Last updated on July 23rd, 2024 at 01:14 pm
A Chartered Financial Analyst (CFA) is an impressive professional title to hold that is not just respected in the world of finance and investment, but CFA certifications can open doors to some high-paying jobs as well. However, the road to your dream job will be filled with challenges and you will be required to prove your mettle in the cut-throat world of finance.
If you are also dreaming of becoming a Chartered Financial Analyst, then this article will help you understand how CFA certifications can prove to be beneficial in your professional journey and what the limitations or disadvantages they can have for you.
CFA Certifications – Overview
CFA certifications offer a tailor-made, in-depth, and comprehensive syllabus that is designed for future financial specialists and prepares them for the unpredictable world of investment and advisory services. A CFA professional holds expertise in key financial areas that include portfolio management, investment consulting, financial research, and risk management. To qualify for CFA status, candidates need to have a bachelor’s degree and also 4,000 hours of professional experience. The candidates also need to pass 3 exams to test their financial and investing knowledge.
CFA Certifications- Advantages and Disadvantages
It is true, that CFA can give you a leg up when it comes to job as well as salary prospects but there are still some factors to consider. Before you start thinking about how to become a CFA, you need to analyze the pros as well as cons carefully. Below, is a list of advantages as well as disadvantages of CFA certification.
Better Job Prospects and Salaries
CFA certification is an impressive educational as well as professional addition to your resume, which means it opens up doors to better job prospects in the finance industry. Everyone in the finance sector understands the time and dedication required to achieve a CFA level which means hiring managers know that you are capable and have the analytical skills to handle high-ranking jobs. Moreover, as a CFA chart holder, you are in a position to negotiate a higher salary for yourself.
Time- Efficient and Cost- Effective than an MBA
It might come as a surprise, but pursuing a CFA may be much more economical than some Master of Business Administration (MBA) programs. A CFA program can provide you with the full spectrum of investment-related education, which can prove to be beneficial in your journey toward a successful career. CFA programs can also prove to be quite time efficient as well, because they are self-study programs, allowing you to hold a job even when you are pursuing the certification course. This is something that is not possible with a lot of MBA programs as they may require you to leave your job and commit on a full-time basis.
Better Global Recognition
CFA qualification and certification are recognized in many countries. This means you get increased job mobility if you want an international financial career, opening doors to jobs worldwide that require a CFA charter.
Networking Opportunities
When you qualify for a CFA charter, you also become a member of the CFA institute, which means you build your network with professionals who hold several investment-related jobs. Moreover, this is a global programme, and CFA’s also got a chance to build a truly international network as well.
CFA Certifications- Disadvantages
Requires Significant Time
If you are planning to become a chartered financial analyst, understand that you will be required to commit a significant amount of time. You will need to put in around 900 hours of self-study on 10 topics. Apart from that, to become a CFA charter, you must show 4,000 hours of qualified experience over three years. Therefore, before you pursue this programme ensure that you are ready for this type of long-term commitment.
Credentials Won’t Guarantee a Successful Career
As with any certification or professional qualification, CFA is not a guarantee that you will be successful or that your job will be everything that you have dreamed of. Indeed, a CFA can help you build a successful career, but there is no guarantee that it will happen only based on a CFA certification and other factors also play an important role in propelling your career.
The Bottom Line
Undoubtedly, CFA certifications can open more opportunities in the world of finance and can land you some amazing, high-paying jobs. However, you need to remember that your decision can affect your life significantly. Therefore, analyse the advantages as well as limitations carefully and then make your decision.
If you are set on making a career as a Chartered Financial Analyst, then Imarticus Learning can help you kick-start your journey through their well-curated CFA Program.
