CFA Institute started its operations in 1947 and it is a pioneer in giving charter holders since its inception and has given charters to over 160,000+ CFA’s around the world in 165+ countries.The rate at which the number of CFA’s are growing is tremendous and stands at almost 7 percent annually. Candidates who are successful in becoming Chartered Financial Analyst take around four years to get their CFA charter.
They work as Fund Managers, Portfolio Managers, Wealth Managers, Equity Research Analysts, Risk Consultants, and CFOs. The Chartered Financial Analyst or CFA Program is a benchmark post-graduate professional qualification which is offered at a global scale by the American-based CFA Institute for the professionals of investment and financial.
CFA or Chartered Financial Analyst provides the apex level of a worldwide legal and regulatory recognition of finance-related qualifications. The program covers an extensive range of topics that are related to advanced investment analysis, and it also provides a generalist knowledge of different areas of finance.
CFA Charter holders are highly sought by top companies and banks globally which include UBS, Morgan Stanley, Royal Bank of Canada, Swiss Bank, Royal Bank of England, JP Morgan Chase, Goldman Sachs, Blackrock, Bank of America Merrill Lynch, RBC, HSBC, Wells Fargo, Citi Group and Ernst & Young.
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Table of Contents
Chartered Financial Analyst Benefits
Anyone who wants to be a Chartered Financial Analyst should know what the benefits are of being one. Some of these benefits are:
- CFA gives someone a leading global recognition
- Prospect of getting into top investment firms increases
- CFA makes you equipped for analysis and decision-making
- The exposure gained for a variety of roles in finance is unmatchable
- CFA as a course teaches better ethical standards
- Implementation of best global practices is learned in this course
- A CFA delivers practical and real-world skills
- CFA is far more time and cost-effective than any MBA Finance program
- Faster career growth is catalyzed by better networking
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Chartered Financial Analyst Requirement
Any aspiring CFA charter holder is needed to fulfill some prerequisites before enrolling to this program:
- A candidate should be in the final year of a Bachelor’s degree program or should have completed a Bachelor’s degree.
- A candidate should clear all three levels of the Chartered Financial Analyst program
- A CFA should have completed at least 48 months of qualified work experience, which is acceptable by the CFA Institute.
- Any aspirants should have genuine 3+ letters of reference.
- CFA charter holder should become a member of the CFA Institute and should follow the Standards of Professional Conduct and CFA Institute Code of Ethics.
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Chartered Financial Analyst Curriculum
CFA program curriculum is based on the knowledge, subject, and course plan established by the CFA Institute. The curriculum comprises of various levels, these are: –
Level I
This level of study program emphasizes on inputs, which includes introduction to financial reporting, asset valuation, and portfolio management techniques.
Level II
This level of study program emphasizes the applications of the tools and inputs which includes key areas like financial reporting, economics, and quantitative methods
Level III
This level of study program emphasizes portfolio management, where the description of strategies for applying the asset valuation, various tools, and input models to manage derivative investments, equity, and fixed income for individuals and institutions is tested.
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Syllabus of Chartered Financial Analyst (CFA)
- Financial reporting and analysis
- Security analysis
- Alternative Investments
- Ethics
- Derivatives
- Portfolio management
- Corporate finance
- Quantitative methods
- Economics
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Recognition of Chartered Financial Analyst (CFA)
Various international societies have recognized CFA are: –
- Certified Financial Planner Board of Standards also known as CFP Board
- The Society of Actuaries, also known as SOA.
- Professional Risk Managers’ International Association, also known as PRMIA.
FAQ
Ans. CFA or Chartered Financial Analyst provides the apex level of a worldwide legal and regulatory recognition of finance-related qualifications. The program covers an extensive range of topics that are related to advanced investment analysis, and it also provides a generalist knowledge of different areas of finance.
Ans. CFA and CA both are highly reputed exams, but if compare both the exams, CA is tougher than CFA.
Ans. CFA result does not have an expiry date.
Ans. The salary of CFA is an average of about $100,000 annually, those who work in the private sector have an average salary of $85,000.
Those who work in governmental entities earn between $81,400 and $87,000 a year.
Ans. CFA exam is expensive because it consists of 3 separate exams,
which is very broad. Most candidates think about the registration fees and the costs of actually taking the CFA exam, but they don’t consider all of the additional expenses that go with it.
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