Im an engineer, how will CFA help ?
Without an MBA degree from a reputed B School, it is tough for engineers to get into finance, but with the CFA, it is possible because the CFA is focused on Investments.
If you're an engineer who wants to make a career shift to a financial field then the top priority should be a CFA.
The engineering background gives him/her quant, problem solving skills. Along with this if she/he has a CFA she/he is a perfect match for the investment industry. A typical job offered to an engineer with a CFA charter is sales or a trading job. If you're good at numbers and have an interest in finance, you should do the CFA. Financial engineering/quant finance is a field where they like to hire engineers
What is CFA ?
The CFA stands for Chartered Financial Analyst. The CFA designation is given to investment professionals who have successfully completed the requirements set by the globally recognized CFA Institute (formerly the Association for Investment Management and Research, or AIMR). CFA Institute continues to offer the CFA Program for the past six decades. The exam started in 1963 in USA and has become globally recognized with 130 local member societies spanning across several countries. By now more than 90,000 investment professionals hold the CFA charter. The CFA program leads the investment profession globally by setting the highest standards in ethics, education and professional excellence.
Who is a financial analyst ?
A financial analyst researches macroeconomic and microeconomic conditions along with company fundamentals to make recommendations based on its business, sector and industry. They also often recommend a course of action, such as to buy or sell a company's stock based upon its overall current and predicted strength. An analyst must be aware of current developments in the sector in which he or she specializes as well as in preparing financial models to predict future economic conditions for any number of variables.
Benefits of CFA programme
The CFA program focuses on investment knowledge. This helps the candidate to build a focused career in the investment domain either in research or in portfolio management.
• As the program is done in a self study mode, candidates can focus on working full time while they progress through each level to earn the CFA charter
• The program is well-structured to move from a basic entry level to an advanced expert level. Hence it becomes easy for candidates from other disciplines to start in this program and make a switch to the investment profession from other disciplines while doing the CFA program
• The CFA program has a six-decade history of maintaining a rigorous focus on globally relevant investment knowledge. This has created a good reputation for the program in the investment industry, amongst potential employers. It hence increases employability of all CFA charter holders significantly.
• The curriculum focuses on the practical knowledge and current real-world skills necessary in the global investment management profession. These skills are immediately useful on the job.
• Earning the CFA charter places the candidate in the company of more than 90,000 respected investment professionals. Access to their collective expertise, networks, and resources is an invaluable asset
Hiring companies for chartered holders?
CFA charter-holders are sought-after by almost all financial institutions.
• Broker-Dealer/Investment Banks
• Private Client Wealth Manager/Advisor
• Hedge Funds/Funds of Hedge Funds
• Insurance Companies
• Pensions and Foundations
• Other (Consultancy, Government/Regulators, Academia, Other)
Difference between CFA and FRM ?
CFA teaches you about valuations, investment banking etc. In Financial Modeling, you will learn how to use your conceptual understanding in the practical world of finance where you prepare financial models of a company to know its valuation.
CFA is a well-renowned international qualification in the field of Investments. CFA is an indispensable qualification for professionals who are looking for a long-term career in Investments. CFA will prepare you conceptually for subjects such as Financial Reporting Analysis, Fixed Income, Economics etc. In Financial Modeling you will learn how to use the concepts of Financial Statement Analysis, Economics in practice. In Financial Modeling you do all the calculations on excel whereas in the CFA you will solve all the calculations on the Financial Calculator. It will teach you to perform company valuations and make you job ready from day 1. Many students do Financial Modeling first before pursuing CFA, because it will help them prepare the foundation for CFA at the same time it can help them get a job in Equity Research, Financial KPOs, etc.
Opportunities post level 1?
The CFA charter is respected as a standard of professional credentials within the global investment community. CFA is an internationally recognized designation. The exam started in 1963 in USA and has become globally recognized in 176 countries. The CFA program leads the investment profession globally by setting the highest standards in ethics, education and professional excellence.
Chartered Financial Analysts work for investment banks, mutual fund firms, hedge funds, brokerage houses, boutique money managers, etc.
MBA vs CFA ?
1. CFA is cheaper compared to an MBA, it costs about US$2500 (Rs 2 lac to 2.3 lac) for the three levels, an MBA costs around 5 lacs and more. how ever the value for CFA is equivalent to the MBA's from B-schools as all the tier 1 B-school students who major in finance pursue CFA by default.
2. You do not have to take time off to do the CFA program; it is a self-study program, where as the MBA is a fulltime program
3. With an MBA it is more about the Management and it covers broader subjects ranging from HR, Marketing, Finance, Operations, Strategy, International Business, e - commerce etc.
4. The CFA program provides charter holders with specialized skills, such as Investment Analysis, Portfolio Strategy and Asset Allocation. The MBA program covers many things by just scratching the surface, while the CFA program covers one thing with a lot of depth.
Help applying for scholarships ?
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Scholarships from Finance360.in
We also provide scholarships for the students who are at par with the other in the batch and clear the exam in first attempt.