It is not a child's play to become a Chartered Financial Analyst or CFA. Only one in five people clear all the three levels of the CFA program as well as fulfill the professional experience requirements to become a CFA charter holder. However, successful candidates enjoy benefits of the strong global networking of CFAs which provides them with unrivalled opportunities in the investment industry.
The boom in Asian financial markets, led by China and India present some of the best opportunities for aspiring Financial Analysts while more mature markets such as Australia, Hong King and Singapore and investment banks, investment firms, insurance companies, mutual funds, pension funds, and general banks also offer leading roles to deserving candidates.
Eligibility for a CFA program
The CFA program is considered a benchmark for finance professionals in professional excellence, competency, analytical skills, and integrity. In June 2010, about 1,40,000 candidates from 160 countries enrolled for the program, out of which about 9% candidates were Indians. Anyone with a bachelor's degree in any discipline or appearing for the final year exams of their bachelor's degree can enroll for the CFA program.
Many of the candidates who apply for CFA program have full-time jobs as Research Analysts, Accountants, Auditors, Corporate Financial Analysts, Consultants, Portfolio Managers, Investment Banking Analysts, Relationship Managers, Financial Advisors, Risk Managers, Traders, Brokers, Strategists, and Private Bankers.
Where to study for the CFA programme?
The CFA Institute is a global association of investment professionals that works on a not-for-profit basis and awards the CFA charters to successful candidates. It also offers a range of educational programs and services through its member societies. Currently, it has 122 CFA Programme Partners worldwide, with 29 in the Asia Pacific Region.
Currently, CFA does not have an official partner to offer programs in India. ICFAI does offer CFA programs but its programs are not affiliated with the CFA Institute and are not the same as the globally recognized CFA charter offered by the CFA Institute. The CFA exams were conducted in India for the first time in India on 4th and 5th December, 2010 in Bangalore, Mumbai, and New Delhi, with the permission of the Delhi High Court.
The CFA program is basically a self-study graduate-level program and is not approved by AICTE (All India Council for Technical Education) and any investment professional who meets all the requirements of the exams are eligible to receive a CFA charter. The CFA organizes the CFA Institute Global Investment Research Challenge every year and in 2010, as many as 28 Indian universities participated in it, including IIMs, JBIMS, SP Jain, and ISB.
The CFA has also signed a Memorandum of Understanding (MoU) with the Securities and Exchange Board of India (SEBI) last year to jointly organize financial and investment training programmes in India through its National Institute of Securities Markets. Soon, CFA will be offering education programs to prepare candidates for a wide range of investment specialties that are hot in demand across the world.
Where Can a Chartered Financial Analyst Apply for a Job?
With liberalization and globalization in the financial services sector - money markets, merchant banks, international banks, lease finance institutions, portfolio management services, mergers and acquisitions, factoring services and other related services - the need of skilled finance professionals with a global perspectives is constantly on rise. Chartered financial analysts (CFA) have managerial skills with specialization in the following core areas:
- Corporate Finance and Control: Corporate finance is about optimum mobilization and utilization of financial resources in short-term and long-term in domestic and overseas markets and includes treasury management.
- Information Technology: Finance professionals with IT skills are much in demand and CFA professionals trained in high-end ERP packages like SAP, Oracle applications, or Baan draw high salaries.
- International Finance and Risk Management: Rupee can now be converted on current account and the future of convertibility on the capital account looks bright too. Besides, growth in exports and imports require personnel who understand the nuances of international finance, risk management, and international capital markets.
- Investment Banking and Financial Services: The growing field of investment banking needs personnel who can offer advisory services to corporate clients, financial consultancy services, help with mergers and acquisitions, and formulate nursing and rehabilitation programmes for sick units. Asset-based financial services want CFAs for leasing and hire purchase. Allied services such as stock brokering, marketing of public issues, National Stock Exchange (NSE) dealership, share registry, venture capital assistance, and loan syndication also require financial experts.
- Investment Management: CFAs cab work well as portfolio managers whose job involves the balancing of risks and rewards for the mutual fund investors by successful portfolio management.
Thus, the scope for a certified CFA professional is virtually limitless. The Reserve Bank of India, the Industrial Finance Corporation of India (IFCI), the International Development Bank of India (IDBI), and the Indian Railways recognize the CFA programme and employ trained CFAs. A trained CFA can also become an independent business consultant or join an existing consultancy or Chartered Accountancy firm. The excellent career growth of successful CFA candidates in the path is quite encouraging too and provides an edge to the recent pass-outs in terms of global networking and recognition.
Career Path and Salary of a Chartered Financial Analyst
Freshers with American CFA earn around Rs 6 to 9 lakh per annum while those with work experience may get a package up to 25 lakhs per annum. The final step on the career ladder of a Chartered Financial Analyst is usually the CFO (Chief Financial Officer) designation.
Source: Shiksha Team
