Chartered Financial Analyst

How To Have A Career In Chartered Financial Analyst

In the fields of investment management and financial management, a chartered financial analyst is a very respected job to pursue. A student who wants to build up his career as a chartered financial analyst in the future, he/has to study hard from higher secondary standards. 

Examinations to fulfill the criteria of becoming a CFA are really challenging and hard. Thus, in India there a multiple numbers of coaching tuitions that train students to score good marks in the CFA examinations. A chartered financial analyst has numerous job opportunities in the financial market and there is a great scope for the advancement of a career with a high salary.

The Chartered Financial Analyst

A chartered financial analyst can be defined as a globally recognized professional designation that is given by an American-based institute of CFA for the measurements and certification of different analysts’ competence and integrity. A person who wants to be a chartered financial analyst has to pass three grades of exams that cover different topics including accountancy, economics, ethics, money management, security analysis, etc. 

CFA is one of the most respected designations in the field of finance that a person can get in the world. Even in the field of investment analysis, a chartered financial analyst is considered to be of the top tier. 

Eligibility To Become A Chartered Financial Analyst

A student should have to fulfill the following eligibility criteria to register for CFA courses:

  • A student from a commerce background mostly opt for the jobs of a chartered financial analyst but the minimum requirement to sit for the examinations is a bachelor’s degree in any subject from any recognized college or institute. 
  • Students who are studying in the last year of their bachelor’s degree course can also register for the CFA examinations but they must keep in mind that they have to complete their bachelor’s degree course before the registration date of the level 2 exam of CFA.

How To Become A Chartered Financial Analyst

A student appearing for the examination to become a chartered financial analyst has to study hard from the very beginning of choosing the course. The examinations are really hard and challenging. There are three levels of examinations that are conducted by the CFA Institute. 

All the levels of exam contain topics like corporate finance, financial reporting, and analysis, economics, quantitative methods, equity investments, fixed income, derivatives, etc. The exams are essay type and multiple-choice questions based. These are the exams that you need to clear to successfully become a chartered financial analyst.

Strong discipline and an extensive amount of studying are needed to pass the CFA Program exams. The three exams can be conducted once a year in June, with the exception of Level 1, which can be taken in the month of December as well.

Top Chartered Financial Analyst Institutes In India

  • Central India Institute of Management Studies (CIIMS), Jabalpur
  • International College of Financial Planning (ICOFP), New Delhi
  • Narayana Business School, Ahmedabad
  • International College of Financial Planning (ICOFP), Kolkata
  • Shri Chimanbhai Patel Institute of Professional Training (CPIPT), Ahmedabad

Chartered Financial Analyst Entrance Exam

Candidates who are willing to sit for CFA have to clear three levels of the Chartered Financial Analyst Exam: Level I, II, and II that are conducted by CFA Institute. The exams are conducted by the institute every year in the month of June. Level I exam is conducted in the month of December as well. Candidates are required to clear each exam one after the other. In the coming years, all CFA Level 1 exams will be conducted online i.e., computer-based mode. This year’s exam was the last paper-based exam for Level I exam candidates. 

Candidates who appear for Level I and II exams can check their results within two months from the date of the exam, and Level III candidates can get their results within three months from the examination date.

Career Opportunities In Chartered Financial Analyst

The full range of job functions for a chartered financial analyst includes relationship management and wealth management, credit analysis, accounting and auditing, trading, chief investment officer, and financial planning. The full range of sectors includes consulting, asset ownership, brokerage, etc. Chartered financial analysts are valued in different emerging areas of industry growth, such as Fintech.

Employment Sector/Industry For Chartered Financial Analyst

A typical chartered financial analyst can be employed in any financial sector including investment management sectors. 

Jobs In Chartered Financial Analyst

  • Portfolio management
  • Research
  • Consulting
  • Risk analysis and risk management
  • Investment strategy
  • Asset management
  • Private wealth management
  • Commercial banking
  • Investment banking
  • Insurance

Salary Of A Chartered Financial Analyst

An average base salary of a portfolio manager is 178500 US dollars per annum while the average total compensation of a portfolio manager is 316000 US dollars. 

Study Material To Become A Chartered Financial Analyst

  • The Handbook of Fixed Income Securities by Frank J. Fabozzi
  • The Intelligent Investor by Benjamin Graham
  • The Bitcoin Standard: The Decentralized Alternative to Central Banking by Saifedean Ammous
  • Capital Ideas: The Improbable Origins of Modern Wall Street by Peter L. Bernstein

Pros And Cons Of Becoming A Chartered Financial Analyst

Pros

  1. Educational benefit
  2. High salaried jobs
  3. Numerous jobs

Cons

  1. Too much time needed
  2. The high cost of enrolment and registration
  3. Won’t fix your career

FAQs about Chartered Financial Analyst