through appointed examination centres globally:
Level I:
Ethical and Professional Standards
Quantitative Methods
Economics
Final Reporting and Analysis
Corporate Finance
Portfolio Management
Equity Investments
Fixed Income
Derivatives
Alternative Investments
Level II:
Higher dive into valuation n of assets- like Equity- Fixed Income- Derivatives
Detailed learning of Tools- Financial statement analysis
Level III:
Capital Market Expectations
Asset Allocation
Fixed Income and Equity Portfolio Management
Alternative Investments, Risk Management, and the application of Derivatives
Portfolio: Execution, Evaluation and Attribution, and Global Investment Performance Standards.
FEES SLAB FOR CFA CERTIFICATION:
Enrolment fees:
The enrolment expense is a one-time fee of USD 450 (or USD 350) paid when you register for your First level 1 CFA exam. This cost is obligatory for you to get enrolled in the list of CFA candidates and to enter the CFA Program (which is comprised of 3 levels). It implies your commitment to the CFA Program.
CFA exam registration fees:
There are 2 types of CFA exam registration fees:
1. Early fee of $700 in 2022.
2. Standard fee of $1000 in 2022.
They are the same for all 3 levels of the CFA exam.
$250 of CFA Exam Rescheduling Fee: This is a new fee introduced for computer-based CFA exams (CBT) (all levels). Its purpose is to make the rescheduling of your CFA exam appointment possible even after the registration and scheduling periods for your exam have been closed.
CFA program tuition fee is INR 50000 (for each module) for the classroom training program & online virtual training is INR 42500 for each module.
CFA Job Roles and Responsibilities:
CFA charter holders are furnished with mastery to work at senior and executive roles in
Financial Analyst
Finance Manager
Equity Research Associate
Chartered Financial Analysis
Research Analysts
Credit Analyst
Senior Financial Analyst
Senior Business Analyst
Associate in investment banking
Vice President in finance
Equity Analyst
Portfolio Manager
Senior analyst, Finance
Investment banker
Total Compensation and CFA Salary Guide:
Compensation for CFA charter holders naturally consists of a combination of base salary, performance-based bonuses, and some type of equity or profit-sharing. Charter holders can have salaries that are quite high, relative to other specialists in the finance industry. The following provides a general CFA salary guide.
CFA charter holders with 0 to 5 years experience reap from $50,000 to upward of $253,000 a year. Those with minor experience make on the lower end, while those with two to four years of experience fall in the middle.
Top Recruitment firms of CFA Charter holders:
TATA company
Deloitte
Aditya Sun Life
SBI Banks
Reliance Industries
Bharti Airtel
ICICI Bank
Hindustan Unilever Ltd
ITC
JP Morgan Chase
HSBC
Bank of America
Merrill Lynch
UBS
Ernst & Young
RBC
Citigroup
Morgan Stanley
Wells Fargo
Benefits of CFA Certification:
It strengthens your finance career way.
It equips you with graduate level proficiency in finance.
Global recognition and designation.
CFA commands higher salary and compensation package, on aggregate.
COMAPARISON CHART BETWEEN CHARTERED WEALTH MANAGER, CERTIFIED FINANCIAL PLANNNER AND CHARTERED FINANCIAL ANALYST
| PARAMETERS | CHARTERED FINANCIAL ANALYST | CERTIFIED FINANCIAL PLANNER | CHARTERED WEALTH MANAGER |
|---|---|---|---|
| Website | www.cfainstitute.org | www.india.fpsb.org | www.aafmindia.co.in |
| Certificate Issuing Body | CFA Institute, US | Financial Planning Standard Board India | American Academy of Financial Management, USA |
| Affiliation Body | The CHARTERED FINANCIAL ANALYST is offered by the CFA Institute is a global, not-for-profit organization comprising the one of the largest association of investment professionals. With over 100,000 members, and regional societies around the world. | The CERTIFIED FINANCIAL PLANNERCM (CFP) is offered by FPSB Ltd which was founded in 2004. Financial Planning Standards Board Ltd. (FPSB) is a nonprofit association, having a global presence operating in 24 countries including India. | The CHARTERED WEALTH MANAGERTM (CWM) is offered by American Academy of Financial Management, US. The AAFM Board of Standards TM was founded in 1996, is a non profit organization, an independent Board of Standards and Accreditation Council for professionals with members in 150+ countries offering exclusive certifications to candidates who meet the highest standards and assessment. |
| Global Certification - Territorial Limitation | The CHARTERED FINANCIAL ANALYST is offered by the CFA Institute globally and the candidate do not have to undergo any additional examination. | The CFP certification is awarded by the Indian Chapter i.e. FPSB India which restricts the certification to be global in true sense and is recognized in India only. The candidates will have to undergo additional certification / examination, if he / she want to pursue their career in any other country. | The CHARTERED WEALTH MANAGERTM certification is awarded directly by the parent body AAFM, US which makes the CWM certification truly global and is accepted globally without any territorial limitation. The candidates do not have to undergo any additional certification / examination if he / she want to pursue their career in any other jurisdiction. |
| Global Certification | The CFA certification is offered internationally across the globe to the candidates passing the all the 3 levels of examination through appointed examination centres globally | The CFP certification is offered in 24 countries including India. | The CWM certification is offered internationally across the globe. Currently, CWM is offered in United States, India, Brazil, Latin America, South America, EU, Europe, United Kingdom, Middle East, South Arabia, South Africa, West Indies, etc. |
| Output from Certification | The CFA program is a globally recognized, graduate level curriculum that provides a strong foundation of the real world investment analysis, portfolio management skills and practical knowledge needed to succeed in today’s investment industry. The CFA program majorily focuses on corporate finance and not personal finance. | CFP is a professional qualification for aspiring & experienced Financial Planners. CFP Certification covers all aspects of an individual’s personal finance needs like insurance, retirement, tax & estate, investment etc. | CHARTERED WEALTH MANAGERTM (CWMTM) is unique and the Premier Certification in Wealth Management certification in India. CWM certification is professional qualification for aspiring candidates who want to establish their career in Wealth Management and the professional who want to upgrade and enhance their skill set as per the mandatory requirement posted by the regulator and the industry |
| Courseware for the Certification | The Courseware for the CFA certification is provided by the CFA Institute. The courseware covers all the aspects of the finance in general but not country specific. | The Courseware for CFP certification is not provided by the FPSB India. The Education Providers themselves have to develop the content for the certification which creates discord amongst industry from the perspective of standarization and standard setting. Further, the students are not clear about the nature of questions asked in the exam. The courseware covers Indian content only. | The Courseware for the CWM certification is provided by AAFM India approved from AAFM, US. The benefit of courseware provided by the Board will helps in the standardization amongst the industry and maintaing the education standards and quality. The courseware covers Global plus Indian content. |
| Curriculum | A committee of practicing CFA charterholders, in conjunction with CFA Institute staff, design the curriculum to deliver the Candidate Body of Knowledge (CBOK) to CFA Program candidates. The curricullum designed is very comprehensive but do not cover the specific financial product knowledge based on different economies. It covers Ethical and Professional Standards, Quantitative Methods, Economics, Financial Reporting and Analysis, Corporate Finance, Portfolio Management, Equity, Fixed Income, Derivatives, Alternative Investments. | The curriculum of CFP Certification has been adopted from its parent body FPSB Ltd. which has been localized. The curriculum is designed to focus on Financial Planning Services Industry which covers Introduction to Financial Planning, Insurance Planning, Retirement Planning, Indian Taxation, Investment Planning and Estate Planning. | The curriculum of CWM certification have been designed and developed in consultation with the global academicians and industry experts with a focus on Financial Advisory Services Industry. In the contemporary dynamic environment of financial sector a Financial Advisor has to be mandatorily equipped with the Comprehensive knowledge and skill set to deliver at the job. The curriculum of CWM is relevant, practical, and exhaustible in nature which goes beyond CFP certification and also covers Global Financial System, Equity Analysis, PMS, Real Estate Valuation, Loan & Debt Management, Intergenerational Wealth Transfer, Internalnational Taxation, Relationship Management, Behavioral Finance, etc. The curriculum covers Global as well as Indian Markets. |
| Industry Integrated | The CHARTERED FINANCIAL ANALYST program is an industry integrated program relevant for the aspiring candidates who wants to pursue their career in research and analysis. | The CFP certification focuses on Financial Planning Industry which is not the prevalent business model in the current financial advisory services and it may take some more years to establish such fee based advisory model in India. | The CWM certification is an Industry Integrated program syncing with the existent industry business model of Financial Advisory Services including Retail as well HNI client wealth management services. The certification is flexible in nature which can get adopted and accepted with the changing financial advisory systems. |
| Course Completion Time | Candidates take an average of 4 years to complete the entire program | Candidates can take the exams a minimum of one month after registration; on an average the entire program takes about one year | Candidates take an average of 6 months to complete the entire program |
| Career Avenues | Analyst, Research, KPO, Banking, Brokerage Firms, Mutual Fund Houses, Private Banking, Wealth Management firms, Insurance Companies, Corporate Training, Educational Institutions, Independent Financial Advisory | Banking, Mutual Fund Houses, Financial Planning Outfits, Insurance Companies, Corporate Training, Educational Institutions, Independent Financial Advisory | Analyst, Research, KPO, Banking, Brokerage Firms, Mutual Fund Houses, Private Banking, Wealth Management firms, Financial Planning Outfits, Insurance Companies, Corporate Training, Educational Institutions, Independent Financial Advisory |
| Examination | Exams offered at specific times: Level 1 in June / December, Levels II, III in June only. The one time registation and examination cost for the Course is approximately $2500. For every re-examination the exam fee has to be paid. | In CFP certification there are five examinations. The examinations are conducted only on daily basis across India which loses the control of the Education Provider in the batch formation and conducting of classes. The Exam 1-4 are of 2 Hours each and Exam 5 is of 4 Hours and all the questions are MCQ in nature. The total examination cost for the student is Rs. 13,000/- for all the examinations. | In CWM certification there are 2 levels of examinations i.e. Level 1 and Level 2. The examinations are offline and are conducted on Bi-monthly basis across India. The duration of Level 1 examination is of 2 Hour and Level 2 is 3 Hours and all the questions are MCQ in nature. The total examination cost for the student is Rs. 4,000/- for both the levels. |
| Pathway to Register | 1. Have a bachelor's (or equivalent) degree; or be in the final year of your bachelor's degree program at the time of registration; or 2. have four years of qualified, professional work experience; or 3. have a combination of work and college experience that totals at least four years Effective 1 January 2011: Have a valid international travel passport (required for enrollment and exam registration) | Regular Pathway The eligibility criterion to register and hold the CFP certification through Regular Pathway is that the candidate must have passed minimum 10th Standard. The Registration Fee for the certification is Rs. 10,000/- having validity of 1 year. Challenge Status Pathway The eligibility criterion to register for the CWM certification through Experience Pathway is that the candidate must hold a professional qualification with 3 years of minimum work experience. The Registration Fee for the certification is Rs. 15,000/- having validity of 1 year. | Compulsory Pathway The eligibility criterion to register for the CWM certification through Compulsory Pathway is that the candidate must have passed minimum 12th Standard but minimum a graduate to hold the certification. The Registration Fee for the certification is Rs. 10,000/- having validity of 1 year. Experience Pathway The eligibility criterion to register for the CWM certification through Experience Pathway is that the candidate must have passed Graduation with 3 years of minimum work experience. The Registration Fee for the certification is Rs. 5,000/- having validity of 1 year. |