Growing Demand Of CFA Profession

Financing, Investing, Accounting, and management are the top tiers of how a company functions. No company or business operates without these functionalities and so companies hire a CFA. What exactly does the profession in CFA have for you? The Chartered Financial Analyst (CFA) designation is a globally recognised professional credential offered by the CFA institute. A CFA performs various roles related to investment analysis, portfolio management, and financial decision making. Here are some key responsibilities and Jobs of CFAs:

Investment Research and Analysis

CFA analyses financial data, market trends, and economic indicators to make informed investment decisions. They assess risk and return profile and evaluate stocks, bonds, derivatives, etc.

Portfolio Management

CFAs manage investment portfolios on behalf of clients, institutions, or funds. Portfolio management involves asset allocation, rebalancing, and performance monitoring.

Financial Planning and Wealth Management

CFAs provide personalized advice on investment strategies and risk management. They assist in creating financial plans. 

Consulting and Advisory Services

CFAs provide advisory services related to mergers and acquisitions, capital budgeting, and financial strategy.

CFAs are qualified to engage in a wide spectrum of job profiles. The CFA charter certifies the competence and integrity of financial analysts. This course is highly respected in the investment industry as CFAs possess expert level knowledge and experience in the field of financial and investment analysis. Besides the above-mentioned roles, a CFA plays, CFAs also perform Financial Reporting and Valuation.

Eligibility For CFA Course

The primary eligibility for pursuing CFA is that the prospective candidate should have a bachelor’s degree or equivalent, candidates must have completed bachelor’s degree from a recognised university. Alternatively, if you are in your final year of study, you are also eligible to apply. Or 4 years of experience. Additionally, Language Proficiency in English is essential as the CFA is conducted in English.

Examination Structure and Course Content

The CFA program is a rigorous and globally recognised qualification. This course requires strong discipline and thorough preparation. Candidates are expected to give at-least 300 hours for each level, but it may differ as per your time management abilities and study pace. CFA course consists of three levels, each with its own focus and curriculum that are needed to be passed in the sequential order only:

Level I – The Level I exam comprises 180 multiple-choice questions which are split in two sessions of 90 questions each. This level tests foundational knowledge and comprehension. These 180 questions are split between two 135-minute sessions, with an operational break in between. Topics covered include quantitative methods, economics, financial statement analysis, ethics, etc. Level I will be conducted in May, August, and November in 2024.

Level II This level focuses on application and analysis. The exam question paper consists of vignette-supported multiple-choice questions. It is like Level I with more complex content. The topics include fixed income, derivatives, equity valuation, and portfolio management. Current year exams will be conducted in May and August 2024.

Level III – Level III consists of vignette-supported essays and Multiple-Choice Questions. For the essay questions candidates are required to write detailed answers to questions. The Level III curriculum covers ethics, portfolio management, wealth planning, and other topics. In 2024 they will be conducted on 16-19 August 2024.

Enrolment Process and Additional Requirements:

You need to follow the below steps to get yourself enrolled for the CFA Course.

  • Visit the CFA Institute website and create an account by filling in your personal data. This account is the interface between you and all CFA related activities,
  • After that you are required to pay the CFA course price which comprises a one time enrolment fee of USD 350 and Registration fees of USD 1,250 that is to be paid separately as and when you register for each level. Rescheduling the exam date also costs USD 250. Indian candidates can avail the EMI option available through Eduvanz for registration. This option is only for Indian residents using the “Pay by Invoice” method during checkout.
  • You should get yourself registered at least 4 months before the test date.
  • Having a valid international passport is necessary for enrolment in CFA program,

Market Demand for CFA and Career Opportunities

  • In India CFA has a wide scope covering the entire finance industry. India ranks as the 3rd largest market for Chartered Financial Studies, as experience and skill grows so does the CFA salary in India.
  • If you want a value addition and even higher growth perspective, then you can pursue a diploma in IFRS and then pursue CFA. This will increase your market demand as you will be an expert in accounting and finance both. IFRS course fees generally range from INR 10,000 to INR 50,000. The average initial salary of IFRS professionals ranges from 4 lakhs per Annum to 8 lakhs per Annum.
  • Top career opportunities after CFA include Investment banker, portfolio manager, Risk Manager, Finance Manager, and so much more. The average CFA salary with 1-4 years of experience varies from 5 to 8 LPA. As you gain experience, salary tends to increase between 15 LPA to 25 LPA.

CFA is one of the most regarded and valuable courses in the field of financial analysis. The course might be a bit rigorous, but the fruits are super sweet. CFA is high in demand not only in India but globally. So, if you are considering CFA as a career option then there are no shortcomings to that choice and you should go for it!

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